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Originally Posted by Mud
Much is said about these "deferred costs" but can anyone give me some examples of these?
Are we sure, in Higgs' defense if we can call it that, that the PCs weren't just letting some things rot away because they truly couldn't be afforded anymore? And where that's not the case were the savings in debt servicing engendered by deferring some spending and running surpluses outweighing the added costs?
NB and I think all of Canada to some degree is in for a rude awakening when it comes to the services it can actually afford with the current tax regime when immigration is brought down to sustainable levels.
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Healthcare is the clearest example, although I could have a think about some others.
Both the physicians and the nurses needed new collective agreements, and Higgs put those off for as long as he could. From what I understand from the nurses, he made no serious attempt to offer them anything until just before the election, when he thought it might benefit his re-election chances. I know this isn't unusual, but given the strain healthcare was under and the inflation that was experienced in those years, massive numbers were at play.
You can put those contracts off and avoid increased costs, but then you have to back-pay everybody once a new contract is finally agreed. A huge part of this deficit is tied to increased healthcare costs, much of which is due to wages.