Friday, May 22nd25.9°C
25936
24291

Newfoundland/Labrador to cut 1,200 jobs

Newfoundland and Labrador will trim government jobs and cut the size of the premier's cabinet in a $7.6-billion budget tabled Tuesday as the province faces a deficit of $563.8 million in the 2013-14 fiscal year.

The deficit is on top of a shortfall of almost $431 million for this fiscal year as net debt grows almost $1 billion to $9.5 billion next year.

The numbers are better than recent warnings that the province was facing cumulative deficits that could total almost $4 billion as world economic troubles cut demand for the province's oil and minerals.

Instead, the province is forecasting a deficit of $650.5 million in 2014-15, for a total of just over $1.2 billion in the next two fiscal years.

Increased oil production, cost-cutting and a higher-than-expected sales tax refund from Ottawa helped reduce the shortfall.

The province is trimming about 1,200 government jobs through layoffs and cutting vacant positions, and has approved another 200 early retirements.

The budget does not raise personal or corporate income taxes and predicts a return to surplus of just over $230 million by 2015-16.

"It's a tough situation," Finance Minister Jerome Kennedy said of the job cuts. "It's not one that I particularly like, it's not one that any of us like. But it's something that we have to do in order to ensure that we can reduce the deficits and return to surplus in three years."

Opposition critics have accused the majority Progressive Conservative government of poor planning and reckless spending.

"We've made great investments in the past," Kennedy told a news conference. "We've rebuilt the province, for lack of a better term, and the economy is strong. But, unfortunately, we've reached a point where our revenues don't equal our expenditures."

The Canadian Press


Read more Business News

26416


Recent Trending




Today's Market
S&P TSX15200.76-2.85
S&P CDNX703.48+2.97
DJIA18232.02-53.72
Nasdaq5089.36-1.43
S&P 5002126.06-4.76
CDN Dollar0.8135-0.006
Gold1205.70+1.30
Oil57.45-1.98
Lumber273.30+3.70
Natural Gas2.888-0.061

 
Okanagan Companies
Pacific Safety0.13-0.01
Knighthawk0.010.00
QHR Technologies Inc1.48+0.03
Cantex0.03-0.01
Anavex Life Sciences0.425+0.053
Metalex Ventures0.09+0.01
Russel Metals25.79-0.03
Copper Mountain Mining1.38-0.03
Colorado Resources0.105+0.005
ReliaBrand Inc0.0048-0.0049
Sunrise Resources Ltd0.04+0.01
Mission Ready Services0.175-0.010
Decisive Dividend Corporation2.20+0.60

 



26180

FEATURED Property
19561021310 Green Bay Road
4 bedrooms 4 baths
$1,149,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


Do or do not

Photo: Thinkstock.com“The optimist sees the rose and not its thorns; the pessimist stares at the thorns, oblivious of the rose.” - Kahlil Gibran Good planning is all about managing chan...


Penetrate the smokescreen

Photo: ContributedHas this ever happened to you? You’re in the middle of your second or third “good discussion” with a prospect. Everything’s going great. The prospect seems en...


Squaring the circle

Photo: Thinkstock.comI have been reading about market segmentation and choice. Howard Moskowitz’s research into tomato sauce as retold by Malcom Gladwell on the TED talks (http://www.ted.com/tal...

_





25482


Member of BC Press Council


26106