- Taxpayer group pushes mandatory debt retirement.

Letter to BC Liberal Leader Gordon Campbell

Letter to BC NDP Leader Carole James

VICTORIA: The Canadian Taxpayers Federation (CTF) called on the New Democratic Party (NDP) leader and the leader of the BC Liberal Party to reveal their respective debt management strategies and to declare their position on mandatory debt retirement for the province.

"For weeks, the only fiscal issue that has been on the radar screen is spending, with nominal mention of the importance of balanced budgets. But before the surpluses are all but promised away, both the NDP and the Liberals need to reveal their debt plan," said Sara MacIntyre, BC director for the CTF.

"It's a growing cost of BC government and the balance won't be paid unless the debt is a political and fiscal priority for the next government. Right now, the debt costs taxpayers $6 million in interest each and every day."

Past governments have failed to recognize debt as a priority and as a result it has ballooned to $36 billion. A mandatory or legislated debt retirement plan would make debt payments part of the budgeting process, rather than an afterthought. The CTF submitted a proposed debt retirement plan to the finance committee during budget consultations last year, where a set percentage of provincial own source revenue (less federal transfers) would go to the debt each year until the debt was paid off.

In a letter to Gordon Campbell, MacIntyre notes, "under your leadership, the province's debt hit historic highs and taxpayers handed over $9.5 billion just for interest payments on the debt-British Columbia can compete-.but it must do more than simply balance the books. The only way to offer more choice, more opportunity and more resources to the next generation of taxpayers is to adopt a legislated debt repayment schedule."

To NDP leader Carole James, the CTF director states, "The NDP platform outlines a possible debt payment reduction of $340 million (reductions in the forecast allowance, surplus and contingencies), plus associated interest costs over the next fiscal year. Beyond reducing payments, there is no other mention of a debt management or retirement plan in the NDP platform and yet it is essential to the future direction of the province."

MacIntyre closes both letters by pointing out that, "as the debt continues to cost taxpayers more and further restrict the choices of government, it is crucial that any fiscally responsible government include a mandatory debt repayment plan."

"British Columbians deserve a fiscal plan that goes beyond the shelf-life of its MLA's and their limited mandates. To ignore the province's debt within the budgeting process is like putting a stranglehold on future taxpayers and governments. The only way to offer more choice and opportunity for the next generation of taxpayers is to adopt a mandatory debt retirement schedule. Let's hope the next generation of elected representatives can plan beyond the next four years," concluded MacIntyre.