Latest news with #SiobhanCoady
CBC
22-05-2025
- Business
- CBC
Price of sugary beverages to drop within weeks, says N.L. Finance Minister
Two-litre bottles of Pepsi and other sugar-sweetened beverages for sale in Newfoundland and Labrador will become cheaper for consumers within weeks, according to Finance Minister Siobhan Coady. Premier John Hogan announced on May 12 the province would axe its controversial sugar tax, implemented by former Premier Andrew Furey in 2022 as an incentive to encourage consumers to make healthier beverage choices. Hogan repealed the tax in response to public concerns about affordability, but legislation has yet to come forward in the House of Assembly to have the tax officially eliminated. On Thursday, the legislature concluded its spring session a week early. In the meantime, Coady says the province would remove the tax through regulations by Hogan's cabinet instead of legislation, similar to the federal government's removal of the carbon tax. "We're talking to the retailers and wholesalers to make sure we do this properly and correctly," she said. "We're making sure there's no inventory in the process." PC Leader Tony Wakeham is disappointed the legislation to remove the tax wasn't put forward in the House of Assembly this spring. While the province says the tax will be removed, Wakeham says it won't be eliminated until legislative change takes place in the House. "They're going to do it through regulations, not through the legislature, so it allows the cabinet to actually go back, bring it down to zero and bring it back up again if they so choose," he said, adding that if the House wasn't closing early they would have had time to eliminate the tax entirely. "Bringing in the legislation and eliminating the sugar tax can be done next week," Wakeham said. "Let's bring in the legislation and get it done." The provincial government has taken in more than $35.5 million through the sugar-sweetened beverage tax since its inception in 2022. Coady believes the tax served its purpose to push consumers to pick healthier non-taxed options like diet drinks, some juices and water. "The older demographic continues to drink sugar-sweetened beverages, but the younger demographic certainly has gotten the message," Coady said. She says programs funded by the tax, such as school lunches and supplies for diabetics, will be funded through tightening budgets within some government departments.
CBC
14-05-2025
- Business
- CBC
PCs accuse Liberals of 'cooking the books,' call for finance minister to be fired
Newfoundland and Labrador's Progressive Conservatives are accusing the governing Liberals of "cooking the books" by adding revenues from a pending settlement against tobacco companies to this year's pre-election budget. The notion dominated question period on Tuesday, turning the House of Assembly into a slug fest when PC MHA Lin Paddock called for Finance Minister Siobhan Coady to be fired, accusing the deputy premier of manipulating the province's budget deficit to look better than it is during an election year. "In accounting terms, manipulating the financial numbers is termed 'cooking the books.' Today, we learned that the minister of finance actually cooked the books," Paddock, an accountant himself, said during Tuesday's question period. "So, I ask the premier, will you fire the minister of finance?" The House erupted in shouting from both sides of the floor once Paddock's question — animated and with a raised voice — landed. A point of order was later called by the Liberal Party, which will prompt Speaker Derek Bennett to decide whether or not the comment is unparliamentary. The debate on the House floor follows a CBC/Radio-Canada report that Newfoundland and Labrador was the only province to report the entirety of more than $500 million from the settlement in its budget. Both Paddock and PC Leader Tony Wakeham said the move lacked transparency and that only the money the province will receive this year should have been put on the books — as some other provinces have done. Others haven't booked the revenue at all, given continued uncertainty as to the value and timing of payments. Both claimed the move was made to help the provincial deficit of $372 million look lower than expected heading into a provincial election, which must be called by October. "You're playing with numbers. You're manipulating numbers to understate the budget for this particular year. An election year," Paddock said. Wakeham weighed in. "Why was this not turned around and treated differently? I don't think it was any reason other than simple, good old politics," he said. Labrador West MHA Jordan Brown, the sole NDP representative in the House on Tuesday, also voiced concern. "That is a real concern in and of itself as well, that we do it completely different than the rest of the federation," he said. WATCH | Coady says the province acted on best advice: N.L. is putting decade's worth of revenue on the books now, from a pending tobacco lawsuit 15 hours ago Duration 3:05 While other provinces contemplate how to account for the settlement money, Newfoundland and Labrador's governing Liberals put $500 million worth of revenues on the balance sheet, despite the fact that the money will be paid out over CBC's Peter Cowan reports. Coady and other Liberal members expressed shock after Paddock's comment about relieving her from her job. "That is atrocious, to be honest with you, Speaker. That is insulting to all the accountants who have been involved with the preparation of this budget," Coady told the House. "We are obligated in the Department of Finance to recognize revenues as we know they will become available to us. We know that we have an agreement with the tobacco companies ... I think the member opposite is questioning the integrity of the accountants, and of me, of preparing this budget." Paddock responded by saying he wasn't questioning the integrity of accountants, but the government as a whole. Speaking with reporters after question period, Coady said the province operated on best advice in recording the expected revenue. It also isn't unprecedented, she said, as the province similarly recorded money from Ottawa for a new Atlantic Accord arrangement — a deal that runs until 2056 — when it hit the financial statements in the first year the deal was signed. Asked to respond to Paddock's comments, Coady said it came during heated debate, but expects an apology. Whether or not Coady remains in the position depends on Premier John Hogan, who rose in the House to defend the finance minister following Paddock's pointed comments. "I will stand by her side till the end of time for the work that she has done for this province," Hogan said. "She created the best economy in this country right here in this province. Compared to the rest of the country, the economic indicators in this province are going up, while in the country they're going down."
