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Opposition Leader Gerry Reid says in light of the weekly pump price survey
released by MJ Ervin Associates stating that Newfoundland and Labrador has
the highest gas prices in Atlantic Canada, and the recent decision by the
Government of New Brunswick to drop their gas taxes, this province should
take an initiative to lower the price of gas in Newfoundland and Labrador.
"The time has come for the minister of finance to reduce gas taxes in this
province," said Mr. Reid. "I have raised this issue several times over the
past year and a half, but have been ignored by government each time. People
in Newfoundland and Labrador are paying some of the highest gas taxes in
Canada and residents deserve some relief. For a province that is making
hundreds of millions of dollars in offshore oil royalties, it is time the
average person shared in some of this wealth. It is not fair to make
significant profits from our offshore resources and then turn around and tax
our people more than anyone else in the country for these resources.
"The newly elected premier of New Brunswick announced yesterday that his
first act will be to lower their gas tax. New Brunswickers do not have a
significant oil and gas industry, and are not making record profits from
their resources. I cannot understand why our province continuously refuses
to consider adopting a similar policy.
"The minister of finance has argued in the past that oil companies will
only charge more for gas at the pumps to make up for any tax reductions. If
gas price regulation is working in this province, this will not be an option
for the companies. If the taxes are dropped, this money will go back into
the pockets of the Newfoundlanders and Labradorians.
"This government can continue to make excuses, however, the fact remains
that our province is paying some of the highest gas prices in the country.
Newfoundlanders and Labradorians deserve to pay similar prices to our
Atlantic Canadian counterparts. This will only happen if our government
provides our people with some much-needed tax relief."
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