Jeune magique et intellig
2009-02-18, 09:32 PM
It would appear the province needs to hire a debt collector.
On Tuesday, auditor general Mike Ferguson revealed that, as of March 2008, the province expected to lose $588.7 million in government loans and loan guarantees that won't be paid back or collected.
Ferguson said that figure is 10 per cent higher than in 2007.
The number is also more than twice the size of the $285-million deficit the government is currently running.
"This would seem to be symptomatic of a flaw in the collection function," stated Ferguson in his 2008 annual report, which was released Tuesday to a legislative committee.
He said the province must do a better job of managing those outstanding debts and limiting its exposure to lost cash.
As he pointed out, if the province manages to collect just one per cent of those outstanding amounts, it would mean $5.9 million in revenue.
Ferguson reiterated a point he made in his 2006 report: The province should do as other provinces have done and take advantage of a collection service offered through the Canada Revenue Agency.
He said it's an inexpensive and proven method of retrieving outstanding funds.
Finance Minister Victor Boudreau said he agrees completely with the auditor general's assessment.
The Shediac area MLA said the Liberals are already in discussions with the federal government, to figure out how the province can improve its collections of items like business and student loans.
"That's definitely an area where we can all try to do better," Boudreau said.
On Tuesday, auditor general Mike Ferguson revealed that, as of March 2008, the province expected to lose $588.7 million in government loans and loan guarantees that won't be paid back or collected.
Ferguson said that figure is 10 per cent higher than in 2007.
The number is also more than twice the size of the $285-million deficit the government is currently running.
"This would seem to be symptomatic of a flaw in the collection function," stated Ferguson in his 2008 annual report, which was released Tuesday to a legislative committee.
He said the province must do a better job of managing those outstanding debts and limiting its exposure to lost cash.
As he pointed out, if the province manages to collect just one per cent of those outstanding amounts, it would mean $5.9 million in revenue.
Ferguson reiterated a point he made in his 2006 report: The province should do as other provinces have done and take advantage of a collection service offered through the Canada Revenue Agency.
He said it's an inexpensive and proven method of retrieving outstanding funds.
Finance Minister Victor Boudreau said he agrees completely with the auditor general's assessment.
The Shediac area MLA said the Liberals are already in discussions with the federal government, to figure out how the province can improve its collections of items like business and student loans.
"That's definitely an area where we can all try to do better," Boudreau said.