News Release
Office of the Official Opposition

   

 

Opposition continues to question impact of fuel prices

Economy suffering as government refuses to take action

September 29, 2005

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."

 

Media Contact:
Jeff Mackey
Communications
Office of the Official Opposition
709-729-6427 or 709-685-3128