Kelvin Parsons, Opposition Finance Critic and MHA for the District of Burgeo-Lapoile, says the premier must be straight with the people of the province on what the local impacts will be from the global economic meltdown. So far, the premier has been vague and contradictory.

At the recent first minister’s meeting in Montreal, he stated that this province can weather the turbulence better than any other province. However, when addressing issues at home such as the nursing negotiations, he says that he expects a deeper more serious recession than we have seen before. The Dominion Bond Rating Service in their recent credit report on the province stated that we can expect a surplus of $291 million this year, almost $250 million less than the $544 million that was projected by the provincial government in April.

“The premier is sending mixed signals as to what impacts we will see from the global economic crisis,” said Mr. Parsons. “The Governments of Ontario and British Columbia have already provided detailed financial statements to update the people living in those provinces. Meanwhile, many of our natural resource projects could be impacted by these international developments, yet there have been no economic updates from our government.”

Parsons highlighted the credit crunch in the local fishery due to the problems being experienced by Icelandic banks; the financial problems facing the new refinery for Placentia Bay; the delayed expansion plans for the Come By Chance refinery; the lack of financial backers and long-term buyers of Lower Churchill power; and potential delays with the Hebron project should the price of oil continue to drop.

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