PCs accuse Liberals of 'cooking the books,' call for finance minister to be fired

Newfoundland and Labrador's Progressive Conservatives are accusing the governing Liberals of "cooking the books" by adding revenues from a pending settlement against tobacco companies to this year's pre-election budget.
The notion dominated question period on Tuesday, turning the House of Assembly into a slug fest when PC MHA Lin Paddock called for Finance Minister Siobhan Coady to be fired, accusing the deputy premier of manipulating the province's budget deficit to look better than it is during an election year.
"In accounting terms, manipulating the financial numbers is termed 'cooking the books.' Today, we learned that the minister of finance actually cooked the books," Paddock, an accountant himself, said during Tuesday's question period.
"So, I ask the premier, will you fire the minister of finance?"
The House erupted in shouting from both sides of the floor once Paddock's question — animated and with a raised voice — landed. A point of order was later called by the Liberal Party, which will prompt Speaker Derek Bennett to decide whether or not the comment is unparliamentary.
The debate on the House floor follows a CBC/Radio-Canada report that Newfoundland and Labrador was the only province to report the entirety of more than $500 million from the settlement in its budget.
Both Paddock and PC Leader Tony Wakeham said the move lacked transparency and that only the money the province will receive this year should have been put on the books — as some other provinces have done. Others haven't booked the revenue at all, given continued uncertainty as to the value and timing of payments.
Both claimed the move was made to help the provincial deficit of $372 million look lower than expected heading into a provincial election, which must be called by October.
"You're playing with numbers. You're manipulating numbers to understate the budget for this particular year. An election year," Paddock said.
Wakeham weighed in.
"Why was this not turned around and treated differently? I don't think it was any reason other than simple, good old politics," he said.
Labrador West MHA Jordan Brown, the sole NDP representative in the House on Tuesday, also voiced concern.
"That is a real concern in and of itself as well, that we do it completely different than the rest of the federation," he said.
WATCH | Coady says the province acted on best advice:
N.L. is putting decade's worth of revenue on the books now, from a pending tobacco lawsuit
15 hours ago
Duration 3:05
While other provinces contemplate how to account for the settlement money, Newfoundland and Labrador's governing Liberals put $500 million worth of revenues on the balance sheet, despite the fact that the money will be paid out over decades.The CBC's Peter Cowan reports.
Coady and other Liberal members expressed shock after Paddock's comment about relieving her from her job.
"That is atrocious, to be honest with you, Speaker. That is insulting to all the accountants who have been involved with the preparation of this budget," Coady told the House.
"We are obligated in the Department of Finance to recognize revenues as we know they will become available to us. We know that we have an agreement with the tobacco companies ... I think the member opposite is questioning the integrity of the accountants, and of me, of preparing this budget."
Paddock responded by saying he wasn't questioning the integrity of accountants, but the government as a whole.
Speaking with reporters after question period, Coady said the province operated on best advice in recording the expected revenue. It also isn't unprecedented, she said, as the province similarly recorded money from Ottawa for a new Atlantic Accord arrangement — a deal that runs until 2056 — when it hit the financial statements in the first year the deal was signed.
Asked to respond to Paddock's comments, Coady said it came during heated debate, but expects an apology.
Whether or not Coady remains in the position depends on Premier John Hogan, who rose in the House to defend the finance minister following Paddock's pointed comments.
"I will stand by her side till the end of time for the work that she has done for this province," Hogan said.
"She created the best economy in this country right here in this province. Compared to the rest of the country, the economic indicators in this province are going up, while in the country they're going down."

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