Ex-MP John Williamson bashes spending-addicted Gallant government

The New Brunswick government is addicted to spending and is using new tax hikes to fatten the bureaucracy, according to a former Conservative MP.

John Williamson, the former Conservative MP for New Brunswick Southwest, said people in the province who supported higher taxes in order to reduce the deficit have been sold a false bill of goods.

"The HST is going to bring in, this year, another $277 million, yet program spending is up $289 million," Williamson told Information Morning Moncton on Tuesday.

"So basically, the government has taxed more to spend more this year. And this tax increase falls on other tax increases that we've seen over the last number of years. Higher business taxes, higher personal income taxes on working families."

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Williamson, the vice-president of research for the Atlantic Institute of Market Studies, wrote a scathing opinion piece in last week's Financial Post about the fiscal policies of the Gallant government.

Williamson said the province is spending too much time worrying about how to bring in more revenue through tax increases instead of trying to get its spending under control.

Governments of both stripes to blame

The former Conservative MP didn't just point the finger at Liberal politicians.

"Governments of both political stripes have just been unable to get a handle on spending. They start out well but then they seem to give up," he said.

Williamson said while the province says it is making necessary investments, other factors show the fiscal policy is notworking.

We had to borrow every year just to provide basic services, day-to-day needsof NewBrunswickers.- Treasury Board Minister Roger Melanson

"Increasing taxes is not working, unemployment is over 10 per cent, most economic forecasters are downgrading growth in New Brunswick this year," said Williamson.

He said the Conference Board of Canada is even predicting a recession for the province.

"If the government had just held the line on spending this year ... we could have had a balanced budget this year, but that didn't happen," he said.

Williamson is calling on the province to keep annual spending increases to oneper cent.

He said if spending was kept to twoper cent a year over the last decade, instead of 3.8 per cent, the province would have had a $1-billion surplus this year.

Melanson blames former federal government

Treasury Board MinisterRoger Melanson, the former finance minister,was point his finger back at the federal government.

"It's quite difficult for me to take advice from somebody who was an adviser to [former prime minister]Stephen Harper for so many years," Melanson said.

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(Williamson served as Harper's director of communications before moving into elected politics.)

He blamed Harper's government for creating the the situation the province finds itself in, by not partnering with the provinces to provide an appropriate level of funding for social programs.

Melanson also said the Gallant government inherited a $400-million structural deficit from the former PC government.

"We had to borrow every year just to provide basic services, day-to-day needsof New Brunswickers. Education is part of that, health care is part of that," he said.

Melanson said New Brunswickers want a more balanced approach to the economy.

Over the next five years, he said, the provincial government will cut $296 million in spending, by finding more efficient ways to spend tax payers money,

But he said the province will also collect new revenues totaling $293 million.

"New Brunswickwers have told us that they want to have their government protect health care and invest in education and get our our financial situation under control," said Melanson.

He said by taking a long-term approach, the provincialgovernment should be able to balance the budget by 2020.