Wednesday, December 12, 2012

A tale of Lemonade Stand Operators and Snake Oil Distillers

A tale of lemonade stand operators and snake oil Grant G

"Released on Thursday, B.C.'s public accounts for the fiscal year 2009/2010 conclusively prove that the pre-election fiscal plan foisted on British Columbians by Premier Gordon Campbell and his BC Liberals on Feb 17, 2009 was the worst -- the most egregious, the most deceptive -- "Fudge-it Budget" in provincial history.
The public accounts show that the Campbell Liberals inflated revenues in Victoria's main operating account, the Consolidated Revenue Fund (CRF), by a stunning $2.558 billion -- yes, Billion -- with taxation receipts alone overstated by $2.1 billion.
Even under the broader GAAP (generally accepted accounting principles) presentation, the Campbell government exaggerated last year's expected revenues by a whopping $1.3 billion.
The result: a gargantuan shortfall of $1.779 billion for fiscal 2009/10 -- nearly four-times higher than Campbell's oft-repeated, pre-election pledge of a deficit no bigger than $495 million.....

The public accounts for last year now disclose that CRF income actually was $28.570 billion -- a discrepancy of $2.558 billion from Hansen's pre-election forecast.
That's $568 for every man, woman and child living in British Columbia.
(And that's after an end-of-the-year, last-minute $250 million gift from Ottawa to help Victoria make the transition to the Harmonized Sales Tax.)"


The deficit timeline(2009)

  • Feb. 17: Finance Minister Colin Hansen introduces a budget for 2009/2010, projecting a deficit of $495 million.
  • April 14: The provincial election campaign begins.
  • April 23: After an election debate, Gordon Campbell tells reporters, "The deficit for 2009/10 will be $495 million maximum."
  • Mid-campaign: The finance minister has what he later describes as a casual conversation with his deputy minister. The deputy tells him the revenue estimates in the budget may be off by $200 to $300 million. Hansen tells neither the premier nor the public of the conversation.
  • May 12: The B.C. Liberals are re-elected with a majority.
  • Later that week: Ministry officials do formal projections and confirm the shortfall now stands at 1.1 billion. Again, the public is told nothing.
  • Late May: Hansen says he had a discussion around this time with the federal government about introducing the HST in B.C. in exchange for $1.6 billion, but said nothing to the public at the time.
  • June 10: Hansen is once again sworn in as finance minister. He tells reporters, "Given what we know today, if I were in a position to table a budget today, it would be a deficit of $495 million or less."
  • July 9: Hansen finally admits he won't meet the deficit target saying, "I can no longer say that I'm optimistic."
  • July 23: Hansen and Campbell announce the province will introduce the new Harmonized Sales Tax in July, 2010. The province will receive $1.6 billion from the federal government to ease the transition.
  • Aug. 20: Hansen says the province will have to amend its balanced budget law to run a deficit for four years, rather than two.
  • Sept. 1: Hansen introduces a fiscal update that projects a deficit of $2.8 billion. He reveals the conversation he had with his deputy during the election campaign in which the deputy warned of the shortfall in revenues.
  • Sept. 2: Hansen reveals ministry officials told him after the election that the shortfall had grown to $1.1 billion, but says he still thought the deficit target was achievable, since by this time he knew of the possible offer of $1.6 billion from Ottawa to implement the HST.


Remember Colin Hansen appearing with Gordo the thief Campbell explaining a post-election budget shocker, Colin Hansen claimed tax revenues and natural gas royalties fell off a cliff, all in the run up to and during a 28 day election writ period...Stabbed in the back by these habitual liars then stabbed again with the HST...

How many BC Liberal deficits are sagging resource revenues(LNG) to be blamed for, how many more deficits..

We know what happened and what guile was used in Spring 2009, a fraudulent election and pure back-stabbing betrayal...And the following year 2010-2011 the BC Liberals again used sagging LNG and resource revenues for their excuse...

"Finance Minister Colin Hansen presented a budget Feb. 15 2011 that he said leaves plenty of room for whoever wins the Liberal leadership a while nd becomes premier.
HST revenues came in above projections, natural resource and crown corporations revenues fell sharply short. And while the deficit for fiscal 2010-2011 shrank to $1.3 billion from a projected $1.7 billion, the province's total debt is expected to reach a level in 2011-2012 equal to a year's revenue."


2009-2010 these Liberals scammed us, they did us again in 2010-2011...Enter Christy Clark as new leader of the wolf-pack, for 21 months a national embarrassment, any change apparent?....

That link goes to CBC radio where Mike De Jong does his best bafflegab to explain his $1.47 billion dollar projected deficit, listen how falling coal and LNG prices are blamed again..

