Newfoundland and Labrador to get $32 million boost from Ottawa: Foote

James
James McLeod
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The Newfoundland and Labrador government is getting a bit of help from Ottawa to deal with the $2-billion deficit forecast for the coming year.

Judy Foote.

Judy Foote, the province’s federal representative in cabinet, announced Monday that the federal government will be kicking in $32 million from the “Stabilization Fund.”

The pot of money is available to provinces that see resource revenue fall by more than 50 per cent, or non-resource revenue fall by five per cent year over year.

Both Newfoundland and Labrador and Alberta are getting the maximum amount of money available, which works out to $60 per person.

Because of a larger population, Alberta got about $250 million from the fund, which has been around since the 1960s.

The province got about the same amount of money back in 1992 amid the economic wreckage of the cod moratorium.

The announcement comes one day ahead of the federal budget, which will be delivered on Tuesday afternoon.

Foote said the government in Ottawa wants to be part of the solution to the province’s budget woes.

“We do know and we recognize that Newfoundland more than any other province at this point in time, is in a very difficult situation. It has very little ability to raise funds,” she said.

“Certainly, in terms of whatever they decide to do themselves in their budget, I have no idea, I’ll leave that to the province, but from the federal government’s perspective, we need to work with the province and we’re doing that.”

Geographic location: Newfoundland and Labrador, Ottawa, Alberta

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Recent comments

  • Just Sayin'
    March 22, 2016 - 10:34

    Stop whining about "that measly sum" and put the province back to a "have" by developing the West Coast. The potential there is huge but it takes balls to stand up to the environmentalists. Most of them know nothing about fracking but apparently it is cool to be against it.

    • Angela
      March 22, 2016 - 11:56

      Just Sayin' if you are thinking that Oil is the answer to a sound and reliable economy, you are wrong! Our "renewable" fish resource is the only resource that can give us some sense of security and that is only if it is maintained and sustained properly and that we can get some control over the fishery back from Ottawa. Oil should only be utilized and thought of as as an auxiliary resource to give us a somewhat versatile economy. Oil is too easily manipulated in too many ways, we will NEVER get any control or sense of security with the Oil resource. It will rise and fall periodically, always creating great chaos with each fall. We have seen it happen so often we should have learnt our lesson by now.

  • Charles Murphy
    March 22, 2016 - 04:18

    on the Great Northern peninsula there stand a pellet plant.in Corner Brook there's two vacant buildings. now if you was to combined the two locations together. we can meet our own Market here in Newfoundland and Labrador. because according to my research there's a market in Europe and North America for the following items. Wood pellet - pellet stoves - fire logs - wood stoves, complete with all accessories. now if we start manufacturing these products. before the year was over we could have 250 people working.that would be the beginninga of new era in our history moving forward.so let's take this 32 million dollars and putting it to work in a productive way to get our economy on the move.

  • Eric
    March 21, 2016 - 21:20

    Indeed, a province needs at least two voices in opposition out of the seven we possess in Ottawa, that is if they would use their voices for the purpose for which they were elected.

  • Fred
    March 21, 2016 - 20:16

    Time for fed gov. To fork over 8:5 percent Hibernia. That should be given to us 1980s. When creitchen and old man Trudeau in power. 32 million. Just peanuts. Hydro Quebec. Makes that off NL every 18 hours. Time for fed gov to make Quebec pay up. Or tear down lines that pass thru Quebec at Labrador border. Something gotta give. Enough is enough. Getting serious now. Everything should be on table.

    • Mr. Observer
      March 23, 2016 - 20:01

      I hear ya, Fred... Now, you're talk'en, buddy... Count me in...

  • Max
    March 21, 2016 - 17:28

    Denise, Allison - HST revenues come out of our pockets. The $32 million comes out of Ottawa's pocket. Big difference. HST increases will come soon enough. When they do, Tory hacks like yourselves will complain about Ball breaking his promise. Can't win with you lot.

    • Paul N.
      March 23, 2016 - 10:31

      @ Max Dwight Ball won an election on promising no increase in Hst. Ball stated and I quote "Its a job killer" so if he increases the Hst in the April budget then we can expect many jobs to be killed despite the huge deficit the province has. That is what he said..... To think I voted for him because I was stupid that he would keep his promises. Electioneering lies...

  • Henry
    March 21, 2016 - 14:00

    WOW, that measly sum should be able to keep the lights on for a day... Seems to me the Federals got quite the sum when oil royalties were high... Thanks for the minor hand out Justin... but we got bigger problems requiring large infusions of money because we had a government whom mishandled our economy when money was plentiful... Now we will all pay for this and it continues with the money gobbling Muskrat Falls........

  • Denise
    March 21, 2016 - 13:46

    too little too late, reversing the GST would of brought more than that.

    • dave k
      March 22, 2016 - 02:49

      yes...but that wouldve come from OUR pockets

  • Allison
    March 21, 2016 - 13:19

    Extra federal money received: $32M. Money lost to date on reversing the HST increase ~$40M. Dithering Dwight is going backwards.

  • steve
    March 21, 2016 - 12:34

    I won 4.00 on tag, they can have that too! Maybe instead of spending billions on Foreign Aid, they could look after our country first. It is our money after all. nearly 5 billion spent on foreign aid in the first 100 days by the liberals.They have not lost a beat in pilfering Canadian tax dollars.

    • jim abbott
      March 21, 2016 - 19:47

      Hate to remind you,but the Province went all LIBERAL.

  • A
    March 21, 2016 - 12:25

    Bunch of whiners. Don't see any good in anything. Get some help.

  • Brian
    March 21, 2016 - 12:24

    This is a step in the right direction and something to start with. Our government needs to build on this and work with the federal government to get out of the colossal economic dilemma that started with the poor practices of the Danny Williams administration and concluded with former constable Davis

    • Dolf
      March 21, 2016 - 15:21

      "Constable" Davis is laughing all the way to the bank.

  • The Godmother
    March 21, 2016 - 11:14

    $2.4 Billion dollar deficit. Now it is $2.375 Billion. A drop in the bucket.

  • roy206
    March 21, 2016 - 10:39

    Thank you Ottawa....with the 25 million saved last week and 32 million this week.. we are on a roll. Given that the Red Team has been in power 100 days at $9 Million per day....we are now $900 Million poorer than when the red team took over, so while the $57 million seems big...it will cover the provinces losses for one week.....