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New Brunswick

Strategic program review costs top $560K, documents show

The New Brunswick government spent more than half a million dollars on an exercise aimed at finding savings in government and the costs are continuing to climb.

Liberals say the expenses were necessary to tell people about New Brunswicks financial challenges

SPR costs spiral up

9 years ago
Duration 1:59
The New Brunswick government spent more than half a million dollars on an exercise aimed at finding savings in government and the costs are continuing to climb

The New Brunswick government spent more than half a million dollars on an exercise aimed at finding savings in government and the costs are continuing to climb.

The bill for the year-long Strategic Program Review process sits at $563,667 with more expenses still to be filed, according to documents released under the Right to Information Act.

The opposition Progressive Conservatives say the cost would have been justified if it were "a real consultation."

The biggest chunk of change $360,465 was spent marketing the program review through radio and newspaper ads, as well as a series of YouTube videos that urge New Brunswickers to face the "hard facts."

Another $202,375 was spent on two public consultation tours across the province for Health Minister Victor Boudreau, who led the review.

The rest of the money went toward producing and laying out the so-called Choices report, which outlined a long list of options proposed to try to find between $500 million and $600 million in savings and new revenue.

The government's response to the strategic program review process when Finance Minister Roger Melanson released the provincial budget in February. (CBC)
The review wrapped up in February, when the Liberal government released its 2016-17 budget.

In it, the Liberals opted to shelter health care and education from deep cuts, while increasing the HST and corporate income tax rates.

Boudreau was not available for an interview about the costs of the program review on Wednesday or Thursday.

In an emailed statement sent on Wednesday, Bruce Macfarlane, a government spokesperson, defended the money spent as worthwhile.

"The strategic program review process yielded expenditure reduction and revenue measures which will improve the province's financial situation by $589 million," he said.

Macfarlane said the aim of the marketing campaign was to make sure people understood the province's "financial challenges" and the options government was considering.

The Atlantic director of the Canadian Taxpayers' Federation doesn't think the expenses are justifiable.

While he supports spending money on public consultation, Kevin Lacey doesn't think the government should have commissioned focus groups and hired a consultant.

"They dragged the process on for so long that this became nothing more than a public relations exercise to sell the budget than it really was about a serious consultation with average New Brunswickers," he said.

Focus group findings secret

Before rolling out the Choices report, government hired a Moncton-based marketing and communications firm to promote its cost-saving efforts.

Liberal cabinet minister Victor Boudreau held a series of public meetings about the so-called Choices report. (CBC)
Invoices show M5 was paid at least $12,694 for "radio production and media planning."

But many of the strategies and tactics they designed remain secret, blacked out under provisions of the Right to Information and Protection of Privacy Act.

The government says the information is considered "advice, opinion, proposals or recommendations developed by or for the public body or a minister of the Crown."

Also secret are the findings of a focus group government commissioned for as much as $20,000 to learn more about "opinions and attitudes" of New Brunswickers when it comes to various cuts and changes.

"The results will help inform the policy decisions of the provincial government by giving an indication of the degree of interest and impact of specific policy decisions," the request for proposals states.

After developing a marketing campaign, the government bought mailouts ($11,520), newspaper ads ($19,928.55) and spent tens of thousands on radio and TV ads.

Nearly $50,000 went toward video production for spots still posted on the government's YouTube channel.

The most popular of those videos one where Boudreau is talking to the camera has 607 views.

Brian Macdonald, the PCMLA for Fredericton West-Hanwell, said it's worth spending money to communicate with New Brunswickers.

But he believes the Liberals planned to raise the HST before starting the program review, an accusation the Liberals have denied.

"It would be valid if the government was really listening," Macdonald said. "But in this case, they weren't listening. They were there to sell New Brunswickers on an idea they already had."

The final price tag for the program review may continue to climb.

Government says it still hasn't received all the invoices associated with Boudreau's second trip around the province this January to promote the review.

For now, the province pegs the cost at $18,074and growing.