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

BMO Highlights Consistent Strength of Provincial Economy

Mr. Speaker, I am pleased to rise today to reference a report released by BMO yesterday that states, in referencing our economy, that “the recurring theme for Newfoundland and Labrador is consistent strength.” The report highlights continued consumer and business confidence and demonstrates how prudent fiscal management by the Provincial Government and investments in equity shares in projects such as Muskrat Falls and Hebron are benefitting residents of our province now and into the future.

Mr. Speaker, our government will continue to encourage private sector investment to stimulate further growth in all regions of our province, support our local companies, attract external investors to encourage new business activity, and provide a competitive tax regime. This report, along with discussions with economists, has confirmed what we have known for some time – that there has never been a better time to live, work or raise a family in Newfoundland and Labrador.

BMO noted in its report that construction and capital investment activity have been key economic drivers in the province in recent years, and growth is expected to remain solid this year. Investment in the oil and gas sector is expected to increase by 83 per cent as construction of the Hebron project ramps up. The report also highlighted that the jobless rate sits near a record low, and that average weekly earnings growth is also strong, supporting personal incomes and consumer spending. Newfoundland and Labrador retailers, Mr. Speaker, have enjoyed some of the strongest growth in Canada over the past year. The report states that with ongoing projects, the future is definitely bright in Labrador.

Mr. Speaker, BMO also noted that projects such as Muskrat Falls and Hebron are leading to contracts for work, and people are seeing the benefits of that. It is encouraging to have an independent source confirm the ‘consistent strength’ of our economy, and to highlight increased consumer confidence.

Our government remains focused on the province’s long-term prosperity by encouraging job creation, strong communities, a vibrant economy and natural resource development that is of maximum benefit to Newfoundlanders and Labradorians. Through sound fiscal management and responsible decisions, we are strengthening the business environment, encouraging the development of innovative industries, and diversifying the economy.

Thank you, Mr. Speaker.

2013 05 09             1:45 p.m.