|
Duncan takes issue with Chretien over pipeline aid
By Gary Park PNA Canadian Correspondent
Yukon Premier Pat Duncan hopes to give Canada’s Prime Minister Jean Chretien a lesson in resource subsidies later this month, reminding him of all the federal incentives that have made frontier energy ventures possible.
She said Canada must be “extremely cautious” in criticizing the U.S. for contemplating tax credits to support construction of an Alaska Highway gas pipeline without first examining its own record of aid for energy mega-projects.
Duncan, who is hoping to meet with Chretien during an Ottawa visit this month, said she disagreed with Chretien that provisions contained in the proposed U.S. Senate energy bill, including a floor price for North Slope gas, represent subsidies.
She said Sept. 8 “it’s a fact of life that public policy and incentives have been used for every energy project” in Canada, the United States and around the world.
In Canada’s case she listed the beneficiaries as Alberta’s oil sands, Newfoundland’s Hibernia offshore oilfield, Nova’s Scotia’s gas pipeline from the Sable offshore field and the diamonds mines in the Northwest Territories. Chretien has objected to “subsidies” Chretien, in a letter to Alaska Gov. Tony Knowles in early July, raised strong opposition to what he described as “subsidies” in the Senate bill.
“The Government of Canada believes the proposed subsidies have the potential to artificially depress gas prices, slowing development and production elsewhere in the U.S. and in Canada.” he said.
The Senate legislation “includes provisions that could significantly distort the dynamics of our integrated North American natural gas market,” Chretien warned, rejecting Knowles’ argument that the Senate legislation was no different from Canada’s support of its own mega-projects over the years.
In Calgary Sept. 4 for a meeting with pipeline contractors, Yukon Energy Minister Scott Kent took issue with comments by Canada’s Natural Resources Minister Herb Dhaliwal that Canada might take regulatory action to block an Alaska Highway pipeline if the U.S. energy bill was adopted.
He said Canada stands to benefit from development of both the Alaska Highway and Mackenzie Valley projects and ignoring the investment and jobs that would be created by both schemes was “very silly, indeed.”
| 