Province recorded much larger surplus than expected in last fiscal year
Population growth, economy fuelled $500M surplus for 2023-24
The Higgs government recorded a larger than expected budget surplus last year, according to newly audited financial statements.
The surplus surged to $500.8 million, far higher than the original projection of $40.3 million.
"A strong economy and continued growth in New Brunswick's population proved to be significant drivers in the year-end numbers," Finance Minister Ernie Steeves said in a statement on Monday.
As recently as March, Steeves was projecting a $247.4 million surplus — but the final figure is more than double that.
It means another reduction to the province's accumulated debt, which now stands at $11.8 billion.
Each summer, Finance Department officials prepare consolidated financial statements for the province that take in government departments and other entities including N.B. Power, school districts, regional health authorities and non-profit nursing homes.
The statements are then audited by the auditor general, who signs off on the numbers.
The figures released Monday do not affect the $27.6 million deficit that's projected for the current 2024-25 fiscal year.
This year's statements were released days before the start of a provincial election campaign and they inject new data into a political debate over the Progressive Conservative government's cautious approach to government spending.
Province blocks details of cancelled airplane purchases
Ombud’s recommendations on disclosing Forest Protection Ltd. records mostly rejected
The New Brunswick government has rejected recommendations from the province's ombud to disclose secret information from a provincially owned company about cancelling a contract to buy new airplanes.
Steven Hansen, CEO OF Forest Protection Ltd., wrote in January 2023 to an assistant deputy minister and to a J.D. Irving Ltd. vice-president that he was "disappointed" by something he had learned that morning from the Department of Natural Resources and Energy.
What exactly disappointed him was redacted from emails obtained by CBC News through a right-to-information request.
A preliminary analysis by the New Brunswick ombud's office — after CBC complained about the redactions — said some of the material was about an airplane purchase contract Forest Protection had signed "and how it could cancel it with the vendor."
Chris Ward and Tom MacFarlane at a Jan. 18, 2022, legislative committee meeting. (Legislative Assembly of New Brunswick)
Jason Limongelli, a J.D. Irving vice-president, flagged in a Feb. 7 email to the department that Forest Protection had been at a Nova Scotia forest industry meeting promoting a new airplane that would join its fleet in 2024.
"Seems like the marketing materials were already done," wrote Limongelli, the vice-president of the Forest Protection board at the time.
Forest Protection, which is co-owned by the province and several large forestry companies, was established in 1952 to spray the province's forests to fight spruce budworm. It also sprays herbicides, including glyphosate, and fights forest fires.
CBC News requested the documents through the province's Right to Information and Protection of Personal Privacy Act.
Forest Protection refused to process the request, arguing it was an independent company that wasn't subject to the legislation.
The Department of Natural Resources and Energy Development provided 99 pages of heavily redacted email exchanges with Forest Protection but withheld another 179 pages, according to an investigation by Ombud Marie-France Pelletier.
Following a CBC complaint to Pelletier, she recommended that some — but not all — of the withheld information be turned over.
The department complied in some cases, including the subject lines of emails, but rejected many of her other recommendations.
Steve
Hansen left Forest Protection Ltd. in June 2023, five months after
telling Chris Ward he was 'disappointed' by the decision. (Jacques Poitras/CBC News)
Besides the airplane contract, Pelletier's office said other redacted material was about human resources issues, including negotiations between Forest Protection and an employee.
Hansen left Forest Protection in June 2023, five months after telling Ward he was "disappointed" by the decision.
He says on his LinkedIn page he created "a modern, agile and capable corporation" and more than tripled revenue during his four years at the company.
Hansen turned down an interview request from CBC News.
Four senior provincial government officials, including the minister and deputy minister of Natural Resources, are part of the 11-member board of Forest Protection.
It is majority-owned by the New Brunswick government, with several large forestry companies also owning shares.
Pelletier's investigation into CBC's complaint called Forest Protection's status "a rather unique arrangement."
She noted it has been "treated as though it were a Crown corporation by the province" for decades, with its financial statements part of the government's public accounts.
