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Premier McNeil promises spending cuts in upcoming budget

HALIFAX – Nova Scotia Premier Stephen McNeil said the spring budget will cut spending and programs that don’t fit within the mandate of the government.

McNeil told the Halifax Chamber of Commerce in an annual address that the government doesn’t plan to reduce taxes in the budget because it can’t afford a loss in revenues.

Departments are reviewing program spending and cabinet will look at cutting any programs that aren’t part of each department’s “core business,” said McNeil. He said the cuts are needed because previous governments have created programs but haven’t ensured the public is getting value for what it is paying for.

The cuts will also help the government slash the $220.6 million budget deficit, all in an effort to keep its promise the province would balance its books by the next election.

The premier’s focus on spending cuts was welcome news to Halifax Chamber of Commerce President Valerie Payn who has raising the alarm bell on the province’s debt. The chamber’s website has a running debt clock which shows the province’s debt ticking closer to $15 billion.

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“The debt situation is absolutely dire,” said Payn. “It’s growing exponentially and its absolutely frightening to those of us who have taken the time to really seriously look at it.”

The premier also reiterated his warning to public sector unions, saying employees should expect less in the next round of contract negotiations.

“I will not agree to any collective agreements that our government cannot afford to pay today,” said McNeil. “I will not push it out beyond the next election, I’ll suffer the consequences at a campaign. But, we will not force a future government or future generation of Nova Scotians to deal with the problem that is on our door step today.”

The provincial NDP said before McNeil expects other people to accept concessions, he and his cabinet should have to ‘go first’ suggesting they follow New Brunswick Premier Brian Gallant and take a pay cut.

“The kind of restraint that you’re asking others to agree to and suck up you’re going to also require your own cabinet to demonstrate,” said interim NDP Leader Maureen MacDonald.

McNeil didn’t rule out a pay cut but said Nova Scotians would have to wait to see the budget to see where the government chooses to make the savings.

McNeil also said he will hire a deputy minister from the private sector in the coming weeks whose sole purpose will be regulatory review and reform.

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McNeil says he also hopes to work with Gallant to create a joint regulatory policy that would eliminate red tape for the business sector.

– With files from the Canadian Press.

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