Get ready folks.. this is the new meme..
``Oilsands fever'' is clouding political judgment, analyst warns
OTTAWA - In the runup to Tom Mulcair's much-anticipated Alberta visit on Thursday, a Calgary-based think-tank said Wednesday Canada is suffering from ``oilsands fever,'' a modified version of the so-called ``Dutch disease'' concept cited by the NDP leader as the reason Canada is losing hundreds of thousands of manufacturing jobs.
The Pembina analysis - which lends support to Mulcair's controversial argument that the booming oilsands sector is artificially-inflating the Canadian dollar and hurting manufacturers, especially in Ontario and Quebec - was one of two conflicting report released Wednesday.
And one of the co-authors of the Pembina Institute report argues the potential for regional alienation is so strong that Canada could face a repeat of the divisive period of the confiscatory 1980 National Energy Program - except this time Central and Eastern Canada will be the victims.
``I actually think right now we're potentially seeing that exact same dynamic setting up but with the roles reversed, with the West being perceived to be benefitting and to be supported by the federal government in pursuing their interests at the expense of Central and eastern Canada,'' said Pembina co-author Dan Woynillowicz.
``So I think we're on the precipice of perhaps, of a repeat of the NEP in terms of the divisions that it fosters and the mistrust of the federal government that arises from that.''
Woynillowicz added: ``Canada has a unique strain of Dutch disease - oilsands fever.''
The ``fever'' is clouding political judgment and causing interprovincial tension and future threats to the Canadian economy, he said.
Mulcair's Alberta trip was organized after his recent media comments about western premiers being Prime Minister Stephen Harper's ``messengers'' infuriated Alberta Premier Alison Redford.
``People have said this is a statement that is against the West,'' said Mulcair, who will visit Fort McMurray for the first time Thursday and tour the Suncor oilsands plant, told reporters in Ottawa on Wednesday. ``Well, you would be very hard-pressed to find any statement that I've made that was with respect to any specific region.''
He said his message of sustainable development and the need for polluter-pay policies is the same in all regions of the country, from New Brunswick to B.C.
The authors credited Mulcair for raising an issue ``worthy of discussion,'' but added they don't share the NDP leader's view the single solution to the problem is to simply enforce federal environmental laws to ensure ``polluter pay'' principles are engaged.
Instead, Pembina is advocating a series of measures to deal with a growing imbalance that favours commodity-based provinces at the expense of Ontario and Quebec.
They called for the creation of a federal fund along the lines of the Alberta Heritage Fund, where $2.7 billion in annual oil and gas tax revenues to Ottawa would be invested in foreign currencies.
They said that investment wouldn't have a significant impact on the value of the Canadian dollar, since the amounts are relatively small, but they said the money could be used to ``smooth out'' the boom-and-bust economic cycle caused by an economy increasingly reliant on oil and gas production and prices.
Pembina is also calling for an end to ``preferential tax treatment'' for the oil patch and said both the Royal Society of Canada and a parliamentary committee should launch studies looking at the impact of the high dollar on the economy.
The Macdonald-Laurier report, which like Pembina bases its analysis on previously-published material, said the oilsands isn't a win-lose proposition.
``While it may be that worldwide high commodity prices cause foreigners to buy more petroleum exports and fewer manufactured goods from Canada, the authors point out that the oil and gas industry in turn uses those higher revenues to purchase vast amounts of goods and services in the rest of the country,'' stated a Macdonald-Laurier summary of the report.
``In effect petroleum-rich provinces become the new `export markets' for the rest of the country.''
``Oilsands fever'' is clouding political judgment, analyst warns