ST. JOHN'S, N.L. - In an attempt to shield Newfoundland and Labrador from the global recession, Premier Danny Williams announced a stimulus package Wednesday that will bring total infrastructure spending to $800 million for the coming fiscal year.
Faced with droves of tradespeople who have returned to the province looking for work after losing their jobs in Alberta's once-booming oilsands, Williams said it was imperative to expedite infrastructure projects with or without Ottawa's help.
"When our country's prime minister in a three-month period goes from telling us to buy stocks to no recession to no deficits to a possible depression, then it's time for us to take matters into our own hands," Williams told a news conference.
"The federal contribution to this infrastructure stimulus will be minimal, however we will take whatever we can get ... but then you're at the political partisan whims of the federal government and we'll see what happens there."
Under the province's plan, infrastructure spending will be increased by $285 million above last year's allocation.
More than $309 million will go to transportation infrastructure, such as paving roads and highways, and $163 million has been allocated to improve the province's hospitals and medical equipment.
Another $156 million will be aimed at repairing and maintaining the province's schools.
"This is not only about job creation and setting up a buffer between us and the world's economic woes," Williams said. "These investments will have a real and a lasting impact on the people of our province."
The province's economic prospects have dimmed considerably in recent months because of plunging oil and mineral markets -- so much so that Newfoundland is expected to bring in a deficit of at least $500 million when it announces its spring budget.
"You can count on at least a half a billion-dollar deficit," Williams said.
It's the first time in four years that Williams is forecasting a deficit for the province.
Williams also blames changes in this year's federal budget, which he claims will cost his province $1.6 billion over three years, for driving Newfoundland back into deficit territory.
Memorial University economist Wade Locke said the infrastructure plan is a good move at a time when job creation is badly needed in the province.
"It takes a bold individual and a bold government to say, `OK, despite going into a deficit, we want to try to provide some stimulus for your economy,' " Locke said.
"I think this is a way of putting some stimulus in the economy that would be helpful ... at a time that's difficult for everybody concerned."
Ches Penney, who as chairman of the Penney Group of Companies has interests in the energy, construction and real estate sectors, said there would be no problem finding workers for the dozens of infrastructure projects called for in the plan -- a notion that would've been unheard of a year ago.
"There was so much work going on in Alberta and there were thousands of people catching the plane every week or every two weeks," Penney said.
"A lot of these people are home now. These are all tradespeople and they're available for work."
It's not clear exactly how many workers will be needed for the new projects. But Transportation Minister Trevor Taylor said a rough estimate would be 1,500 workers.
The Newfoundland announcement comes after several provinces have announced various funding plans aimed at stimulating their respective economies.
Prince Edward Island has announced a five-year, $510-million plan, while New Brunswick is promising $661 million in funding for the 2009-10 fiscal year.
The British Columbia government has announced $14 billion in infrastructure projects they expect will create 88,000 jobs over the next three years.
