Crown corporation project encourages economic development

Newfoundland and Labrador crown corporation Nalcor Energy's mapping project is a small example of how some governments are questioning the assumption that all governments can do to encourage economic development is hand out tax breaks. As the Globe and Mail reported recently, NALCOR is doing seismic testing off Newfoundland and Labrador to identify places where oil deposits are likey to be present.

According to the article one reason for the testing is to increase competition for drilling rights – something that helps the government increase the benefit of oil exploration for the province. Nalcor Energy also holds a 4.9 percent interest in the Hebron oil field.