The provincial Progressive Conservative Party held a media conference and rally in Regina on Monday which local PC candidate Paul Carroll said was aimed specifically at the current government and a now rapidly revealing of major flaws in their debt management and recovery plans.
“This is becoming worrisome for all the people of Saskatchewan. I really believe a lot of people are becoming a little tired, and maybe scared about all this entitlement stuff going on,” said Carroll who contacted the Mercury just prior to the announcements that were delivered by his party’s leader, Rick Swenson.
“There are more than a few disenfranchised voters,” Carroll said, adding that Swenson would be making statements that centred on the fact that there is no provincial budget set for 2016 and the P3 projects (private, public partnerships) already underway will make it impossible for anyone to balance any future budget within the next four years.
He said the documents they studied are available in the Sask. Builds website, except for those classified as secret.
Even though he was excluded from the leaders’ debate last week, Swenson said he is still intent on exposing Brad Wall’s debt secrets so someone can ask the question as to “where will all of the lease and new debt repayments come from? In other words, who will pay?”
Swenson noted that with an already admitted 2015-16 deficit of at least $427 million, plus a further $700 million borrowed for infrastructure, the total is now $1.13 billion.
Unlike the former PC government’s projects, Wall’s P3 projects have no source of revenue except taxes, and do not create permanent growth and cannot be sold at an appreciated value.
“The P3 agreements prove the new hospitals, schools and Regina bypass are leased over 30 years on monthly payments. So far, we have only included the bypass in our calculations. The schools and hospitals will add to this debt for 30 years.”
Swenson added, “in 2016 alone, Brad Wall has a structural deficit of $427 million, plus $31 million representing just one-quarter of his new election promises and then secret monthly payments of $167 million on the bypass lease. Just for tricks, there is a $103 million lump sum cash lease payment due on Halloween in 2017. So the 2016 budget shows a total deficit of $728 million plus $1.158 million in accrued debt on the newly promised election P3s.”
The PC leader suggested, “Wall does not have the money to open the bypass in October of 2019. He needs another $507 million in cash when Phase 1 is completed. Then the debt parade goes on and on. He’s on a debt track for $7.6 billion increase over five years.”
The next government, which he said he trusted would be the PCs, would have a huge debt clean-up project ahead of them that could be stressful for all Saskatchewan residents.
Carroll, in speaking to the topic, said that while the issue appeared to be Regina-related, the figures involved and the commitments made could very well jeopardize proposed projects in southeast Saskatchewan such as the promised twinning of Highways 39 and 6 (south).
“With all these balloon payments coming due over the next five years, and with nobody expecting a return to $100 oil anytime soon, it’s a cause for real concern.”
