Mulcair 'Dutch Disease' Comments Under Heavy Fire

CP  |  By Posted: Updated: 05/18/2012 8:09 am

Thomas Mulcair Dutch Disease

OTTAWA - The Harper Conservatives have finally unleashed the attack dogs on Tom Mulcair.

They've pounced on the newly minted NDP leader's musings about the economic impact of Alberta's oilsands to paint him as a divisive, ill-informed, irresponsible enemy of western Canada who is unfit to govern.

But Mulcair isn't backing down. And he's fighting back.

He says the Tories are shirking their duty to protect the environment, allowing oil companies to pursue "unbridled" development and treat Canada as an "unlimited free dumping ground."

The third-party Liberals, meanwhile, are hoping to take advantage of the pitched, polarized battle to position themselves as the "voice of reason."

New Democrats had expected the Tories to go after Mulcair immediately after he was elected leader in late March, in much the same way they demolished the last two Liberal leaders, Stephane Dion and Michael Ignatieff, before they had time to make their own impression on voters.

Until now, however, the Tory attacks have been tepid, at best.

But the gloves finally came off Thursday as Conservatives trained sustained, heavy fire on Mulcair's assertion that booming energy exports, particularly from the oilsands, have created an artificially high dollar that has, in turn, hollowed out Canada's manufacturing sector — a phenomenon dubbed the "Dutch disease."

Canadian Heritage Minister James Moore, who represents a British Columbia riding, led the charge, backed up by a chorus of Tory backbenchers. Moore turned questions from the NDP leader on an unrelated matter into repeat attacks on Mulcair's fitness to be official Opposition leader, much less a future prime minister.

"I am wondering when the leader of the Opposition will apologize to western Canadians for suggesting the strength of the western Canadian economy is a disease on Canada," Moore told the House of Commons.

"He attacks western Canada, he attacks our energy industry, he attacks all of the West and the great work that is being done by western Canadians to contribute to Canada's national unity. He should be ashamed of himself," he thundered.

Moore warmed to his theme with each non-answer to Mulcair's questions.

"He should be ashamed of himself for attacking the West, dividing our country and not even having visited the places (the oilsands) he is attacking. It is unconscionable for someone who wants to be the prime minister of the country to be so utterly irresponsible."

If Mulcair was to actually visit the "the people whose economy he says is a disease in this country," Moore said he might at least "start the pathway back to a little dignity for the leader of the Opposition."

But Mulcair gave as good as he got. He countered that the root cause of the artificially high dollar is the federal government's refusal to enforce its own environmental protection legislation and make energy companies pay the costs of their own pollution.

"We are allowing these companies to use the air, the soil and the water as an unlimited free dumping ground," he said, accusing the Conservatives of using Nigeria, rather than the more progressive Norway, as their model for development.

"Their priority is the unbridled development of the oilsands. We stand for sustainable development in this country."

Mulcair later said the Tories had better think again if they think they can roll over him the way they did Dion and Ignatieff.

"As you can see as usual, when there is a substantive debate, all they can do is scream and try to bully you down. They've picked the wrong guy if they think they're going to bully me."

Interim Liberal leader Bob Rae expressed hope the fireworks may give Liberals a chance to do what they do best: come up the middle between polarized extremes.

"Well, I hope so. I mean I certainly like to be the voice of reason in all this," Rae told reporters.

Rae said Mulcair's "abstract economic theory" that resource development is to blame for the high dollar is "absurd" and questioned his political smarts in sticking to it so vigorously.

"When you're deep in a hole like Mr. Mulcair is, the first thing you do is stop digging. Instead of which, he just kept on digging deeper and deeper."

Rae suggested the oilsands issue has demonstrated that Mulcair does not have "a really deep appreciation of how sensitive these issues are in the national debate" or how proud westerners are that their energy-producing provinces are now the main drivers of Canada's economy.

"We do not gain anything as a country, in my view, from gainsaying their achievements. What we have to do is make sure they're sustainable. That's the key thing."


