The province’s annual report from the auditor general on government finances, released Thursday, shows an economy that’s performing well despite several concerns about spending and reporting.
Darren Noonan, P.E.I.’s auditor general, said the positive news is that the economy is strong and the government is taking these reports seriously.
“In our followup work, we’ve seen a positive trend in our recommendations getting implemented,” said Noonan.
He outlined several concerns in the report, however, including the government using what are called special warrants too often for spending.
Spending trend ‘going in the wrong direction’
A special warrant — as the name suggests — is only to be used in unexpected, unforeseen circumstances.
For the fiscal year ending in March 2022, Noonan’s office found the government spent $163 million on special warrants — twice as much as during the previous fiscal year.
“It’s a trend that is going in the wrong direction, I think,” said Noonan.
“The Treasury Board policy says that special warrants are to be used as a last resort … sometimes it’s just to cover cost overruns within departments, which comes down to managing your financial resources.”
Lack of contracts
Another concern is a lack of formal contracts for grant money given to Holland College and UPEI — more than $100 million in total.
“So there are two big institutions, two extremely large funding agreements … that didn’t have Treasury Board approval or contracts,” said Noonan.
“You should have the conditions outlined because that way both parties to the agreement are aware of what the conditions are and what the money’s to be used for.”
The last such contract for the institutions’ grant money was signed in March 2021, said Noonan.
The Park Street Emergency Shelter now sits on the site of the former government garage in Charlottetown. Noonan’s report says the government should get an environmental assessment done on the site in case there is contamination and remedial work needs to be done. (Tony Davis/CBC)
Another issue Noonan raised is the fact that the government hasn’t completed an environmental assessment on the former government garage site on Park Street in Charlottetown.
That site is now the home of a COVID-19 testing clinic and the Park Street Emergency Shelter units for those experiencing homelessness.
“[The government] acknowledges that there’s probably contamination on that property just based on what that property was formerly used for,” said Noonan.
“So the concern is that they do a phase two environmental site assessment and they find that there is contamination and that remedial work is required. And if remedial work is required, what does that do to what’s being done on that property now?”
More reports coming
Until a site assessment is done, said Noonan, there is no way to know the extent of any possible contamination or the cost of remediation.
“It could become a big expense, or bigger than you think it is. So disclosing that so readers of the financial statements are aware that there could be a potential expense in the future.”
Noonan also said 22 out of 25 reporting entities at the provincial level did not produce an annual financial report. And he’d like to see more details reported from agencies such as Atlantic Lottery and the P.E.I. Liquor Control Commission.
The auditor general said his office hopes to release six or seven other performance audit reports over the course of 2023.
“I’m looking forward to getting those done and get them out into the public,” he said.
FREDERICTON – New Brunswick‘s finance minister says the province recorded a surplus of $500.8 million for the fiscal year that ended in March.
Ernie Steeves says the amount — more than 10 times higher than the province’s original $40.3-million budget projection for the 2023-24 fiscal year — was largely the result of a strong economy and population growth.
The report of a big surplus comes as the province prepares for an election campaign, which will officially start on Thursday and end with a vote on Oct. 21.
Steeves says growth of the surplus was fed by revenue from the Harmonized Sales Tax and federal money, especially for health-care funding.
Progressive Conservative Premier Blaine Higgs has promised to reduce the HST by two percentage points to 13 per cent if the party is elected to govern next month.
Meanwhile, the province’s net debt, according to the audited consolidated financial statements, has dropped from $12.3 billion in 2022-23 to $11.8 billion in the most recent fiscal year.
Liberal critic René Legacy says having a stronger balance sheet does not eliminate issues in health care, housing and education.
This report by The Canadian Press was first published Sept. 16, 2024.
OTTAWA – Finance Minister Chrystia Freeland says the government is making some changes to mortgage rules to help more Canadians to purchase their first home.
She says the changes will come into force in December and better reflect the housing market.
The price cap for insured mortgages will be boosted for the first time since 2012, moving to $1.5 million from $1 million, to allow more people to qualify for a mortgage with less than a 20 per cent down payment.
The government will also expand its 30-year mortgage amortization to include first-time homebuyers buying any type of home, as well as anybody buying a newly built home.
On Aug. 1 eligibility for the 30-year amortization was changed to include first-time buyers purchasing a newly-built home.
Justice Minister Arif Virani is also releasing drafts for a bill of rights for renters as well as one for homebuyers, both of which the government promised five months ago.
Virani says the government intends to work with provinces to prevent practices like renovictions, where landowners evict tenants and make minimal renovations and then seek higher rents.
The government touts today’s announced measures as the “boldest mortgage reforms in decades,” and it comes after a year of criticism over high housing costs.
The Liberals have been slumping in the polls for months, including among younger adults who say not being able to afford a house is one of their key concerns.
This report by The Canadian Press was first published Sept. 16, 2024.
OTTAWA – Statistics Canada says manufacturing sales rose 1.4 per cent to $71 billion in July, helped by higher sales in the petroleum and coal and chemical product subsectors.
The increase followed a 1.7 per cent decrease in June.
The agency says sales in the petroleum and coal product subsector gained 6.7 per cent to total $8.6 billion in July as most refineries sold more, helped by higher prices and demand.
Chemical product sales rose 5.3 per cent to $5.6 billion in July, boosted by increased sales of pharmaceutical and medicine products.
Sales of wood products fell 4.8 per cent for the month to $2.9 billion, the lowest level since May 2023.
In constant dollar terms, overall manufacturing sales rose 0.9 per cent in July.
This report by The Canadian Press was first published Sept. 16, 2024.
