OTTAWA - Five ways tumbling oil prices and the sliding loonie can affect the federal government's bottom line:1. The biggest impact from falling oil prices is the fact they chew into Canada's nominal gross domestic product (the country's economic output before adjustments for inflation). That, in turn, erodes federal revenues. The Finance Department views nominal GDP as "the single broadest indicator of the tax base."2. The fallout of lower crude prices could also have negative effects on the [Read more]

SAINT ANDREWS, N.B. - Canada's natural resources minister says the low price of oil hasn't deterred the government's goal of moving resources to tidewater.The price of oil on the international market has declined along with the value of the Canadian dollar and delivered a financial hit to resource-rich provinces like Alberta.And now the market is preparing for a flood of Iranian oil after the United States and the European Union lifted economic sanctions against Iran.Natural Resources Minister [Read more]

ST. JOHN'S, N.L. - Environmental activists who want a drilling moratorium in the Gulf of St. Lawrence weren't impressed Friday as regulators extended an oil exploration licence for the Old Harry site by another year.Corridor Resources Inc. (TSX-CDH) of Halifax had until Friday to offer a $1 million deposit to extend the licence until next January.The Canada-Newfoundland and Labrador Offshore Petroleum Board announced the province and Ottawa agreed to waive the fee. Federal and provincial Natural [Read more]

CALGARY - Finance Minister Bill Morneau met with business leaders Friday in the financial heart of Canada's ailing oilpatch, where he says he got a clearer picture of how challenging the crude collapse has been for Alberta."They heightened my sense of concern, which was already pretty high about making sure that we deal with challenging economic situation in Alberta," he told reporters following meetings with oil and gas industry executives and the Calgary Chamber of Commerce. Morneau had [Read more]

DUGALD, Man. - Federal Finance Minister Bill Morneau said Thursday the low Canadian dollar and low price of oil make his plans for stimulus spending and tax cuts even more important.Morneau appeared to hint that Liberal plans for infrastructure spending could be strengthened."With the slowing of the economy, we believe it's doubly important that we take the correct actions to help Canadians to do better," Morneau told reporters at a stop on his pre-budget tour of the country."We're playing close [Read more]

ST. JOHN'S, N.L. - It's enough to make one of Canada's most successful folk musicians sing the blues.Bob Hallett, founding member of Great Big Sea, is now a businessman who invested big-time in a St. John's restaurant and bar three years ago when Newfoundland and Labrador was leading national economic growth.Today, it's among other resource-reliant provinces such as Alberta and Saskatchewan that have borne the fiscal brunt since oil prices tanked."Business is probably off across the board [Read more]