A2 - The Terroce Standard, Wednesday, October “Health, education on cho 10, 2001 ing block,” says NDP leader Gov't ‘freezes’ spending VICTORIA will freeze health care and educa- tion budgets for the next three years and slash spending in the rest of government by an aver- age 35 per cenl, says finance minister Gary Collins. He unveiled the need for dramatic cuts at. last open cabinet meeting Oct. 3 in Penticton. It comes on the heels of premier. Gordon Campbell’s warming all government :depari- ments outside health and education are under orders ta prepare scenarios for cuts of 20,35. and 50 per ceat. , Because health : ‘and: education consume - two-thirds of the provincial government, other ministries will face deep concentrated..cuts. to... achieve an averall 10 per cent reduction in government spending. The cuts are necessary to ‘achieve. the pov- emment’s election promise of a balanced bud- get by 2004/05 in the face of.a deteriorating economy and ‘declining government r revenues, Collins said. The government had banked on, economic. growth in B.C. of nearly four per cent a year, which it said would be spurred by dramatic in- come tax cuts worth $1.5 billion it delivered i in June. . But Collins said the global economy has been deteriorating in recent months and may now Slide into.a recession as a result of Sep- tember's terrorist attacks on U.S. targets. “Nobody yet understands exactly what that ’ impact is going to be in the short term, in the medium term and in the long term,” he said. “We're still very close to that event, and people are speculating in many ways, up or down.” Major banks now forecast growth in B.C. of between 0.5 per cent and 2.1 per cent neat year, he said. Collins said he’s also bracing for further declines in energy prices. He said B.C. has reaped “windfall reve- nues” in the past couple of years from natural gas rovalties and the sale of electricity to the US. “It allowed the previous government to sort - of cover over the Structural deficit that was there for the long term with some fairly signif- icamt.one-time cash infusions of over Fs billion dallars,” Collins Said. ee B.C.’s forest industry is also. being ham: mered by new U.S. tariffs on softwood lumber exports and some. analysts say major layoffs of economy.-- - There may ‘be some: faint. hope: on the sofi- “wood tariff. front ‘with American: legistators agreeing to come to B. C. next week for talks. Callins said entire: government programs =: may ‘be eliminated in the drive fO cut costs. “: "There ‘are some things where we may nat do them at all,” he told the rest of cabinet. “There are other things where we may be able : to do.them in a way that. costs us one-third of what it does right now. But all combined, we “need you to mun those three scenarios 50 we can look at it” Collins said the government will not retreat from its pledge to maintain spending for health aad education, ministries he called “lucky” in that they are exempt from the pain the rest of government will feel. But he said they’ll have to spend their money differently... Collins rejected: critics who say Victoria should reconsider its just-delivered income tax cuts in light of the growing financial crisis, pointing to the reaction of other governments. “Just a couple of days ago Ontario an- nounced thal they’re fast-tracking their tax re- ductions,” he said. “Today U.S. president Bush has stated that he thinks he needs to put more government employees will further. slow the. -don Campbell's tax cuts has gone up,” tax relief into the economy in the U.S. to help . it weather this slowdown and some of ‘the challenges they’re facing.” NDP leader and past finance minister Joy MacPhail denounced the Liberals” tax cuts as a “reckless” strategy that has fallen apart. She said the economy is stalled, revenues ase way down, and B. c. ‘has been driven back into deficit. ” “Now after giving huge tax cuts to the few, he's going: after everyone ‘else to pay the price,” MacPhail said. .. . The threé-vear freeze on health care and education will be felt in B.C.’s Schools and “hospitals, she predicted. -: Taking inflation, a growing population, and Other pressures into: account, she said, the freeze constitutes a huge cut to health and education services and will result in the clo- “sure of hospital beds and operating rooms, longer waiting lists, few er teachers, and larger class sizes. “With each passing week, the price of Gor- Mac- Phail said. “First be said that tax cuts for the affluent and corporations would pay for them- selves and-no ‘one had to worry. Then he pro- mised that health and education would be pro- tected.” “But now, with today’s announcement that bealth and education are on the chopping block, British Columbians know they were not told the truth.” MacPhail also. warns Campbell has said he will allow the expansiog of private health care. “Cutting funding for public health services will force patients into private clinics,” said MacPhail. “With fewer health care doliars over the next three years, private clinics will almost certainly be allowed ta charge user fees for their services.” GITXSAN WET 'SUWET'EN EDUCATION SOCIETY Licensed Practical Nursing Program September 2002 Thinking about a career in Nursing? Embark on the start ofa new career in nursi by registering today! The Gitrsan Wet’suwet’en Education Society is pleased to announce that they will be offering a Licensed Practical Nursing Program in the fall of 2002 through their centre. 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