N.S. economic panel to recommend options

Nova Scotia's NDP government is looking to four economic advisers to come up with a financialaction plan.

Premier Darrell Dexter announced the panelTuesday, calling it the first step off the unsustainable path of a $1.3-billion deficit in three years.

Dexter just two months into his job said hewelcomes theadvice.

"It is our responsibility. We are the point of departure on these issues,"he told reporters in Halifax."But we also want to have the benefit of the best possible advice we can get."

Dexter said the $70,000-panel will review the recentDeloitte consultancy report on the province's finances and identify options for his government.

He said the recommendations for a four-year plan will cover everything from managing spending to generating revenue.

The panel includes:

• Donald Savoie,Canada Research Chair in Public Administration and Governance at the University ofMoncton.
• Elizabeth Beale,president of the Atlantic Provinces Economic Council (APEC).
• Tim O'Neil,former vice-president of the Bank of Montreal and past-president of APEC.
• Lars Osberg,research professor with theeconomics department at Dalhousie University.

Dexter said the four panellists are highly credible and widely recognized for their experience.

Breaking campaign promises?

Opponents accuse the premier of trying to wriggle out of campaign promises to balance the budget next year andnot raise taxes.

Diana Whalen, Liberal finance critic, expects the panel will have some tough advice for Dexter.

"Ifyou know accounting, there's only two ways to get more money you're going either to raise more revenue or you're going to cut your expenses. They've made promises to do neither,"she said.

Dexter will only say that any decision will require careful consideration.

Finance Minister Graham Steele released the Deloitte reportMonday, saying it was proof that the previous Progressive Conservative government didn't reveal the true extent of the province's financial problems.

Steelesaid if the province continued on the path set by the Tories, the annual deficit would be $1.3 billion by 2012-13 and the debt would rise to$16.7 billion.

The panel is expected to complete its work this fall.

The NDP's first budget will be tabled after members of the Nova Scotia legislative assembly return to Province House on Sept. 17 for the fall session.