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New Brunswick

Expensive promises for N.B.'s October election are piling up. But will they be honoured?

A history in New Brunswick of expensive campaign promises not being honoured once an election is finished will not be repeated this year, provincial political parties are insisting.

Long history of parties sidestepping commitments after winning won't happen this year, they insist.

Blaine Higgs HST reduction announcement
Blaine Higgs is promising Progressive Conservatives will reduce the provincial portion of the HST if elected again. The party says big money promises from previous elections that were not honoured will not be repeated this year. (Alix Villeneuve/Radio-Canada)

A history in New Brunswick of expensive campaign promises not being honoured once an election is finished will not be repeated this year, provincial political parties are insisting.

Heidi Cyr, a senior communications adviser and press secretary to Blaine Higgs, said voters can count on the premier to honour a $450-million commitmenthe made last month to lower the provincial sales tax rate by two percentage points over two years if he is re-elected in October.

"New Brunswickers can trustthat thanks to strong fiscal management, including paying down our debt, we are now able to phase-in a 2% cut to the HST," said Cyr in an email about the promise.

"New Brunswickers will be able to see this tax cut roll out on a clear schedule."

WATCH | CBC Explains: Promises, promises:

Why N.B. election promises can't always be trusted

27 days ago
Duration 2:42
New Brunswick political parties have a long history of making expensive election commitments and then wiggling out of them once in office. As pricey promises pile up again in advance of Octobers general election, parties insist it won't happen this time.

It is a firmcommitmentfrom Progressive Conservatives, but New Brunswick political parties have a long history of sidestepping expensiveand what appeared to be equally firm commitments made to voters during previous elections.

Higgs himselfentered public life in 2010 and one of his first tasks after being appointed finance minister by then premier David Alward was to wriggle out of a pricey election property tax promise Alward had made to seniors weeks earlier.

Fort Howe apartment building
Progressive Conservatives promised in the 2018 election to 'eliminate' provincial property taxes on apartment buildings once government finances improved. They didn't. The Fort Howe apartment building in Saint John was among hundreds issued provincial property tax bills this year. It was charged $63,000, about $412 per apartment. (Robert Jones/CBC)

Higgs said the promise, which involved permanently freezing the assessed value of houses belonging to anyone over the age of 65 for as long as they owned and lived in theirhome, was a poor idea and too expensive.

Instead,Higgs concocted a much cheaper scheme where seniors could defer paying tax increases until they died or moved.

Legislation was passed to allow the province to place liens on participating seniors'homes so it could collect unpaid taxes, plus interest, later.

The substitute plan was not well received,and only a fraction of eligible seniors have ever signed on to it.

"The property tax commitmentin the platform, I realize that what we did, did not meet the expectations of what people thought they were going to get," Higgs explained at a public meeting in 2011 about why the promise was not honoured as written.

"In 10 years time, it would have cost the province $173 million."

During hisown period as party leader,Higgs has also made the decision to walk away from expensive campaign promises.

In the 2018 election under Higgs, PCs made a commitmentto"eliminate"provincial propertytaxes on apartment buildings as government finances improved.

David Alward and Blaine Higgs
Blaine Higgs entered public life in 2010. As former premier David Alward's minister of finance, one of his first moves was to kill a pricey tax promise Alward made to seniors in the 2010 election. (CBC)

The party promoted the idea as a benefit to tenants andalthoughgovernment finances did improve dramatically, provincial property taxes on apartment buildings remain.

This year, the provincial government is still collecting, in mostcases, between $350 and $600 in property tax per apartment unit in New Brunswick for itself on topof what localgovernments charge.

On some buildings thatrepresents no tax reduction at all.

A request to interview a government representativeabout what happened to the property tax promise was not granted, but in her email, Cyr blamed the failure on the COVID-19 pandemic and the need to "re-prioritize the use of all fiscal resources."

New Brunswick did cut tax rates on apartment buildings by half in 2023 but rapidly rising property assessment valuations on the same properties at the same time offset much of those changes.

Despite the size of the commitmentto eliminate all provincial property taxes on apartment buildings, which PCs estimated to be worth $90 million in 2018, Higgs has rarely mentioned it.

In July in Moncton as he announced his new promise to cut the HST, Higgs appearedto suggest he had not made any unfunded election commitmentsin 2018, let alone ones he didn't keep.

"Consistently we have seen governments announcetax cuts or announce spending programs before they could actually afford them," said Higgs.

"I didn't do that in 2018."

In an interview, New Brunswick Liberal Leader Susan Holt said that historywill "absolutely" undermineHiggs's credibility with voters on whether he canbe trusted to honour a significant promise this year like cutting the HST.

Shawn Graham
Former New Brunswick premier Shawn Graham narrowly won New Brunswick's 2006 provincial election. However, a promise he made to voters to rebate HST amounts on heating costs to help secure that win was broken almost immediately. (CBC)

"They remember well that this premier promised to eliminate those taxes on rentals, the double tax, and then did not deliver on that promise," said Holt.

"So there's a lot of skepticism that the premier's HST promise is for election purposes and that they won't follow through on the whole thing."

Liberals are proposing their own sales tax cut this year.They have a $100-million plan to drop the provincial portion of the HST on residential electricity prices but have their own history of not honouring all electioncommitments.

In the 2006 election, Liberals made a similarpromise to the public to rebate the HST on home heating costs, but after winning the election quickly reneged.

A woman with light hair and glasses stares as she is asked a question in a hallway.
New Brunswick Liberal Leader Susan Holt is promising there will be no post-election backpedaling on commitments by her party this year if it wins office in October. (Ed Hunter/CBC)

"We will not be moving forward with the previously announced rebate,"said new Liberal finance minister, Victor Boudreau,in December 2006, just two months after his party tookoffice.

Like Progressive Conservatives, Holt says whatever has happened in the past there will be no flip-flopping on election promises after the election this year.

"If we put something in a platform and we promise to New Brunswickers that we will do it, then we have to do it," said Holt.