NEWS RELEASEOffice of the Official Opposition
For Immediate Release
Parsons questions what impact
Will the American financial crisis impact our province’s efforts to raise funds and sign long-term energy agreements with the United States (U.S.) marketplace, asked Opposition Finance Critic Kelvin Parsons.
The U.S. financial crisis has major American investors committing to tighter regulations and cutting back on investments and credit opportunities. A second refinery in Placentia Bay has already experienced the credit crunch earlier this year as investors cut back their funding to major projects.
“The Lower Churchill development will require a significant amount of investment from third party sources and a long-term buyer of our power, most likely in the U.S.,” said Mr. Parsons. “The financial crisis currently being faced in the U.S. has the potential to affect those markets and it is certainly an issue that cannot be ignored in this country, or our province.
“I am certain that the Minister of Finance is keeping a close eye on this situation due to its impact on the price of oil and how that will affect our province’s budgetary projections. However, it would be responsible of government to provide an update to determine whether this crisis will impact other major projects planned for this province such as the Lower Churchill, and what funding sources government is planning to use in developing this resource. In today’s global marketplace, what happens in one country can significantly impact our province’s finances and government must be ready to deal with any potential fallout.”- 30 -
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