Prince George: In its 2003/04 pre-budget submission, the Canadian Taxpayers Federation (CTF) pressed the Select Standing Committee on Finances and Government Services to drive a stake in the heart of the province's $4 billion deficit with a renewed commitment to government spending restraint particularly in the area of public sector costs. The pre-budget submission can be read or downloaded at: www.taxpayer.com.

"In the context of an economic slowdown and a $4 billion deficit, BC taxpayers cannot keep their head above water having to subsidize such a remarkably large and costly public sector," said Victor Vrsnik, British Columbia Director for the CTF.

"The public sector burden is crippling the private sector's ability to pay and draining the life out of an economic recovery."

The CTF recommends a strong dose of aggressive public sector spending restraint now and tax cuts following the 2004/05-balanced budget to medicate the BC economy and grow the overall tax base.

Vrsnik blunted criticism that the province's economic woes are attributable to recent tax relief measures.

"The economic slowdown in British Columbia cannot be blamed on tax cuts. The net tax cut in the February budget amounted to $1.4 billion after health care premiums shot up $800 million. Strip away what's left of the tax cut and province would still be $2.6 billion in the red. Once again, overspending is the culprit in this year's deficit," argued Vrsnik.

"Instead of questioning whether BC can afford tax relief, opponents should ask whether the province can afford not to grow the tax base to cover rising health costs and expectations."


The CTF recommends:

reducing public sector costs to levels comparable to Alberta and Ontario;

privatization of BC Rail, Hydro and ICBC;

a maximum two-year limit for a balanced budget and legislated debt repayment schedule;

restoration of lost tax cuts after balanced budget;

more private medical services to compliment public health system;

a referendum on a specific legislative proposal for the Kyoto Protocol and its

impact on the BC economy; and

responsible offshore drilling for oil and gas.

"The budget is more than a catalogue of figures and forecasts. It's a public policy decision that affects the lives of individuals and families. The government is obliged to remove the internal structural obstacles to progress, productivity and prosperity for British Columbia citizens," concluded Vrsnik.