Leaders, not Leapers, for our resources
Despite all that you may have heard or read, the age of fossil fuels is not about to end any time soon. In fact, the International Energy Agency estimates that demand for oil, coal and gas will increase steadily into 2040. Heavily subsidized “renewables” will also increase but will still be a small part of the total. That is the reality of the world we are in.
The biggest challenge in Canada today is uncertainty. The resource sector has hugely capital- intensive projects with a long life. But these projects cannot go forward if they become captives of seemingly endless processes and reviews. Public policy has a critical role to play in reducing some of that uncertainty and promoting the Canadian resource sector in emerging markets. Your voices need to be heard in this debate.
We cannot allow our regulatory regime to be gamed by those who simply want to disrupt any form of development. There are clear lessons from history on this tendency.
Thirty- five years ago, the government of Canada introduced the National Energy Program. This crippled the energy industry in Western Canada, drained the treasury of Alberta in particular of billions of dollars, significantly damaged our international reputation for reliability and trustworthiness and established a new low in federalprovincial relations in the modern history of Canada.
Four years later, my new government abolished this NEP and consigned it permanently to the dustbin of history. I thought we would never again see political attitudes in Canada that would give rise to such egregious and nation-wounding policies. But I was wrong. Recently a group of Luddites attempted to seize control of a major political party in Canada by articulating a new philosophy of economic nihilism that would devastate the economy of Western Canada and seriously damage the long- term economic prospects of our country as a whole. This must be resisted and defeated.
As it is, by arbitrarily extending the scope, the time and the expense of the regulatory reviews the government is actually injecting more uncertainty into the process and undermining the credibility of the regulatory institutions charged with that responsibility. There is a growing risk that, due to protracted delays, mounting opposition, escalating costs and the lack of distinct political support, essential pipeline projects may die stillborn — just like the ill-fated Mackenzie pipeline — with severe damage to a vital sector of our economy that is already reeling from depressed prices.
We need sensible environmental policies, of course, because Canadians are justifiably proud of our pristine environment. My government earned plaudits for our action on the environment, which was an important priority for us in all of our initiatives. I was greatly honoured to have been voted Canada’s Greenest Prime Minister in history, by leading environmental groups. But we were always conscious of the need for balance between sustainability and growth.
There will be no powerful explosion of development in our entire energy sector unless there is agreement among the major players and interests: the affected provinces that control the resources; the First Nations; the stewards of our environment. Without their active involvement and enthusiastic co-operation, our natural resources will remain in the ground. Dead as a doornail.
Canada is a vibrant federation. We are not a unitary state. The government of Canada cannot act unilaterally to resolve this matter. The federal government must urgently initiate avenues of co- operation with all stakeholders to ensure that we move forward in the national interest.
This vital initiative must be led by the prime minister himself. In this area, there are no substitutes for him. He strikes me as having the style, the interest and the instinct necessary to bring the premiers and the aboriginal leaders and environmentalists together and emerge with a common position that speaks to Canada’s future with optimism and hope.
Canada is a vibrant federation. We are not a unitary state.
A vigorous national commitment to develop the resources and build the necessary infrastructure must be complemented by three essential undertakings: A principled partnership with the provinces through meetings with the premiers — as my government did successfully on free trade; Honourable agreements with First Nations that move beyond debates about past grievances and focus on opportunities for employment and economic growth in the future, as we did in creating the vast new aboriginal territory of Nunavut; and a realistic plan harnessing new technologies to reduce greenhouse gas emissions, as we did with acid rain. I say “realistic” deliberately because, while Canada should do more, we are a very small part of the global problem.
The most essential ingredient, however, is political leadership. Leadership that anticipates the need for change and is determined to implement change. Not in pursuit of popularity but to serve the national interest.
Change of any kind requires risk, political risk. The perfect should not become the enemy of the good. The best tonic would be bold, political will to lead the debate in a manner that is most compelling to the Canadian public and is consistent with major, national infrastructure achievements in our proud history. As the management guru Peter Drucker once opined; “The best way to predict the future is to create it.” It is time for Canada to move to create our future by serving notice to the world that we intend to turn our competitive advantage — our immense resource base — to our national advantage in a respectful, responsible manner, before it is too late.
WE CANNOT ALLOW OUR REGULATORY REGIME TO BE GAMED.