Monday, June 30, 2008

NBT: Boudreau's spending out-of-control

A $75.9 million dollar summer frenzy of spending

For a government whose Finance Minister made "finding more revenue" an excuse for raising taxes on NBers in '07 (not to mention, not reducing the debt.), they certainly appear to have rebounded quite well as they've spent more money in a week on industry subsidies, upgrades and pilot projects then most government's of small provinces spend in just under a year. Take a look at the corporate welfare [end of the month] June madness (June 23rd-27th):
  • Cooke Aquaculture Inc. receives $3 million forgivable loan.
  • Flakeboard Co. receives a $6.7-million term loan.
  • Fraser Papers Inc. receives $40 million term loan.
  • Atlantic Hydrogen receives $2-million grant.
  • Boiestown's Red Pines Park receives $200,000 for "comfort station."
  • TD Insurance Home and Auto receives $1.12 million forgivable loan.
  • Agriculture producers receive $650,000 grant to bring land into production.
  • Week long summer camps receive $440,000 cash injection.
  • Multi-k pilot project announced to help young Aboriginal NBers discover basketball.
  • York manor nursing-home receives $21.8 million forgivable loan.
Now I ask you, does the above spending pattern by your finance minister match his verbal commitment to maintain, and run, a fiscally responsible department so as to keep the books balanced and the debt down? Let me answer my own question, not by a long shot.

Moreover, the above is evidence that the March 2007 tax hikes were done for only one reason and one reason alone, and that's to satisfy this government's need to buy voters off with their own money.

In other words, it sounds like more of the same from these, tax, tax, spend, spend, spend. Let's face it folks, out-of-control spending has two pernicious affects on New Brunswick's budget. Firstly, keeping debt on the books in Fredericton handcuffs the government's ability to spend where necessary (and to provide meaningful tax relief) as $607 million of our tax dollars are sent (in the form of debt service charges) to pay off the $6.5 billion dollar debt. Secondly, this type of spending will most likely be handed over to a future generation of NB taxpayers. Thus, putting their futures in jeopardy (that is, if any of them decide to stay after graduation).

Let's face the facts, NBers can't afford anymore spending sprees like the $75.9 million dollar one that Boudreau and co. just went on last week. Time to show a little (or make that a lot more) restraint boys.


At Jun 30, 2008, 5:00:00 PM , Anonymous Canuckguy said...

--This liberal government seems so rudderless, aimless, incoherent and financially incompetent.
--I voted for them because I believed the Conservatives messed up.
--I did not expect a worst government in return.
--I hope it is not true that we get the politicians we deserve.

At Jun 30, 2008, 6:17:00 PM , Anonymous Anonymous said...

Wait until the price of oil and inflation really begin to kick in. Inflation is an economy killer and we're spending well above it.

At Jun 30, 2008, 6:53:00 PM , Anonymous nb said...

canuckguy: I agree. It was a huge mistake for them to raise the bar so high early with this "self-sufficiency by 2025" mumbo jumbo, especially without thoroughly thinking it out first. Policy-wise that is.

Because, in the end, such a [non]thought out policy comes across as hackish as those grandiose proclamations made by high school drop outs. You know the ones, where the guy in those unlaced high tops and overly tight jeans says he's going to be the head of a Fortune 500 company one day, even without Grade 10 math or english.

anon: they're spending way above the rate of inflation. And yes, we will all pay for it.

At Jun 30, 2008, 8:31:00 PM , Anonymous bill said...

Funny update. I read a lot of blogs nation wide, including Campbell's.

Not once was I ever given the impression that he is a conservative. If he is, he better start acting like one.

At Jun 30, 2008, 9:15:00 PM , Blogger Iain G. Foulds said...

... The thing is... once you accept the principle of the state forcing money from one citizen to another, there is no objective line to limit or confine the economic redistribution.
... Liberty is based on the principle of private property. Economic redistribution is a violation of this right.
... It is a waste of time to question every case of "state investment" ie. redistribution.

At Jun 30, 2008, 10:14:00 PM , Blogger Kit said...

Half way through their mandate, far too many promises that can't and won't be kept, stupid decisions passed off as tough decisions incompetently and amateurishly delivered by bullying, and then a huge "buy off the vote" spending spree right at the end of term and right before the Tories hold their long over due leadership convention...

makes you wonder what is in store when this gang is only a year away from an election?

I can't wait for the inevitable list of promises they will put into their bid to get re-elected. Its gonna be a doozie.

PS. Any seen Shawn lately? Or is he still letting Lamrock run things?

At Jul 1, 2008, 8:09:00 AM , Anonymous Anonymous said...

Wait until the announcement of Atlantic Fine Yarns restructuring fiasco. The government of NB have agreed to their plans, but they are willing to write off their debt owing to the province and BNB by almost 50%.

If you can go through the paper work, they (BNB) have agreed to reduce the dept owing to the province by over $40 M. Plus they have agreed to pay the government loans on a 20 year term, only after all of the other creditors have been paid off.

The New Brunswick Tax Payers are financing a Bankruptcy procedure with Atlantic Fine Yarns just to save 300 jobs for $10/hr while other companies in the areas could use these moneys to proper and keep the profits locally.

Document of Atlantic fine yarns can be found at

What is so amusing is that if BNB and the GOV of NB were not involved in this fiasco, these companies would not exist in NB.

I predict that full bankruptcy in approx 18 months, or sooner. But I again, maybe BNB or the government elected politicians will pump more money into it. It wouldn’t surprise me.

Not bad for self-sufficiency.

Frustrated Consultant

At Jul 1, 2008, 8:50:00 AM , Blogger Iain G. Foulds said...

... The problem will always remain as long as all of you accept economic collectivism- the role of the state redistributing income.
... So, spare yourselves the indignation at each case that you find offensive.

At Jul 1, 2008, 12:04:00 PM , Anonymous Anonymous said...

Victor Boudreau spends taxpayer dollars so wastefully, he could make a New Democrat blush.

At Jul 1, 2008, 1:58:00 PM , Anonymous Anonymous said...

Atlantic fine yarns is nothing more then a bottomless subsidy pit.

At Jul 1, 2008, 4:25:00 PM , Blogger Kit said...

What do you want from a Government where the biggest influence on policy comes from a guy who wrote the provincial NDP manifesto?
What do you expect from a Government that came to power without any solid policy proposals, little talent or experience outside of the province and who's senior leadership have only their time in campus politics to fall back on. We elected the University debating team...

At Jul 1, 2008, 5:20:00 PM , Anonymous Anonymous said...

LOL! I know some people who went to UNB when Graham did. I think it's safe to say we elected the happy go lucky Phys eder.


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