Privatizing some public services on the table for budget: Paul Davis

Newfoundland and Labrador Premier Paul Davis says he's considering privatizing some services in the upcoming budget, amid a predicted deficit of $1.5 billion.

A continued slump in oil prices means the province will experience revenue shortfalls for the coming fiscal year.

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Davis said Thursday the province's financial challenges are short term, but he is considering increasing the role of private sector in delivering some services.

In areas like long-term care, Davis said the private sector already plays a significant role — a role he says could be increased to help save the province money.

"Is private business a good way to deliver long-term care services in some places of our province? That's something we should give some thought to. I think it's prudent for us to do that," Davis said.

Is private business a good way to deliver long-term care services in some places of our province? That's something we should give some thought to- Premier Paul Davis

"I think there's greater opportunity for private business and there's many aspects of government that could very likely be delivered more efficiently and more effectively — more cost effectively — while providing quality services by the public service."

Davis said during public consultations, the private sector will be one of the issues government is looking for feedback on.

He added that balanced budget legislation is something he thinks needs to be talked about.

"We've run deficits in the province for many years, we've been fortunate the last decade we've have several years of surplus, but we've got to find a way that in the long-term when we have these highs and lows in oil prices, I talked about rainy day funds," said Davis.

"My thought is that while we have significant infrastructure needs as our revenue starts to climb again when oil prices come back up, which everybody believes they will, then we need to give serious consideration to start taking portions of that and put it away for a rainy day."

The Tories considered balanced budget legislation when they took office in 2003, but later abandoned the idea because they thought it would be too restrictive, especially given fluctuating commodity revenues.