BILL 7

An Act to Amend the Fiscal Responsibility and Balanced Budget Act

Her Majesty, by and with the advice and consent of the Legislative Assembly of New Brunswick, enacts as follows:

1 The Fiscal Responsibility and Balanced Budget Act, chapter F-14.03 of the Acts of New Brunswick, 2006, is amended by adding after section 7 the following:

Salary reduction for members of the Executive Council

7.1(1) This section applies if the Province has a deficit.

7.1(2) The salary payable to each member of the Executive Council under the Executive Council Act shall be reduced in accordance with subsection (3) if the deficit for a fiscal year (the "first year") is greater than 1 per cent of the revenues for the year, and if there was no deficit in the preceding fiscal year.

7.1(3) In the circumstances described in subsection (2), the salary is reduced by 25 per cent for a period of 12 months beginning on the thirty-first day after the Public Accounts that show the deficit for the first year are filed with the Clerk of the Legislative Assembly or laid before the Legislative Assembly, whichever occurs first.

7.1(4) The salary payable to each member of the Executive Council under the Executive Council Act shall be reduced in accordance with subsection (5)

(a) if the deficit for a fiscal year (the "first year") is less than or equal to 1 per cent of the revenues for the year, and if there was no deficit in the preceding fiscal year; and

(b) if, in the following fiscal year (the "second year"), there is no deficit but the revenues do not exceed the expenditures by at least the amount of the deficit in the first year.

7.1(5) In the circumstances described in subsection (4), the salary is reduced by 25 per cent for a period of 12 months beginning on the thirty-first day after the Public Accounts for the second year are filed with the Clerk of the Legislative Assembly or laid before the Legislative Assembly, whichever occurs first.

7.1(6) The salary payable to each member of the Executive Council under the Executive Council Act shall be reduced in accordance with subsection (7)

(a) if there is a deficit in the fiscal year (the "second year") following the first year described in subsection (2); or

(b) if there is a deficit in the second year described in subsection (4).

7.1(7) In the circumstances described in subsection (6), the salary is reduced by 50 per cent for a period of 12 months beginning on the thirty-first day after the Public Accounts for the second year are filed with the Clerk of the Legislative Assembly or laid before the Legislative Assembly, whichever occurs first.

7.1(8) Subsection (7) applies, when necessary, with respect to each consecutive fiscal year in which there is a deficit after the second year.

7.1(9) If the party that forms the government is replaced, the fiscal year in which the new government takes office shall be deemed, for the purposes of this section, to be a year in which there is no deficit and subsection (4) does not apply until the following fiscal year.

2 The Act is amended by adding after section 14 the following:

Interim updates about revenues and expenses

14.1(1) Each year on or before August 15 and on or before February 15, the Minister shall release updated information about the revenues and expenses of the Province for the current fiscal year, including updated information about the major components of the revenues and expenses as set out in the fiscal plan.

14.1(2) The updates must include the following information, updated from the most recent fiscal plan:

(a) the macroeconomic forecasts and assumptions that were used to prepare the fiscal plan and a description of any significant differences from those forecasts and assumptions;

(b) an estimate of the revenues and expenses of the Province, including estimates of the major components of the revenues and expenses as set out in the plan; and

(c) information about the ratio of provincial debt to the gross domestic product of the Province.

Quarterly information about the economic accounts of the Province

14.2 Within 45 days after Statistics Canada publishes quarterly information about the National Income and Expenditure Accounts of Canada, the Minister shall release the economic accounts of the Province for the same quarter.

Long-range assessment of the fiscal environment

14.3(1) Within 2 years after each provincial election, the Minister shall release a long-range assessment of the fiscal environment of the Province.

14.3(2) The long-range assessment must include the following information:

(a) a description of anticipated changes in the economy and population demographics during the following 20 years;

(b) a description of the potential impact of these changes on the public sector and on the fiscal policy of the Province during that period; and

(c) an analysis of key issues of fiscal policy that, in the opinion of the Minister, are likely to affect the long-term sustainability of the economy and of the public sector.

3 This Act or any provision of it comes into force on a day or days to be fixed by proclamation.