1. The finance minister admitted today in comments to reporters that the government had paid scant attention to the provincial debt thus far in its mandate. The government will apparently use the bulk of the 2007 budget windfall (estimated at more than $800 million) to reduce the public debt. Check the video when it comes available. Tom Marshall's comments show the hollowness of his previous claims about debt fighting.
2. Words to watch out for: "Once we account for the change in capital assets, the balance will reduce the province’s net debt." It's a question of assets and liabilities. Since the equity position contains both, let's see how the provincial government accounts for those in its upcoming budget. The windfall might actually go out the door with the debt only appearing to be reduced.
3. The only principle is cash. Not in the media reports by mid-day, but the provincial government is accepting the Harper Equalization deal, as amended by the agreement with Nova Scotia.
There's a gigantic surprise.
Not.
4. The finance minister still likes to pump out nonsense: "It is also important to acknowledge the Atlantic Accord 2005, which was successfully negotiated by Premier Williams, and its remarkable contribution to the overall improvement to the province’s fiscal position."
The improvement in the province's fiscal position is driven entirely by the results of the 1985 Atlantic Accord (the real one), three offshore development deals signed before 2003 and high mineral prices flowing from deals signed before 2003.
As the government statement said: "the change is due to much higher oil prices, increased production from the offshore projects, higher royalties for the White Rose project and higher than expected mineral prices."
Update:
5. A portion of the finance minister's remarks are available from CBC [ram file]. Marshall refers to the cabinet decision to put $55 million of the last budget against the debt as being "not enough". That isn't what Marshall said at the time of the budget. In fact, his budget speech trumpeted the great strides in debt reduction he and his colleagues had made. Rather than quote the Telegram editorial (even though the words are worth heeding), Marshall might well have pointed to those of us who have been drawing attention to the current administration's debt-reduction nakedness for some months now.
Turns out the Emperor and the entire court had no clothes and knew it all along.
6. While you're listening try asking yourself a simple question: who is Marshall trying to convince that paying down the debt is a good thing? Is his audience inside cabinet or outside?
-srbp-
