Sue's Blog

Thursday, August 24, 2006

Keeping their Mouths Shut - To Appease Quebec?

Danny Williams and Loyola Hearn have become mum regarding the removal of non-renewable resources from equalization. WHY?
I hope we have passed the time where coddling Quebec is more important than doing what's best for Newfoundland and Labrador. There is evidence, unfortunately, this may not be the case.
During the last federal election the equalization issue was so important to Danny Williams that he asked all federal party leaders about it.
The commitment that was made by Stephen Harper on non-renewable resource revenues can be found in this letter to Danny. This promise was not a "suggestion" or a "maybe" - it was a definite. Harper committed to remove all non-renewable resource revenue from the formula. This means future oil and gas found on land and in fact offshore would be removed as well as mining revenues; such as Voisey's Bay royalties.
The general breakdown of provinces is:
In favour of removing non-renewables

Ontario
British Columbia
Alberta
Saskachewan
Newfoundland and Labrador

Against removing non-renewables

Quebec
Prince Edward Island
Nova Scotia
Manitoba
New Brunswick

Quite the tangle for sure, however our Premier has to act in the best interest of Newfoundland and Labrador - to do otherwise (be a national arbitrator) is outside his mandate.

New Brunswick, Manitoba, and Prince Edward Island are "poor" provinces as it relates to oil and gas and to some degree minerals. They represent the poorest Canadian provinces in non-renewable natural resources.

Nova Scotia, like Newfoundland and Labrador has benefitted from a change in their oil and gas agreement with Ottawa. They are, however, nowhere close to being as resource "rich" as Newfoundland and Labrador. They have probably maximised their equalization potential through the "special" deal with Ottawa. Removing non-renewables now would not be a net benefit to the province.

Quebec, however, is simply annoyed that they are not benefitting from major oil and gas reserves - although they have some potential in the waters between our provinces. They want renewables removed because they are "rich" in hydroelectric resources - theirs and ours. If renewables were removed they would probably join the AB SK NL BC and ON team. The truth is we should be seeking the same because we are also "rich" in hydroelectric resources. One must also consider that Quebec and our province also have some of the best wind potential - and in our case tidal and wave potential as well.

As you can see Stephen has a problem, Ontario wants one thing and Quebec wants another - yet he promised to do what Ontario and equally important what Alberta wanted. We just happen to fall on that side, he has no political worry about Newfoundland and Labrador (obviously).

Before he became PM he had little hope of making any significant headway in Quebec so he courted the BC, AB, and ON vote by promising the removal of non-renewables. Now after making some headway in Quebec he does not want to lose it by living up to his promise.

So Alberta and Saskatchewan are kicking up, they want the PM to deliver - for some reason Danny and Loyla H have gone silent on the issue. Why are these gentlemen, our leaders, not fighting for us?

Read this Alberta position!
Premier Calvert's Position pre-election!
Saskatchewan MP's NOW!

Where are our elected representatives?


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