2009--2010--2011-- Same excuse being peddled the only change is the face of the messenger, instead of Hansen and Campbell it`s De Jong and Christy...

This years $multi-billion dollar deficit is being disputed by our own Auditor General, John Doyle states the deficit is closer to $2.5 billion, who do we believe...

 Observations on Financial Reporting: Summary Financial Statements 2011/12 | Auditor General of British Columbia

And the ironic part of this post, not the "we all fell off a turnip truck routine" these Liberals keep employing, for 3 years going on 4 this Government is using declining resource revenue as a reason for deficits and at the same time they`re spending $50 million dollars advertising LNG as our $trillion dollar baby, which way is the elevator traveling, 2009-2010-2011, deficits caused by natural gas prices, and magically Mike-De Jong by hook and crook will stand before us, supply not a stich of proof and claim the 2012-2013 budget will be balanced, along with a contingency allowance..

And what are to do, climb back on that turnip truck and ride the biblical Liberal elevator once again to the fictional penthouse, or perhaps we rise and demand the false advertising claims cease...

Today Moodys rating agency downgraded BC`s debt from stable to negative...


Toronto, December 12, 2012 -- "Moody's Investors Service has revised the outlook on the Province of British Columbia's Aaa issuer and debt ratings to negative from stable, affecting approximately CAD39.8 billion in debt securities.
"The negative outlook reflects Moody's assessment of the risks to the province's ability to reverse the recent accumulation in debt with the softened economic outlook, weaker commodity prices and continued expense pressures," said Moody's Assistant Vice President Jennifer Wong, lead analyst for the province.
In the province's second quarter report, released in November 2012, the Economic Forecast Council (group of private economic forecasters) revised its forecasts down for provincial growth in 2012 and 2013 to 2.1% and 2.2% from 2.2% and 2.5%, respectively. The slowing in the provincial economy, continued weak natural gas prices and delay in the expected sale of the province's Little Mountain property have translated into a wider deficit for the 2012-13 fiscal year. The deficit is now projected to be C$1.5 billion (3.5% of revenues), compared to C$1.0 billion forecast at budget time. With the posting of operating deficits in recent fiscal years along with significant capital expenditures"


So in a 1 week period we have our Auditor General calling this year`s deficit $1 billion dollars higher than forecast and today Moodys downgrades our debt from stable to negative and doubts that natural gas prices will rise and change our near future fortunes, all the while public airwaves are blasting propaganda at best and more likely false advertising at worst..
Even Keith Baldrey is finding it difficult to hold back the laughter..

"This year's budget deficit is now pegged at $1.37 billion. So de Jong expects to make that massive deficit not only disappear, but to turn into a surplus over the next year.
The government publishes a three-year fiscal plan with every budget, so it's actually possible to see what his planned budget will look like. And it exposes several large holes in de Jong's forecast.
For example, the fiscal plan projects revenues from natural gas royalties to exceed $600 million next year, at a time when revenues in that area have been declining as a glut of natural gas on the North American market has meant lower sales and depressed prices.
This year, natural gas revenues are now expected to be just $157 million, down from a forecast of almost $400 million."

We are still living with the HST betrayal, we still have a quaint balanced budget law and we still are being treated like rubes riding in turnip trucks, Dutch Disease, these are the symptoms, being reliant upon future rises in commodity prices, have we gone so-far down this road that honesty and reality are but mere rear view mirror mirages, can we just get the truth, is it that difficult to find honesty, rise and fall of raw resource revenue doesn`t make fiscal geniuses, it exposes the opposite..

When it walks like a duck and when it squawks like a duck, chances are it`s a lame duck..

or a figurehead donning leopard spots.. 

Time to Send in the Clowns..

The Straight Goods

Cheers Eyes Wide Open


Anonymous said...

Don't forget the other one, drooling at the mouth for BC's HST.

Everyone has the will to do, either good or evil. Harper and his Cons, the Campbell/Clark BC Liberals, all chose to do evil.

The Campbell/Clark BC Liberals have been in league with the devil, for many, many years. Harper and Campbell signed sneak deals, behind our backs. Campbell also gave Communist China, our resources and our resource jobs.

Harper and Campbell are no better than, Hitler and his henchmen.

kootcoot said...

When riding in the turnip truck, boil and mash the turnips first, cuz then they are more comfortable to lie on!

Didja hear, apparently in Prince Rupert at the hearings, Enbridge claimed that the dil-bit goo doesn't sink and is EASY, PEASY to clean up. I wonder what happened in Kalamazoo or is salt water that much more buoyant, what a bunch of liars!

Hugh said...

I wonder why this deal won't be subject to Fed review.