Carole James
Leader, BC NDP
P.O. Box 8523
Victoria, BC
V8W 3S1


Dear Ms. James,

A sustainable and progressive financial plan not only requires balanced budgets, as promised in your platform, but also a mandatory debt retirement schedule.

Because successive governments spent beyond their means and failed to recognize debt repayment as a priority, the province now owes an astonishing $36 billion to creditors.

The fiscal short sightedness of the past comes with a steep price tag. In the last ten years, British Columbia taxpayers shelled out over $26.5 billion in interest payments on the provincial debt. Currently, $6 million per day goes toward debt interest; that money isn't going to health, education or tax relief.

Without mandatory debt repayment, the likelihood of debt retirement is slim to none. The benefits of being debt free, however, are clear: more choices, more resources and no more wasted tax dollars on interest.

According to the latest budget documents, the debt is forecast to grow to nearly $40 billion by 2008. That's almost $6 billion higher than 2001 and that's including the full forecast allowance, contingency and any surplus going toward the debt.

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.

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.

I recognize the elections are busy times, especially for the leader, but our organization and many British Columbia taxpayers would greatly appreciate if you could provide the NDP's position on mandatory debt retirement for BC as well as the NDP debt management strategy.

Thank you for your time and prompt attention.

Sincerely,



Sara MacIntyre
BC Director
Canadian Taxpayers Federation