Loading Slideshow...
  • Syncrude Upgrader and Oil Sands

    The refining or upgrading of the tarry bitumen which lies under the oil sands consumes far more oil and energy than conventional oil and produces almost twice as much carbon. Each barrel of oil requires 3-5 barrels of fresh water from the neighboring Athabasca River. About 90% of this is returned as toxic tailings into the vast unlined tailings ponds that dot the landscape. Syncrude alone dumps 500,000 tons of toxic tailings into just one of their tailings ponds everyday.

  • Boreal Forest and Coast Mountains / Atlin Lake, British Columbia | 2001

    This area, located in the extreme northwest of British Columbia, marks the western boundary of the Boreal region. On the border of the Yukon and Southeast Alaska, the western flank of these mountains descends into Alaska's Tongass Rainforest and British Columbia's Great Bear Rainforest. Far from the oil sands, the greatest remaining coastal temperate and marine ecosystem is imminently threatened by the proposal to build a 750-mile pipeline to pump 550,000 barrels per day of oil sands crude to the coast. Once there, it would be shipped through some of the most treacherous waters, virtually assuring an ecological disaster at some point in the future.

  • Tailings Pond in Winter, Abstract #2 / Alberta Tar Sands | 2010

    Even in the extreme cold of the winter, the toxic tailings ponds do not freeze. On one particularly cold morning, the partially frozen tailings, sand, liquid tailings and oil residue, combined to produce abstractions that reminded me of a Jackson Pollock canvas.

  • Aspen and Spruce | Northern Alberta | 2001

    Photographed in late autumn in softly falling snow, a solitary spruce is set against a sea of aspen. The Boreal Forest of northern Canada is perhaps the best and largest example of a largely intact forest ecosystem. Canada's Boreal Forest alone stores an amount of carbon equal to ten times the total annual global emissions from all fossil fuel consumption.

  • Tar Sands at Night #1 | Alberta Oil Sands | 2010

    Twenty four hours a day the oil sands eats into the most carbon rich forest ecosystem on the planet. Storing almost twice as much carbon per hectare as tropical rainforests, the boreal forest is the planet's greatest terrestrial carbon storehouse. To the industry, these diverse and ecologically significant forests and wetlands are referred to as overburden, the forest to be stripped and the wetlands dredged and replaced by mines and tailings ponds so vast they can be seen from outer space.

  • Dry Tailings #2 | Alberta Tar Sands | 2010

    In an effort to deal with the problem of tailings ponds, Suncor is experimenting with dry tailings technology. This has the potential to limit, or eliminate, the need for vast tailings ponds in the future and lessen this aspect of the oil sands' impact.

  • Tailings Pond Abstract #2 | Alberta Tar Sands / 2010

    So large are the Alberta Tar Sands tailings ponds that they can be seen from space. It has been estimated by Natural Resources Canada that the industry to date has produced enough toxic waste to fill a canal 32 feet deep by 65 feet wide from Fort McMurray to Edmonton, and on to Ottawa, a distance of over 2,000 miles. In this image, the sky is reflected in the toxic and oily waste of a tailings pond.

  • Confluence of Carcajou River and Mackenzie River | Mackenzie Valley, NWT | 2005

    The Caracajou River winds back and forth creating this oxbow of wetlands as it joins the Mackenzie flowing north to the Beaufort Sea. This region, almost entirely pristine, and the third largest watershed basin in the world, will be directly impacted by the proposed Mackenzie Valley National Gas Pipeline to fuel the energy needs of the Alberta Oil Sands mega-project.

  • Black Cliff | Alberta Oil Sands | 2005

    Oil sands pit mining is done in benches or steps. These benches are each approximately 12-15 meters high. Giant shovels dig the oil sand and place it into heavy hauler trucks that range in size from 240 tons to the largest trucks, which have a 400-ton capacity.

