Government digs in on Petro-Canada share sale, says will be available soon

Gary Park

Petroleum News Calgary correspondent

The Canadian government’s shares in Petro-Canada will be on sale in a “very short time,” said Finance Minister Ralph Goodale, brushing aside Canada’s drastically changed political environment.

He said the sale, worth almost C$3 billion at today’s share values, was “explicitly included in the (federal) budget of March 23, the budget has been enacted, the budget has been adopted,” he told reporters July 6. “So there’s no change there at all.”

The leftist New Democratic Party, which believes it holds the crucial balance of power in Canada’s new Parliament, is flatly opposed to unloading the government’s 19 percent holding in Petro-Canada. Following the June 28 election that left the governing Liberals in a minority position, NDP leader Jack Layton said only a “pathetic percentage” of the Petro-Canada proceeds have been earmarked for renewable energy solutions and indicated he would attempt to scuttle the sale plans.

But the major opposition party, the Conservatives, said during the election campaign they want the government out of Petro-Canada and, unless they change their mind, should ensure the sale takes place.

Goodale said that since March his officials have been putting the pieces in place, including close consultations with market experts, for what is “likely to be the largest (transaction) of its kind in Canadian history.”

“Because that homework has already been done, it should be a very short time now before they can actually proceed,” although that does not mean there will be an overnight flood of shares on the market, he said.