PC turned Liberal turned Independent MHA says biggest concern moving forward is province’s financial woes
By Mark Squibb | Vol 7 No. 25 (Dec. 19, 2019)
Like many of us, Mount Pearl Southlands MHA Paul Lane’s biggest concern for 2020 is our province’s financial debt.
There’s a lot of it. More than $13 billion worth of net debt.
“The biggest concern facing our province right now is staying afloat,” said Lane. “In the last budget we borrowed $1.2 billion. We now have a net debt — we were told in the fiscal update by Minister Tom Osbourne— our net debt now is almost $14 billion.”
That’s not counting the costs of rate mitigation either.
“If we’re going to mitigate rates to keep the bills where they are now — which government has committed to — then we, the government, have to come up with, I believe, somewhere in the neighbourhood of six-to-seven hundred million dollars a year. And while they are saying in the new year, there’s going to be some announcement with the federal government, we don’t know what that is, if it’s going to actually result in total mitigation, partial mitigation, or what it’s going to mean.”
Despite the massive debt load, Lane said that there is a some starlight shining in the night sky.
“With that challenge identified, and it is a huge one, I don’t think it’s all doom and gloom for the future,” said Lane, who noted he firmly believes in the potential of the province’s resources, particularly, oil.
“I do understand the challenges around climate change. However, I do agree with the premier that the world is not coming off fossil fuels overnight,” Lane said. “And we do have some of the cleanest oil in the world. So, think there’s a huge opportunity there that we need to capitalize on. I think that’s a bright spot.”
But Lane added government must diversify the economy, and not hang all our hopes on oil.
Some of that work, he said, has already begun.
“We’re seeing more development in terms of mining, and that’s a positive thing,” Lane said. “Aquaculture, if done properly, and I emphasize if done properly in terms of all the environmental assessments and putting in all the mitigation measures, and we’ve seen an issue where perhaps best practise wasn’t followed recently, but if it is done properly, there’s no doubt that that has a huge opportunity in terms of employment. Certainly we’ve seen the cannabis industry — albeit I’m not in favor of the approach, of giving big tax breaks to companies like Canopy, and I will always question when I see huge companies getting tax breaks or any kind of grants or subsidies… but with that said, there has been some movement there and apparently there’s more projects in the pipe, so there’s opportunity there. And I believe there’s opportunities in agriculture as well. Government has recognised it to some degree, but I think there’s a lot that could be done, particularly for smaller farmers and operators. And certainly in the tech industry, there is just the potential in terms of technology and even getting in on the green technology. From my perspective, I think there is no reason to believe that we cannot have a bright future given the tremendous amount of natural resources we have, and the skilled workforce.”
But a major diversification and weaning off oil dependence will not happen over night. Lane foresees many ‘bridging years’ ahead of us, years where we slowly build and diversify the economy
“And I just hope you can get through these bridging years, and get to the good times, while managing this huge millstone we have around our neck, which is of course the provincial debt,” he said. “Government has a role to play in encouraging and supporting growth and diversifying the economy, and there are things they can do to help that along. But it’s not just as simple as waving a magic wand… I don’t believe that in the year 2020 all of a sudden the economy is going to be diversified. That would be totally unrealistic to expect that. But I would expect for government to try and advance the agendas in a number of these areas and to see some meaningful movement towards that.”
As for the possibility of another provincial election in the coming year, Lane said that depends on what happens inside the Liberal government.
“I believe if there is an early election, it will be due to the internal politics of the Liberal Party. It will not be the Progressive Conservatives, it will not be the NDP, and it will not be the Independents who are going to likely cause an early election,” said Lane. “I believe, if it will be caused, it will be caused when the Liberal Party itself will decide at some point and time that they need a new leader, and that will trigger a series of events.”
But Lane said election years are not necessarily good ones for the province.
“What you see in an election year of course is quite often is government overspending,” he said. “They’re trying to buy votes. When you see increased spending leading up to an election, you have to question the motivation behind it… We also see a lot of promises. Unfortunately, not all the promises are kept.”
When Lane was removed from the Liberal caucus in 2016 for voting against the now notorious Budget 2016, he chose the road of independence.
It is a decision, he said, he has not regretted.
“Being an Independent is absolutely fantastic because you get to say what you what, when you want. You get to do what you want, when you want. You’re not beholden to any party, or anybody else. I can just represent the people of my district, and their interest, and I’m not constrained in any way by party policy, or what the leader wants,” said Lane. “Leading up to the provincial election in May, all three parties wanted me to run for them. In the end, I decided to run as an Independent. I’m glad that I did. Obviously, I’m pleased with the result, and the faith that the people of Mount Pearl Southlands have put it me.”
