An advocate for people who struggle financially is concerned about the increase in rates charged by Newfoundland Power.
A seven per cent increase took effect as of August 1st.
Dan Meades, the provincial co-ordinator of the Transition House Association, sees poverty all the time in his job. He says such increases in the cost of living are tough to take, noting food and heat are essentials, not luxury items.
He notes Newfoundland and Labrador remains the poorest province in the country with more children going hungry than other jurisdictions, adding “that increase in power rates will push more people over the poverty line.”
Meades has little faith in the provincial government despite the optimistic economic outlook presented by Finance Minister Siobhan Coady this week.
Meanwhile, he reiterated that payments under income support should be tied to inflation.
He says this province used to index income support to inflation, but adds the Liberals chose not to do it.
“A lot of people on income support receive less than 50 per cent of what is considered the poverty line rate,” says Meades.