Sask. premier slams Mulcair over 'Dutch disease' comments

petros

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Nov 21, 2008
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Saskatchewan Premier Brad Wall is accusing federal NDP Leader Tom Mulcair of dividing Canadians with his comments about the economy and energy.

In a recent interview, Mulcair said the resource sector in western Canada is artificially driving up the dollar, making it tough on eastern manufacturers and exporters.

Speaking on the CBC Radio program The House, Mulcair compared the current Canadian economic situation to the so-called "Dutch disease."

That's a term coined by The Economist magazine explaining the collapse of the Dutch manufacturing sector, after development of the oil industry pushed up the Netherlands' currency in the 1960s.

Wall first expressed his disapproval on Twitter: "Thomas Mulcair calls the strength of our resource sector a "disease" ... Resources have been the cure not the problem, NDP."

Later, speaking to reporters, Wall accused Mulcair of pitting eastern voters against the west.
"I think it's very, very divisive," Wall said.

"For someone who aspires to be prime minister to label a certain sector of our economy that's actually creating jobs — creating jobs through exports and through their development for all of the country — that he would label this as a problem, is very disconcerting and I hope he changes his tune."

Mulcair said he's not against developing the oilsands — but it should be sustainable development where the polluter and the users pay the environmental costs.

"We've hollowed out the manufacturing sector," he said. "In six years since the Conservatives arrived, we've lost 500,000 good-paying, manufacturing jobs … more than half of them because we're not internalizing the environmental costs."

Mulcair added that his analysis looked generally at the impact of resource exports on the dollar and manufacturing — insisting he wasn't specifically targeting Alberta or the oilsands industry.


TC Douglas was a HUGE promoter of SK energy developement in his day. He must be rolling over in his grave.

Another thing.....SHELL (a large player in the oil sands) is DUTCH!
 

petros

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mentalfloss

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Jun 28, 2010
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Mulcair is shooting off his mouth and hitting his foot. He won't become PM without western support.

Why would his suggestion of Dutch Disease compromise western support?

He even states in the article you posted that he does not object to oilsands development?
 

captain morgan

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mentalfloss

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I find it ironic that one sector demands that the rest of the nation increase their cost of living simply to provide a better trade environment for them.

Except that this would make equalization fairer because Ontario can't rely as much on Alberta's success.

 

petros

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CDNBear

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Sep 24, 2006
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Only Dippers are allowed to shoot their mouths off Pete. Divisive or not, it's the duty of all NDP shills to defend it.
 

Tonington

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Oct 27, 2006
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Dutch disease certainly has been a problem for some exporters. But it's not as if there are not remedies for fluctuating currencies. A simple fix, align revenues and expenses so they use the same currency. For those manufacturers in Southwest Ontario that primarily export to the US, then switch to using the US dollar as the currency for revenue. Also, as many of the raw materials will already be in US dollars as a commodity, that's one way to insulate against those currency fluctuations.

The corporation I work for uses the greenback. So the past year was rough, simply due to currency fluctuations, despite double digit growth in sales. Most of our costs are in Swiss Francs, so that really took the wind out of the sales so to speak. :lol:
 

damngrumpy

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Mar 16, 2005
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I don't see much wrong with the comment its valid and has been used as a coined phrase
for some time in main stream society. From what I understand Mulcair wants serious and
I mean serious changes to the way we harvest resources and resource development. I too
would like to ensure we are doing all we can to extract resources in the most efficient fashion.
Am I against oil sands development? No and my point is most people across Canada are in
favour of developing the resource they just want it done in a sustainable fashion. Will that
cost more? Likely yes. the reason for supporting that view but developing the industry is as
follows. When the extraction is done we want to use the money governments get, for programs.
We want to ensure we are no going to pay more for cleanup than we get in royalties.
If you want to see what happens when things go wrong, go check out the Sydney Tar Pits in
Cape Breton. Some estimate ten billion or more will be needed before they are finished and the
problem is that is a conservative guess the last time I heard.
 

CDNBear

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Sep 24, 2006
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From what I understand Mulcair wants serious and
I mean serious changes to the way we harvest resources and resource development.
It's one of the few policies the NDP has stood by, that I kind of like.

Unfortunately, the fact that what they propose will be paid for by the common man, coupled with the bulk of the rest of their platform, they lose my support.
 

Spade

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Nov 18, 2008
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Phrases/words to be shunned by Conservatives as featured in "The Shibboleth Companion" (2011 edition, second printing)
The Dutch Disease
Hollande
Tar Sands
Carbon Credits
Global Warming
Climate Change
Liberal
Social Action
Equalization
Feedom 65
The United Nations
Gun Control
Pardon
Crown Corporation
The CBC
Environmentalist
Union
Strike
Etc.