Continuing to rely on oil not going to cut it for economic recovery: Coffin



For immediate release

May 29, 2020

Continuing to rely on oil not going to cut it for economic recovery: Coffin

NDP Leader Alison Coffin calls on the Liberal government to focus on more than the oil industry as the basis for economic recovery in the province.

“Of course, oil is a significant contributor to our economy. However, the oil industry in this province is part of a global industry that cannot escape global oil price fluctuations and drops in demand. And, we have very little influence in that industry. Now is the time to plan a transition from oil dependence,” said Coffin.

The Auditor General has been warning about the need to diversify our economy and to reduce our vulnerability to factors beyond our control, like oil prices, for years, notes Coffin.

“The fact that oil and gas is 30 per cent of our GDP should tell us that we have too many eggs in one basket. We are at the mercy of global price fluctuations and any slowdown in demand, which COVID-19 is causing. Our reliance on one sector to bring large revenues into the province has been a dangerous game,” said Coffin.

“And how does Advance 2030 – the Liberals’ ‘all in on oil’ economic development plan for the province – align with the need for action on climate change? Or is simply repeating that ‘we have the greenest oil’ this government’s climate action plan?” said Coffin.

“As a province, we absolutely must put a plan in place now to diversify our economy,” said Coffin.

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For further information, contact Zaren Healey White, Director of Communications, NDP Caucus at 729-2137 (o), 693-9172 (c), or zarenhealeywhite@gov.nl.ca

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