The Reminder is making its archives back to 2003 available on our website. Please note that, due to technical limitations, archive articles are presented without the usual formatting.
Call it ÒSaskaboom.Ó Saskatchewan is currently first or second in Canada in almost every category of economic growth. In the midst of this, Premier Brad Wall has asked for public input on how best to deal with the provinceÕs newfound wealth. Yet, one priority should be clear: eliminate the provincial debt. If we donÕt take the opportunity to pay it off in good times, when will we? Last year the province spent $529 million Ð $1.4 million per day Ð just to pay interest charges on its $6.8 billion debt. Six per cent of the budget Ñ more than $100 from every taxpayer Ñ had no other purpose. Worse still, the hole is deeper than meets the eye. Defined benefit pension plans for MLAs, public servants, teachers, judges, and others have unfunded obligations of $5.1 billion. These and other liabilities make the total debt $14.6 billion. The problem hasnÕt gone unnoticed. In fact, the first bill introduced by the Wall government directly addressed the issue. The Saskatchewan Growth and Financial Security Act ensures that half of all surpluses go to debt reduction. Last year, that translated into $641 million. With good fortune, a decade of debt payments this size would eliminate the General Revenue Debt of $6.8 billion. Regrettably, that same schedule would still pour $3 billion into interest payments. Even worse, thereÕs no guarantee our generous surpluses (largely due to the price of our natural resources) will carry into next year, let alone for another decade. A sense of opportunity, if not urgency, is upon us. The goal must be debt elimination, not just debt reduction. What a tremendous legacy for this government. It can be done, and the opportunity to dedicate a larger part of the budget to that goal is today! Then, that half billion that no longer needs to be wasted on interest payments can go to reduce taxes and create savings for the future. The debt cannot be paid a half-surplus at a time. Without a clear goal, governments inevitably cave in to demands for more spending until the surpluses are almost gone. Now that nurses have a 35 per cent pay raise, every other public union has lined up for the same. Political opponents and advocates for the welfare state have already cried foul when the government has tried to reduce spending and eliminate ineffective programs. This pressure shows why large surpluses are difficult to maintain over the long term. Clearly, government must make debt repayment a goal, not just a destination for loose change.