  • Oil Sands Upgrader in Winter| Alberta Oil Sands | 2010

    The Alberta oil sands are Canada's single largest source of carbon. They produce about as much annually as the nation of Denmark. The refining of the tar-like bitumen requires more water and uses almost twice as much energy as the production of conventional oil. Particularly visible in winter, vast plumes of toxic pollution fill the skies. The oil sands are so large they create their own weather systems.

  • Boreal Forest and Wetland | Athabasca Delta Northern Alberta | 2010

    Located just 70 miles downstream from the Alberta oil sands, the Athabasca Delta is the world's largest freshwater delta. It lies at the convergence of North America's four major flyways and is a critical stopover for migrating waterfowl and considered one of the most globally significant wetlands. It is threatened both by the massive water consumption of the tar sands and its toxic tailings ponds.

  • Tar Pit #3

    This network of roads reminded me of a claw or tentacles. It represents for me the way in which the tentacles of the tar sands reach out and wreak havoc and destruction. Proposed pipelines to American Midwest, Mackenzie Valley, and through the Great Bear Rainforest will bring new threats to these regions while the pipelines fuel new markets and ensure the proposed five fold expansion of the oil sands.

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OTTAWA - The Harper Conservatives have finally unleashed the attack dogs on Tom Mulcair.They've pounced on the newly minted NDP leader's musings about the economic impact of Alberta's oilsands to pain...
OTTAWA - The Harper Conservatives have finally unleashed the attack dogs on Tom Mulcair.They've pounced on the newly minted NDP leader's musings about the economic impact of Alberta's oilsands to pain...
Filed by Christian Cotroneo  | 
 
 
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HUFFPOST SUPER USER
gravescanada
03:08 PM on 05/18/2012
Rae, your party is done. No amount of pandering will help you now. Your best bet to remain relevant is to join the NDP. The other option is to fade into obscurity.
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PortlandZoo
Wait... what?
11:47 AM on 05/18/2012
wait for it. The harpies call Mulcair a nazi in 3, 2, 1....
11:28 AM on 05/18/2012
"Tories Let The Dogs Out Over 'Dutch Disease"
I can hear that mutt Baird yapping this morning and I live a riding south of him!
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HUFFPOST SUPER USER
Marcus Davies
I'm still standing
10:40 AM on 05/18/2012
Mulcair may be guilty of poor wording, but the fact is, high resource prices do drive the dollar higher and a high dollar causes challenges for the manufacturing sector. I do not understand how a simple statement of fact such as that can be described as pitting east vs. west. That's like claiming the sun prefers Vancouver because it visits there last every day. Forcing a fact to fit your narrative doesn't always work.

I am far more worried about leaders who do NOT think about these things. Mr. Harper? Mr. Moore? Mr. Wall?
HUFFPOST SUPER USER
Capital Ottawa
09:47 AM on 05/18/2012
"He (Mulclair) says the Tories are shirking their duty to protect the environment, allowing oil companies to pursue "unbridled" development and treat Canada as an "unlimited free dumping ground."

The third-party Liberals, meanwhile, are hoping to take advantage of the pitched, polarized battle to position themselves as the "voice of reason."

Mulclair is the voice of reason, stating what most Canadians already see as a problem, the "unbridled" development of the Oilsands. Liberals are posturing like they always do, not much different than the Conservatives...
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HUFFPOST SUPER USER
gravescanada
03:07 PM on 05/18/2012
I would think anyone with half a brain would understand that an inflated dollar is bad for manufacturing. Its just common economic sense...something that is sorely missing in the Harper Government.
09:08 PM on 05/19/2012
Oh they know it's true. Harper himself, a hard driven economist if nothing else, has written and spoken about it.
Mulcair just trolled the entire Conservative party, and they bit on it.
HUFFPOST SUPER USER
Voices in the Wilderness
09:36 AM on 05/18/2012
Dutch Disease is an unavoidable issue. And it's not restricted to Canada. It's further advanced in Australia, and we should look to their hindsight to avoid the worst effects here.

http://www.bloomberg.com/news/2012-05-10/australians-should-be-careful-of-dutch-disease.html

http://www.crawford.anu.edu.au/acde/publications/publish/papers/wp2011/wp_econ_2011_14.pdf

The topic is freely debated in Australia, and it must be freely debated in Canada as well. It is absolutely disgusting how the Harper neo-cons are always trying to muzzle the discussion of issues they want to control.

