Cheers & Jeers
Jeers: to continued obfuscation. St. John’s Mayor Dennis O’Keefe has said he and his merry councillors are unable to release why they paid a former city manager $640,000 in severance pay. Their argument? That the pay deal involved advice from a lawyer, and therefore, can’t be released because the province’s Access to Information Act forbids the release of solicitor-client information. In fact, the act actually only says the city “may” refuse to release solicitor-client information. But even more hilarious? The city is the client, and can, if it wants, release any part of a legal opinion it wants to. Trouble is, for some reason as yet unexplained, O’Keefe and the rest of council don’t want to say why they struck a special deal. And since we paid for it out of our taxes, we have a right to know why.
Cheers: to math. So, the gasoline tax has increased by 16.5 cents a litre, a move that Finance Minister Cathy Bennett says will bring in $142.8 million in revenue. It’s worth pointing out that only about $134 million will actually be in gas tax, though — the rest will be additional HST, with the province getting (once the HST hits 15 per cent in July) 10 per cent of the new gas tax as additional HST, and the federal government getting an unexpected bonus of $6.7 million. You load 16 tons and what do you get? Another day older and deeper in debt.
Cheers: to how the other half lives. And here is a sample from the most current policy available for ministerial automobile allowances for Newfoundland and Labrador cabinet ministers (set in 2013). “The automobile allowance is $8,000 per year, prorated for the portion of the fiscal year for which the minister serves in cabinet. … Ministers will be reimbursed fuel expenses, consumable liquids and related expenses incurred while travelling on government business. Detailed original receipts indicating proof of payment must be provided.” So, $8,000 cash to start, and don’t forget those gas receipts. Even the windshield wash is included. And the HST.
Cheers: to the minister’s explanation. Turns out, the price of oil is only 30 per cent of the price of gas. Here’s Finance Minister Cathy Bennett in the House of Assembly: “Motor gasoline and crude oil are in two different markets. The price of crude is only one input in the calculation of the pump price for gasoline. So, for example, this week on the Avalon Peninsula the price of crude contributed 30 per cent of the pump price. Other inputs in the price of gas would include exchange rates, refinery profit margins, marketing and distribution costs, the PUB-allowed Newfoundland markups, the PUB Newfoundland and Labrador pricing zone differential, federal excise tax, provincial gasoline tax and HST.” At least someone’s making money.