Thank you, Mr. Speaker. As we await for the Financial Administration Act, or the FAA, to come into force in April 2016, there still seems some questions around the foundation of documents that sets up requirements the government must meet in borrowing money in serving its debt. This is the updated Fiscal Responsibility Policy, which was also referenced earlier today in the fiscal update.
Mr. Speaker, this policy was brought in in 2008 and was only found as a pamphlet online. It was never properly enacted as a policy of government, which makes its very existence very difficult for Members, very difficult for the public to find and, to be truthful, to actually understand it.
Until this new FAA comes into force, changes to this policy may only be made unilaterally by the Minister of Finance without any consultation of his Cabinet colleagues or Members of this House. So my questions today are for the Minister of Finance.
There are six Canadian provinces that have passed the Fiscal Accountability Act, taking their rules and policies and placing them into law. So, aside from small modifications made to the new FAA, would the Minister at least agree that the GNWT’s Fiscal Accountability Policy needs to be updated and properly enacted in a more formal manner? Thank you, Mr. Speaker.
Thank you, Mr. Dolynny. Minister of Finance, Mr. Miltenberger.
Yes, Mr. Speaker.
That went too fast. I could barely hear the answer of the Minister. The Minister, during some of the FAA discussions, agreed that within the new act to have a Fiscal Responsibility Policy vetted through the Legislative Assembly process. But it still begs to ask why this policy has not been enacted as a big P policy of government.
Can the Minister indicate why this policy has never been given the same level of attention, and what is the department planning in this regard?
We’re turning our attention here as we conclude the capital plan, of course, to planning and being involved in the transition process to identify issues and challenges. As part of that, there will be a proposed legislative agenda, so we are prepared to look at policies that are outdated. We’ve agreed to renew, for example, legislation that we adopted as mirror legislation as part of devolution. This policy, and I agree with the Member, it’s time for it to be looked at and, as he has indicated, formalized in a much more big P way.
I got that response loud and clear and I appreciate it. With the new work underway by the Department of Finance in preparation for the enactment of the Financial Administration Act, which is on April 1, 2016, the premise of my concern here today is that fiscal accountability is too important to leave to mere policy. Rather, it should be enshrined in law.
Has the Minister given any consideration to the merits of passing a fiscal responsibility act?
The type of elevation and evolution of the current policy is one where we’re open to discussion. The issue of a piece of legislation versus a formalized policy, there are distinct differences and probably merits to each approach and we’re prepared to have that discussion.
Thank you, Mr. Miltenberger. Final, short supplementary, Mr. Dolynny.
Thank you, Mr. Speaker. The New Brunswick Fiscal Transparency and Accountability Act goes as far as to impose a $2,500 penalty on Cabinet Ministers who fail to meet their financial targets.
Given that our Ministers operate in a vacuum, can the Minister indicate what penalties, if any, are imposed on our Ministers who fail to meet their financial targets?
This is a consensus government that we operate in. There are mandate letters given to each Minister by the Premier. We work closely with committees. We have reviews of business plans. Of course, we are, in effect, a minority government and we serve at the pleasure of the Legislative Assembly. We have numerous checks and balances in terms of making sure that ministerial accountability is upheld.
Thank you, Mr. Miltenberger. The Member for Hay River South, Mrs. Groenewegen.