Their useful idiot Rex Murphy is going to come out looking as foolish on this one as he did when he confused CO2 emissions and the Ozone Layer. Big words are no substitute for big ideas.
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HUFFPOST SUPER USER
piceaglauca
The picture says it all....
09:35 AM on 05/18/2012
Hey Mulcair if your intention is to create troubled waters and alienate the provinces you are heading in the right direction. At the same time think of the impact of your party. You skirted Manitoba in your comments and had this been 1213 you might not have included Christy Clark. The point being it takes a majority party to run the country and your base right now is Quebec. That isn't a lead start by any stretch of the imagination.
HUFFPOST COMMUNITY MODERATOR
canobserv
10:15 AM on 05/18/2012
....Alberta will NEVER vote NDP or Liberal.....EVER......
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HUFFPOST SUPER USER
piceaglauca
The picture says it all....
10:17 AM on 05/18/2012
I agree hold heartily. A majority NDP government is still possible however since Alberta has never shown interest.
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HUFFPOST SUPER USER
Marcus Davies
I'm still standing
10:43 AM on 05/18/2012
Funny. I thought they just did. Just ask Harper how he felt about their provincial election. Pretty sure he'd call that a leftward swing in Alberta.
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HUFFPOST SUPER USER
gravescanada
03:09 PM on 05/18/2012
Whether we agree or not, its about time someone stood up to Harper.
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HUFFPOST SUPER USER
djelimon17
what's this thing for?
09:11 AM on 05/18/2012
Sustainability is for communists, now shut up - CPC
HUFFPOST SUPER USER
olitenup
09:21 AM on 05/18/2012
It is for your children and grandchildren, but what will you care when you are dead and you left nothing but poison everywhere, right? Quite selfish.
HUFFPOST COMMUNITY MODERATOR
canobserv
10:15 AM on 05/18/2012
they need a sarcasm button here......sigh
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HUFFPOST SUPER USER
djelimon17
what's this thing for?
05:02 PM on 05/18/2012
Just so we're clear, I'm not actually the CPC (Conservative Party of Canada), i just make fun of them on the Internet
09:11 PM on 05/19/2012
Sustanibility is for ECO- communists who bought out all the oil company lobbyists, comrade.
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HUFFPOST COMMUNITY MODERATOR
dutchman
Two wheels good; four wheels bad.
08:29 AM on 05/18/2012
Building on my earlier post, let me just say that when my American friends go on about how they single handedly rescued Europe in WWII, we Dutch folk know that it was really the valiant Canadians who, alongside the Brits, were chiefly responsible for liberating our country from the German occupation (not that the American help isn't appreciated, mind you).

I say this because it's my sincere hope that Canada learn from our example, and not come down with an economic malady that's as painful as it is self-inflicted.

Peace to all of my friends from the rational part of North America.  May you stay that way and teach America a thing or two.
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HUFFPOST SUPER USER
harmlesstree
Préjudice est la raison des sots - Voltaire
10:12 AM on 05/19/2012
Actually Dutch it was the Soviet Union that virtually saved Europe from the Nazis by itself! The War on Eastern Front was the greatest ( worst) military struggle in human history; the east is where the war was decided.

Nothing on the Western Front compared to Battles of Moscow, Stalingrad, Kursk, and Berlin, which were the great battles the Soviet Union prevailed. The Soviet Union destroyed roughly 80% of Germany's military capacity at a cost of roughly 10 million soldiers. Without the Soviets crushing defeat of the Germans, the allies could not have liberated the Western part of Europe!
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HUFFPOST COMMUNITY MODERATOR
dutchman
Two wheels good; four wheels bad.
01:15 PM on 05/19/2012
I don't disagree with you at all.

