Robbing Newfoundland and Labrador 101 Part 5

Please take the time to review the first 4 parts

Part 1
Part 2
Part 3
Part 4

When we consider the ability of our province to generate renewable hydro-power at very competitive prices we must wonder what our problem has been.
Primarily it has been lack of vision and planning 25-50 years out.
I have highlighted in the parts 1, 2, 3, and 4 the absolute robbery by the federal government of our oil and gas assets and the lack of participation - and sometimes significant interference by them - in the development and benefits of our hydro resources.
The federal election is coming and Harper is in a pickle. As this blog has talked about; the PM promised to remove non-renewable natural resources from the equalization formula. Saskatchewan, BC, Alberta, and Ontario are important to Harper and he must deliver that election goodie or there is political trouble on the horizon. At the same time, Quebec support, which is crucial for a majority Conservative government will not tolerate this change to equalization - unless - renewable natural resources come out as well. If this were to happen the formula as we know it would be dead and leave provinces like Nova Scotia, Prince Edward Island, New Brunswick, and Manitoba in some serious financial trouble.
A balance has to be found between what the PM promised and what the PM must deliver. This leaves some great room for our province - that has significant wealth in renewables and non-renewables - to negotiate for compromise.
Williams, unfortunately and contrary to popular belief, is fence-sitting - trying to help his buddy Charest and in doing so harming our future. His misconception that Ontario and Quebec are the answers to our development of the Churchill Falls only threatens us further. It also serves to keep his attention away from the feds and the role they should play in the project.
The best case scenario for Newfoundland and Labrador is the Lower Churchill proceeds with all the power consumed in our province. This supplemented by exports of other energy potentials such as wind, oil and natural gas, tidal, wave, and biomass - will place this province in an economic position which is equal to our natural wealth potential.
2 things to balance:

1. energy for domestic use
2. energy for export

Energy for domestic use is critical for a number of reasons. Our own economics cannot rely on non-renewable fossil fuel generation. This would cause our industrial, retail, and basic consumer base to rely on global events including OPEC, natural disasters, wars, and fossil fuel penalties. Our economic future must rely on renewable energy for all regions of our province. This means we are in control of fixed and variable costs. Hydro-electric power does not increase in price because of a war in Iraq, Iran, Afghanistan or political unrest in third world and developing countries - it is not impacted by a hurricane in the Bahamas or flooding in Asia. We have enough hydro-electric potential to take our population to a couple of million with ease - and with virtually no unemployment. Similar but with greater potential than Iceland; we can using our own natural resources be an independent nation contributing to a North American Union of States.
With respect to energy for export we have the edge and now need the means of transmission. We have significant potentials in wind, tidal, and wave. All of these resources are available for use by Canada in its effort to meet Kyoto targets and minimize reliance on foreign oil and gas. The most reliable and cost effective source over the medium to long-term is hydro-electric. This should not be used or considered for export - especially considering 5000 MW's of Labrador hydro is tied up until 2041.
Canada must play a role in 2 areas. First financing for the Lower Churchill; thereby attempting to live up to our long-standing partnership under the Lower Churchill Development Act. (We will examine this law further in Part 6) Further to compensate for gauging us for many years through equalization - when Ottawa attributed the majority of the power produced from the Upper Churchill to Newfoundland and Labrador - despite our inability to make major financial gains from it. (In Part six I will reproduce a letter I recieved on this matter from Stephane Dion, then Minister of Intergovernmental affairs)
Canada must also contribute, though grant monies, to building necessary transmission lines both to the Island and the mainland. This in part would compensate us for the damage caused by the failure of the federal government to force a corridor through Quebec - and as a result holding us hostage to a singular market. The remainder of the funds needed for the Lower Churchill Development and the transmission lines could be financed by the province with assistance from the 81.2% OWNERSHIP of Hibernia - currently being held by the feds and the transfer of future fed royalties from that project to Newfoundland and Labrador.
As yet we have not even touched the inequities of federal jobs and agencies, the mismanagement of our fishery, and the years of insufficient transfers that per-capita equations net without due consideration for geographic mass.
This is an example, consider health transfers from Ottawa giving more to Nova Scotia than Newfoundland and Labrador based on population. Then consider that Nova Scotia receives enough for 2 MRI units and we only get enough to cover 1 unit. Now factor in the geography of Newfoundland and Labrador compared to that of Nova Scotia and consider the built in inequity - that has left huge regions of our province, such as Labrador having to travel at elevated costs to St. John's for treatment.

You see we have only just started to address our place in this union and we must not stop either within Canada or on our own.

To be continued in Part 6