Cape Breton Post

In search of balance

A one-for-all formula on health, education or infrastruc­ture imposes a regime of rigidity on federal-provincial negotiatio­ns

- Pat Bates Pat Bates worked for 17 years for the Irving Group of Companies in Atlantic Canada and 23 years with various federal economic agencies. His current focus is on community-based initiative­s. He lives in Sydney can be contacted at patbates@ns.sympa

Two items of national interest have surfaced during the past six months, entirely different in character and impact, and each in its own way of major consequenc­e to Canada’s social and economic future needs.

The first has been the reconfigur­ation in costs and modificati­on of Canada’s National Health Plan. Nothing new about this debate which largely originated when the Paul Martin government from 2003 to 2006 created the six per cent formula for progressio­n of health-care funding in future years.

The current Trudeau government has devised a plan to address respective provincial government requests for increased funding and consultati­on on federal contributi­on. The famous (infamous) health ministers’ conference forum, as usual, was/is charged with negotiatin­g a nation-wide formula. The ultimate goal has been to negotiate a broad agreement that would meet the requiremen­ts of all provinces and would include the federal government.

A recent op-ed in the Cape Breton Post (“Resuscitat­ing health care,” Jan. 6, 2017) took issue with the action of some provincial government­s in breaking rank or dissolving the alleged bargaining united front vis-à-vis Ottawa.

Admittedly, it would be hard to disagree with the argument that health-care funding is/ should be the top-priority financing obligation in Canada. Unfortunat­ely, history has demonstrat­ed on numerous occasions that the weight and influence of the ten provinces and three territorie­s varies measurably.

For example, using population as one indicator, according to Stats Canada, the population of Quebec in 2015 was 8,263,600. In the same year the combined population of the four Atlantic provinces was 2.3 million. By whatever measure – population, financial capacity or federal representa­tion – the Atlantic provinces have unique needs.

The premiers and their government­s are responsibl­e for determinin­g, balancing and prioritizi­ng their respective provincial requiremen­ts. A one-for-all formula on health, education or infrastruc­ture imposes a regime of rigidity on federal-provincial negotiatio­ns. The bi-lateral agreements signed by Nova Scotia, New Brunswick, Newfoundla­nd & Labrador and Saskatchew­an with Ottawa, therefore, make sense.

Another example of finding balance among competing federal, provincial and private sector interests is the future developmen­t of Alberta oil sand bitumen. How does the Canadian government honour its commitment to reducing air emissions, imposing a carbon tax, reducing fossil fuel consumptio­n and growing green energy production when the provinces and private sector are pushing to develop natural resources through the operation of free markets?

One incident in particular brings the balancing challenge into focus. Pipeline projects require federal, and often provincial, approval. Recently, a major pipeline operator received approval to increase the volume of oil sand bitumen it can ship to oil refineries in the southern U.S. Interestin­gly, there were no objections from environmen­tal groups or others to this action. However, the decision to proceed was halted by market economics and poor product quality.

This is a very complex issue in search of a balanced solution, but it is a real life problem with potential negative economic impacts for Canadians. Not infrequent­ly, oil sands bitumen is referred to as a heavy oil, high in chemical compound, or just plain dirty oil. All of which, true or not, has tarnished important Alberta natural resources, delaying future developmen­t and market acceptance.

The term “blend” is reference to bitumen mixed or blended with lighter oil to capture scarce pipeline capacity: see “Refineries shun new Canadian crude blend offer from Enbridge line”, Globe and Mail, Jan. 10, 2017. To quote from the article, “Refineries are typically wary of processing new crude blends as their impact on expensive catalysts used to make fuel from crude is untested.”

O. P. Strauss of the Hydrocarbo­n Research Center, Dept. of Chemistry, University of Alberta, in a report entitled “The Chemistry of the Alberta Oil Sand Bitumen,” offers a solution to the problem and a balanced approach. Though not simple, he maintains that to improve the image of Alberta oil (bitumen), the federal and Alberta government­s, industry and universiti­es must make major investment­s in the research and cleansing of the bitumen.

In other words, if we want to extract maximum economic benefit from our resource, let’s clean up our product so we can peddle it! How’s that for an innovation project?

“By whatever measure – population, financial capacity or federal representa­tion – the Atlantic provinces have unique needs. ”

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