National Post (National Edition)
N.B. premier laments lack of strategy over energy
FREDERICTON •Therookie Tory premier of New Brunswick has declared the Canadian federation fractured — with Ottawa and other provinces seemingly unconcerned about Alberta’s slump, and Quebec actively blocking economic development.
Blaine Higgs says he was shocked at the recent First Ministers meeting in Montreal to find there is no national urgency or strategy to deal with the 70-per-cent devaluation of oil in Alberta.
“Here’s a province that has fed many of our kids for years and we’ve all been happy to be recipients of that transfer payment. I’m not proud of that fact, and I would like to develop the very industry that they have,” Higgs said in a yearend interview with The Canadian Press.
“But for us in that meeting, not to have that as the focal point a crisis in our country, as a serious impact on Alberta and potentially a serious impact on all of us, like it was just another day.”
Higgs is pushing to revive the cancelled $15.7-billion Energy East pipeline project that would have moved western crude to refineries in Eastern Canada and an export terminal in Saint John, N.B., but Quebec Premier Francois Legault is opposed to it passing through his province.
Legault recently provoked the ire of western Canadians when he said there was “no social acceptability” in his province for a “dirty energy” pipeline from Alberta.
Higgs, a former oil executive, is proposing that federal transfer payments be cut to force provinces to develop their natural resources.
“Here’s Premier Legault getting an increase, a cheque of more than $13 billion out of the $19 billion in transfer payments, and no real sense of urgency,” Higgs said.
He said that as a result of devalued oil, Alberta is losing $80 million a day, and all the provinces — including New Brunswick — should share in the pain through cuts in transfers.
“We should cut what goes to each province, based on our ability to get the resource to market,” he said.
Higgs said the debate over Energy East demonstrates how the federation is fractured.
“So with Alberta, Manitoba, Saskatchewan, Ontario and ourselves — we are very much aligned — and Quebec in the middle in this case for transportation from west to east is not only disappointing, it’s really shocking,” he said. “I saw a willingness through every province but I didn’t see that willingness in Quebec.”
Higgs said there should be a utility corridor across the country that could house pipelines, power transmission lines, and communication systems.
Higgs said another area where the federation is fractured is with the way provinces are being treated differently by Ottawa when it comes to the carbon tax, which goes into effect next year. He said it is far from a level playing field, because the provinces are being asked to meet the same targets despite starting from different carbon-emission levels.