Politics Former premier David Alward ranks in middle on fiscal performance – Institute CHRIS MORRIS Legislature Bureau January 22, 2015 FREDERICTON • A survey of the fiscal performance of Canada’s premiers up until last year ranks David Alward in the middle of the pack, his score lowered by New Brunswick’s stubborn debt and deficit and by high taxes. The analysis by the Fraser Institute, a public policy think-tank based in Vancouver, looks at the performance of 10 premiers over the past four years – five of whom are no longer in office, including Alward who was voted out of the premier’s office in September. “Former premier Alward’s middling overall ranking (in fifth place) is mainly the result of two basic failings: managing key tax rates and deficits and debt,” said Charles Lammam, the Institute’s director of tax and fiscal policy. “On taxes, Alward ranked last partly because he increased New Brunswick’s corporate income tax rate and all four personal income tax rates, making the province less competitive. ... In addition, he ranked second last for his performance on managing deficits and government debt. Alward not only ran the second largest average deficit as a share of the economy but he also increased government debt.” The institute report – Measuring the Fiscal Performance of Canada’s Premiers, 2015 – examines the fiscal records of 10 Canadian premiers relative to each other during their time in office up to the 2013/14 fiscal year. It was released on Thursday. Three components were measured: government spending, taxes, and deficit and debt. The overall top scorer in the Institute survey is former Newfoundland and Labrador premier Kathy Dunderdale, who was given high marks in all three categories. Dunderdale resigned in June after months of poor showings in public opinion polls and amid criticism from her own Tory party that she wasn’t connecting with voters. Saskatchewan’s Brad Wall ranks as one of the best, in second place, while the overall worst ranking goes to P.E.I. Premier Robert Ghiz, who recently announced his resignation and is leaving office next month. In ninth place is former Nova Scotia premier Darrell Dexter, who was defeated in 2013. Alward’s highest score was in government spending, where the Institute gave him a mark of 77.7, enough for second place after Dunderdale. Christy Clark of British Columbia was third with a score of 64.3. “Over their tenures, all three premiers kept average program spending growth below both the rate of provincial economic growth and inflation plus population growth,” the Institute states in the report. Alward’s worst showing on the Institute scoreboard was in tax performance, where he finished dead last with a score of just 32.4 “On balance, Alward presided over a 2.7 per cent average annual increase in the corporate income tax over his tenure,” states the report. It also notes that while Alward’s Tory government lowered the personal tax rate (on incomes of $50,000 and $75,000) in 2011, it then increased all four provincial personal income tax rates in the 2013 budget. “David Alward ranked last because New Brunswick’s personal income tax rates are generally uncompetitive and because he raised all four of the province’s marginal income tax rates,” the report states. On the issue of debt and deficits, Alward was second last on the list with a mark of 32.9. He was one of six premiers, along with Dexter, Ghiz, Manitoba’s Greg Selinger, former Alberta premier Alison Redford, and Ontario’s Kathleen Wynne who failed to score above 50 since all ran a deficit, on average, and increased net debt during their tenures. “Regardless of where they ranked, all premiers, even those with high rankings, have room for improvement,” the report concludes
Posted on: Thu, 22 Jan 2015 16:20:35 +0000
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