Flaws, concerns raised after release of long-awaited economic recovery report

Less than a day after the premier's economic response team released its report with recommendations on how to fix Newfoundland and Labrador's fiscal situation, people are already talking.

Among them are labour groups, the St. John's Board of Trade, concerned citizens and Mary Shortall, president of the Newfoundland and Labrador Federation of Labour, who left the task force in January.

"It's kind of [an]assumption that people don't understand how serious the deficit is here and there's only two options. One is to do exactly what they've said in this report and the other option is to do nothing," Shortall told CBC News of her initial thoughts about the report on Thursday.

"Everyone understands we have fiscal challenges;that's not the issue. I think the assumption that there's no other way of responding to them was a little insulting to the people of Newfoundland and Labrador."

The team's report, chaired by Moya Greene, included dozens of recommendations on how N.L. could dig its way out of its$47 billion total debt.

Among the recommendationsare cuts to health care andpost-secondary grants, abolishing Nalcor, an increase to some taxes and fees and privatizing the Newfoundland and Labrador Liquor Corporation.

'Demonstrate they are serious'

Richard Alexander, executive director of the Newfoundland and LabradorEmployers' Council, told CBC News the main message from Greene is that the future of the province is in jeopardy.

"There's a lot of doom and gloom out there in the public, and people know something needs to be done," Alexander said.

"We can change that doom and gloom, and give hope and optimism for the people of Newfoundland and Labrador, if government actions the spending reforms, reforming how government delivers programs and services and making them stable and affordable for the people of the province.".

Alexander said it's recognized that the burdenof the province's debt has to be borne by everybody by potential increases to gas taxes and personal and business income taxes.But it's important to remember, he added, thatthe province's financial situation wasn't created due to a revenue problem.

"We are herebecause of a spending problem, and before government starts taking more money out of the wallets of hard-working Newfoundlanders and Labradoriansthey need to demonstrate that they are serious and take action about the spending problem," he said.

The human impact

AlyseStuart, a communityorganizer withtheCommon Front NLCoalition, said she was sick to her stomach about the report and the groups that are being targeted, especially unions.

"Certainly there are some ways that we are going to be able to work together, but alienating workers is not the way to do that," she said.

Stuart also said poverty wasn't addressed in the report, and the province will be a tough sell in attracting new Canadians.

"Making it more expensive to live here and having less services once you're here, that is no way to encourage people to stay and build a life in this province," she said.

"I think the biggest concern that we should all have is yes, we have to look at the numbers, but we have to look at the human impact behind those numbers."

Elsewhere, the Canadian Union of Public Employees Newfoundland and Labrador said recommendations made in the economic reportwill reduce quality of life in N.L. and depress theeconomy.

The union represents more than 6,300 members working in health care, education, public housing, libraries, municipalities,social services and more.

"Services have already been reduced, making life difficult for many people in our province. We hear stories every week about people travelling across the province for health care, or long wait times," said CUPE-NL president Sherry Hillier.

"Dame Greene's report recommends the centralization and privatization of public services, taking them away from small communities, and threatening the viability of our local public hospitals, schools and community services."

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