Fort McMurray fire will cost all Canadians dearly, says expert
原始发布日期： 2016-05-10 发布者：李方字变大 字变小
'One way or another, the insurance companies are going to recoup their losses'The true costs of rebuilding Fort McMurray 4:45 Canadians from coast to coast will have to foot the hefty bill for the Fort McMurray rebuild, whether they realize it or not, says one economics expert. Atif Kubursi, a professor emeritus at McMaster University, says Canadians can expect to see higher gas prices, raised insurance premiums and deferred infrastructure investments from the federal and Alberta governments as a result of the disaster. Analysts estimate that the fire could cost insurers as much as $9 billion, but Kubursi says companies will offload that burden onto consumers. "One way or another, the insurance companies are going to recoup their losses," he warned. "When you lose $9 billion in insurance claims, all claims all over Canada and even beyond are going to rise, because insurers pool risk." Paying for it at the pumpBecause oil has a high price inelasticity, even small drops in production will reflect themselves immediately and disproportionately in higher prices, Kubursi said."People at the pump are going to pay for it, and not in Alberta, but in Canada and broadly in the rest of the world," he projected. To rebuild homes, erect new buildings, pave new roads, and lay new utilities will cost governments dearly, and unless governments want to run deficits even bigger than those predicted, he expects taxes to rise. "The finances of the federal government are limited," he said. "They have to make up for it ... by raising taxes." Kubursi also suggested that federal and provincial infrastructure programs may be put on hold, as money earmarked for new investment is diverted to "rebuild the past" in Fort McMurray. |