27 September 2008

Read the fine print

More than half the owners of small- and medium-sized businesses in Newfoundland and Labrador surveyed by the independent business federation believe the province will have stronger economic performance in the next 12 months.


The federation's provincial director, Bradley George, says confidence is on the rise mainly because of the Hebron announcement last month that got the ball rolling on another major offshore oil development.

Stop and read that again.

Especially the last bit:

"Hebron announcement...that got the ball rolling on another major offshore oil development."


It did?

Boy, are they going to get a rude shock:

The Hebron project has not been sanctioned  and may not be sanctioned, according to the fiscal agreement released on Thursday by the provincial government and only the oil companies can make a decision when - if at all - to develop the project.

That's a huge change in policy for a provincial government that, in the wake of the first Hebron negotiating failure only two years ago, was threatening to legislate development of projects offshore.  The premier and others complained that development could be held up indefinitely by oil companies.

These people read need to read the fine print on these things.

Or at least Bond Papers.