PEI Premier Robert Ghiz, a fool and his money are soon parted

By Stephen Pate, NJN Network, Charlottetown, PEI, Canada, April 6, 2009 with story from Charlottetown Guardian

Premier Ghiz forgot the old adage – save for a rainy day. Last summer when Premier Ghiz thought he could always take a plane to Ottawa and get more money, he let $400 million slip through his fingers. He made a deal on the PNP to only keep a small amount of the investment money from China. What a foolish bargain he made for a little gain. If Ghiz had negotiated like money mattered, we should have driven all fees below 20% and kept 80% for PEI. A good money manager would have and the accountants, lawyers and agents would have thanked him for their $80 million. Tim Banks could have driven a hard bargain.PNP thumbnail

The deal Ghiz could have made and save for this rainy day (click for larger)

Now Ghiz is crying the blues because he didn’t save for that rainy day and the rainy day is here. Canada is just starting a long two year recession. Ghiz and Sheridan are finally admitting money from Ottawa will drop. Where’s the money that slipped through Ghiz’s fingers?

Premier warns Liberals tough budget coming LORI A. MAYNE Transcontinental Media

SUMMERSIDE — During a speech to Liberals on the weekend, Premier Robert Ghiz rhymed off programs and projects his government has supported. But he suggested he might not have as many to add this year. “Our budget is going to be tough,” he said to the P.E.I. Liberal Association annual general meeting in Summerside.

“We’re basically working from a status quo position. But we’re also going to make sure that we’re not going to be afraid to spend in areas where spending needs to take place, for example, in health care and education and our seniors.”

More than 180 party faithful crammed into the Credit Union Place meeting room Saturday. The provincial Liberal government had already been warning of a deficit.
“This year, we’re not getting as much from equalization from the federal government as we anticipated,” Ghiz said in an interview after the meeting. “The economy’s not as strong nationally as it was. Prince Edward Island’s not as strong as it was the last number of years, so there’s going to be less anticipated revenue.”

He said in general it’s not a year to look for budget increases. “This is a year to maintain what you have.” Ghiz suggested in his speech, however, seniors might see additions to the emergency home repair program. “We’re hoping maybe in this budget we’ll be able to offer some new expansions there,” he told the crowd.
This meeting came on the heels of a tough week for government. The auditor general’s report was released, criticizing facets of the way P.E.I.’s controversial Provincial Nominee Program has been administered.

This program fast-tracked Canadian visas to immigrants who invested $200,000, some of which went to a P.E.I. company. There wasn’t mention of PNP during meeting discussion. In an interview, Ghiz described it as a good program, acknowledging mistakes were made. “We’re going to correct those,” he said.
For example, concern had been raised over lack of oversight and that the board with the job of monitoring the program was inactive.

Ghiz said his government would ensure the board meets regularly and does proper due diligence. “We’re going to work to get a new program in place to make sure that we implement the changes that the auditor general’s recommending.”