A fool’s par­adise

The Compass - - OPINION -

Dear Edi­tor,

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

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