Last-minute inflation relief announcement a trick, not a treat, says P.E.I. Opposition

P.E.I.'s Opposition leader Peter Bevan-Baker likened a government announcement Monday of $58 million in inflation relief payments to a homeowner on Halloween taking a handful of candy out a child's trick-or-treat bag, then giving some of it back.

The announcement was made just hours after the government announced it had posted an unexpected $84-million surplus in the last fiscal year, most of that coming from tax revenues that came in higher than budgeted.

"As the premier loves to say, he put money in the pockets of Islanders. But only after he first took it out of there himself," Bevan-Baker said in the legislature on Tuesday.

Under the new program, the province said Islanders with an annual net income up to $100,000will be getting $500 tax-free in relief support.For couples and single parents with a net income up to $100,000, there will bea $1,000 tax-free payment.

"Trick or treat? That's a very good question," Bevan-Bakersaid, eventually concluding the new funding announcement constituted a trick.

Surplus stemmed from COVID recovery, sayspremier

The $84-million surplus was posted for the 2021-2022 fiscal year and marks a dramatic fiscal turnaround from the province's initial operating budget, which had projected a $112-million deficit.

Premier Dennis King said the surplus stemmed from the province's quick economic recovery after the end of COVID-19 lockdowns.

"Every forecast showed that that was going to be a difficult time for our economy," he told the house.

"We've seen an influx of money from the federal government. We've made record investments to get money into the pockets of Islanders and the end result of that has been the economy has outperformed what we thought."

But Bevan-Baker accused the government of sitting on the surplus for months while Islanders struggled under the highest inflation rate in the country.

Islanders told to 'tighten their belts'

After an initial round of inflation relief payments worth up to $150 was announced in March delivery was delayed until July the province's finance minister at the time said beyond that, Islanders would have to "tighten their belts."

"Yesterday's announcement, welcome as it undoubtedly was, was not crafted around the needs of all the Islanders who have suffered through the last few unparalleled painful months," said Bevan-Baker, "but rather around the political needs of this government."

The Liberals jumped into the debate as well, with MLA Gord McNeilly accusing the government of trying to buy votes in advance of an election coming sometime in 2023.

"While Islanders were struggling to meet basic needs, the government was profiting from inflation, only to gatekeep taxpayers' money until closer to election time by sprinkling some back," he said.

"I'm trying to do my best to help Islanders," the premier said. "We have a better financial position than we've had and we're sharing that with the people who deserve it. When the election comes, if people think others should do it better and they vote for them, I'll be the first one to say good luck because you'll do it the same way I've been doing it."

Red Cross contract shouldbe reviewed, says minister

In fact the King government keeps changing the way it tries to distribute financial aid to Islanders.

The inflation payments in July were administered through the Canada Revenue Agency. When the province decided after post-tropical storm Fiona to make $250 in support availableto each Island household, it tapped the Canadian Red Cross to distribute the funds.

The inflation support payments announced Monday will go out through the CRA in January 2023.

On Tuesday Green MLA Lynne Lund questioned whether Islanders who were told by the Red Cross to wait in line to prove their identity before receiving their $250 might file a human rights complaint.

"I heard from many people who couldn't believe it when they were told that despite mobility issues or chronic pain, that they had to come in person and line up for hours in order to get a relief cheque, and if they couldn't, they were out of luck," said Lund.

"This is obviously discriminatory and could arguably be subject to a human rights complaint, and yet this wasn't a violation of the contract government has with the Red Cross."

The Minister of Social Development and Housing Matthew MacKay whose department entered into that contract with the Red Cross conceded it was "a very fair point."

"I had probably as many calls, if not more, than anyone in this Chamber of exactly the same situations, and it was unacceptable," MacKay told the house.

He said his department has "certainly learned a lot through all this," and when it's over, "I think we do need to do a review of the contract and to see if the Red Cross can provide the service they said they can provide."