Premier Andrew Furey disagrees with the views of the Canadian Taxpayers Federation on the Muskrat Falls rate mitigation deal announced yesterday in St. John’s.
The $5.2-billion agreement will see rates go up to 14.7 cents kWh—an increase, but nowhere near the level they could have gone without government intervention.
The advocacy group says Ottawa’s decision means all Canadian taxpayers are now responsible for “the bad decisions made by big-spending politicians in Newfoundland and Labrador.” It says the province must find savings so a second or a third bailout doesn’t become necessary.
Premier Andrew Furey says this is exactly how a federation such as the provinces and territories should work. He says when times are tough, the centre contributes and when times are good, you contribute to the centre.
He also notes that Newfoundland and Labrador is three times the size of the other three Atlantic provinces with one-third the population so it only makes sense that it would cost more deliver programs and services.
