Parsons reacts to red ink budget

The provincial government is choosing economic momentum over a balanced budget this year.

The Williams administration is projecting a deficit of $194.3 million for the 2010-2011 fiscal year.

"As a government, we feel it is necessary to continue with our efforts to stimulate as the world returns to normal and more broadly based levels of economic activity," said Finance Minister Tom Marshall in his budget speech last Monday.

"This is not the time to retreat. We want to keep the momentum going in the right direction."

While the Opposition may have been pleased with the many spending announcements made, they were quick to point out the irony of Minister Marshall declaring this a budget for children while saddling the next generation with even more debt.

"If you go back to 1996, right through to 2003, this was a government that advocated balanced budgets at best," said Burgeo-La Poile MHA Kelvin Parsons.

"The story today is, 'We don't believe in balanced budgets.'"

This concerns Mr. Parsons because he said spending has more than doubled since Premier Danny Williams came to power in 2003, from $3 billion to $7 billion. He said most of that extra cash is coming from oil revenues.

"The oil is finite. When that finite resource wears out, where are we?" asked the MHA.

Mr. Parsons said he will be drilling down through the numbers over the next few weeks to see if there is any funding for local projects that wasn't mentioned specifically in the finance minister's speech.

He is specifically hoping to find funding for a new town hall in Isle aux Morts, and a new fire truck for Burnt Islands.

Other budget highlights that could have an impact on southwest coast residents include:

- $101,000 to increase ambulance staffing levels in the Western Health region;

- $3.6 million to replace the Crabbes River Bridge along the T'Railway Provincial Park;

- $606,000 to enhance the Medical Transportation Assistance Program to allow for reimbursement of mileage for private vehicle use when total use over a 12-month period is more than 5,000 kilometres; and,

- continuation of the provincial tuition freeze.

Ferries

One announcement that will affect coastal communities in coming years was news of $12.5 million to retrofit existing ferries, and $55 million to construct six new vessels. There is also $5 million to upgrade provincial ferry terminals.

Five of the six vessels have been promised for the south coast, while the sixth is for southern Labrador. Two are already under construction, according to the finance minister.

All will be constructed in the province, which is something Mr. Parsons said wasn't going to happen until the Opposition raised the issue.

He said during the recent by-election in Terra Nova, the Opposition told constituents that there was no promise of constructing the vessels in the province, according to Mr. Parsons. He said there are several shipyards in that riding capable of building these vessels.

Mr. Parsons expects the province will slowly take over operation of the coastal ferry service from private operators as new vessels come online. He said that change would have several implications, both positive and negative.

On the downside, the cost to the province would likely go up as they have to deal with issues such as accounting and human resources, which would otherwise go to the private operator, according to Mr. Parsons.

On the upside, he said provincial employees generally stand to make more money than private employees.

The Department of Transportation was contacted for more details on the new ferries but did not return calls before deadline.

reporter@gulfnews.ca