News Release
Office of the Official Opposition

   

 

Finance Minister misleading people of the province


August 29, 2005

Opposition Leader Gerry Reid says Finance Minister Loyola Sullivan is misleading the people of the province related to profits being made from the high price of oil and his reasoning for not lowering the HST portion of the tax charged to gasoline, home heating fuel and electricity.

"We have asked Minister Sullivan several times to lower the HST portion of the tax applied to gasoline, home heating fuel and electricity in light of the high cost of oil," said Mr. Reid. "Originally, Minister Sullivan said this could not be done because he needed to have agreement from other Atlantic provinces and the federal government. Now that Nova Scotia is requesting a similar tax decrease to happen in that province, Minister Sullivan is refusing to support this initiative and will not give Newfoundland and Labrador’s consent for the HST portion of the tax to be reduced.

"Minister Sullivan’s statements in the media on Friday night demonstrate this government is not willing to give up their windfall profits to help out Newfoundlanders and Labradorians, the people whose pockets are being picked by this government. It is unfortunate that Minister Sullivan is misleading the people of the province and using this false excuse as a crutch.

"The Finance Minister is also trying to convince people that government is not making increased profits from the high price of gas. The people of this province are not that gullible. As the price of gas increases, the profits that government receives from their portion of the HST continues to increase. Each time the price of gas goes up, so do the windfall profits being raked in by this provincial government.

"I am disappointed that Minister Sullivan continuously misleads the people of the province. If he truly wanted to do something that will help out the ordinary Newfoundlander and Labradorian, I suggest he allow Nova Scotia to move forward with their HST tax reductions. I would also suggest to Minister Sullivan that instead of using his power to block this move, he should follow Nova Scotia’s lead and give the people of this province a break on the high price of gas, oil and electricity. If the minister used half as much energy he puts into his false excuses, we would probably already have an initiative developed that would help consumers."

 

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