Atlantic Accord .......where does the money go?

[ssiguy2]

Now that the Atlantic accord is signed I'm curious as to where the money is intended to go.
Debt repayment? Infastructure? Health and SocialServices? Education?
or is it a combo deal?
Did you get the $2billion already or is it being phased in?

Please explain.
Particularily interested in the NFLD side. Your income and GDP have been rising way faster than the national average but your unemployment is stubornly high.
Are people from the outposts moving out of province or increasingly to St.John's?
I'm really interested in what's going on.

[skyscraper_1]

I know most of Nova Scotia's money went to paydown the provincal debt.

[big W]

I would love to hear all the money is going to pay down debt in both provinces. That would be great for future growth prospects in both provinces and in particular NFLD as they have a huge debt per capita.

[Rhino]

I really wish the East would do a lot better . There is so much great heritage out there. But that could also be part of the problem . It Seems know one wants to let go of the Past, to welcome the future.

[skyscraper_1]

Here is an interesting essay on the subject

http://www2.marianopolis.edu/quebechistory/federal/maritime.pdf

Its kinda long and since its from Quebec, it could be written by a seperatist, but he makes a damn good arguement.

[Haligonian]

I think Newfoundland's GDP growth is usually taken to mean more than it actually does. A lot of it simply comes from large one time projects that may or may not employ many locals (a lot of the equipment used it manufactured elsewhere, etc.) and large oil companies are involved so profits don't generally stay in the province. The jobs created pay fairly well and the extra taxes are helpful but it's just not the same as the province having its own large and well-established companies like those found elsewhere.

As for Nova Scotia, there's not really an offshore "industry" to speak of right now.. just the Sable project. Test drilling continues, but it's expensive and hasn't turned up much.

[ssiguy2]

NFLD is now getting more money from Hibernia etc as revenues are now staying in the province. Oil prices are also much higher than they were when Hibernia was built.
Unemployment is high in NFLD due to very high unemployment in the outports. St.John's has unemployment at about 8%. Not great but not to bad either.

[Joev]

I think the money is being invested, not being spent right now. This year the province had a balanced budget with a surplus; that did not include the 2 billion. However, the government I believe is now more willing to renegotiate some of its labour contracts, as unions are looking for more. There are other problems in the province however, with the very recent closing of the Abitibi Pulp & Paper mill in Stephenville. IMO, 2 billion is not a lot of money these days. Also on the bright side, another oil field (White Rose) is starting production this year. Remember, all that oil is good for Canada; it would not be Canada's if Nfld had not become part of the country. The same goes for the mineral resources & hydro power from Labrador, with still more hydro not yet developed.