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Weeks after being sworn in as premier of Newfoundland and Labrador, Tony Wakeham is painting a bleak financial picture, but he won’t make the details public just yet.
The province’s deficit rose to $620 million in an August fiscal update, but Wakeham said it is likely higher.
“I can tell you, based on my early reports, that there is reason to believe that even that number does not reflect the true depth of our provincial deficit,” Wakeham said to a packed room at the Jag Soundhouse in downtown St. John’s.
He said new Finance Minister Craig Pardy would provide a fiscal update in December.
Speaking to reporters after the event, Wakeham reiterated that the deficit will be revealed in mid-December, adding that his team has been “carefully studying the numbers.”
“Needless to say, we have challenges,” he said.
The government will have to make decisions about investments and the method by which it will make them, he said. He said he would not compromise on commitments made during his election campaign and that his government would continue to invest in health care, reduce taxes and invest in safer communities.
“We won’t make dramatic cuts, but we will have to focus on tackling 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 meet with Prime Minister Mark Carney on Wednesday, where he will advocate for increased defense spending in Newfoundland and Labrador, as well as for the Bay du Nord project to be designated as a major project of national interest.
The Norwegian energy giant has not yet given the green light to the project.
Wakeham also said government officials are drafting terms of reference for a new independent review process of the Churchill Falls memorandum of understanding.
“It will recommend whatever you want to recommend,” he said.
Equinor as ‘partner’
Wakeham said last week that he met with senior leaders at Equinor and that the company has committed to publishing an expression of interest for manufacturing of all modules, including top work.
“And if modules can be built in Newfoundland and Labrador without compromising cost or schedule, they will be built,” Wakeham said.
He previously said the company had said the roofing project could not be done in the province.
“Now that’s changed. Now they’re prepared to say, ‘No, we’re going to come out with an expression of interest, to 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 didn’t 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, we’re going to be partners with them. We want the federal government to be a partner. And that’s exactly how we’re going to do it.”
CBC News also asked if a partnership could mean the province has a financial stake in the project.
“I haven’t decided what that will look like at this point. But [what] I’m interested [in]”What I want to do, though, is come to the table, have those negotiations, put things on the table and work out what they are,” he said.
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