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Weeks after being sworn in as Newfoundland and Labrador’s premier, Tony Wakeham is painting a bleak financial picture — but won’t make the details public just yet.
The province’s deficit grew to $620 million in a fiscal update in August, but Wakeham said it is likely higher.
“I can tell you based on my early briefings, there is reason to believe that even that number doesn’t reflect the true depth of our provincial deficit,” Wakeham told a packed room at the Jag Soundhouse in downtown St. John’s.
He said newly-minted Finance Minister Craig Pardy will provide a fiscal update in December.
Speaking to reporters after the event, Wakeham reiterated the deficit will be revealed in mid-December, adding his team has been “poring through the numbers”
“Needless to say, we have challenges,” he said.
The government will need to make decisions about investments and the method by which it makes those investments, he said. He said he would not compromise on commitments made during his election campaign, and his government will still invest in health care, cut taxes and invest in safer communities.
“We will not make dramatic cuts. But we will need to be focused on finding government waste, making it easier for businesses to invest and create jobs, while refocusing our spending on higher priorities,” Wakeham said.
He said he will be meeting with Prime Minister Mark Carney on Wednesday, where he will advocate for more defense spending in Newfoundland and Labrador, as well push for the Bay du Nord project to be designated as a major project of national interest.
The Norwegian energy giant hasn’t greenlit the project yet.
Wakeham also said government officials are drafting terms of reference for a new, independent review process for the Churchill Falls memorandum of understanding.
“It will recommend what it wishes to recommend,” he said.
Equinor as ‘partner’
Wakeham said last week he met with senior Equinor leaders and the company has committed to release an expression of interest for the fabrication of all modules, including topsides work.
“And if modules can be built in Newfoundland and Labrador without compromising cost or schedule, they will be,” said Wakeham.
He said previously the company said the topside project couldn’t be done in the province.
“Now that’s changed. Now they’re prepared to say, ‘No, we’re going to go out with an expression of interest, actually see if that work can be done right here in Newfoundland and Labrador,'” he said.
When asked by CBC News if that could mean subsidizing the project, Wakeham did not rule out the possibility.
“It’s not about subsidizing. It’s about being a partner, and that’s exactly what we’re going to do,” he said. “We’re going to work with the oil and gas industry, be a partner with them. We want the federal government to be a partner. And that is exactly how we’ll get this done.”
CBC News also asked if a partnership could mean the province takes a financial stake in the project.
“I have not decided what that will look like at this time. But [what] I am interested [in], though, is sitting down at the table, having those negotiations, putting things on the table and working out what they look like,” he said.
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