Scotiabank CEO urges end to bickering over energy

Boosting infrastructure would benefit Canadian economy

Scotiabank’s chief executive is calling on Canadian leaders to end the “inter-provincial bickering” and “political indecision” that is delaying several energy infrastructure projects.

Brian Porter told shareholders at Scotiabank’s annual meeting Thursday that it should be a national priority to improve Canadian access to global energy markets.

“It is clear our inability to deliver energy to the world is detrimental to Canada’s economy,” Porter said in a speech in Ottawa. “It’s also detrimental to our country’s brand and future economic prospects for all Canadians . . . Global market access for Canadian energy must be a common objective that we pursue vigorously.”

Building better energy infrastructure would benefit not only the country’s economy but also the bank, Porter said.

Scotiabank has financed a number of infrastructure projects across its footprint, including in Europe and Australia, and plans to finance more, said Porter.

“Infrastructure is something you’re going to hear more about from this bank for a long period of time,” he told reporters following the meeting.

Porter also noted during his speech that the sharp decrease in oil prices in recent months has hurt the coun- try’s economy and its outlook for GDP growth.

Oil prices have been hovering near six-year lows as a global oversupply and soft demand have cut the price of crude to about $50 (U.S.) a barrel from as much as $107 early last summer.

Meanwhile, a number of pipeline projects — including TransCanada’s Keystone XL — remain mired in delays. Keystone is still awaiting a U.S. presidential permit.

Energy East, a $12-billion plan proposed by TransCanada to transport oil to Saint John, N.B., would create tens of thousands of jobs at a time when the economy needs job creation, Porter said. Jobs and economic benefits would spread from Alberta to New Brunswick, he added.

Meanwhile, Enbridge is defending its $6.5-billion Northern Gateway project to skeptical British Columbians, including aboriginal and environmental groups challenging the pipeline that would transport Alberta oil to the Pacific coast for shipment to Asia. The federal government approved the project in June.

“Gaps in our infrastructure will have long-term consequences for our economy and for all Canadians,” Porter said.

Tax and royalty revenue from energy and energy-related businesses will be hurt, with lower revenues constraining the ability of federal and provincial governments to invest in areas such as education and health care, he said. With files from Bloomberg