Government defends deficits

CHARLOTTETOWN — Premier Pat Binns and Treasurer Mitch Murphy barely had a chance to sit during Thursday's question period. Both were defending the way the Tories have been handling the province's finances.

Murphy has reported both last year's deficit,and this year's, are well above what was forecast. Last year's final figure was ten times what was expected. A total deficit of $83.3 million.

That revelation followed a new estimate that this year's deficit will climb to $53.3 million, over $40 million more than expected.

Opposition leader Robert Ghiz told the legislature on Thursday he had 83 million questions about last year, and 53 million about the current financial year.

He accused the premier, and his government, of hiding how bad the province's finances really were. He said the Tories didn't share the news until after the election in order to help win a third mandate.

Ghiz said Pat Binns placed his personal political goals ahead of the province's finances.

Ghiz also reminded Binns of comments he made before taking office in 1996. He said it should be against the law to run deficits.

The Binns government has delivered three deficit budgets in a row.

Both Pat Binns and Mitch Muprhy told the house the deficit isn't entirely their fault.

They blamed Ottawa for taking away some of the transfer payments it had sent to the province. Almost $8 million was lost from province's pension fund, something they said was the fault of soft stock markets.

However, Mitch Murphy had to admit the government departments are spending more than they are allowed.

Pat Binns also took time to defend the growing deficits. He said the province is still in the middle of the pack in comparison to other provinces.

He also told the house the Tories shared the financial figures with Islanders as soon as they became available.