Magnitude of tax cuts remains one of few surprises left in N.B. budget

After months of hints and hype about sweeping tax cuts and staggering deficit projections, the Liberal government will reveal its third budget on Tuesday with the aim of steering the province from the rocky shoals of recession.

Some elements have been leaked in advance of Finance Minister Victor Boudreau's budget, such as a potential $800-million deficit, 700 civil-service job cuts, program cuts and the decision not to increase the Harmonized Sales Tax.

'We are going to see tax relief,... and I think New Brunswickers will be quite pleased.'— Victor Boudreau, finance minister

But there are still big questions to be answered in the budget speech, such as the size of the vaunted tax cuts that Premier Shawn Graham's government has boasted about for months, the expected length of the economic recovery period and the amount of debt that will accrue to pay for all the proposals.

Boudreau didn't dampen expectations during the ritualistic pre-budget photo-op on Monday, when the finance minister purchased a new tie instead of the traditional pair of shoes.

"We are going to see tax relief. It's going to be Year 1 of a four-year tax implementation or roll-out plan, and I think New Brunswickers will be quite pleased," Boudreau told reporters.

The Liberals are expected to include a four-year plan to return to surpluses. The expected tax cuts could total $100 million, but it is unclear who will benefit from the savings and how quickly money will flow into their pockets. Those tax cuts would not entirely erase the $135 million in tax increases the Liberals imposed in their first budget.

The finance minister will deliver his budget around 2:30 on Tuesday afternoon.

Tory response still unclear

Despite the steady stream of government leaks, Conservative Leader David Alward wasn't clear Monday on what he'd offer as an alternative.

Alward said he wants lower taxes, a smaller deficit and spending cuts that are more "strategic."

But the Opposition leader couldn't give precise figures for how that would add up.

"We're going to wait to see what government has to say. Over the next number of weeks, we're certainly going to be coming forward with ideas as well," Alward said.

'Members are just beyond themselves. They're outraged that the government would bring down such a policy.'— Danny Legere, president of CUPE NB

The province's public sector unions are not taking the news very well that as many as 700 civil-service jobs could be slashed and that those who keep their job will face a two-year wage freeze.

Labour leaders have been warned that 300 positions that are either vacant or held by people poised to retire will not be filled, while another 400 people could be facing layoffs.

So far, the unions have been told by the province that no retirement packages are going to be offered to entice people out of the bureaucracy.

Danny Legere, president of the Canadian Union of Public Employees for New Brunswick, said he is just as frustrated that the government hasn't given employees any idea of who will be affected by the cuts.

"Members are just beyond themselves. They're outraged that the government would bring down such a policy," he said.