Executive Council
Finance
January 12, 2016

Responsible Actions For Fiscal Sustainability

Government Launches Multi-year Government Renewal Initiative

Newfoundland and Labrador is facing mounting debt, increasing interest and borrowing costs, a credit rating downgrade, and restricted ability to support key government programming. In response to this difficult fiscal reality, the Provincial Government is launching the multi-year Government Renewal Initiative to identify a combination of measures to eliminate the province's deficit and move forward with a sustainable budgetary framework for Newfoundland and Labrador.

"Newfoundland and Labrador is at a critical juncture. Our province is facing a difficult fiscal reality that requires a new approach - one that is open, transparent and engages the public in meaningful ways. The Provincial Government is embarking on a comprehensive multi-year initiative that will: help us identify measures to increase revenues and reduce expenditures so that we do things more efficiently; look at the role that government plays in providing services; and set multi-year targets. Throughout this initiative, as we move toward reshaping our fiscal future, we will be working closely with all Newfoundlanders and Labradorians, as well as the public service, business, labour and community groups to tackle this together."
- The Honourable Dwight Ball, Premier of Newfoundland and Labrador

The unprecedented fiscal situation facing the province has led the Provincial Government to take decisive action to create a multi-year approach which addresses the situation. The mandate of this approach is to:

• Identify a combination of measure to increase revenues and reduce expenditures;
• Eliminate waste and identify opportunities to do things better and more efficiently;
• Assess the role of government in providing public services; and
• Establish multi-year fiscal targets.

"We all have difficult choices ahead of us and we must take action. We are starting our plan today, which will be reflected in our Budget 2016 choices and will inform our mid-year update, while providing more definitive and comprehensive actions for Budget 2017. We will be asking all residents to join the conversation and help us define the actions we plan to take. The questions we will be asked will challenge us to think beyond ourselves as individuals. We are being asked to balance our wants against our needs. This is tough, but if we are to get our province back on track, we all have a role to play. Our province, our communities and our families deserve our best efforts and nothing less."
- The Honourable Cathy Bennett, Minister of Finance and President of Treasury Board

The multi-year initiative will include important conversations that will see residents and stakeholder groups across the province sharing their ideas and generating possible solutions. Newfoundlanders and Labradorians will be guided by a series of questions, outlined in the backgrounder below. The first step of the initiative includes:

• Regionally-based public sessions led by the Office of Public Engagement;
• Open public town hall meetings;
• A guide will be made available to community groups, local governments, stakeholders and others so they can host their own conversations;
• Engagement sessions hosted by stakeholder groups such as academic institutions, high schools, community sector and economic sector agencies or groups;
• Stakeholder sessions identified and led by the Minister of Finance, as well as by other ministers or government members; and
• The Office of Public Engagement's Dialogue Application to generate dialogue and share ideas on how to address the financial challenges faced by the province.

"As Premier Ball has said, one of the hallmarks of our government will be ongoing and meaningful dialogue with the people of our province. Building a strong fiscal future is important for all of us. With the involvement and engagement of Newfoundlanders and Labradorians, government policy will better reflect your needs and will provide valuable insight into issues that matter most. Today, we are beginning an important conversation and I invite everyone to be involved."
- The Honourable Siobhan Coady, Minister Responsible for the Office of Public Engagement

Over the short term, these sessions will inform Budget 2016 and the mid-year fiscal update in late 2016 and will help strengthen the long-term plan, including Budget 2017. More information, including a Discussion Document, can be found at www.gov.nl.ca/OurFiscalFuture and the schedule for the first engagement sessions is below.

A complete schedule of sessions will be published in the coming days and also available online. To view the Premier's message Starting the Conversation visit https://youtu.be/EVEcznXzaW4 .

QUICK FACTS

• The Provincial Government is launching a multi-year Government Renewal Initiative to identify a combination of measures to eliminate the province's deficit and move forward with a sustainable budgetary framework for Newfoundland and Labrador.
• The mandate of this initiative is to identify a combination of measures to increase revenues and reduce expenditures; eliminate waste and identify opportunities to do things better and more efficiently; assess the role of government in providing public services; and establish multiyear fiscal targets.
• The multi-year initiative will include important conversations that will see residents and stakeholder groups across the province answers important questions, share their ideas and generate possible solutions.
• Over the short term, these sessions will inform Budget 2016 and the mid-year fiscal update in late 2016 and will help strengthen the long-term plan, including Budget 2017.

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Media contacts:

Nancy O'Connor Director of Communications Office of the Premier 709-689-1825 nancyoconnor@gov.nl.ca	Jennifer Tulk Director of Communications Department of Finance 709-729-6830, 728-4104 jennifertulk@gov.nl.ca
Kip Bonnell Communications Manager Office of Public Engagement 709-729-1221, 687-9081 kbonnell@gov.nl.ca

BACKGROUNDER
Guiding Questions to Start the Conversation

Newfoundlanders and Labradorians are asked to reflect on the questions below and help shape solutions to the difficult fiscal and economic reality facing the province:

1. Thinking of all of the things government spends your money on to provide the residents of the province with services, what are three things that could be stopped in order to save money?

2. Given the financial challenges facing our province, what three things do you think government could do to raise money (increase revenue)?

3. How can government be more innovative or efficient to provide quality services at lower costs?

2016 01 12                              2:10 p.m.