N.B. government proposes wage freeze laws for doctors, MLAs

Faced by mounting financial challenges, the New Brunswick government wants to freeze the wages of doctors and provincial politicians for the next two years.

The move by Health Minister Michael Murphy comes a week after he proposed the fee freeze on the province's doctors to help ease the projected $740-million deficit.

Murphy said he didn't want to have to legislate the fee freeze but was left with little choice considering the economic downturn.

"We're both in this boat, in this fiscal storm of an unprecedented nature," Murphy said.

"This is a difficult day for myself. It's a difficult day for the government and for the medical society with whom we've had a very good relationship for the past three years."

Murphy said there is still time for the doctors to negotiate a deal, at least until the bill passes and takes effect.

As government house leader, Murphy also put forward a bill on Tuesday to freeze MLA salaries for two years.

The provincial government has already instituted a two-year wage freeze policy on public servants.

The New Brunswick Medical Society has yet to comment publicly on the idea of freezing doctors' wages, but Murphy said on Tuesday that its response has not been what he had hoped for.

The proposed legislation will extend the doctors' current contract, which expired in March 2008, until April 2010.

Opposition Leader David Alward said if the government wants to keep recruiting doctors to the province, it shouldn't freeze the pay of those already in New Brunswick.

"They certainly are the most important link in trying to bring new doctors forward, and when they have real concerns, that should send a pretty strong message to government about what's taking place," Alward said.

CBC News has learned the doctors were expecting an increase of 3.75 per cent a year for four years.

Murphy said last week if the doctors agree to a two-year pay freeze, the province would save about $36 million, including $25 million from fee-for-service doctors, who bill the province by procedure or patient, and $9-million from salaried physicians.

If the doctors don't agree, Murphy said he'll have to make cuts somewhere else.

Some of the province's doctors have argued that the plan will hurt recruitment and retention efforts.

The province and its doctors had reached a tentative agreement in December, but it was never implemented.