The Canadian Taxpayers Federation wants Premier Susan Holt to lift the ban on natural gas development in New Brunswick. The advocacy group points to the province’s growing debt as the primary reason to tap into this resource.

Mounting Provincial Debt

The New Brunswick government plans to borrow $1.7 billion this year. This figure represents a 20 percent increase from initial budget estimates. By the end of March, the provincial debt will reach $16.2 billion. That breaks down to almost $19,000 for every person living in New Brunswick.

Devin Drover serves as the Atlantic Director for the Canadian Taxpayers Federation. He says the government cannot keep borrowing billions of dollars and hoping the bill disappears.

“New Brunswick is sitting on a fortune in natural gas while the government drowns taxpayers in debt,” Drover said.

Economic Benefits of Natural Gas

A 2014 economic impact study shows significant financial benefits tied to natural gas extraction. Developing 150 to 200 natural gas wells generates up to $1.8 billion in economic output. It also creates up to $354 million in tax revenue. When adjusted for inflation, that tax revenue equals $478 million today. This total does not even include the royalties the province collects on the gas.

Drover believes the financial benefits are too large to ignore.

“Holt shouldn’t be leaving billions of dollars buried in the ground while taxpayers pay interest on the government’s credit card,” Drover said.

Government Review Underway

The Holt government recently announced a review of the natural gas moratorium. This ban has blocked development for more than a decade. The government expects to complete the review by January.

The Canadian Taxpayers Federation argues this timeline is unnecessary.

“Holt doesn’t need five months of study to see the obvious,” Drover said. “Lifting the ban means jobs, growth and hundreds of millions of dollars to help pay down the province’s massive debt.”

Frequently Asked Questions

Why is the Canadian Taxpayers Federation calling for an end to the natural gas ban?

The group wants the government to lift the ban to generate tax revenue and royalties. They argue this money will help pay down New Brunswick’s $16.2 billion provincial debt.

How much money does natural gas development generate?

A 2014 study estimates that 150 to 200 wells produce up to $1.8 billion in economic output and $478 million in inflation adjusted tax revenue.

When will the government decide on the natural gas ban?

The provincial government is currently reviewing the decade old moratorium. Officials expect to complete this review by January.