BILL 42

An Act Respecting Expenditure Restraint

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

Executive Council Act

1 Section 7 of the Executive Council Act, chapter 152 of the Revised Statutes, 2011, is repealed and the following is substituted:

Adjustment of salaries

7( 1) The following definitions apply in this section.

“change in the GDP” means the percentage by which the GDP has changed in year two, expressed as a decimal, when compared to the GDP for year one. (variation du PIB)

“GDP”, in relation to a particular calendar year, means the expenditure-based gross domestic product for New Brunswick, chained to 2007 dollars, as published by Statistics Canada. (PIB)

“year one” means the calendar year immediately preceding year two. (première année)

“year two” means the calendar year immediately preceding the calendar year in which the 12-month period for which the salary is to be determined commences. (deuxième année)

7( 2) Subject to subsections (3), (4) and (5), for the 12-month period commencing October 1, 2013, and for each subsequent 12-month period, the salary payable to Ministers appointed under section 2, the Premier and other members of the Executive Council shall be the amount that is determined

(a)  by multiplying the change in the GDP by 75%,

(b)  by increasing 1.0 by the number determined under paragraph (a), and

(c)  by multiplying the salary payable for year two by the number determined under paragraph (b).

7( 3) For the purposes of paragraph (2)(a), the change in the GDP shall be calculated using the most recent GDP estimates published by Statistics Canada.

7( 4) For the purposes of paragraph (2)(a), if the change in the GDP is a negative number it shall be deemed to be zero.

7( 5) If the number determined under paragraph (2)(b) exceeds 1.02, it shall be deemed to be 1.02.

Legislative Assembly Act

2 Section 25 of the Legislative Assembly Act, chapter L-3 of the Revised Statutes, 1973, is amended

(a)  by repealing subsection (0.1) and substituting the following:

Annual indemnities and salaries

25( 0.1) The following definitions apply in this section.

“change in the GDP” means the percentage by which the GDP has changed in year two, expressed as a decimal, when compared to the GDP for year one. (variation du PIB)

“GDP”, in relation to a particular calendar year, means the expenditure-based gross domestic product for New Brunswick, chained to 2007 dollars, as published by Statistics Canada. (PIB)

“year one” means the calendar year immediately preceding year two. (première année)

“year two” means the calendar year immediately preceding the calendar year in which the twelve month period for which the indemnity is to be determined commences. (deuxième année)

(b)  by repealing subsection (1.1) and substituting the following:

25( 1.1) Subject to subsections (1.11), (1.12) and (1.13), for the twelve month period commencing October 1, 2013, and for each subsequent twelve month period, each member of the Legislative Assembly shall be paid an annual indemnity in an amount that is determined

( a)  by multiplying the change in the GDP by 75%,

( b)  by increasing 1.0 by the number determined under paragraph (a), and

( c)  by multiplying the annual indemnity payable for year two by the number determined under paragraph (b).

(c)  by adding after subsection (1.1) the following:

25( 1.11) For the purposes of paragraph (1.1)(a), the change in the GDP shall be calculated using the most recent GDP estimates published by Statistics Canada.

25( 1.12) For the purposes of paragraph (1.1)(a), if the change in the GDP is a negative number it shall be deemed to be zero.

25( 1.13) If the number determined under paragraph (1.1)(b) exceeds 1.02, it shall be deemed to be 1.02.

Commencement

3 This Act shall be deemed to have come into force on January 1, 2012.