Thomas Mulcair, being "Thomas Mulcair"....

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mentalfloss

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Re: Stéphane Dion criticizes Thomas Mulcair for East-West strategy

Mulcair says he's not beating up on West with oilsands critique

OTTAWA — New Democratic Party leader Thomas Mulcair dismissed on Tuesday criticism of him from the premiers of B.C., Alberta and Saskatchewan, saying they're simply acting as Prime Minister Stephen Harper's "messengers" in the NDP's fight with Harper over the impact of the oilsands industry on the Canadian economy.

Mulcair said Harper, an economist, knows the NDP is correct in asserting that booming bitumen exports hurt Canadian manufacturers and cause huge job losses.

"He's not going to try to contest that. What he's going to try to do is send in messengers to take that argument to me. I'm not responding to any of them," Mulcair said in an interview.

"My argument is in the House of Commons with the federal prime minister who is failing Canadians."

Saskatchewan Premier Brad Wall, leader of the right-of-centre Saskatchewan Party, was the first to criticize Mulcair's recent statements on CBC about the oilsands industry's role in creating an artificially high Canadian dollar.

Wall called Mulcair's comments "facile" and "divisive."

B.C. Premier Christy Clark, leader of the centre-right provincial Liberal party, labeled the NDP leader's analysis "goofy" and said it showed the federal party opposes economic development.

Alberta's Conservative Premier Alison Redford also questioned Mulcair's statements, though she was far milder than her environment minister, Diana McQueen, who accused Mulcair of engaging in "old-style politics — trying to pit one part of the country against another."

Former Liberal leader Stephane Dion got into the fray Monday, revealing that he turned down a proposal from party strategists before the 2008 election to try to exploit Canadian misgivings over environmental damage caused by oilsands operations.

Dion said Mulcair's statements were damaging to "national cohesion."

Mulcair rejected media speculation he's trying to win support in vote-rich regions like Ontario, Quebec and parts of B.C. at the expense of Alberta and Saskatchewan, where he has only a single MP — Linda Duncan of Edmonton.

"I never said it's the fault of provinces like Alberta," he said.

Mulcair said blame for Canada's high dollar rests squarely on the shoulders of federal governments that have failed to enforce existing laws like the Fisheries Act.


Harper is "allowing a situation to be created where . . . anything that's being exported right now is being clobbered by the artificially high Canadian dollar," he said.


"It is artificially high because of the unbridled development where we're not enforcing existing rules."


He compared oilsands operations to "a factory where you're producing a product and you're pushing the refuse from the production into the river in the back.

"When you claim you're making a profit you haven't paid the $90 a ton you should be paying to dispose of it in a sanitary landfill. You're not applying basic rules of sustainable development like polluter-pay.

"That has nothing to do with the province of Alberta. I never mentioned, blamed or talked about the province of Alberta.

"What I indeed said in that in the House of Commons is that this indeed applies to raw bitumen as it does to raw logs, and I also took the trouble to say it applies as much to Alberta as it does to northern Ontario or in the Maritimes with regard to shale gas."


Mulcair also said he conditionally supports Enbridge Inc.'s proposal to reverse the flow of oil on a pipeline between Sarnia and the Hamilton area as long as it passes a "rigorous" environmental review.

Mulcair said the proposal, opposed by a coalition of environmental groups, would be good for Canada if it means more work for Canadian refineries.

http://www.montrealgazette.com/busi...est+with+oilsands+critique/6626522/story.html
 

mentalfloss

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Jun 28, 2010
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Re: Stéphane Dion criticizes Thomas Mulcair for East-West strategy

We export bitumen?

Yes.

And the illogical and frenzied response of the contrarians last week is a perfect example of McCarthyism.

Mulcair and energy McCarthyism

The high-and-mighty vitriol which greeted Tom Mulcair's comments last week about the downside of oil-powered currency appreciation is lamentable (repeating the over-the-top reaction to Dalton McGuinty's similar comments a few weeks ago). Mulcair made two modest and empirically substantiated statements: the loonie is sky-high as a result of the oil boom in Alberta's bitumen sands (I doubt you'd find a single currency trader on Bay Street who would disagree with that), and that overvaluation is causing negative side-effects on other industries and regions in Canada.

Following up on Erin Weir's most excellent interventions, here is my column in yesterday's Ottawa Citizen on this issue. And here is a graph that went with the column in the print edition. It shows that in the last decade, Canadian petroleum exports grew by close to 2 percentage points of GDP -- fairly impressive. But Canada's exports of everything else (manufacturing, services and tourism) declined by several times as much -- and the two offsetting trends are not unrelated. No wonder Canada is mired in a large, chronic international payments deficit, even as we scrape the stuff out of the ground faster than ever.

