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Showing posts with label NL Fiscal position. Show all posts
Showing posts with label NL Fiscal position. Show all posts

Monday, 19 October 2020

WAITING, WISHING, AND HOPING

Sometimes an easy “fix” to a problem is wanted so badly that people will delude themselves with the sheer mention by partisans of the next best thing. 

One recent example. The Federal Throne Speech announced the “Atlantic Loop”, an expansion of electricity transmission capability entering New Brunswick and Nova Scotia. 

Immediately, it was embraced by Newfoundland worthies as one of the long-awaited answers to the Muskrat Falls debacle. Yet, it contained not a shred of evidence that this Province has a role to play. 

The word “Atlantic” has historically enabled locals to distinguish the four most easterly provinces from the “Maritimes”. The inclusion of “Quebec” would naturally assume nomenclature like the “Eastern Canadian Loop”. Presumably, that would have allowed too much transparency to a plan in which the Government of Canada is involved. 

Still, what is it that inspires locals to think that the “Loop” is about them and to give it an air of credibility in which the truth is missing? 

Monday, 24 February 2020

RATE MITIGATION AND OTHER DELUSIONS

Guest Post by Ron Penney
We are faced with two big problems, either one of which would be difficult, if not impossible, to resolve. 

The first is the fiscal situation. 

The Auditor General, in her most recent presentation, set out again our perilous financial situation. By almost any measure we have the worst fiscal metrics compared to the other provinces, despite having the highest per capital revenues in the country. 

 Expenses have gone up 33% over the last ten years. Over the same period revenues decreased by 9%. Over the past 7 years we have had a cumulative deficit of $6.4 billion.  

We have the highest per capita expenditures in the country by a large margin.