Low oil prices and poor fiscal judgement have pushed Newfoundland and Labrador into a recession. With the looming threat of credit rating downgrades that could cripple the economy, Finance Minister Cathy Bennett doesn’t have much room — or time — to make some tough decisions.
Official government projections for provincial oil royalties look bleak. We must adjust to life after the boom.
Economists from Memorial University have some ideas for changing the tax system in order to fight poverty.
Institutional discrimination at its best: The ‘old boys club’ reviews fracking
Memorial University economist and the province’s go-to-guy for predictions and analysis, Dr. Wade Locke, is at it again. Locke says that in the next 10 years the province will be facing a significant labour shortage due to the lack of skilled workers, and that will drive wages up. That shortage, Locke says, will have a trickle down effect and will impact municipalities. Locke is speaking in advance of the Newfoundland and Labrador Employers’ Council annual conference, which is taking place next week. Source: VOCM
Economist Wade Locke has completed a report on the economic impact of the Hebron project – and he has determined that it is crucial to the long-term fiscal health of the province. He has concluded that the project is expected to bring in $20 billion in royalties and taxes over its lifespan and is expected to account for 55.6 per cent of total offshore production during the period of 2016-2037. Variables like the price of oil and the value of the Canadian dollar could deflate expectations to $11 billion or balloon them to $34 billion depending on the worst and best case scenarios. Read the full story and more from Locke’s report at the Daily Business Buzz. Source: Daily Business Buzz
Public panel examines Newfoundland and Labrador’s ‘prosperity’: is it coming, going, or slipping through our fingers?