Plans to award an enhanced and long-term ferry service contract for Labrador are no longer being pursued because of the province’s staggering fiscal challenges, with the MHA for southern Labrador fuming.
Transportation and Works Minister David Brazil made the announcement Thursday, the same day that the government brought down a budget that included tax and fee hikes, heavy borrowing and job losses.
“I believe my reaction is exactly that of the people of all of Labrador — absolute outrage,” said Lisa Dempster, the MHA for Cartwright-L’Anse au Clair.
The province had issued a call for proposals in late 2013 for a single contractor to provide freight and passenger services for both the north coast of Labrador and the Strait of Belle Isle.
Also from the budget, the government will expand the HST rebate for low-income earners to lessen the impact, sources say.
On Wednesday, the governing Tories detailed how some of the provincial portion of the HST will be directed to municipalities and local service districts to make them more sustainable.
The budget will also include an income tax increase for high-income earners.
However, even with the new revenue streams, the government is still expected to project a deficit of close to $1 billion.
The cash-strapped Newfoundland and Labrador government will increase the harmonized sales tax in Thursday’s budget, as it moves to offset a severe drop in oil revenues, CBC News has learned. The increase will be two percentage points, which means the HST will jump from 13 per cent to 15 per cent.
This story courtesy of Blair Rhodes of CBC.