A fool’s paradise
Just imagine the Kathy Dunderdale government warning us that if oil prices continue to drop, the province will run a deficit of several hundred million dollars.
Just imagine, too, that this government set its budget for this fiscal year based on oil prices being around $125 a barrel.
Already, and it is only early July, oil has dropped by $30 a barrel and now rings in at around $95 a barrel.
How could a budget be set based on a probability?
The financial market managers must be laughing again.
Dunderdale says that one third of the province’s revenue depends on revenues from oil (and gas).
The way this province is slipping further into debt, I wonder where the billions of dollars to develop the Muskrat Falls project (if it goes ahead) will come from?
From my side of the bay it looks like a government existing in a fool’s paradise. Bill Westcott writes from Clarke’s Beach