Is Calvert paying attention to Paul Martin
Author:
David Maclean
2003/12/16
It has been said that smart people learn from their mistakes, but really smart people learn from other people's mistakes. The same can be said about learning from others' successes.
Paul Martin recently announced a series of measures aimed at cutting government spending - including a nation-wide hiring freeze, a program spending review and a freeze on discretionary spending. Martin's goal is to prevent Canada's budget from slipping into a deficit position in order to meet promises for more health spending and a cut in business taxes.
These actions have met little criticism from the usual nay-sayers, except for the usual cries from the anti-business NDP. One wonders whether Premier Calvert is watching this exercise in fiscal restraint with an eye toward putting similar practices to work in Saskatchewan.
The differences between the federal and Saskatchewan budgets are startling. First off, Prime Minister Martin's budget is in a surplus position. Premier Calvert's budget is swimming in red ink - to the tune of $1.5 billion in new debt in the last three years. The Prime Minister sees fit to enact modest reforms simply to maintain a balanced budget, while Calvert plays a wait-and-see game with Saskatchewan's financial disaster.
The Premier scapegoats the agriculture industry for the financial crisis by citing BSE, drought and grasshoppers. What he fails to mention is that government is collecting more taxes than ever before in history. Since 1998, government revenues have increased by $1.3 billion, or 22 per cent. Spending has increased 22 per cent faster than revenues.
In other words, for every new dollar that comes in, the province spends it and then some. Also note that the Provincial Auditor repeatedly warns the government about spending. In his most recent report, he pointed to spending overruns in the majority of government departments. The government writes and passes budgets ever year, but they aren't worth the paper their printed on. Cabinet Ministers march to treasury board demanding more money for their pet projects as a normal course of business.
And then of course there is the Saskatchewan Indian Gaming Authority (SIGA). For years, SIGA has been a justifiable whipping post of the Provincial Auditor. He continually points to lack of financial controls and rampant unapproved spending. Put simply, SIGA employees can spend million on goods and services without even having a receipt. Why hasn't SIGA addressed this fundamental problem It's simply because Calvert hasn't told them to.
The Premier has announced a freeze on 'discretionary spending'. This means that bureaucrats will have to cancel their out-of-province travel, and new computer purchases will be delayed. This austerity measure is mere symbolism. It's the old political touchstone of 'appearing' to do something rather than actually doing something.
Recent events do suggest that Premier Calvert picks up tricks from other politicians. Alberta's Ralph Klein frequently floats outrageous trial balloons aimed at distracting the media and public from real issues. Beleaguered by weeks of steady negative publicity about the province's financial mess, Calvert floated the idea of dropping the drinking age to 18. It was a successful ploy, as it led the newscasts on all the TV networks and provided a sexy topic for talk radio. Maybe next week's trial balloon will be legalizing strip clubs or adopting daylight savings time.
So, Calvert picked up a trick from Ralph Klein. You think he might ape Paul Martin's fiscal responsibility routine It's doubtful. The current trend is leading us straight toward a tax increase, so ignore the distractions and keep this government focused on a balanced budget without raising taxes.