03 March 2007

NL and NS governments sharing same economic brain?

From the front page of the Saturday Halifax Chronicle Herald - known affectionately to some as the Chronically Horrid - is proof that Nova Scotia and Newfoundland and Labrador are sharing the same political genius.

Nova Scotia finance minister Michael Baker is warning Nova Scotians that the Progressive Conservative's $1.0 billion in election promises might not be fulfilled right away. Baker is blaming it on Stephen Harper:
Mr. Baker said the province made those commitments because Prime Minister Stephen Harper had promised a new equalization formula that would have boosted Nova Scotia’s bank account. That hasn’t happened yet.
Meanwhile, in this province, Premier Danny Williams has pledged a $2.0 billion capital works program and coverage for multiple sclerosis drugs under the province's drug plan. That's in additional to personal income tax cuts promised last year by former finance minister Loyola Sullivan and reaffirmed by his replacement.

Williams had likely planned on spending a bundle this year anyway, in advance of the general election this fall. He will still make the spending commitments but he'll head into the election fighting with Ottawa as a political bonus.

In 2008, when the bills show up and the economy slows down as predicted, Williams will be singing a different tune on public spending, but then he'll be following the Nova Scotia lead and
blame Ottawa.

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