CBC
12-05-2025
- Business
- CBC
Newly minted Premier John Hogan says he'll axe controversial sugar tax
Newfoundland and Labrador's newest premier says he's cutting a controversial tax that was meant to deter people from buying sweetened beverages — a move he says is motivated by public concerns about affordability. The Sugar Sweetened Beverage Tax, also known as the sugar tax, was introduced in 2022 under former premier Andrew Furey. It added 20 cents to the cost of each litre of sugar sweetened beverages. In the tax's first year, the provincial government took in $11 million. In a later email to Radio-Canada on Monday, treasury board secretariat spokesperson Janelle Simms said the tax brought in just over $12.5 million in 2023 and a little over an estimated $12 million in 2024. The announcement to repeal the tax was made on the floor of the House of Assembly by Premier John Hogan on Monday afternoon, during the first sitting of the spring session. "This is the first official full day on the job, so it'll take a little bit of time to work through legislative and regulatory mechanisms to see how we do it," Hogan told reporters after question period. He says he already wrote to Finance Minister Siobhan Coady earlier on Monday about repealing the sugar tax, but says she will need time to work with retailers on reversing He says he came to the decision during the leadership campaign. "It was pretty clear throughout the leadership campaign that affordability remains an issue for Newfoundlanders and Labradorians and it's a priority, as I said, of theirs. So it's a priority of our government," said Hogan. The sugar tax was introduced to encourage consumers to make healthier beverage choices, but Hogan says his announcement isn't a concession the tax wasn't working as intended and defended the impetus of the idea. "I think we need to continue to focus on healthier choices and healthy living in Newfoundland and Labrador. And premier Furey certainly focused on the well-being of this province as a key component of Health Accord N.L." he said. Hogan says the provincial government will continue to look at how people of the province can be healthier. "In the grand scheme of things, we need to continue to look at other options for well-being," he said. 'It's about time,' says Wakeham Progressive Conservative Leader Tony Wakeham, who has been calling for an end to the sugar tax since its inception, had reiterated his call on the floor of the House of Assembly ahead of Hogan's announcement. "My first reaction is, it's about time. I've been talking about that tax since it was first introduced as a measure to modify people's behaviours. It hasn't worked," said Wakeham. "All it has effectively done is take millions of dollars out of the pockets of [the] people of Newfoundland and Labrador." Wakeham says he would have repealed the tax if his party formed government in the next provincial election, which has to happen by mid-October. "And now I will be asking the premier when will we pass legislation in this session of the House — while we're sitting here this week or next week — to actually bring in the legislation to make this happen? Or is this simply going to be just another announcement," he said. Wakeham says he intends to hold the Liberal government accountable.
