MLAs questioned some of the Prince Edward Island government’s top fiscal managers Tuesday about the province’s growing debt.

Denise Lewis Fleming, the deputy minister of finance and affordability, appeared before the public accounts committee along with Jordan McNally, executive director of fiscal management, and senior investment officer Ryan Bradley.  

P.E.I. Green Party Leader Matt MacFarlane said a lot of the officials’ presentation mentioned plans. He said it’s no longer time for planning — it’s time for action to reign in the Progressive Conservative government’s spending. 

“It’s not just like this came up suddenly like Dorian or Fiona blew in and all of a sudden we found ourselves in this cleanup-of-a-mess phase,” MacFarlane said, alluding to the two destructive post-tropical storms that struck P.E.I. in 2020 and 2022, respectively.

“Our debt rose 43 per cent from the time this government took power in 2019 and then it’s projected to go to 58 per cent from 2025 to 2031, so why are we just now planning when this has been happening for years and years and years?” 

Lewis Fleming said the province does have a plan to manage its debt. She also reminded MLAs that public servants don’t set policy — that’s the job of elected officials.  

“What I will say as a public servant that I was glad to hear during the premier’s comments at the swearing-in of his cabinet was the comment that there needs to be measured steps back towards a balanced budget as part of fiscal management,” she said.

P.E.I.’s auditor general — an independent, non-partisan officer of the legislature — is calling for more “robust controls” on government spending. In his annual report, released late last month, Darren Noonan painted a bleak picture of the Island’s finances.

Based on the most recent budget, Noonan said, the province’s debt could reach $6 billion in five years.

Burridge defends P.E.I. government’s record spending amid critical report from AG

P.E.I.’s finance minister is responding to an auditor general’s report that paints a bleak picture of the Island’s finances. Jill Burridge says the government is taking steps to deal with its record spending. CBC’s Wayne Thibodeau has more.

Finance and Affordability Minister Jill Burridge has said the PCs are taking steps to deal with their record-breaking spending. Those include creating a new risk committee made up of both senior provincial officials and finance professionals from outside government to advise the province in its planning. 

Burridge also said the majority of the Island’s debt is because of capital spending — building much-needed infrastructure projects like schools and hospitals. 

That’s something Lewis Fleming reiterated to MLAs on Tuesday.

“The level of debt for the province as it stands right now … is primarily comprised of debt that relates to capital assets,” she said. 

“There’s good debt and there’s — I don’t want to call it bad debt — not-so-good debt. Good debt is assets that you are investing in that people will benefit from now and into the future. That’s your capital assets. You want to limit the number of years that you have deficits that you have to finance.”   

Liberal MLA Carolyn Simpson asked the finance officials if they believe the province will be in a better position a year from now.

“Islanders are just really scared, in terms of the debt and where we’re headed and the spending that is conceivably out of control,” Simpson said during the committee meeting.

“Will Islanders be going ‘oh, thank goodness something has happened,’ or are they just going to go ‘yep, here we go again?’”

Lewis Fleming said there are policy decisions elected officials have to make that will impact that answer.

“Do I believe that … we’re better off than where we were six months ago? Yes, I do believe that,” Lewis Fleming said.

“The levels of debt and how it may change are always subject to the annual operating and capital budget cycles.”