Premier's Voodoo Economics

Leading the way in 2007 ...







Leading the way in what really - that is the question we have to ask ourselves to see if we are making headway.

The Premier is pretty select when it comes to "bad news" - that is to say he will fault Ottawa (rightly so) but not fault himself.

While the TD and RBC project significant economic growth for Newfoundland and Labrador as a measurement of GDP - here are some of the comments you may not have heard discussed by our Premier - Minister of Business O'Brien - Minister of Natural Resources Dunderdale - Minister of Industry Taylor - or Minister of Finance Marshall.

TD ECONOMICS Report September 2006


N&L’s economy weaker than meets the eyes...

Although Newfoundland & Labrador’s economy is on track to record real GDP growth of close to 4% this year after 2005’s weak turnout of 0.4%, this statistic alone over-states the underlying momentum in the economy. Notably, much of the output growth reflects rising crude oil production at the White Rose oilfield and nickel extraction at Voisey’s Bay. Other indicators released so far this year – including housing starts, retail and wholesale trade activities and manufacturing shipments – point to an economy that is fighting to keep its head above water.

RBC Reports economic growth for our province at 4.7% - similar to TD and also makes this statement:

RBC notes that the province's remaining sectors have lagged the rest of Canada. Now that construction work is completed at Voisey's Bay and White Rose, non-residential construction should continue to soften markedly, and a continued lack of jobs is expected to keep unemployment high. As a result, housing markets continue to cool.

I say to the Premier and his flunkies - square that circle - and to boot the Voisey's Bay and Oil Projects leading the growth - he was not involved in negotiating. He can be credited for taking appropriate advantage of Martin's minority government to boost equalization however he has allowed Harper's minority to squash the gains.

The policy of exporting Lower Churchill power - will net continued poor results and despite what Clyde Jackman says - we don't want to wait for history to prove that.

Next post - inconsistent policy means the Premier is incompetent or worse.