Featuring fresh takes and real-time analysis from HuffPost's signature lineup of contributors
Hot on the Blog
Raffi Cavoukian
Kathryn Marshall

GET UPDATES FROM Kathryn Marshall
 

McGuinty's Head Stuck in the Oil Sands

Posted: 03/01/2012 10:45 am

It used to be people accused Alberta of being narrow-minded and suspicious of other provinces. There was never any truth to that stereotype, of course, but now it's Ontario Premier Dalton McGuinty who's making his province sound, well, downright provincial.

Alberta's premier Alison Redford has been trying to drum up support for a Canada-wide energy strategy, one in which she'd like the whole country to work in concert to maximize the value of our plentiful energy assets. But when she asked for Ontario to join her with some simple, symbolic support for the oil sands -- "a resource that matters to the rest of the country," she said --McGuinty gruffly refused. The country's success in exporting energy, he said, had increased the value of the dollar and that must be bad for Ontario. "So if I had my preferences, as to whether we have a rapidly growing oil and gas sector in the west or a lower dollar benefitting Ontario, I'll tell you where I'd stand: with the lower dollar," he said Monday.

McGuinty isn't just cynically pitting his government against Westerner Canadians when he suggests he'd rather see our oil industry shrink; he's pitting his government against the growing number of Ontarians working to support Canada's oil industry. More than 350 Ontario companies are currently supplying the oil sands industry, and that number is only destined to balloon. McGuinty's own government in 2008 released a primer for Ontario businesses encouraging Ontario manufacturers to take advantage of "The Oil Sands Opportunity." The Canadian Energy Research Institute calculates that oil sands development will provide $65 billion worth of work for Ontario, and 65,000 jobs. After Alberta, Ontario benefits more from the oil sands than any other province in the country. By comparison, in 2008, there were about 26,000 CAW members working for Ontario's big automakers.

Why does McGuinty want to hurt all those Ontarians making their living supplying equipment and knowledge to the oil sands industry? Ontario Opposition leader Tim Hudak understands the opportunity. This week he told reporters, "We've got a jobs crisis in our province, and calling the oilsands an embarrassment as Dalton McGuinty's government has done is wrong...Let's support it. Let's create jobs."

Andrew Leach, professor at the University of Alberta pointed out some facts that show McGuinty's posturing is not convincing. Leach notes that Ontario is a net importer of goods, buying $8 billion worth of goods and services from outside the country every single month, while Alberta is a net exporter. High dollars are good for people in provinces, like Ontario, that need to convert loonies into other currencies to buy imported goods. That higher dollar is actually making life more affordable for all Ontarians.

The oil sands are already showering money on governments across Canada, including Ontario's. As CERI reports, total federal taxes on the oil sands paid over the next couple of decades will amount to almost $200 billion, and provincial taxes another $118 billion. Add in royalties, and the oil sands are set to add nearly half a trillion dollars in government revenues from B.C. to the Atlantic. In a country of 34 million people, that's the equivalent for each family of four of $60,000 worth of education, social support services, and health care.

And Ontario's "Oil Sands Opportunity," as McGuinty's own government calls it, is just getting started as manufacturers ramp up production of equipment that gets shipped west to help produce Canada's oil. In addition, Ontario consumers might soon be able to buy more oil at the gas pumps, as Enbridge has proposed to reverse a portion of their "Line 9″ pipeline to bring more of Canada's "ethical oil" into Ontario and reduce our reliance on "conflict oil" from regimes like Saudi Arabia and Venezuela.

Ontarians should speak out and ask Premier McGuinty not to stand in the way of those benefits. Polling tells us the majority of Ontarians support oil sands development. Although Dalton McGuinty's government has bashed Canada's oil in the past, it is not too late for the Premier to embrace the opportunity in front him and help grow this national success story. Sensible Ontarians don't want envious and petty churls. Now is the time for the Premier to show leadership and help create jobs. As the state of Ontario's treasury shows, his province really needs it.

 

Follow Kathryn Marshall on Twitter: www.twitter.com/KVMarshall

FOLLOW CANADA
 
 
  • Comments
  • 72
  • Pending Comments
  • 0
  • View FAQ
Comments are closed for this entry
View All
Favorites
Recency  | 
Popularity
Page: 1 2 3 4  Next ›  Last »  (4 total)
05:27 PM on 03/16/2012
Credibility? Watch this satirical video (2:50 mins) "Ethical Oil: The Puppet Rap":

http://www.huffingtonpost.com/brendan-demelle/ethical-oil-the-puppet-ra_b_1354157.html
photo
HUFFPOST SUPER USER
Nadine Lumley
unseatHarper circle ca
11:59 AM on 03/16/2012
All hail the Petro Nation ♪♫
Well, Ethical Oil is like free-range Molasses ♪♫

