Sunday, August 29, 2010

URB Decision On Border Gas Prices (March 31, 2010)

The Utility and Review Board today released their decision on whether the NDP election promise to stagger gas prices from the New Brunswick border makes sense. The UARB made it very clear that while they ultimately saw this as a political decision, there was no evidence during the hearings that supported any change that would stagger margins, taxes, or gas prices generally. The NDP made this promise in haste during the election. They wanted to win Cumberland North and they jumped on board for this promise. Maybe they hoped people would forget they made it. It didn't take them long to run in the other direction and look for cover. Shortly after the election the NDP bounced the issue to the review board. They couldn't have expected such a blunt assessment.

The fact moving the border for gas prices doesn't fix the problem, it just moves the problem. But that seems to be NDP strategy - pit one community against another.

Taxes are higher in Nova Scotia on so many items including gasoline and business taxes. That's why people cross the border to shop. The problem will only get worse if the NDP, as expected, raise the HST in next week's budget. It won't be just gasoline which will go up in price across Nova Scotia, but many goods and services. Cross border shopping to New Brunswick will only increase. But while the NDP saw increased gas prices as a problem they don't see cross border shopping on all other goods as a problem.

The NDP just don't get it.