Finance
May 20, 2014

The following statement was given today in the House of Assembly by the Honourable Charlene Johnson, Minister of Finance and President of Treasury Board:

Province Earns A+ Grade for Economic Performance From Conference Board of Canada

Mr. Speaker, I am pleased to rise in this House today to advise Honourable Members of more exciting news about our provincial economy. As everyone here would know, the country’s major banks and bond rating agencies have noted the success of our economy. I am pleased to advise members that in its report How Canada Performs: Economy , which was released last week, the Conference Board of Canada named Newfoundland and Labrador as one of three provinces in Canada to receive a grade of A+, outperforming 25 other jurisdictions in Canada and around the world.

Mr. Speaker, with an A+ rating, our province was not only ahead of Ontario, Quebec, BC, Manitoba and the Maritimes for economic performance; we were also ahead of Canada’s national performance and ahead of the US, the UK, Australia, France, Germany and even Norway.

In the news release issued by the Conference Board, Glen Hodgson, Senior Vice-President and Chief Economist, said: “Alberta, Saskatchewan, and Newfoundland and Labrador are “A+” economies—they rank higher than any advanced country in our analysis.” Mr. Speaker, our government has made significant investments to strengthen the economy and to encourage continued growth. Since 2006, we have decreased taxes, putting hundreds of millions of dollars back into the hands of Newfoundlanders and Labradorians.

This year alone, savings to residents is approximately $600 million. Our province continues to maintain the lowest Personal Income Tax rates in Atlantic Canada. Total personal income tax reductions since 2006 are estimated to have returned approximately $2 billion back to taxpayers in the province. Effective July 1, 2014, our government will decrease the small business corporate income tax rate to three per cent. As a result, this province’s small business tax rate will be tied with Nova Scotia for the lowest rate in Atlantic Canada.

Newfoundland and Labrador has seen significant economic growth over the past 10 years and we led all other provinces in economic growth last year. There have been substantial improvements in many economic and financial indicators, with gains in real household disposable income per capita – a measure of average consumer purchasing power – outpacing all other provinces over this past decade.

Mr. Speaker, more people are working than ever before and the unemployment rate is lower than any time since 1973. For the first time in over 40 years, Newfoundland and Labrador no longer has the highest unemployment rate in Canada.

Mr. Speaker, we are very proud of our economic growth over the last decade and the significant impact it is having on people’s lives. Through our social and economic plan, we will continue to strengthen the business environment, encourage the development of innovative industries, and diversify the economy.

Thank you, Mr. Speaker.

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2014 05 20                                       2:00 p.m.