As much a political move as anything. For 100+ years Newfoundland governments have been hauling big profits from Labrador resources in fishery, mining, power generation etc with minimal repayment in services or infrastrucure. There has in past been a Labrador separation party because of this.
As for the economy....depends who you are. Oil and gas industry types are doing fine but the Govt is running a 800+million dollar deficit. They are freezing wages and are figuratively beating civil servants into submission while coming on the TV telling everyone about the hottest economy in Canada is here. Just signed an 8 Billion dollar deal on Muskrat Falls power development but are reducing nursing positions as a cost saving measure.
R1150 GSA, KLR650, K75s, RD350, PS250 (Big Ruckus), R65, 990 Spyder
If I still had every dollar I spent on motorbikes I would be a richer man but a poorer person.