Brad Wall has no budget for 2016. The PC Opposition has discovered documents that prove the Sask Party’s P3 projects make it impossible to balance the budget in the next 4 years. (The documents are available at the Sask. Builds website except for those classified as secret.)
“The Wall government has been deliberately secretive with all documents around their P3 projects” said Swenson. "It is very difficult for the average taxpayer to sort through and understand these ‘large monthly lease payments’ the government has committed every one of us to pay. Where will all of the money come from to pay these lease payments and the new debt repayment which is piling up? Who will pay, Mr. Wall?”
Saskatchewan has an admitted 2015-16 deficit of at least $427m plus $700m borrowed for infrastructure totaling $1.13 billion. Unlike past PC government projects like the SaskFerco fertilizer plant or the Co-op and Husky upgraders, Mr. Wall’s P3s have no source of revenue except public taxes, do not create permanent growth, and cannot be sold at an appreciated value.
Swenson said “The P3 agreements prove the new hospitals, schools and Regina bypass are leased over 30 years on monthly payments. So far the PCs have only included the Bypass in their calculation. The schools and hospitals will add extra debt for 30 years and have not yet been calculated.
In 2016 Brad Wall still has a structural deficit of $427 million plus $31 million for one quarter of new election promises and secret monthly payments of $167 million on the bypass lease. Just for tricks, a lump sum payment of $103 million cash lease payment is due on Halloween of 2017. The result in the 2016 budget is a total deficit of $728 million plus $1.158 million of accrued debt on the newly promised election P3s.
The Wall government does not have the money in current projections to open the bypass on October 31, 2019 as he needs another $507 million in cash when Phase 1 is completed.
Swenson said “The debt parade goes on and on until 2020 as shown by the attached “Wall’s 5 year Debt Plan.” The PCs have calculated Brad Wall is on track for a $7.6 billion debt increase over 5 years.
Swenson concluded by stating “The extra $7.6 billion of debt by 2020 does not include the millions in costs for the unnecessary relocation of the Tower Road junction, service road expropriations overpayments to land speculators and court actions which will pop up by the month from abused land owners. After the election, the PC opposition will be busy bringing forward a plan to stop more fiscal waste by Mr. Wall’s government.”
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