MLAs mull investigation into previous Liberal government's Saint John bailout
Auditor general found Liberals circumvented law in committing to $22.8M package
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New Brunswick's finance minister says it's worth considering further investigation into the previous Liberal government's $22.8-million bailout package for the City of Saint John.
Ernie Steeves, a Progressive Conservative minister, said he was "shocked" by findings in Auditor General Kim MacPherson's latest report, which stated the Brian Gallant-led government circumvented the law by not following the normal funding approval process.
"If somebody breaks the law, they have to be taken to task," Steeves said on the CBC New Brunswick Political Panel podcast.
Steeves said he didn't know which authority would conduct such an investigation, and there has not been a formal call to further probe the bailout package.
MacPherson's report, released June 11, said the previous government circumvented requirements within the Local Governance Act that discourage municipalities from having ongoing operating deficits. The act lays out how a municipality is supposed to deal with deficits.
The three-year package, which was announced in September 2017 and will be honoured by the PC government, was meant to address Saint John's financial crisis — the city was forecasting a $6-million deficit at the time.
The report also concluded the Treasury Board at the time violated the Financial Administration Act by failing to get proper legislative approval to spend the money.
Support from other MLAs
Steeves's suggestion was supported to an extent by People's Alliance MLA Rick DeSaulniers and Green MLA Kevin Arseneau.
DeSaulniers said MacPherson thought it would best for government to pursue the matter further, and he suggested the responsibility should fall to government.
The question should be asked in a cabinet meeting, he said.
Arseneau said the matter should be sent to the province's integrity commissioner first.
"If there is a reason to investigate, then I think an investigation should be done," he said.
MacPherson said the bailout represented "excessive risk" to provincial taxpayers and, as of this April, "failed to effectively address the city's challenge" or reduce the financial risk to the province.
A Liberal representative did not appear on the podcast.