Oilsands in Canada’s best interest, Redford tells Ontario
Premier Alison Redford chided her Ontario counterpart Monday for being “simplistic” after Dalton Mcguinty said any benefit from Alberta’s oilsands outweighs the damage done to Ontario’s economy.
But Redford said Mcguinty’s comments won’t deter her pitch for a “Canadian Energy Strategy” that would bring provinces together to open new markets and help support Alberta’s oilsands domestically and internationally.
Speaking to reporters in Toronto, Mcguinty characterized the strong loonie as a “petrodollar” driven upwards by global demand for oil and gas from Western Canada and said it had “knocked the wind” out of Ontario’s exporters and manufacturers.
In a conference call from Chicago, Redford said Mcguinty’s reasoning on the dollar was “simplistic” and she was “very surprised” and “a little disappointed” by his comments.
She said the need to highlight the positive economic impact of the oilsands was all the more reason to pursue a Canadian energy strategy, noting she had never expected to win hearts and minds within a few months.
“We’re going to have more of a discussion around this because I truly believe when we talk about oilsands, it’s not about what’s in Alberta’s best interest, it is about what’s in Canada’s best interest,” she said.
“There are tremendous economic opportunities across the country as a result of the resources we’re developing in Alberta.”
The Canadian dollar is hovering around par compared with the U.S. greenback, while crude oil prices remain above $100 US a barrel.
Redford pointed to a Canadian Energy Research Institute report that suggested oilsands development could bring $63 billion of invest- ment into Ontario between 2010 and 2035.
The rookie Alberta premier, who will lead her PC government to the polls within three months, said Mcguinty hasn’t expressed similar concerns to her and suggested he was “under a lot of pressure” because of the state of the Ontario’s economy.
A recently released report by economist Don Drummond commissioned by the Ontario government said that province must take drastic measures to deal with a $16-billion deficit and avoid a fiscal disaster.
Mcguinty said any upside from the oilsands is overshadowed by its effect on the dollar — and his province’s economy.
“If I had my preferences, as to whether we have a rapidly growing oil and gas sector in Western Canada or a lower dollar benefiting Ontario, I’d tell you where I stand — with a lower dollar,” he said.
Redford said she has talked to many Ontario business leaders who believe the oilsands benefit Canada’s most populous province. She appeared to have the support of Ontario Tory Leader Tim Hudak, who posted on Twitter that in the midst of a employment crisis in Ontario, Mcguinty was “wrong” about the oilsands.
Andrew Leach, a professor at the University of Alberta’s business school who specializes in energy economics, said Mcguinty was only looking at one part of the picture. While the manufacturing sector is hurt by the soaring loonie, he noted Ontario is actually a significant net importer that benefits from a strong dollar.
University of Toronto political science professor Nelson Wiseman thinks the political dispute is overblown, noting Mcguinty didn’t actually attack the oilsands.
He said the issue will probably have little effect in Ontario politics though it might end up helping Redford.
‘The reason she’s willing to pick a spat if she wants is because she wants to win the election with the largest majority and in Alberta, beating up Ontario is not a vote loser,” Wiseman said.