Minister to meet with provincial counterparts to gather 
support for offshore fiscal fairness

Intergovernmental Affairs Minister Tom Lush recently met with Halvar Jonson, Minister of International and Intergovernmental Relations for Alberta, on September 28 in Edmonton. This is the first of a number of meetings with Minister Lush's provincial counterparts in an effort to gather support for Newfoundland and Labrador to seek a better deal from the federal government on offshore resource revenues. 

"Although we know that the province of Alberta is on the public record supporting Newfoundland and Labrador and Nova Scotia's efforts to keep more of our offshore resource revenues, I intend to approach this topic with all intergovernmental affairs ministers across the country in an effort to keep this issue alive and moving," said Minister Lush. "This is an intergovernmental affairs initiative to further advance the province's position it its attempt to obtain fiscal fairness."

Currently for every dollar the province receives in offshore resource royalties, the federal government claws back 70 cents from each equalization payment dollar. The current arrangement makes it almost impossible for Newfoundland and Labrador to get on its feet financially and to contribute to the national growth of the country.

During the meeting, Minister Jonson reiterated that Alberta is still fully supportive of Newfoundland and Labrador's efforts to become the principal beneficiary of offshore resource revenues. The province of Alberta retained full royalty benefits as it developed its oil and gas reserves.

"I am pleased that Alberta recognizes the importance for Newfoundland and Labrador to be able to obtain a greater portion of resource revenues which would enable us to capitalize on our opportunities in the resource sector and assist us to expand our economy," said Minister Lush. "I will be meeting with intergovernmental affairs ministers for Manitoba and Saskatchewan later this month in an attempt to gather their support as well for this very important cause."

Minister Lush added that other provinces in Canada would benefit from Newfoundland and Labrador being able to keep a greater percentage of offshore resource revenues.

"A fairer deal for Newfoundland and Labrador on offshore resource revenues would reduce the fiscal disparities that currently exist between our province and the rest of Canada," said Minister Lush. "This would give Newfoundland and Labrador a revenue stream which would eliminate the province's dependence on federal transfer payments under the equalization program which would in turn benefit all provinces."

Media Contact: Tansy Mundon, Communications, (709) 729-1341.

2001 10 03                                 11:00 a.m.