Economic Crisis, Reboot, Federal Elections: Concern for What’s Next in Newfoundland and Labrador | The Canadian News

There is fear in the province of Newfoundland and Labrador about what will come next. A crippling financial crisis has Liberal Prime Minister Andrew Furey considering his options, in a plan the provincial government calls “Great reboot. “

Among the most nervous about what is coming are the public servants of the province.

There are more civil servants in Newfoundland and Labrador, per capita than in any other province. His union is warning the government against reducing services like health care.

“That’s a concern,” says Jerry Earle, president of the Association of Private and Public Employees of Newfoundland and Labrador (NAPE), “in how we balance, in how we run things. Do not make big mistakes that will have more negative consequences here in our province ”.

In their long history of hardship, Newfoundland and Labrador have never faced a financial crisis like this. With $ 14 billion, the province has the higher net debt per capita in Canada.

It also has the highest unemployment rate, almost 11.7 percent, according to Statistics Canada, as of August.

A $ 5.2 billion federal aid package from the federal government for cost overruns at the Muskrat Falls hydroelectric project, announced in July, will prevent electricity rates from doubling. But it won’t solve the crisis, something most Newfoundlands seem to recognize.

“We need to get things back on track,” said a young real estate agent in downtown St. John’s, who preferred to remain anonymous. “And relying on the federal government to bail us out is not a reliable solution.”

Really fixing the finances could mean making structural changes, something Prime Minister Andrew Furey has yet to do. As Furey considers his options, financial analyst Larry Short says the province is in a state of apprehension.

“We’re all waiting on the edge, seeing things get worse … oil prices could improve a little bit in the next few years, but at some point, we need someone to get up and say ‘I know this is going to hurt, but let’s go. to get that tooth out. “

For now, Furey keeps people guessing. Through his office, he agreed to an interview with Global News, then abruptly withdrew, and there was no response to our request for rescheduling.

Even for a province that has suffered a series of economic collapses, including the cod moratorium, this crisis hits hard. It is the result of a large increase in government spending when oil prices were high, followed by falling oil prices and then the pandemic.

For successful business owners like Todd Perrin, it’s a shame, considering their province is a storehouse of natural resources.

“Whether it’s fishing, whether it’s oil and gas, whatever you feel about how we should judge the oil and gas industry: hydro, forestry, mining. It is a huge storehouse of all the things the world wants and needs. “

But instead of realizing its full potential, the province is, once again, looking for ways to stay afloat financially.

After 11 years as an offshore worker, Trent Taylor has never been more grateful to have a job.

“I’m one of the lucky ones, really lucky to keep my job despite all this. So I count my blessings, I guess, considering what the industry is like. “

Taylor is a control systems operator on the Terra Nova floating production, storage and offloading vessel (FPSO), which helped produce 425 million barrels of oil from the Terra Nova field. When the pandemic undermined an already volatile oil market, hundreds of jobs were lost on the ship.

Amanda Young was fired from her job as a cook at the FPSO last October.

“I’m in a difficult situation,” Young said. She says she has been living off savings and small loans, which are now exhausted.

“You have to pay a mortgage and your bills and you still can’t get into a car and you still can’t get groceries. And so, I mean, this is what we’re looking at right now. “

The shift to a green economy, away from fossil fuels, calls into question the future of the province’s offshore oil and gas industry, along with thousands of reliable paychecks.

Natural Resources Minister Seamus O’Regan, who is running for reelection in the leadership of St. John’s East-Mount Pearl, says the answer is to retrain workers.
“We need them. They are the ones who will reduce emissions. It is a complex issue. This is not easy.”

O’Regan says retraining is a big part of a $ 320 million aid package, which has already been awarded to the industry. But a year later, it’s still unclear how that money gets to workers, according to Young.

“I have not heard anything about what we are switching to and what training is available to us.”

Both Young and Taylor suggest that they will not vote for any party that aggressively promotes a green agenda.

“It definitely influences where I go and where my decision is going to be, when it’s election time,” says Taylor.

If other offshore workers turn away from the Liberals, it could complicate the party’s efforts to maintain control over Atlantic Canada in federal elections on September 20.