Higgs gov’t to hire 40 new staff to issue $300 affordability benefit

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The Higgs government is hiring 40 new staff and redeploying another 15 from within its departments to administer the newly announced one-time $300 “affordability” payment that the Department of Finance admits is complicated.

That’s amid concerns from opposition MLAs who are questioning the administrative cost of the program, which is expected to take months to roll out.

“This is probably one of the biggest programs that we will have rebated,” Finance Deputy Minister Cheryl Hansen told a committee of MLAs inside the legislature this week.

“You’re absolutely right, we’ve had to hire more to process that amount in a timely manner.”

Government spokesman Bruce Macfarlane maintained on Thursday that it’s too early to predict the administrative cost of the program, which was revealed by Premier Blaine Higgs at the State of the Province address in late January to provide a one-time payment to all New Brunswick households with a net income of $70,000 or less per year.

Higgs estimated the program would cost the province about $75 million and could be paid out to up to 250,000 New Brunswickers.

Macfarlane said the administrative price tag “will depend on how long we need to use extra staff.”

The province has confirmed that 40 new staff are being hired and another 15 will be reassigned.

“My concern is the cost to process and look after all these applications,” Liberal MLA Keith Chiasson said in committee.

“I imagine 250,000 applications, this is going to be more than one or two months, I imagine this is going to be at least six months to process everything.”

Hansen didn’t disagree.

“You are correct,” she said, noting the province will leave the application process open for over four months to allow New Brunswickers to apply.

“We’ll have to see at which applications come in relative to staffing.”

The Higgs government is already accounting for some of the payments not to roll out until April.

In a third-quarter fiscal update last week, the province earmarked $58.8 million for the new affordability measure, a figure significantly lower than the $75-million price tag.

The province has clarified that the cost of the program will be spread over two fiscal years, meaning $58.8 million in $300 cheques are anticipated to be cut before March 31, with the rest coming after.

“It’s going to be a nightmare for us MLAs also because even though I didn’t make the decision I’ve got to live with the consequences,” Chiasson said, suggesting the recent rollout of a heat pump rebate by NB Power caused similar problems.

“People call our office and say ‘I sent my application in more than a month and a half ago, didn’t get any information or anything’ and just like the heat pump program, we have to send emails and do a followup because it’s our job.

“It’s just horrible, it’s really horrible.”

Hansen said there will be a paper form available at Service New Brunswick centres for New Brunswickers to fill out, but that there will also be an online application available.

“We are also going to have a call line, so people can call,” she said.

“So it could be paper, call, as well as online.”

Macfarlane said in an email that the government has “simplified” the process so that only one document is required as proof of eligibility.

The Canada Revenue Agency issues a “Proof of Income Statement” for individuals to meet eligibility. Households will have to show at least $3,000 in “working” income to receive a new $300 payment.

“Ultimately, government needs to ensure that the proper checks and balances are in place when spending taxpayers’ dollars,” Macfarlane said, noting the government administers “many application-based programs that are income-tested.”

He said the Low-Income Seniors Benefit, in place since 1998, issues over 45,000 payments to eligible households through a similar application process.

The Higgs government will also introduce legislation this spring so that New Brunswickers won’t have to apply for newly created provincial benefits, instead entering into a partnership with the Canada Revenue Agency for the data necessary.

That said, it won’t be in place to help the new $300 cheques roll out.

“Why did we wait so long?” Chiasson asked Hansen. “Now, I find we’re just chasing our tail here.”

The deputy minister responded that the province has been attempting to get an agreement in place with the CRA since the COVID-19 pandemic hit.

“They were not even prepared to talk to us until a certain point because they were inundated with other things during the pandemic, and now they’re ready to entertain us,” she said.

“It’s not just relative to the legislation, we had to set up certain things for the security of the information, where we hold the information, the privacy implications.

“I wish it was as simple as a bill.”