Friday, March 31, 2006

Black Gold

Well it looks official, Tetley has been replaced as Newfoundland's favorite brand of tea for that lovely black Hibernia brand.

For the first time ever, the government of Newfoundland & Labrador has managed to generate a surplus budget. This milestone in provincial history can be directly attributed to 2 things:

First and foremost, the Conservative driven plan to extend to NF and Nova Scotia the same rights to their oil revenues that Albertans enjoy. True, the actual legislation was enacted under the previous Liberal government but only the most die hard, kool-aid drinking Liberal could honestly say that it was not an attempt to 'steal' a Conservative party promise in order to retain their East Coast dominance. Even then, after running on a policy copied straight out of the Conservative playbook, the federal Liberals tried (and thankfully failed) to tie so many strings to their version (only after the election of course) as to make it almost meaningless. Then there is the small matter that it was also the federal Liberals, when in power a few decades ago, that enacted the federal legislation that forced Newfoundland to give up over 80% of it's oil revenues to the feds in the first place (I hope the bitterness in my typing isn't coming across too strongly).

Secondly, the current high price of oil. As long as oil stays over $54 a barrel, things will be looking up for the Newfoundland economy. So while I don't enjoy spending 98 cents/L for gas, I don't mind it as much as

Hopefully, with this sudden change in the economic situation of what is generally viewed as Canada's poorest province (but we still get to make fun of Cape Bretoners), the government can start to look into more ways to generate wealth within the province.

Things are looking good in the land of rock and surf.

=)

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