NLIS 5
March 10, 2004
(Executive Council)
(Finance)

Government calls on federation to withdraw ads, apologize

Premier Danny Williams is calling on the Newfoundland and Labrador Federation of Labour to withdraw particular TV advertisements concerning the province�s financial situation, and to apologize to the people of the province for the misleading nature of the ads.

Premier Williams and Loyola Sullivan, Minister of Finance and President of Treasury Board, held a news conference today to explain their objections to the ads. The subject of the advertising is the province�s financial situation. One ad focuses on the independent external audit done on the province�s financial situation and released publicly January 5. Another focuses on debt servicing.

"The content of the advertisements blatantly and willfully misleads the people of this province. They call into question the integrity of a report which was conducted by an independent, external company. I am deeply troubled by the accusation that this government paid an independent company to put false information into the public domain," Premier Williams said.

The Premier said that, while government expects and accepts legitimate criticism and respects a union�s choice to pay for advertisements during collective bargaining, government will not be silent when advertisements containing misleading information are put in the public domain.

Minister Sullivan said the advertisements distort data from both the interim draft report and the final document prepared by PricewaterhouseCoopers, the company that did the external audit. In doing so, he said, the ads give the "distinct but misleading impression that there is a drastic reduction in the province�s deficit."

The minister said differences in the numbers from the company�s interim draft report and the final report are associated with two things. One, the final report reflects more accurate data from the actuary with respect to the cost of post-retirement benefits. Two, there are additional debt servicing costs in 2006-07 and 2007-08 associated with having higher deficits in 2004-05 and 2005-06.

"At no time is it appropriate or ethical to distort the facts in an attempt to mislead the public to garner support for a particular viewpoint," Minister Sullivan said.

Media contacts:
          Elizabeth Matthews, Office of the Premier, (709) 729-3960
          Diane Keough, Communications, Finance (709) 729-6830

2004 03 10                                        3:10 p.m.


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