BUSINESS

Newfoundland Headed For Bankruptcy? Auditor General Dismisses Idea

02/18/2016 10:54 EST | Updated 02/18/2017 05:12 EST
ST. JOHN'S, N.L. — Newfoundland and Labrador's auditor general is dismissing suggestions that the province's finances are in such rough shape that bankruptcy could result unless big changes are made.

Terry Paddon says the provincial government appears poised to deal with its fiscal challenges in a rational way when it tables a budget this spring.

Paddon says the province could do more to generate revenue now that the bottom has fallen out of the offshore oil industry.

john crosbie

Former cabinet minister John Crosbie, seen her in an appearance in Toronto in 2014, has mused Newfoundland could face an economic crisis similar to the one that gripped the province in the 1930s. (Canadian Press photo)

The auditor general's comments came after former federal cabinet minister John Crosbie mused that the province could face an economic crisis similar to the one that gripped the province in the 1930s.

Meanwhile, Finance Minister Cathy Bennett says the new Liberal government hasn't ruled out raising the province's harmonized sales tax, even though Premier Dwight Ball had promised not to do that during the provincial election campaign in November.