Wolfville tackles N.S. finance woes

BY JENNIFER HOEGG

Kings County Advertiser

The Raging Grannies opened for Finance Minister Graham Steele in Wolfville Feb. 8. A group of the grey-haired activists sang and lectured the crowd, urging attention to poverty, women’s issues and health care in addressing government debt.

Steele took the protest in stride. “It would be better if grannies ran the world,” he said, to an applauding crowd.

As he had in Kentville earlier in the day, Steele asked the approximately 120 people present to discuss the four financial questions facing Nova Scotia’s future.

Ideas galore

With the Back to Balance brochure, markers and paper, participants discussed how to fix Steele’s $1.4 million “budget gap.”

After about an hour of intense discussion, each group had just 60 seconds to report key messages: fewer elections, investment in immigration and “green” energy were popular suggestions.

Many tables suggested a luxury tax or increasing “sin” taxes on alcohol, tobacco and even junk food. One table suggested legalizing marijuana and prostitution - and taxing both.

A raise in the HST, with conditions to protect the poor, was also popular. A show of hands indicated most would say “yes” or “maybe” to a two per cent increase.

Kathryn Fraser, president of the Annapolis Valley Homebuilders Association, opposed the idea. “We’re very, extremely concerned about an increase in the HST and the negative impact on construction and potential lay offs. “Our economy is too fragile and our members are extremely worried. The proposed two per cent increase to the HST could result in widespread unemployment to the residential construction sector when added to the three to five per cent increase that has just taken effect as a result of the new provincial energy code.”

An alternative source of revenue, she suggested, is “harnessing the taxation potential of the underground economy,” especially in the area of home renovation.

Income tax hikes were suggested by several groups, especially on high incomes (e.g. over $90,000).

With healthcare costs soaring, several groups offered solutions, from managing expectations and co-pay on non-essential health services, to increasing prevention and bulk buying medications with other provinces to alternatives including expanded midwifery and nurse-practitioner services, salaries for physicians and increased homecare.

Buying local was a frequent suggestion, both for food and government procurement. Encouraging people from other provinces to visit and to buy Nova Scotian was also mentioned.

Investment in education, especially in wellness, trades and citizenship; was popular, although building more schools was not. One unique suggestion was to allow students to “challenge for credit” at the high school level to allow earlier entry into postsecondary and work force.

Cutting provincial bureacracy costs by trimming administration and ending duplication among departments, was suggested by several tables. One table urged Steele to move more government offices out of downtown Halifax and curtail government raises to one per cent.

Roads were also a popular topic, with some urging toll highways, others questioning further investment in twinning and still others urging better roads to attract tourists.

Chance of consensus?

Consensus was rare, even within groups. “If you can’t get a consensus at your table, you can see the scope of the problem,” Steele said.

One area of general agreement was on the final question: when should the budget be “back to balance.” Only one person thought the next budget, expected in late March, should be in balance. Most thought within five to eight years was manageable. “As long as people see progress,” one person said, “they will give you the time you need.”

Mixed reaction

Although engaging youth was a common theme, few students participated in the session, a fact Steele found “unfortunate.”

Two Acadia students who did show found it an interesting evening. Emma Cullen appreciated the opportunity to talk through the “wonderful process.” Sarah Story also found the process “dynamic” and useful. “The most interesting part was sitting at a table with people from agriculture, education and a senior. People bring up things you never thought of.”

Cullen, from Alberta, suggested the province look at encouraging out-of-province youth like her to stay in Nova Scotia. “A huge thing is expansion of investments that keep young people here - especially with aging population and outmigration.”

Steve Crowell, Kentville, would have liked more time with the Finance Minster. “The process didn’t instill a whole lot of confidence,” he said. But, “I would like to praise it, so there is more dialogue like this.”