Minister of Finance Responds to Auditor General’s Report

Today, the Honourable Tom Marshall, Minister of Finance and President of Treasury Board, reiterated the Provincial Government’s commitment to ensuring the province’s finances are managed in a prudent and effective manner. Minister Marshall was responding to the release of the Report of the Auditor General on Reviews of Departments and Crown Agencies for the year ended March 31, 2011.

“We appreciate the work that the Auditor General does on behalf of Newfoundlanders and Labradorians in providing insight on how well the government is managing the resources available to us,” said Minister Marshall. “We will carefully review all the recommendations contained in this report. Using the public’s tax dollars as effectively as possible has always been a top priority for us and will remain as a key focus in the future.”

The Auditor General’s report also includes the Audit of the Financial Statements of the Province for the fiscal year ended March 31, 2011. The report found that the province’s financial position has improved significantly over the past five years as evidenced by $4.7 billion in cumulative surpluses, increases in GDP and improvements in the debt to GDP ratio. Concerns were raised however around the level of debt and expenditure growth.

“As noted by the Auditor General, the province’s fiscal situation has improved substantially since 2006,” said Minister Marshall. “We do however recognize the need for a continued focus on debt reduction, while containing growth in expenditures. Debt expenses were still more than $835 million last year and despite the fact that $4.4 billion has been put into the public pension funds, our unfunded pension and insurance liabilities continue to increase annually. We must continue to spend within our means and focus on sustainability as we plan for the future of Newfoundland and Labrador.”

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Media contact:
Luke Joyce
Director of Communications
Department of Finance
709-729-6830, 725-4165
lukejoyce@gov.nl.ca 

2012 01 25             4:00 p.m.