Tied too much to oil

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Finance Minister Tom Marshall had some good news for the province Monday, the budget deficit will be $113 million less than was projected by his predecessor in the spring.

That amount of money is nothing to be sniffed at ... but the deficit will still be about $450 million when the numbers are tabulated at the end of the fiscal year come spring.

That’s the good news.

The down side is that money from oil and mining royalties was also lower than budget projections in the spring, and without cuts in government spending, the deficit would have been even higher than predicted.

This again shows just how tied the economy of this province is to the resource sector and there is little sign of any concrete movement toward diversification.

There have been warning after warning that our economy cannot be sustained forever on oil money which will eventually run out.

Unless action is taken while the oil money is flow in, the people of this province will be left in the lurch.

Many of us know what conditions were like in this province before oil started being pumped from the offshore and we have a good idea of what life in this province will be like when the wells run dry and it won’t be pretty.

We had decade after decade of growing debt and depending on the federal government to pay our bills.

None of us want to return to that situation but changes have to be made ... and made quickly.

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Recent comments

  • david
    December 03, 2013 - 11:54

    When we were tied to fish for 400 years, and not a peep of discontent with that. IMO, it's good to be tied to almost anything at this point in Newfoundland's self-inflicted decline into oblivion...and you could do a LOT worse than oil. At least some people can eventually get out of here with a few sheckles in their jeans.