Still, the collective efforts of every nation are appreciated.
09:15 PM on 05/19/2012
Thank you.
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HUFFPOST SUPER USER
AuntiFascist
Orwell predicted Harper
07:50 AM on 05/18/2012
Yesterday Mitt Rommney said,

"Having a campaign focused on character assassination is one thing I find offensive among many others," he said."

Would Stephen harper ever utter these words? No way!!!!
HUFFPOST COMMUNITY MODERATOR
canobserv
10:17 AM on 05/18/2012
oh sure he would......then he would go out and perform some "Character assassination"........that is what he does....says one thing and does another...or what is commonly referred to as lies
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HUFFPOST SUPER USER
AuntiFascist
Orwell predicted Harper
11:19 AM on 05/18/2012
Sorry, my post was unclear!  Character assassination is all Stephen Harper is capable of and I do believe he'd lie without hesitation.  After all he certainly wasn't bothered by subverting the democratic process in Canada.
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HUFFPOST SUPER USER
gravescanada
03:10 PM on 05/18/2012
Nice, Faved!
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HUFFPOST COMMUNITY MODERATOR
dutchman
Two wheels good; four wheels bad.
06:20 AM on 05/18/2012
The reason I have an American accent more than a Dutch one is because of Dutch disease. My parents decided to move to America to escape the economic misery that afflicted Holland as it morphed into a commodity export nation. The North Sea oil finds turned Holland into a gas exporter for a spell during the 1980s, pushing up the value of the guilder relative to the mark, pound, franc and dollar, thus clobbering the rest of export driven economy. Not only did it take years for Philips and other big companies not in the energy sector to recover, but it's what ultimately The Netherlands such an enthusiastic supporter of the single currency project, warts and all. I expect my American neighbors to be rather uninformed about history and especially as it relates to other countries, but when I see Canadians embracing this kind of willful ignorance about a very real economic phenomena (which, by the way, has also been an issue for Australia, another commodity exporter), it makes me kind of sad.
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TT Esty1
Failure is a temporary condition.
02:49 AM on 05/18/2012
Is Mulcair divisive or is this simply a political ploy by the Harperites. They have been desperately looking for a horse to ride to escape the F35 debacle, the personal use of government equipment, the robo calls and the $16 orange juice to name but some of their dalliances. Embarrassed by Mulcair's coherent description of the government's lack of due diligence regarding the Tar Sands, the Harperites amass to toss barbs of frothing dissidence

Bully boys, Moore, del Mastro and Baird are in their element and stomp the ground like legendary antediluvians.
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HUFFPOST SUPER USER
gravescanada
03:11 PM on 05/18/2012
F&F
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HUFFPOST SUPER USER
opprobrious
More speech. Less Flagging.
02:45 AM on 05/18/2012
I see the Tory's man at the CBC (Rex Murphy) had another crack at it Thursday night. Harper's mouthpiece claims Mulcair is threatening our very confederation. That's right Rex. The confederation is too fragile for important national discussion.
02:10 AM on 05/18/2012
The reason the ants are swarming out is that Mulcair is telling the truth. Can't have that happening!!
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HUFFPOST SUPER USER
Whistlejackett
Hey stop doing that
12:32 AM on 05/18/2012
Mulcair is correct. Not only the Dutch have this problem but now Norway has it, so they are slowing drilling in the Barents Sea to offset any sudden rise. Also, a story today in "Upstream" stated that the tar sands are progressing faster than predicted because of pipelines to be built by Enbridge heading East, and more LNG lines heading West. The only thing that might slow things down is Obama's request to get the G8 countries to release their reserves before summer.
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HUFFPOST SUPER USER
piceaglauca
The picture says it all....
09:38 AM on 05/18/2012
Would you think the lines east and west will help the industrial and manufacturing actitivites and move processing into the Great Lakes / St Lawrence Vallley?