...Is It Really Being Caused By A Recent Tumble In Natural Gas Prices?
Norm Farrell thinks not.
In fact, he has graphs and everything which indicate that there has been no tumble:
...We've been hearing for months from BC Liberals that revenue from natural gas production is sharply reduced in the current fiscal year. No doubt the public share is reduced but we should be asking why.
I suggest there was a political decision to relieve gas companies from payments they would otherwise have been obliged to make.
In the current fiscal year, sharply lower government revenues do not result from lower gas prices earned by the industry. Here is a chart of natural gas prices in the first half of the current fiscal year (ie. since the original much rosier original budget forecasts were made)...
Because he's got this one really nailed to the floor (think 'subsidies')....
(and his work reinforces the likelihood that a massive chunk of this deficit will suddenly disappear in, say, oh I dunno, February)