The release of New Brunswick’s highly anticipated 2022-23 budget has garnered a mixed reaction from Members of the Legislative Assembly who sit across the aisle.
Revealed to the public Tuesday afternoon, the Tories flaunted a budget filled with tax cuts, increases in spending and even a modest surplus projected to come in at $35.2 million.
Liberal Finance Critic Rob McKee questioned the figures presented to the public and believes the revenues will again come in far higher to fuel a significant surplus.
“We have a hard time [believing] in the numbers that they’re presenting to us. We have trust issues, with respect to their forecasting,” said McKee in a media scrum.
In its last budget, the Higgs Government expected a significant deficit, which was later erased by large federal transfers and revenues that came in higher than expected.
Skepticism is well warranted, said People’s Alliance of New Brunswick Leader Kris Austin, who noted only time will tell whether the Tories figures are fact or fiction.
Austin conceded unpredictability fuelled by the COVID-19 pandemic and Russia’s recent invasion of Ukraine have both likely contributed to this.
Budget 2022-23 also promised substantial changes for the state of housing in New Brunswick.
While Finance Minister Ernie Steeves announced a phased provincial property tax rate reduction for non-owner-occupied residential properties, he also unveiled a one-year retroactive 3.8 per cent rent cap.
“The ‘double tax’ cut is going to have, I believe, a significant impact on development and enable landlords and developers to bring more supply to the province,” said Austin, adding the rent cap is positive and ensures tenants received a certain benefit.
Confusion over the duration of the rent cap was sparked after Green Party Leader David Coon noted it won’t necessarily be limited to one year, contrary to how it was revealed by Steeves
“The way the one-year rent cap is set up is to be reviewed after one year, so it will not automatically disappear after one year. So, it can continue along. It will continue along unless the government uses the review to kill it,” Coon told reporters.
Coon’s statement was later confirmed by both McKee and Austin.
Coon applauded the addition of a rent cap, though noted it could be higher to meet the caps instituted in other jurisdictions. He added it will still provide relief for New Brunswickers who have recently received “punishing” rent increases.
Asked about how he will respond to tenants who want to recoup money from landlords who handed out an unfair rent increase, McKee said it will be an uphill battle given the latter tends to hold all the power.
“They’re doing something but is it enough to really protect renters? And the measures we’re seeing with respect to…the so-called ‘double tax’ is that gonna be enough as well to incentivize developments, to drive up supply?” said McKee, adding with only one year, we could see skyrocketing rents 12 months from now.
