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Date 14 April 2016 — ~Summer 2016 Location Newfoundland and Labrador, Canada Causes Government overspending
Austerity
Deficit-reduction levy
Public-sector job cuts
High cost of living Methods Protests
Demonstrations Status May 19, 2016: Liberal MHA Paul Lane expelled from Liberal caucus due to his opposition to the levy.
May 25, 2016: Increased funding from the federal government reduces the number of residents who will have to pay the levy.
June 2016: Budget passes in the House of Assembly. | ||
The 2016 Newfoundland and Labrador budget protests are an ongoing series of protests in the Canadian province of Newfoundland and Labrador. The protests are in opposition to the provincial budget proposed by Finance Minister Cathy Bennett which will implement tax-hikes and cuts to many public service jobs. The protests are a major part of the ongoing financial crisis in Newfoundland and Labrador.
Contents
Context
Newfoundland and Labrador is one of Canada's oil-producing provinces and oil revenues account for a significant amount of the province's GDP. During the premiership of Danny Williams, oil prices were high and government spending increased. The province's public sector doubled in size while provincial government spending was 20-36% higher than most other provinces.
The recent drop in the price of oil has caused a deficit for the province and the government does not expect to see another surplus until 2022. The most recent provincial budget was unveiled by Finance Minister Cathy Bennett on April 14, 2016. More than 400 public-sector jobs will be cut, tax on gasoline will be doubled, sales tax will be increased and a "deficit-reduction levy" will be introduced. This levy is an additional tax that will be imposed on residents with an annual income between $49,500 and $72,000.
Lower Churchill Project
One of the most notable mega-projects by the province under Williams is the Lower Churchill Project, a hydroelectric project in central Labrador on the Churchill River. During Williams's premiership the project received lots of support from Newfoundlanders however it was much more controversial among Labradorians. The position on the project taken by the Nunatsiavut government was even supported by Amnesty International. The project is being developed by Nalcor Energy and Emera. Nalcor is a provincial crown corporation based in St. John's.
The project is currently behind schedule and despite the province's financial situation and the high costs of the project, it is expected to continue development.
Reaction to the budget
The budget has been very controversial since its unveiling.
Many notable people from the province have spoken out against the budget. Former Liberal Premier Roger Grimes criticized the introduction of the levy.
Several public and independent groups have formed in the province. These groups are motivated by the cyclical abuse, lack of democracy and mismanagement of state since Confederation with Canada.
The highly organized and functional groups or entities include; -Coordinated Approach -Mutual Aid -Free NL -Golden Arrow Community -Peoples Union -Peoples Assembly -Newfrownland.ca
Protests
Many protests by various organizations have taken place since April 2016.
Many former cabinet ministers under the Progressive Conservative government from 2003-15 have appeared at some protests (including former Premier Paul Davis) where they have often not been well received.