Economic Advisory Panel Recommends Tough Choices to Right Finances

The Economic Advisory Panel's report, released today, Nov. 13, shows Nova Scotia is in serious financial trouble and will have to make some tough choices to restore the province to a solid, balanced fiscal standing.

"This is truly a watershed moment for Nova Scotia," Premier Darrell Dexter said. "It is clear from the panel's advice that government and Nova Scotians have some very tough decisions ahead. If anyone thinks there is an easy way out, they are wrong."

The first phase of an independent financial review by Deloitte revealed in August that Nova Scotia is on a path to a $1.3-billion deficit.

The premier's first step was to appoint a four-member panel to define major policy challenges arising from the Deloitte report and identify options for government.

In its report, the panel recommends that government wait to balance the budget until 2012-13. It also suggests government consider a combination of the following options to address Nova Scotia's serious fiscal challenges:

• tighter management of spending
• review of programs
• tax measures
• a renewed commitment to enhance the economy.

The report stresses that doing nothing is not an option, or more importantly, the path Nova Scotia is on is simply not sustainable.

"I want to thank the panel members for their hard work over the past two months," Premier Dexter said. "This in-depth report will be a key tool for the government in preparing for next year's budget and developing a plan to put Nova Scotia back on a sustainable path."

Nova Scotians have shown they are interested in the future of their province by taking the time to write to the panel and attend focus sessions to share their views, which are reflected in the report.

"I'd like to see Nova Scotians continue to be involved in the process," the premier said. "I urge people to read the report to fully understand the scope of the problem and the challenges that lie ahead, and then let us know what they think.

"We need everyone's help to develop a plan to move forward. After all, this is the future of their province."

Monday, Nov. 16, Premier Dexter and Finance Minister Graham Steele will respond to the report and outline the next steps to address Nova Scotia's financial challenge.

To view the panel's full report and recommendations, visit www.gov.ns.ca/tpb .