ST. JOHN’S, N.L. – The Canadian Taxpayers Federation is urging premier-designate Tony Wakeham to rein in government spending and stop the debt from increasing after a major bond rating agency warned Newfoundland and Labrador’s finances could worsen under new spending promises.

“Wakeham was elected on a promise to make life more affordable and that starts by cutting wasteful spending,” said Devin Drover, CTF Atlantic Director. “The last thing Newfoundland and Labrador taxpayers need is another premier digging the debt hole deeper.”

Bond rating agency Morningstar DBRS warned this week that it may difficult for the government to stop racking up debt by 2026-27 given the PC government’s campaign promises, weaker oil prices and uncertainty surrounding a hydro development deal with Quebec.

“Wakeham can’t afford to repeat the mistakes of the last government,” said Drover. “Bond agencies are already warning that debt could grow further which means higher interest costs and less room for tax relief.”

Newfoundland and Labrador carries the highest per person debt burdens in the country. Every Newfoundlander and Labradorian average share of the provincial debt is more than $35,000. Debt interest payments alone are projected at more than $1.2 billion this year, which works out to about $2,200 for every person in the province.

“The simplest way for Wakeham to show he’s serious about responsible government is to start cutting waste right away,” said Drover. “That means shrinking cabinet, trimming political staff and freezing new spending until the province is back on track.

“Taxpayers voted for change and now it’s time for Wakeham to deliver.”