Where are we now, the last two weeks have felt like a roller coaster to say the least and nobody is making light of the current situation. I am quite happy that we are taking necessary steps to try to minimize the effects of this virus on NL. Two weeks ago, we were in such a different spot. Cut backs at MUN, threats of 56% increase in tuition, and lets not forget the Muskrat Falls report. As much as we want to say lets get through this and then deal with that and that maybe only right. The reality is those problems have not gone away, in fact while we are rightfully distracted, oil prices are now less than half of what they were three weeks ago, revenues from oil reflect that decline, and our budget is based prices being over $60.00 a barrel not the sub $30.00 it is now. A major project to increase production and revenue which could have helped with our debt has been shelved. I honestly believe we need to start from the top and removing bloat in our government and work our way out. Over the next few posts I plan to outline what my thoughts are on how to get started. I hope everyone and ayone with thoughts on this will join in and see if we cant come up with a plan to suggest to get out the gate on the right note when we get through Covid-19 and have to face the problems that were there before it started.
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We as a provincce are spending money on risk management, which currently is essential. Our Government keeps asking for a bailout from anyone that will listen, but at what cost to future generations? Eventually we will see the other side of Covid19 and where will we be then, deeper in debt? I am a firm believer that in difficult situations you get to see a persons true colours, the same will go for a province. Our province needed to make payroll and used COVID19 as the reason why it couldn't. Wasn't that a red flag. an indicator that we are running a province on probability. We projected that oil would sell at approx 60 dollars a barrell and then set our budget number based off of forecast without supporting and with too many unpredicable variables. It is the same as a family budget, you can't spend what you don't have, otherwise you end up in debt you can't pay. Then you have to make the necessary cuts to spending to make the income you do have work.This may be the step our Government should explore at this point.