But, she concluded, the company doesn't meet the definition of a "public body" under provincial law and is not subject to the Right to Information and Protection of Personal Privacy Act.
Green Party Leader David Coon says Forest Protection Ltd. 'needs to be made a full Crown corporation.' (Ed Hunter/CBC)
She said, however, because the province is "so intricately linked" to Forest Protection, it would "seem fitting" that the company be subject to the act.
Green Party Leader David Coon said the company's status has been "a problem for decades" because it was set up "in this odd way" that gave the forest industry heavy influence over what he said is essentially a government operation.
"It needs to be made a full Crown corporation," Coon said.
"We don't want to be spend tax dollars in way that are not transparent, that we don't understand, that we can't get the information about."
'Very little meaningful information'
Pelletier's report says while some of the department's redactions were proper, others were questionable and left a reader "with very little meaningful information" and no way to understand why it was blocked or if the redactions could be appealed.
The department "failed to meet its duty to assist in responding to the request" and "did not meet the burden of proof to demonstrate that it properly refused access to all the withheld information," she wrote.
Despite Forest Protection's claim that it is an independent company, the exchanges indicate that, at least in this case, the province was directing its CEO about a key decision.
Chris Ward, the assistant deputy minister for forestry at the department and a Forest Protection board member, emailed Hansen on Jan. 11, 2023, to say he "found out" something "late last night," the specifics of which are redacted.
"I expect we may have to move on this," Ward wrote.
Hansen responded: "While it is fair to say I am disappointed, I also understand that sometimes things come up that are beyond our control."
Hansen included Limongelli, the J.D. Irving vice-president, on that response.
The
New Brunswick government rejected recommendations from the province's
ombud to release information about a contract to purchase airplanes that
was later cancelled. (Jacques Poitras/CBC News)
Over the next few days, Limongelli exchanged several emails with Ward, Hansen and the department's deputy minister, Tom MacFarlane, leading to a Forest Protection board meeting on Jan. 27.
On Jan. 23, he asked for information on the company's bylaws, and the next day he asked for its shareholder registry, a list of the company's owners.
"Lots of info attached here for you per your request and the background activity with Jason," Hansen wrote to Ward on Jan. 24.
On Jan. 30, there was an exchange of emails about a motion before the board.
"All votes have been received," MacFarlane said in a partly redacted email later that day, adding he would inform Hansen of the "direction."
This
aircraft used by Forest Protection Ltd, is similar to the one shown in
the marketing materials, except that is doesn't have pontoons. (Submitted by Forest Protection Limited)
On Feb. 7, Limongelli flagged Forest Protection's promotion of its planes at the Nova Scotia industry meeting, including one called the "Air Tractor AT-802F Fireboss" that the company said was "arriving for the 2024 season."
The model is similar to planes already in the Forest Protection fleet but it has pontoons.
Email exchanges continued for another month, but given the heavy redactions it's impossible to discern anything more from the discussion.
Natural Resources and Energy Development Minister Ted Flemming did not make himself available for an interview with CBC News.
J.D. Irving referred a request for an interview with Limongelli to Forest Protection. Its CEO, Mike O'Blenis, did not return CBC's call.
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The plot thickens
Reply to David Amos
why does the green party leader get so much press time? He is leader of an insignificant party who has no pull being on the backbenches.
Reply to Daniel Henwell
They are the only ones capable of dissent. The Liberal Party is just as corporately bought off as the Cons are and would fear hurting some feelings at Irving. You don't fight the good fight against fascists because you will win. You fight because they are fascists. In the Canadian system multiple options still allow us a semblance of a voice of dissent. If it looks unfamiliar to you its probably because there's nothing like that emanating from the US. We don't control the message as tightly and that gives a microphone to those who might state a view that can be reported. Don't count on Liberals to come up with reasoned opposition when they think they can simply offer nothing and get in by default in a game of political yo-yo we keep being to we are limited to.
Reply to Daniel Henwell
Smartest guy in the legislature, asking all the right questions, and represents a large constituency in the capital region.
Reply to MR Cain
Must be comedy hour.
Reply to Don Corey
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