Ball says every one percent increase in the HST will reduce the purchasing power of the province’s citizens by about $100 million a year. Premier designate Dwight Ball says (and rightly so) that increasing the HST “actually slows the economy” —- the last thing the province needs.
If reducing the peoples’ purchasing power by $100 million a year for every one per cent increase in the HST is not good economic policy, why is it then that Nalcor’s Muskrat Falls project, which Nalcor says (over the 50-year period starting in 2018) will receive ‘dividends’/revenue from NL ratepayers averaging $700 million a year, considered good economic policy?
If a one or two percent increase in the HST ($100 or $200 million a year) is untenable, what impact will removing $700 million a year (or $1 billion a year when the $9 billion cost estimate for the project is factored in) from the purchasing power of citizens have on the economy —- half of which will go to the banks and pay for the operating costs of the project?
Muskrat Falls is (in effect) like raising the HST to 20 per cent, or 24 perc ent if the new project cost estimates of $9 billion are factored in.
This province is already 90 per cent ‘green’. Only 10 per cent of our energy needs come from Holyrood, and with the recent purchase of a 120 MW turbine, we have sufficient energy to get us to 2041.
So, premier designate Ball, let’s put the dam/generation plant on hold.
Stop playing around the edges of this fiscal/economic quandary that we find ourselves in.
Stop the hemorrhaging. Stop the methyl mercury.
Stop ignoring the elephant in the room.
Maurice E. Adams