The Economy and Environment

Oil and Gas

Updated on November 27, 2015

Revenue for offshore oil deposits provided nearly a third of provincial government revenue in Newfoundland in 2013(1). The slump in the price of oil worldwide is estimated to have reduced the province’s revenues by around $1.5 billion, according to RBC, and now forms only around 20% of provincial revenue(1, 2). This has led to a projected deficit of $1 billion in the last 2015-2016 budget even as the Progressive Conservatives have sought to cut costs(1).


Advocacy and Representation
Developed and will continue with the implementation of a generic royalty program to removes fiscal uncertainty for future developments in the industry (3, 4) Pledges to create ‘The Generations Fund’ to set aside a portion of offshore oil and gas revenue for future generations (3) Have spent, through Naclor Energy a crown-corporation, approximately $43.6 million into exploration programs between 2010 and mid-2015 (6)	Supports and will continue with the implementation of a generic royalty program as it removes fiscal uncertainty for future developments in the industry (5) Pledges to create a “Legacy Fund” when the province’s financial situation improves, to put a proportional of total oil revenues into a diversified wealth fund (5) Will create an Oil and Gas Industry Development Council of government officials and energy stakeholders for the purpose of creating a long-term vision of province’s oil and gas sector (5) Promises to ensure transparency in the oil and gas industry and ensure regulatory bodies have the resources they need (5) Believes all future hydraulic fracturing must only occur with a social license from the community (5)	Will lobby the federal government to return federal offshore holdings, like their 8.5% share of Hibernia oil returns, to the province (7) Promises to create an independent offshore safety authority to protect both the workers and the environmental (7) Pledges to invest more in companies that create ‘green jobs’ to help move the province away from their historic dependence on offshore oil (8) Pledges to ban fracking in the province (7)

References

Taxation

Updated on November 24, 2015


Personal
Introduced a 2% increase in the HST (from 13% to 15%) in their most recent budget to help offset the decline of government revenues from falling oil prices (1) Introduced taxes on those earning over $125,500 in their last budget: from 13.8% to 14.3% on income from $12,500 to $175,700 and from 14.3% to 15.3% on income over $175,700 (6, 7) Will work with municipalities to create a new progressive tax regime less reliant on property assessment and taxes (2)	Will eliminate the 2% increase in the HST introduced in the most recent provincial budget (from 15% to 13%), and borrow more to cover the government’s deficit (1, 4, 8) Will create a comprehensive review of tax expenditures [credits provided to reduce the tax burden to businesses and individuals] to make it more simple and reduce the costs of paying taxes on businesses and individuals (8) Will work with municipalities to create a new progressive tax regime less reliant on property assessment and taxes (2)	Pledge to raise the personal income tax rate for the top tax bracket, those maknig over $175,000 from 14.3% to 17.3% (10) Will work with municipalities to create a new progressive tax regime less reliant on property assessment and taxes (2)
Corporate
Pledge to reduce small businesses taxes to the lowest in Canada, currently that rate is 3% in Newfoundland and Labrador with the lowest being Saskatchewan at 2% (2, 3, 5)	Will create a comprehensive review of tax expenditures [credits provided to reduce the tax burden to businesses and individuals] to make it more simple and reduce the costs of paying taxes on businesses and individuals (8)	Promises to eliminate the tax on small businesses to ensure that their proposed increase of $1 to the minimum wage does not negative affect them (9) Pledges to increase the wage top-up for those taking parental leave (9) Would increase corporate income tax by 1.5% (10)

References

Energy Policy

Updated on November 24, 2015


Promises to keep energy prices among the lowest in the country by selling surplus energy to other jurisdictions (1) Approved the Muskrat Falls hydroelectric project, promising to keep energy rates low by subsidizing rates from selling surplus energy from the project to other jurisdictions (1, 2) Will continue to work to implement net metering [which allows individuals and businesses to generate their own electricity, sell their surplus energy back into the grid and use it to offset the cost of electricity they draw from the grid] (1) Will continue to work to create a new National Energy strategy with the other premiers to ensure easy energy transmission through provincial boundaries (1) Will continue to investigate new energy sources such as Gull Island Hydro Project and wind power (1)	Pledges to use surplus power from energy prices to subsidize energy prices for people in the province (4) Will make details of the Muskrat Falls project available to the public including how money has been spent on the project (4) Pledge to implement net metering [which allows individuals and businesses to generate their own electricity, sell their surplus energy back into the grid and use it to offset the cost of electricity they draw from the grid] (1) Will develop Pay-As-You-Save programs [which allow you to pay only as you see savings for the upgrades] for improving energy efficiency in residential, commercial, and industrial areas (3) Will ensure that all future appointments to Nalcor’s board of energy are based on recommendations of the Independent Appointments Commission (3) Will investigate small-scale hydro and wind farm developments, particularly for communities far from the main power grid; and the Gull Islands Hydro Project (3)	Opposed the Muskrat Falls hydroelectric project and believes it will increase energy costs for the province; will provide government subsidized energy efficiency upgrades to reduce energy bills for the province instead (3) Proposes a “Keep The Heat” program to help people make home energy improvements by providing up to $2,500 in rebates for energy-efficient improvements, free energy assessments, low-interest financing for energy upgrades between $5,000-$25,000 (4, 5) Pledge to raise funding for the province’s Residential Energy Efficient Program by $2 million to help low-income homeowners retrofit their homes with energy-efficient upgrades (4, 5)