Tax cuts and P3's just won't cut it - CUPE Nova Scotia

    HALIFAX, Jan. 27 /CNW/ - The president of CUPE Nova Scotia has a message
for Nova Scotia Premier Rodney MacDonald following today's budget from the
Harper government - tax cuts and P3's won't cut it.
    Danny Cavanagh says, "With the global economic crisis at Nova Scotia's
doorstep, the provincial government better get it right - with targeted
spending measures designed to maximize the effect of stimulus dollars. Looking
to the private sector for funding in the form of P3's
(public-private-partnerships) tells me that both Harper and MacDonald are out
of touch with what's been happening over the last six months.
    "For the MacDonald government to be pursuing at least three P3 projects
right now should tell Nova Scotians that they haven't learned the lessons of
the P3 schools debacle and are not qualified to be running the province at
this critically important time," he says.
    On the subject of tax cuts Cavanagh says, "Implementing broad-based
personal income tax cuts and corporate income tax cuts is a poor source of
stimulus compared to government spending. Permanent tax cuts are especially
ineffective, and, worse, they drain revenues the government will need to avoid
a long-term structural deficit. Over the past decade, tax cuts have undermined
the tax system's capacity to serve these purposes.
    "Our message to this provincial government is that local communities will
be on the front lines in dealing with the damages from the economic downturn.
We need to see a plan that relies heavily on municipal infrastructure to drive
the engine of growth and put Nova Scotians back to work during this
recession," says Cavanagh.
    CUPE would like to see the Green Infrastructure Fund directed towards
building more water and wastewater facilities, but these cannot be tied to P3
projects. This will only serve to tie up the money coming from the federal
government and prevent getting the shovels in the ground quickly.

For further information:

For further information: Danny Cavanagh, President, CUPE Nova Scotia,
(902) 957-0822 (Cell); John McCracken, CUPE Communications Rep., (902)
455-4180 (o)

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Canadian Union of Public Employees - Atlantic Region

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