These diatribes against anyone who even acknowledges potential downsides or side effects of the bitumen boom seem to herald a new, dangerous tendency in Canada's political culture. Opposing a bitumen-exporting pipeline in Canada these days makes you a foreign-financed subversive. And it seems that questioning the economic effects of the bitumen export strategy makes you equally seditious. I call this "energy McCarthyism," and it should be rejected forcefully not just by those concerned with Canada's de-industrialization and staples dependency, but by those worried about the quality of our democracy.

Mulcair and energy McCarthyism | rabble.ca
 

petros

The Central Scrutinizer
Nov 21, 2008
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Re: Stéphane Dion criticizes Thomas Mulcair for East-West strategy

Flossy is stable but Tom Molotov is losing it.
 

mentalfloss

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Jun 28, 2010
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Re: Stéphane Dion criticizes Thomas Mulcair for East-West strategy

Mulcair??


or Mentalfloss??

lol

(couldn't resist)

Hey, I just like to play.

Factory numbers dull debate over ‘Dutch disease’

Talk about great timing.

In case you missed it, in today’s Globe, my colleague Barrie McKenna reported on a trend-bucking study that casts doubt on whether Canada is really suffering from the dreaded “Dutch disease,” essentially the notion that as long as strong global demand for resources like oil boosts the currency, manufacturers in Ontario and Quebec can’t compete.

According to the study, by the Institute for Research on Public Policy, several key manufacturing industries often linked to this politically charged phenomenon show no symptoms of damage that’s attributable to the currency. So at best, its authors conclude, Canada has a “mild case” of the disease. Eric Lascelles, chief economist at RBC Global Asset Management, comes to similar conclusions, arguing that competitiveness issues facing manufacturers are more complicated than the loonie, and also that they are not Canada’s biggest economic problem.

Given that it has become a pet issue for Opposition Leader Thomas Mulcair and Ontario Premier Dalton McGuinty, the Dutch disease/East-West divide argument is far from settled and will focus political debate for years to come.

For one month, though, those who play down the problem would seem to have the upper hand. Statistics Canada reported Wednesday that in March, shipments by manufacturers surged 1.9 per cent, almost five times as much as expected and the fastest gain in six months. Even better, while the headline number measures the increase in the total value of factory sales, which is often inflated by lofty oil prices, in March the volume of sales also rose 1.9 per cent -- the most in eight months.

Unfilled orders rose to a three-year high, and new orders also rose, indicating decent momentum going forward. Already, factory sales are now 5.9 per cent higher than a year earlier, and the fact sales rose in 13 of 21 categories even as petroleum and coal surged 4.5 per cent to the highest level since July, 2008, suggests that the oil sands do not have to thrive at the expense of other sectors. Other big gains came in the aerospace industry, which was expected to drop back after a huge increase in the previous month, as well as chemicals and even automobiles.

And how about Ontario and Quebec, Canada’s struggling industrial heartland?

Neither province came close to the mammoth 21-per cent increase in New Brunswick, but Ontario saw a healthy 1.9-per cent rise and Quebec gained 1.2 per cent.

Still, the March increase came after two monthly declines. Also, it’s undeniable that manufacturers have had a very rough time adapting to a new global economic climate, in which they need to reorient themselves to tap into demand in emerging markets and rely less on the U.S. and Europe, amid increasingly fierce competition from exporters in other nations who are attempting to do the same thing.

Much easier said than done, and not an overnight process for sure, but this new climate is why Bank of Canada Governor Mark Carney and other policy makers have argued repeatedly that central Canadian factories should, as much as possible, find ways to make things that are useful to the ever-growing resource sector.

On balance, the oil-soaked loonie is a hindrance -- both for factories and for the economy as a whole. And there clearly needs to be a stepped-up effort to help workers in the troubled sectors learn new skills so they can stay employed in manufacturing, to accompany the range of existing measures aimed at helping factories delve into new lines of business.

But that’s not the same as saying that oil-sands development always has an inverse effect on manufacturers elsewhere in the country, a notion that the March factory numbers argue against.

Factory numbers dull debate over 'Dutch disease' - The Globe and Mail
 

petros

The Central Scrutinizer
Nov 21, 2008
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Re: Stéphane Dion criticizes Thomas Mulcair for East-West strategy

Has the currency been boosted by oil or has the standard currency ours is guaged against dropped in value?
 

mentalfloss

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Re: Stéphane Dion criticizes Thomas Mulcair for East-West strategy

Has Canada Contracted Dutch Disease?

Asking whether Canada’s economy is suffering from Dutch disease is a bit like asking whether the country’s red-hot housing sector is in the midst of a bubble. It’s hard to call definitely until you hear the pop.

