Equalization end? Oil-based boom expected in N.L. budget

Newfoundland and Labrador's finance minister will table a budget Tuesday afternoon that could signal the end of the province's receipt of equalization payments.

Tom Marshall is expected to bring down a budget with a surplus of more — perhaps much more — than $500 million, driven largely by record oil prices.

Marshall was tight-lipped Monday at the house of assembly about what could be a historic budget. If economic conditions in the province stay positive and the price of oil remains relatively high, this could be Newfoundland and Labrador's last budget as an equalization-receiving province.

By this time next year, the province is likely to have shed its so-called have-not status, which it has had since joining Confederation with Canada in 1949.

Liberal Leader Yvonne Jones tried, in vain, to squeeze some pre-budget details from Marshall during debate in the legislature.

"It's almost like Christmas Eve, Mr. Speaker, Christmas Eve in Newfoundland and Labrador. I guess the minister is Santa Claus come tomorrow morning," Jones joked.

Marshall, though, was coy with his response.

"When I present the budget, I'm sure that there will be initiatives that are very pleasing to the people of Newfoundland and Labrador," Marshall told the house.

That said, the government has tipped its hand on some of its priorities.

Last week, Premier Danny Williams announced the elimination of a much-opposed 15 per cent tax on insurance premiums.

Government has also announced such budget-related measures as adding resources to the justice system and improving municipal grants.

As well, the province last week reached a tentative deal with the Canadian Union of Public Employees, whose 4,200 members in the civil service will receive a 20 per cent raise over four years. Williams has said that agreement will be the template offered to other unions.

The government has suggested significant moves will be made in the budget on health care.

Marshall, an advocate of debt reduction and infrastructure improvement, is also expected to highlight economic diversification.