Don't expect a break on gas taxes: Sullivan

Newfoundland and Labrador's finance minister admits residents pay high taxes for fuel, but said he is not planning to lower gas taxes any time soon.

Loyola Sullivan is turning down suggestions from Liberal Leader Gerry Reid to cut the 16.5-cent tax on gasoline.

Reid said with oil revenues still higher than anticipated, the provincial government can afford to drop its tax rate on fuel.

Sullivan said such a cut would not be without consequences.

"If we give a reduction in taxes, will that mean less services?Well, it depends on our fiscal situation," said Sullivan.

"One thing we're not going to do we're not going to start spending and spending and drive us into deficit again because we worked too hard to get out of there."

Sullivan's budget this spring balanced the ledger, and ushered in what the government said will be an end to deficit financing.

Sullivan has said the government's long-term priority is to reduce its accumulated public debt of about $12 billion.

"People in this province are getting an opportunity to enjoy a good level of public services and we want to keep that going, and we want to see it done under lower levels of taxation, if that's humanly possible."

The Tories promised in last year's budget to review all the taxes levied in the province.

Sullivan said that work has been completed, and he expects to present a position paper to cabinet in the next several weeks.