Monday 16 September 2024

Province recorded much larger surplus than expected in last fiscal year

 

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.

ABOUT THE AUTHOR

 
Jacques Poitras

Provincial Affairs reporter

Jacques Poitras has been CBC's provincial affairs reporter in New Brunswick since 2000. He grew up in Moncton and covered Parliament in Ottawa for the New Brunswick Telegraph-Journal. He has reported on every New Brunswick election since 1995 and won awards from the Radio Television Digital News Association, the National Newspaper Awards and Amnesty International. He is also the author of five non-fiction books about New Brunswick politics and history.

CBC's Journalistic Standards and Practices
 
 
 
204 Comments
 
 
 
David Amos
Surprise Surprise Surprise
 
Don Corey
Reply to David Amos
Not really though huh? 
 
 
 
David lutz
Let's hope the Liberals don't get in and start adding to our debt again. Cons are trying to get us in a better place long term, short sighted people want to spend everything and run up debt.   
 
Douglas James 
Reply to David lutz 
Cons is the correct term, for sure. They've been conning us for 150 years. Trying to get us in a better place long term? Given their abysmal record, that is highly unlikely. 
 
James Risdon 
Reply to David lutz   
Hear, hear.
 
David Amos
Reply to Douglas James
Do yo really think you are conferring with a well known political lawyer?   
 
Gabriel Boucher 
Reply to David lutz  
If the Cons really wanted us to be in a better place, they would've taken the education and healthcare crisis more seriously during the 6 years they've been in power. Neglecting those services will cost us millions, if not billions just trying to repair the system in the years to come. Repairs that this government failed to address time and time again. The rise in our provincial debt is more likely to happen, just not the way you think it'll happen. 
 
Douglas James 
Reply to Gabriel Boucher 
Exactly. But, unfortunately, Higgs, like most politicians are only interested in one thing....staying in power by hook or crook. They'll watch the healthcare system deteriorate further just so they can brag about paying down the debt. We all have debt. We all try to pay it down, but not by risking our health or our lives. 
 
 
 

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."

Two men sitting at a table in the legislature 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.

WATCH | The CBC's Jacques Poitras on Forest Protection's secrets:
 

Province won’t reveal forest spraying company’s secrets

Government rejects many recommendations by the ombud on releasing information from Forest Protection Ltd.

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.

Email 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.

A man in a suit and glasses looks off camera standing in a hallway. 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.

Ombud report 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."

Asmall white plane with yellow wings and a nose prop sits in a hangar. 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.

ABOUT THE AUTHOR


Jacques Poitras

Provincial Affairs reporter

Jacques Poitras has been CBC's provincial affairs reporter in New Brunswick since 2000. He grew up in Moncton and covered Parliament in Ottawa for the New Brunswick Telegraph-Journal. He has reported on every New Brunswick election since 1995 and won awards from the Radio Television Digital News Association, the National Newspaper Awards and Amnesty International. He is also the author of five non-fiction books about New Brunswick politics and history.

 
 
 
73 Comments 
 
 
David Amos
The plot thickens
 
Lou Bell 
Reply to David Amos
Heard of anyone significant running for the liberals other than the failed reruns from not only their own party , but from others as well ?
 
 
 
Daniel Henwell
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.
 
William Peters
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.
 
MR Cain
Reply to Daniel Henwell
Smartest guy in the legislature, asking all the right questions, and represents a large constituency in the capital region.
 
Don Corey
Reply to MR Cain
Must be comedy hour. 
 
David Amos  
Content Deactivated
Reply to Don Corey
Welcome back to the circus

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