Higgs urged to hike taxes, cut services: survey

The Department of Finance is being pressured to cut spending and increase taxes to eliminate the province's $820-million deficit, according to results of a questionnaire released on Thursday.

Almost 3,000 New Brunswickers responded to a questionnaire sent out by the provincial government that asked for feedback on how they felt Premier David Alward's government should balance the budget.

The results show 46.2 per cent of respondents want the Alward government to cut government spending and increase specific taxes.

Spending restraint was backed by 42.9 per cent, while 10.8 per cent favoured simply boosting taxes, fees and other revenue.

"New Brunswickers realize that we are facing unparalleled fiscal challenges," Higgs said in a statement.

"The feedback we collected will be invaluable for our government as we prepare the 2011-12 budget."

Higgs said the nearly 3,000 responses to the questionnaire is an "unprecedented level of participation."

The questionnaire said 15.9 per cent of respondents wanted to see a reduction in the overall size of government.

Some of the other top targets included cuts to grants and loans to business, "control" public sector salaries and regionalizing services.

Increase 'sin taxes'

A large number of people who responded to the provincial government's questionnaire were in favour of increasing taxes on the so-called sin taxes.

The surveys showed 20.2 per cent of respondents wanted to hike tobacco taxes and 15.9 per cent would be willing to see higher beer, liquor and wine prices.

By comparison, 12.9 per cent of people who sent back a questionnaire endorsed higher corporate taxes, while 3.8 per cent were willing to pay higher personal income taxes.

Highway tolls emerged during the public hearings as a popular potential area for new revenue. In the surveys, 16.5 per cent of respondents backed the introduction of "highway tolls in strategic areas."

Other popular targets for finding new revenue included selling government assets such as the Algonquin Hotel and the government's exclusive fishing lodge, Larry's Gulch. Thirty-two per cent of people who participated in the questionnaire indicated they would endorse selling those assets.

Meanwhile, 18.4 per cent of people would get behind a plan to offload NB Liquor to the private sector.

The Alward government was elected on a campaign promise to have the deficit erased within four years.

The survey showed 41.1 per cent backed that concept. Meanwhile, 42.4 per cent of people would be willing to see the deficit erased in five or more years.