Wednesday, January 14, 2015

ALBERTA'S OIL WOES ARE RURAL NEWFOUNDLAND'S OIL WOES

Everything appears to be on the table in Alberta where the government of Premier Jim Prentice is struggling to exorcise the demon of plunging oil prices  that continues to divert billions of dollars in petrol dollar revenues from the treasury.

With some economists predicting the province will plunge into recession by years end, the government is said to be looking at introducing a sales tax, reforming it's  much vaunted 10 per cent flat tax on income, perhaps even taxing gas and rolling back public sector salaries.

Alberta’s projected budget surplus this year has turned into a $500-million deficit and they are seven to nine billion short for next year.

This is not good news for rural Newfoundland and Labrador which has become dependent on Alberta's oil patch for survival. Thousands of people from this province do the Fort McMurray Shuffle choosing to go to Alberta and make big money and come home once a month for eight days with everything paid for.
 
Falling oil price have triggered layoffs in Fort McMurray . The major players are shedding costs, closing residential camps, canceling charter flights, shelving expansion plans and laying-off workers. The trickle down is hitting companies that support the oil industry as well, throwing hundreds of workers onto the unemployment lines.







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