14 July 2008

Nova Scotia gets $870 million in offshore settlement

Notice what is going to happen to the money.

92% will go to debt reduction.

Eight per cent will go into three different long term funds:
  • one for long term energy research;
  • one for protected lands; and,
  • another for university infrastructure.
-srbp-

3 comments:

Jason Hickman said...

I may have spent a bit on necessary infrastructre (public transit where needed; roads to somewhere, not roads to nowhere...) but otherwise - my kind of spending!

What's even more interesting is that the NS Tories are in a minority situation. I wonder if MacDonald's prepared to fight an election over this, since debt reduction probably isn't as "sexy" as spend-it-now promises that the oppo in NS may come up with.

JimBobby said...

Whooee! I think it's pretty interesting where this money comes from.

"The Crown share issue dates from the 1980s' National Energy Program and has been dormant for 20 years. Under the NEP, Nova Scotia gained a potential ownership stake in energy projects on Canadian lands off its shores. Successive governments have argued that when the NEP was dismantled in the mid-1980s, the Crown share went with it. But Nova Scotia has argued consistently that it should be compensated for loss of potential profits."
National Post, July 7, 2008

Stephen Harper, Champion of the West, is reviving Trudeau's NEP in order to transfer wealth to the East.

JB

Edward G. Hollett said...

That isn't where it comes from at all, JB. I don't know where the Post got that from but it is utter tripe.

The Crown shares derive from Nova Scotia's ownership claim and the resoltuoon of the matter in the 1986 offshore deal. The NEP had nothing to do with it whatsoever.

Jason:

The ratio is a bit dodgy but the concept is right. One of the telling things to see will be how the three funds are structured. If they are set up as investment funds, then all the better. That way the size of the principle can be increased and the interest earned can be taken off for various projects.

That would be far better than the Road for Rails Approach or the Marine Atlantic coastal boats where the province took the cash and spent it rather than invest it.