Any diagnosis of a Canadian strain of Dutch disease won’t likely come until those symptoms are full blown, when high-commodity prices plummet, and reveal that the other sectors of the economy–too neglected for too long–are beyond reasonable recovery.

Still, a group of Canadian researchers offered Wednesday their own cautious prognosis: Canada has contracted a mild case.

Dutch disease is named for an economic crisis that struck the Netherlands in the 1970s. A hydrocarbon-producing boom had sent the Dutch gilder soaring, making the rest of the country’s exports and industries noncompetitive. Those industries were hollowed out, and when energy prices plunged, the Dutch economy suffered.

In recent weeks, some Canadian politicians have blamed rising oil and mining production in Canada’s west for stoking the Canadian dollar, and making manufacturing exports from the east of the country too expensive in export markets. Western officials and the government of Prime Minister Stephen Harper have dismissed those accusations.

In a report released Wednesday, Canada’s Institute For Research on Public Policy found Canada was experiencing some traits of the classic Dutch disease, but the impact on Canada’s manufacturing sector has likely been smaller than expected. The study looked at the links between energy prices, the Canadian dollar exchange rate, and manufacturing output in Canada across 80 different industries.

The authors found that only 25 of the 80 industries showed a “significant negative relationship” between output and Canadian dollar strength. They concluded that any Dutch disease effect has mostly hit “small, labour-intensive industries such as textiles and apparel.” But that bigger industries–food products and metals and machinery–are largely immune.

The autos sector, they said, shows no symptoms. “Its weakness stems from cyclical changes in demand and increasing international competition,” the report said.

Has Canada Contracted Dutch Disease? - Real Time Economics - WSJ
 

petros

The Central Scrutinizer
Nov 21, 2008
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Re: Stéphane Dion criticizes Thomas Mulcair for East-West strategy

It's refreshing to see you are posting both sides. There will be more Brad Wall and Peter Lougheed comments on the misleading propaganda by day's end.
 

mentalfloss

Prickly Curmudgeon Smiter
Jun 28, 2010
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Re: Stéphane Dion criticizes Thomas Mulcair for East-West strategy

It's refreshing to see you are posting both sides. There will be more Brad Wall and Peter Lougheed comments on the misleading propaganda by day's end.

Up until now we only had the one credible study (that I posted earlier) to go on. I think we're seeing the beginning of this trend because we haven't really tapped the oilsands fully. It's a very tricky subject that requires a balanced hand at both the economy and the environment.
 

petros

The Central Scrutinizer
Nov 21, 2008
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Re: Stéphane Dion criticizes Thomas Mulcair for East-West strategy

We haven't scratched the surface on our manufacturing potential which is currently being decentralized, you'll see the big gains you want in a few years when it's moved closer to markets and in a cheaper working environment.
 

mentalfloss

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Jun 28, 2010
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Re: Stéphane Dion criticizes Thomas Mulcair for East-West strategy

We haven't scratched the surface on our manufacturing potential which is currently being decentralized, you'll see the big gains you want in a few years when it's moved closer to markets and in a cheaper working environment.

At the same time, it would be incumbent for us to actually enforce important legislation so that we don't have an artificially inflated dollar.
 

petros

The Central Scrutinizer
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Re: Stéphane Dion criticizes Thomas Mulcair for East-West strategy

Is it artificailly inflated or has the US dollar it is guaged against tanked/tanking?
 

mentalfloss

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Re: Stéphane Dion criticizes Thomas Mulcair for East-West strategy

The Dutch disease debate

Two weeks after he made a diagnosis of Dutch disease, Thomas Mulcair is dismissing the premiers of Alberta, Saskatchewan and British Columbia and Alison Redford is tweeting her disappointment in Mr. Mulcair. As to the central economic question, the Institute for Research on Public Policy has a new report.
The results are more nuanced than conventional wisdom would suggest. Only 25 of the 80 industries (accounting for about one-quarter of total manufacturing output) show a significant negative relationship between the US-Canada exchange rate and output. The effects are most pronounced in small labour-intensive industries such as textiles and apparel. Larger industry groups such as food products, metals and machinery are much less adversely affected by the strong dollar, and these minor problems have generally been offset by strong growth in demand. Interestingly, automotive industries do not show symptoms of the Dutch disease; their weakness stems from cyclical changes in demand and lagging productivity growth.

On balance, the evidence indicates that Canada suffers from a mild case of the Dutch disease, which warrants a commensurate policy response. It is difficult to implement national policies to directly counteract the rising exchange rate (policies such as investing resource revenues in foreign assets, as Norway does), because resource revenues are under provincial jurisdiction. However, Ottawa can use additional federal tax revenues stemming from natural resource booms to invest in infrastructural and other activities that bolster the competitiveness of the manufacturing sector as a whole.

The Dutch disease debate - Beyond The Commons, Capital Read - Macleans.ca