CBC
10-04-2025
- Business
- CBC
N.L. is betting big on expensive oil. Politicians say the wager will pay off
Newfoundland and Labrador released its financial forecast for the coming fiscal year, but while the price of oil has been volatile, two ministers are confident in its future. The province is projecting a $372-million deficit this coming year to address affordability issues and tariff concerns and rising health-care costs. In Wednesday's budget, the Department of Finance announced that it expects Brent crude oil prices to average $73.90 US per barrel in 2025. The province also projects that offshore royalties will account for 15 per cent of the province's projected revenue for 2025-26. As of April 9, Brent crude oil was pegged at $60.38 US per barrel, well under that projection. Finance Minister Siobhan Coady said the government used 11 different forecasters, who are independent of the government, to reach that dollar figure. "It's an evolving, moving, escalating and declining kind of graph," Coady told reporters on Wednesday. Newfoundland and Labrador could also be in a situation where oil prices decline or increase throughout the year, she added. "We'll be monitoring, obviously, this very closely and we may need to make changes to what we do," she said. Coady said shifting prices might mean the department has to make adjustments in the fall fiscal update, "Because we'll know then what's happened, what the impacts have been. And where the global uncertainties are at that point," she said. In 2024, crude oil production hit 76.5 million barrels, up from 2023. The government expects oil production to increase in the year ahead, citing the restart of the SeaRose FPSO in March. In its budget documents, the province says it doesn't expect to be hit with U.S. tariffs, and predicted the impact to Newfoundland and Labrador's oil sector will be minimal. More to lose Tthe Hebron project hit a milestone that kicked in higher royalties last summer, with the money paid out to the province rising from 5 per cent to 26. 5 per cent. But with the recent volatility of oil prices, the province could stand to lose more money. Coady said the price of oil versus the strength of the dollar "can cancel each other out." "Let's see where the year fleshes out between those two," she said. "Again, we're in a period of global volatility." This year's budget earmarked $90 million, divided up over three years, to encourage oil exploration. That money would kick in next year. It was a move welcomed by Energy N.L. CEO Charlene Johnson. "This is a great investment into attracting companies here, and we really think it will do what it needs to do," she said. Energy Minister Andrew Parsons expressed confidence when he said that the current political instability due to the U.S. trade war and volatile oil prices would not affect offshore exploration. "I've only been here five years and I've seen it go top to bottom, bottom to top. This stuff happens all the time," he said. It can be a "challenge" because of the province's reliance on high prices, he said, but he said there will be future projects. "This is even more volatile than normal, but just in my time here we saw 2020 [and] had to get really involved," he said. He said the oil sector is better positioned than it was when the COVID-19 pandemic hit.
CBC
09-04-2025
- Business
- CBC
N.L. tables stay-the-course budget with projected $372M deficit and record spending
Newfoundland and Labrador has tabled a 2025-26 provincial budget that responds to uncertainty from the United States with record spending, while delaying its return to a balanced budget by another year. The province anticipates a $372-million deficit this coming year to address affordability issues and tariff concerns — a figure that could rise further if the province utilizes an additional $200 million in contingency funds set aside to address Trump-related turmoil. Finance Minister Siobhan Coady says government could have forced a balanced budget, but decided to prioritize affordability instead. "It was not the year for us to force going back to balance this year," Coady told reporters. "Every year it is a balance of where we are with the economy." For the fourth year in a row, there are no new taxes or increases to taxes and fees. The budget continues previous affordability measures, like a cut in the gas tax, but has not introduced many new ones, just months before voters go to the polls. There is a moderate increase to the seniors benefit, tied to the cost of inflation, which will see an average jump of $46 this year, for 50,000 seniors aged 65 or older. "There's not a lot of election goodies in this budget," Coady told reporters. Projected revenues for 2025-26 are $10.7 billion, while projected expenses are a record $11 billion. N.L. government delivers 2025 budget Started 22 minutes ago Live Net debt is also at a record level, approaching $20 billion. Coady said the provincial economy is currently in good shape with gross domestic product, employment, retail sales, and household income reaching historic highs in 2024, but the budget projects decreases in 2025 with employment expected to go down while unemployment increases. "We're in a decent position," she said. The budget suggests employment and household income will start to increase again from 2027 to 2029 when Voisey's Bay underground, Churchill Falls, Bay Du Nord, and wind hydrogen projects are expected to enter production. In her budget speech delivered to the legislature Wednesday afternoon, Coady outlined some of the ways the province has served Newfoundlanders and Labradorians over the last number of years, from its pandemic response to the Churchill Falls agreement to repatriating the remains of Newfoundland's Unknown Solider. "We must continue to build on this considerable momentum," Coady told the legislature. With an ongoing trade war between Canada and the United States, Coady is looking ahead, adding that the province "stands in a historic moment." "In the global economic chaos caused by tariffs and changing alliances, we will be calm, strategic, steadfast, and determined," Coady said. "Always remember that superb sailors are made by turbulent seas."
