NL Could Be First Province to Declare Bankruptcy: Bill Tufts
Wednesday , May 18 2016
A warning today that Newfoundland and Labrador could be the first province in Canada to declare bankruptcy.
The prediction comes from Bill Tufts, the founder of the group Fair Pensions For All.
Tufts says the province’s fiscal situation is dire, and it’s just a matter of time.
He says in Puerto Rico, which went bankrupt, the debt was $23,000 dollars per person. In this province, the debt is $59,000 dollars for every working Newfoundlander and Labradorian. He says while we may not be bankrupt, the province is insolvent in many ways.
Tufts says out of control spending is to blame, and what he says is the “stranglehold” public sector unions have on the province.
He says government employs 30 per cent of the overall workforce, and the pensions earned by retired government employees averages out to about $45,000 a year, which is more than the average working Newfoundlander and Labradorian.