Taxpayers' Federation says civil service increase 'sends the wrong message' to NBers

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FREDERICTON - As the Liberal government struggles to reenergize the province's economy in order to stifle the exodus of skilled workers and find jobs for those who are still here, it has also decided to inject nearly $50 million in pay raises into the public service.

While part of the $49.2 million will be used to renegotiate a flurry of union contracts that will expire over the next year, another significant portion will be used to provide 3 per cent rate increases across the board for managers and executives across the public service.

Indeed, non-unionized management positions will receive a 1 per cent pay increase in April, and another two per cent increase in October.

A government spokesman said the increases, which are identical to last year's increases, are designed to "allow the government to retain workers and adjust to costs of living."

While the Liberal government continues to put up tax dollars to retain employees, communities across the province are still reeling from the job losses associated to the collapse of the forest industry and difficulties in the manufacturing industry.

However, business leaders fear they haven't seen the worst of the economic slowdown as they brace for the possibility of a full-blown recession in the American economy, which consumes most of the province's exports.

Calls for tax cuts and direct help were ignored by Finance Minister Victor Boudreau, who announced a tax consultation process, in last week's budget.

The Liberal government's across-the-board tax hikes hauled in $46.4 million above what the Department of Finance had predicted when Boudreau announced the increases in his first budget, largely due to higher than expected windfalls from income tax and minerals tax.

It was originally projected that last year's personal income tax increases would haul in $50 million extra for the province, an amount that was supposed to help the province avoid a deficit.

However, after hauling in $241.9 more than was budgeted and deciding at the end of the year to spend all but $18 million, the Canadian Taxpayers' Federation believes the Liberal government should be putting that money back into the pockets of hard working New Brunswickers.

Spokesman Adam Taylor says the government's refusal to return the money to New Brunswickers while also setting aside another $765,000 for MLA raises shows a lack or respect for the average New Brunswicker, especially when finance ministers across the country are tightening their belts.

"They seem to be thumbing the nose at New Brunswick taxpayers, especially with rising assessments, and hikes in hydro," said Taylor.

"The fact that last year they raised income taxes, it seems a little bit disingenuous to say we need to raise income taxes to prevent our budget from going into deficit, and then turn around and post a surplus and raise MLA salaries before they roll back that tax increase."

Taylor said the members of New Brunswick's legislature are sending the wrong message if they are considering raising their salaries according to a report that based much of its conclusions on MLA salaries elsewhere in the country.

"To say we are going to pay ourselves comparable to what the booming western provinces are paying their politicians, yet you aren't going to see any more increases and we are going to take more from your paycheque so we can pay ourselves more," said Taylor.

The recommendations in the remuneration report being considered by the Liberal government would bring New Brunswick's premier and MLAs within less than $3,000 annual salary of their Albertan counterparts.

Additionally, the recommendations would bring New Brunswick's premier's salary of $164,000 up to roughly $20,000 more than Saskatchewan's leader. Furthermore, New Brunswick MLAs would earn nearly $10,000 more than Saskatchewan MLAs if their salaries are increased to $85,000 as it has been recommended by Patric A.A. Ryan, a retired judge and the province's Conflict of Interest Commissioner.

If Ryan's recommendations are followed, MLAs would see their salaries jump from $81,758 to $85,000, an increase of 3.93 per cent.

The premier of New Brunswick's revised salary would subsequently fall just short of the salaries of the premiers of Nova Scotia ($165,487), Alberta ($166,554), and well above the premiers of Saskatchewan, Manitoba, Prince Edward Island and Newfoundland and Labrador.

Government ministers would see an increase of $12,124 over their current salaries of $40,490, and when the resulting total of $52,614 is added to the recommended base MLA salary of $85,000, they would be bringing home $137,614 annually.

While the money is in the budget to go ahead with the recommendations, Liberal House Leader Mike Murphy says the Liberals are consulting with the opposition Tories on how to proceed with the recommendations, and says the government won't act unilaterally on the issue and will have to measure public opinion.

Conservative House Leader Bev Harrison said he can't foresee his party standing in the way of an "independent commissioner's" recommendations.