MLAs, auditor general press Houston government for spending rule changes

Nova Scotia opposition MLAs used a legislature committee on Wednesday to, once again, press the Houston government to change the way it approves budget overspending, something Nova Scotia’s auditor general has called for the province to do. 

Finance department officials are expected to release the latest financial forecast this week, which will include the amount of money the Houston government has spent on programs, services and projects over and above what was authorized in last spring’s budget. 

In the past two years, the governing Progressive Conservatives have raked in more than $3 billion in extra revenue and spent it on unexpected emergencies, beefing up programs, starting new projects or simply balancing the books.

Unlike every other legislature in the country, extra spending in Nova Scotia is not subject to debate and a vote in the legislature, a failing the province’s auditor general has repeatedly called on the government to fix.

In a report issued last March, Kim Adair called the current practice a process that “lacks accountability and transparency.”

‘Democratic deficit’

Liberal MLA Braedon Clark said it’s part of a growing “democratic deficit” in Nova Scotia.

“It concerns me quite a bit even though it might seem arcane and academic to lots of people,” said Clark during the public accounts committee. 

“Additional appropriations is part of it. Incredibly short sittings are part of it. Weak legislative agenda is part of it. A broken law amendments process is part of it.” 

Clark said he doesn’t think the problem is limited to one party or one term, calling it “a growing issue” that “all MLAs should be really worried about.”

Senior Finance Department officials defended the practice of having cabinet retain its power to decide on extra spending on its own. Deputy minister Kelliann Dean told the committee the process allowed the government to respond to emergencies or to fast-track priorities.

“The fact that additional appropriations, particularly over the past several years, have grown, is also a factor of the challenges that we had with the economy, through COVID,” said Dean.

“They do reflect priority spending and spending on the pandemic and other areas that the government wanted to invest in, like health care, like housing.”

Dean said the government was able to spend above and beyond the budget because of billions of dollars of unanticipated revenue.

New Democrat MLA Lisa Lachance said none of that would change by having the House scrutinize the government’s spending decisions.

“You can still have those increased revenues, you can still make those investments, and you can still engage with the legislative process,” said Lachance.

“Maybe we can’t anticipate all the effects of climate change. Maybe we can’t anticipate the level of homelessness, but … we could respond, and we could still go back to the legislature.”

The auditor general, who attended the meeting, told reporters she remained firm in her conviction that the legislature should be allowed to debate and approve additional appropriations.

“The debate that should happen in the legislature, as it does across the country, should happen in the House of Assembly here in Nova Scotia,” said Adair.  “We will continue to make the same recommendations and in our upcoming December report, possibly make even more.”

AG says large projects need contract

Asked by reporters about the fact the Houston government continues to spend millions of dollars on major health care projects without a contract, Adair said she continued to have concerns about the Hogan Court project, where the province bought an unfinished hotel to convert into a transition care facility, and the redevelopment of the QEII Health Sciences Centre in Halifax..

“On both of those projects we have made recommendations that you should have a contract in place before the work begins,” said Adair, who was advised by Build Nova Scotia, the agency responsible for overseeing the QEII project, that a contract would be in place this past spring.

“When you have large construction projects, you should have a contract. Otherwise the taxpayer bears the risk of cost overruns, of scope creep, of the financing risk,” she said. 

“It’s a great position to be in if you’re the private sector contractor but it’s the taxpayer that pays the bill.”