Opposition Responds To Debt Downgrade From 'Stable' To 'Negative'

Posted on Tuesday, February 27, 2018 18:10 PM

Disappointed but not surprised.

That's how Opposition leader Blaine Higgs feels about a decision by credit rating agency Dominion Bond Rating Service to downgrade the province's economic trends to 'negative' from 'stable'.

"With the province being taxed out, people are taxed out, there's no room for increased taxes, which is what the government would appear to be counting on, the bond raters are looking at this saying there's nowhere to go."

Higgs tells us he's also not surprised that the government plans to stick with their latest plan to return to fiscal balance by 2021-22, despite the downgrade.

"To say that I'm going to forge ahead, we're not going to pay any attention to the indicators, I mean the torpedoes are coming our way and we're just going to carry on, there's icebergs in the water and we're just going to carry on, I mean it's just the height of irresponsibility."

He says in the face of reality or information of any kind, the government is not listening and not reacting.

The PC leader was blasted on Twitter by Finance Minister Cathy Rogers, who says the last actual credit downgrade occurred when he was finance minister in 2012.

Higgs says they took power after the 2008 recession, when the debt had gone up significantly, but the credit agencies said they were on the right track to secure the province's future.