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Judy Foote, Opposition Critic for the Department of Innovation, Trade and
Rural Development and MHA for the District of Grand Bank, says the economy
of the province is suffering because of increased fuel prices and she is
appalled at the refusal of the Williams government to take action on the
issue. "Last month I asked Minister Dunderdale to become involved and
develop a plan to deal with the negative impacts of high fuel costs on the
provincial economy," said Foote. "Since that time the situation has
continued to worsen and the Minister still shows a complete lack of concern.
It is obvious that this government doesn’t have a plan to deal with fuel
prices and given the Minister’s silence on the issue, there is no indication
one is being developed."
The Liberal MHA says there are many ripple effects of high fuel prices on
the rest of the economy. She notes that transportation costs are very
important when considering the state of many sectors of our provincial
economy. "It is not good enough for this government to ignore the impacts of
high fuel prices on the economy of this province and horde the extra tax and
royalty revenues they are receiving. The roots of this problem may be
international in nature, but there are actions our provincial government can
take to help lessen the impact on local businesses and consumers.
"I was hoping there would be a comprehensive action plan in place by now
to deal with this situation. The fuel price increases and government
inaction has placed a black cloud over many businesses in the province.
Rural areas will likely be hit hardest due to the high transportation costs
associated with conducting business in these areas."
Foote says the universal nature of this problem means that the whole
economy will be negatively impacted. "There are some businesses, like the
trucking industry and school bus operators who are working on fixed
contracts, that are already feeling the impacts of high prices. In the
longer term, the increases will impact every sector of the economy. As the
cost of gasoline and heating homes increases, people will have less money to
spend on other goods. Over time, the cost of most consumer goods will also
increase because of higher transportation costs.
"The Williams government has stood by and watched the destruction of
rural areas of this province and they are now making the situation even
worse by neglecting their responsibility to deal with this issue. Immediate
action must be taken to develop a strategy to deal with the impact of high
fuel prices on businesses and consumers in this province."
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