News Release
Office of the Official Opposition

   

 

Foote says fuel prices impacting on economy

Rural areas will suffer if government does not take action

August 24, 2005

Judy Foote, Opposition Critic for Innovation, Trade and Rural Development and MHA for the District of Grand Bank, is asking government how they plan to deal with the negative impact of high fuel costs on the provincial economy.

"Consumers and businesses throughout the province find themselves in difficult circumstances as a result of increasing fuel costs," said Ms. Foote. "Because of the rural nature of much of Newfoundland and Labrador, the cost of transporting goods and providing services has increased dramatically. If businesses are to survive, they will have no choice but to recover those added costs meaning consumers in all areas of the province will pay more for their goods. Given the trend of the increasing fuel costs over the past months, it is inconceivable how government can continue to benefit from windfall profits and not acknowledge the negative impacts on every other sector of the economy.

"Even as people do their part to cut back on fuel consumption, like car pooling, there are activities they have to do including driving to work, driving children to school and heating their homes. Now is the time for government to act, not when businesses throughout the province have to close their doors because consumers cannot afford to spend money on things other than necessities. Without a plan by government to lessen the burden, businesses will surely feel the impact of this reduced spending. I fear the damage this will cause to the economy of the province, especially in rural communities, maybe be irreparable.

"Government should have been prepared for this turn of events and been prepared to alleviate the negative impacts on society that accompany such dramatic increases in fuel costs. Unfortunately, it appears that this government has no plan to deal with this alarming situation. Instead of ignoring the plight in which people throughout the province are finding themselves, Premier Williams should take the lead and show that he is concerned about how difficult it has become for Newfoundlanders and Labradorians to cope in the face of increased fuel costs. Unless he shows leadership on this issue, everyone in this province will suffer.

"This government has been silent in dealing with the high cost of gas and oil. While the Premier has said the government has a draft energy plan, that will do nothing to alleviate the hardships being felt by the people of the province today. As for the draft energy plan, why not share it with the public, something he appears unwilling to do. Now is the time to release this plan and request feedback from Newfoundlanders and Labradorians . The fact that he won’t is worrisome. Residents and businesses of this province need to know what government’s plan will be to deal with these energy issues. It is absolutely essential that whatever plan is put in place takes into account the unique nature of the rural areas of our province. Without that, we may see more people and businesses leaving rural areas, something we simply cannot afford."

 

Media Contact:
Darrell Mercer
Director of Communications
Office of the Official Opposition
709-729-6151 or 709-687-0477