Taxpayer’s
money again being gambled in the risky oil business
The decision
of the Government of Newfoundland and Labrador and Nalcor to spend
approximately $20 million in oil exploration on the west coast and
northern peninsula of Newfoundland is very risky and could cost the people
of the province, says Opposition Leader Yvonne Jones.
Jones says
the decision to move forward with this investment can be compared to a
high stakes poker game where the province is willing to ante up $20
million for an opportunity to sit at the table. While there is a chance of
doubling or tripling your money, there is an equal or greater chance that
you could walk away with nothing.
“I have
always expressed my opposition to government taking equity stakes and
investment in the risky oil and gas business,” said Ms. Jones. “While
I am not supportive of equity positions in oil projects, at least you are
guaranteed a return. Oil exploration is much different and whatever money
you invest could be lost should oil not be found in commercial quantities.
“At a time
when the fishery is facing great challenges and requires significant
investment, it is very ironic that government and Nalcor can find $20
million to gamble in oil exploration work. I am certain there are fish
harvesters, plant workers and entire rural communities who could make
great strides if only the government would show the same interest in
strengthening the fishing industry.
“I am a firm believer that
the oil and gas industry has the capacity and money to conduct their own
exploration projects without the need for public money. If industry felt
strongly about the resource and its potential, they should have enough
interest without requiring a government partnership. Our province has
great challenges and I question whether gambling $20 million of
taxpayer’s money on oil exploration is the greatest financial priority
in our province at this time.”
