NL

Paul Davis says province facing a 'storm' as 2015 approaches

Newfoundland and Labrador Premier Paul Davis says falling oil prices have forced him to revisit just what he's able to do as premier.
Premier Paul Davis says the province is facing some difficult decisions in 2015. (CBC)

Premier Paul Davis says falling oil prices have forced him to revisit just what he's able to do as premier.

Low oil prices have caused the forecasted deficit for the 2014-15 fiscal year to balloon to more than $900 million, meaning there will be some tough choices when the government brings down its spring budget.

In a year-end interview with CBC News, Davis said that leaves a lot less money for the government to spend.

"Those revenues that we've relied on and have done such great work for the province have been taken away from us so now we've got to focus on how we work our way through the storm that's brewing for us, that's headed our way and actually we're into that storm right now," he said.

Davis said the government has been through these fluctuating prices before, but it doesn't make things any easier.

He said all options are on the table, including tax increases and service cuts.

Meanwhile, Davis said his first three months as premier were tougher than he expected.

In addition to the challenges posed by plummeting oil prices, he also faced controversy over his appointment of Judy Manning to cabinet, and her unwillingness to contest one of three byelections held after her appointment.

Manning is the unelected Minister of Justice and Public Safety. 

The governing Progressive Conservatives lost all three of those byelections, with the surging Liberals now winning seven consecutive byelections.

The PCs are facing an uphill battle as the province heads into an election year, and Davis said he hasn't had a chance to really show the public what he's capable of.

"It's been a tough go, there's no doubt. And we haven't had a lot of opportunity to show yet what our future will look like," he noted.