Quebec financial experts recommend public-sector wage freeze

Financial experts saythat balancing Quebec's budget will be "more difficult than expected," askingthe Liberal government to consider a public sector wage-freeze, more servicefees and higherpublic daycare fees.

The reportwasreleased today by tax consultantLuc Godbout and economists Claude Montmarquette. The Liberal government appointed the pair to review the province's books.

"The state of the budgetis worrying, and weve felt that way for several years," said Godbout. "On one hand Quebec got through the recession relatively light, but on the other hand, the budget is in a bad state."

Both experts say they believethebalanced budget targetedby the Liberal government for2015-2016 "will require going beyondannual expenditure reviews," and will require a revision of the provincesfinancial structure andexpenditure programs.

"We need to convince the right people that we are serious about facingthe structure deficit we have engineered for several years, and this is hard to do," saidMontmarquette.

Godbout andMontmarquette confirmed that thebudget deficit is$3.145 billion for the2013-2014 fiscal year,$645 million more than than$2.5 billion deficitannounced in the Parti-Qubcoisgovernment's Feb. 20budgetreport.

Montmarquette said the government knew about ashortfallin the province's pension plan, but were expecting to recover it by the end of the year.

"We dont blame the last government. They were simply surprised by the slowdown of the economy,"Montmarquette.

GodboutandMontmarquette made several recommendations for achieving a balanced budget in the coming years, includingselling up to 10 per centof SAQ and Hydro-Qubecshares, and increasing service fees.

"Whatever the government does, there will be someone criticizing the government," saidMontmarquette.