Forget cutting fat at Nalcor the NDP wants to scrap it completely

Amid a long list of promises ahead of the May 16 election, the New Democrats pledged to save Newfoundland and Labrador money in its debt-laden Muskrat Falls era by dismantlingthe very Crown corporation responsible for the project.

NDPLeader Alison Coffin, who released the party's platform this week, said the extra layers of management within Nalcor Energyare costly and unnecessary, and proposed a government department could handle those responsibilities at a lower cost to the taxpayer.

At the very least, "it's certainly going to give us a good opportunity to look at the exorbitant fee or administration salaries there," Coffin told CBC'sOn the Go.

"We believe that there really is only a need for one level of administration, and we want to see that return."

What PCs, Liberals say about Nalcor

Nalcor, formed in 2007, manages several operations, including the Churchill Falls hydro project, N.L. Hydro, and three oil and gas fields offshore.

In 2018, annual corporate operating costs reached $21 million, including costs for the Muskrat Falls inquiry.

Two other provincial political parties also addressed Nalcor's running costs.

The Liberals, in their post-Muskrat Falls rate mitigation plan, vowed to find "efficiencies" at Nalcor, but presented no plans to scrap the organization entirely.

The PCs, in their own plan, assured voters the party can save the province $30 million per year through "restructuring."

Equity stakes at stake?

As well as taking a swing at Nalcor, Coffin expressed concern about the province's double-edgedrole in the offshore industry.

"Certainly we believe that, yes, we do need to reap the benefits of our offshore oil," she said.

"At the same time we have some serious concerns about the role of government, when they have an equity stake and at the same time, they're responsible for monitoring.Being an owner and monitoring one's self is often a very difficult position, so I think that needs to be separated as well."

Coffin said she'd begin by reviewing current equity stakes.The Liberals, in contrast, planned to expand those investments intheir 2019 budget, with $112 million set aside for equity shares in the Bay du Nord project.

"We do need to redevelop our royalty regime to make sure that the returns come back to the people of this province first," she said, "so that the payout comes a little bit earlier and that we are compensated instead of having to put in an equity share and expecting some return in that way."

In Monday's platform, the NDPalso pledged to step back from public-private partnerships, or P3s, arguing that governments can finance infrastructure projects for less over the long haul.

Some major projects in the province are using the P3 model, including the long-discussed Corner Brook hospital, a new facility that will replace the Waterford Hospital in St. John's and the promised new replacement of Her Majesty's Penitentiary announced by the Liberals shortly before theelection was called.

The NDP also wants to address current income tax rates by adding another tier that "doesn't unduly put burdens on people with lower incomes."

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