Pre-Budget Submission to the NB Department of Finance

Herer are the New Brunswick Federation of Labour’s (NBFL) views pertaining to Government of New Brunswick Budget 2026-2027. The NBFL is the largest central labour body in the province, representing 40,000 unionized public and private sector workers.

In our view, now is not the time to cut public services that New Brunswickers rely on. If government continues to approach its budgeting process with the objective of reducing spending and eliminating programs, we will continue to get similar results: longer wait times, higher stress on workers, and communities that feel like they are being asked to do more with less.

Now is the time to increase our investment in public services, not less. New Brunswick’s economic position is strong. The net-debt to GDP ratio in New Brunswick is lower than in most Canadian provinces. Plus the economic multipliers for government investment in child care, education, and health care, are far higher than those for tax cuts. Jobs are created when consumers can afford to spend on local services and programs.

To support this increased investment in public services, we need to find ways to increase our revenue. The NBFL does not support an increase to the HST as this is a regressive tax measure. Rather, the Government of New Brunswick should ensure that large profitable corporations pay their fair share of taxes for the privilege of operating here and benefiting from our infrastructure, our workforce, and our public services. That can mean a focused large-corporation surtax above a reasonable profit threshold, a corporate minimum tax so companies cannot reduce their tax obligation to near zero through aggressive deductions, and a serious review of corporate tax expenditures to determine which incentives actually deliver stable jobs, decent wages, and reinvestment in the province, and which ones are simply giveaways that we keep renewing out of habit.

Workers in New Brunswick can accept paying for strong public services, but they cannot accept a system where regular households feel squeezed while highly profitable firms are treated as untouchable.

Another revenue generating idea is to create an employer-based contribution system to support health care. It would be designed with exemptions and thresholds so small and medium-sized employers are protected while employer with large payrolls contribute more. Many jurisdictions have versions of employer health taxes or payroll levies that are built to be progressive and predictable, and New Brunswick should seriously consider a made-in-NB approach that is transparent and dedicated to improving health system capacity. If we want stable staffing, shorter wait times, and better outcomes, we need stable revenue that matches the scale of the challenge.

Although the NBFL does not support cuts to public services, we do support modernization that frees up resources for frontline priorities. One obvious opportunity is telework and hybrid work for provincial government employees wherever service delivery allows it. A serious telework strategy is not just an employee benefit, it is a real estate strategy. If the province reduces leased space, consolidates offices into hubs, and disposes of surplus buildings, those savings can be redirected into health, education, and enforcement capacity. It is a way to be responsible without weakening the services people count on, and it can also help recruitment and retention in a tight labour market.

Property taxes also need attention. Property tax increases are contributing in making life less affordable and are undermining New Brunswickers’ trust in government. A review of assessment and taxation should focus on predictability and fairness, including measures that protect households from sudden spikes, and a serious discussion about rebalancing the overall revenue mix so municipalities are not forced to rely so heavily on property taxes to keep essential local services running. Fixing the property tax system is not just a homeowner issue, it is an affordability issue and a fairness issue, and it deserves more than temporary patches.

To support local economic development, the NBFL recommends investing in inclusive growth that focuses on local companies, seeking to replace imports with made-in-New Brunswick goods and services, to strengthen the provincial economy.