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Saskatchewan and BC farther apart than you think

Author: David Maclean 2004/10/04
If you looked west three years ago - past Alberta - you'd see a mirror-image of Saskatchewan. In 2004, that is no longer the case.

Until 2003, British Columbia had suffered six straight years of provincial out-migration. Their provincial government ran eight consecutive deficits, while continually denying they were in a deficit position. In 2000 and 2001 the BC NDP claimed to have balanced budgets, but these were temporary blips resulting from the sale of electricity during the Californian electricity crisis.

This should sound familiar to Saskatchewan residents as our province has rung up three consecutive deficits amounting to $1.3 billion in new debt since 2001, all the while denying it's even happening. Our government is also sucking profits out of the crowns at break-neck speed and increasing our utility rates - which is undeniably a backdoor tax hike.

This year the Saskatchewan budget will likely be "balanced," but that will be attributed to $500 million in unforeseen equalization and health transfers, as well as the dizzying price of crude oil. Those equalization payments will not return next year, and the price of oil is anyone's guess.

While steadily increasing the provincial debt, the BC NDP increased every tax and user fee in sight - much like our own NDP did in Saskatchewan. Remember the hikes in the PST, campfire fees, lease charges for cottage owners, liquor consumption tax, SGI, Power, and even death certificates

And then there are the misguided government investments. In their most infamous blunder, the BC NDP lost $300 million on three "fast ferries" that were neither fast nor effective as ferries. In Saskatchewan, we've endured a $30 million loss on Spudco potato sheds, and millions more on movie companies, dot-coms and a litany of other failures.

Saskatchewan and BC were two peas in a pod during the 1990s, but that all changed in 2001 when British Columbia voters said "enough is enough" and elected a new government. And boy did things change.

The BC Liberals cut taxes in an effort to streamline their economy - 25 different tax reductions in total. Personal income taxes were cut by 25 per cent the day they took office. They eliminated their corporate capital tax, created tax incentives for new petroleum and mineral exploration, removed their PST from some costly business inputs, and implemented balanced budget legislation that includes financial penalties for cabinet ministers if they exceed their budgets.

Unfortunately, the Liberals raised many taxes and fees too - including the PST - but the net result has been lower taxes and the results have been positive. Since 2001, BC has enjoyed the highest job growth in Canada and their population is on the rise. After-tax income for workers is increasing five times as fast as the national average. For the first time in seven years the majority of British Columbians feel their economy is strong, and investment in the BC economy is growing faster than the national average. Toronto Dominion Bank is forecasting that BC will lead the nation in economic growth next year. Their budget is in surplus and progress can be made in lowering the provincial debt.

These results should keep our Saskatchewan politicians up at night, but they don't. Our government continues on its meandering path of increasing taxes and questionable business investments. They continue to increase spending faster than inflation and refuse to stick to their guns on public sector salary negotiations (another trademark of BC's NDP government).

Our politicians should wake up every morning focused on turning the Saskatchewan economy around and creating opportunity. Instead they are content to rule over an under-achieving province until there's nobody left to turn out the lights.

It's time to follow the lead of British Columbians and turn the lights out on failing government policies.

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