Ethical Oil: the Puppet Rap
2:50 min. long
http://youtu.be/lYUd7WOdjyU

♥
photo
HUFFPOST SUPER USER
Nadine Lumley
unseatHarper circle ca
11:56 AM on 03/16/2012
Ethical Oil: the Puppet Rap

2:50 min. long
http://youtu.be/lYUd7WOdjyU

♥
07:25 PM on 03/15/2012
Wow how can anyone even take this chick seriously? Did anyone actually see her on CBC spewing that robotic mindlessness? LOL Seriously Katheryn give up, you are a lobbyist, not a real person. You already made an idiot out of yourself on countless occasions, and that CBC appearance....yikes! Really goes to show how little you know or care about facts, reason and the Canadian people. Please don't promote yourself as representing Canadians ever again.
photo
HUFFPOST SUPER USER
Dale Chan
Hope is both panacea and poison.
01:54 PM on 03/09/2012
This whole "conflict oil" versus "ethical oil" thing is becoming really old. If Canadian oil producers cared so much about the rights of Saudi woman then why is half of the oil we produce destined for export? Why do we turn around and then import from countries like Saudi Arabia? If the Enbridge pipeline is about the rights of people in Saudi Arabia, then why have we done business with Saudi Arabia for so long in the first place? Why didn't we replace the oil we imported from Saudi Arabia with our own oil destined for export?

Because it's not about human rights, this is all a pathetic distraction, it's about profit. This is the same reason why the plan is to sell oil piped to B.C's coast to China, hardly a beacon of freedom and democracy.
08:44 PM on 03/04/2012
Can Kathryn Marshall do a Huffington Post blog openly listing all of Ethical Oil's donors. The groups she currently attacks all seem to do this - Sierra Club etc.
11:48 PM on 03/03/2012
If McGuinty is smart he should just say "no comment" on the issue going forward. It does not make a difference for Ontario to be on one side of the matter or the other as this is all just a public/media debate. His public opinion on the matter makes very little difference and gains nothing for Ontario. It's like asking Ontario's position on the mining operation in New Foundland, even if we might have an opinion there is no reason to voice it, so keep quiet.
06:59 PM on 03/03/2012
A "Canada-wide energy strategy" is not equal to "symbolic support for the oil sands". We need an nation-wide strategy on energy, it includes a strategy for the oil sands, but it doesn't mean a very narrow definition of oil export and fast-paced growth. Ontario has their own interests, as they should. These need to be negotiated in a public debate with all voices in an open and balanced way. Unfortunately, the debate on energy policy since last year has been highly adversarial, alienating huge portions of the Canadian public and, I argue, radically shifting the culture of Canadian energy policy making.
02:29 PM on 03/03/2012
This Ontarian supports our Premier on this one. Ethical Oil promoting the dirtiest, toxic poison of the tar sands and bashing the Premier who is supporting alternative energy like wind and solar is really something. Note to Alberta -- you forget that all that R&D money that went into your province was from the rest of Canada. When the fisheries were thriving, Alberta benefitted. When Ontario's manufacturing sector was thriving, Alberta benefitted. Alberta never needed to voice its support for the other provinces ways of generating wealth for the country and we are not obligated now to condone the poisoning of the planet so Premier Barbie can score political points in Harperland.
02:24 AM on 03/03/2012
Hey Kathryn,

Is your group, Ethical Oil, funded by Enbridge?
01:03 AM on 03/03/2012
Alberta benefits from a lower dollar as oil is priced in US dollars. As the value of the Canadian dollar decreases Alberta makes more in CDN dollars. When the dollar increases the profit decreases also. So to use the value of the dollar as an assumption that it is better for the Alberta economy is wrong because oil is priced in US$.
11:25 PM on 03/02/2012
All that bleating and you have failed to wake up to what is known in economics as "dutch disease". Ontario Premier Dalton McGuinty is quite right. Canada's manufacturing jobs far outnumber those associated with the tar sands.

A strong Canadian petro dollar has been damaging Canada's manufacturing sector with the result that the national interest in a strong, diverse economy is threatened and manufacturing jobs are endangered.

The last thing Canada needs is accelerated development of the tar sands. That is the chief economic reason for saying no to Gateway and Keystone XL. Fundamentally accelerated development of the tar sands has economic benefits for Alberta and China; economic costs principally for Ontario and Quebec; and enormous potential environmental costs for British Columbia and First Nations groups.
06:41 PM on 03/02/2012
On another tact:
My profession is transportation; US-Can.
If I turn on my TV Friday PM and pick up the exchange rate I now exactly what kind of a week I will have.

If the rate is 14% I know there will be loads flowing both ways; business is good.
If the rate fluctuates one way or another, one end or the other drys up some.

If it changes 3% one end or the other will dry up entirely! Loads are smaller, LTL picks up as just in time inventories take over.

The exchange matters for trade and there is a finite balance. What it will be after 3 years of recession I can only guess.
06:25 PM on 03/02/2012
McGuinty's position is correct. A higher dollar whether it is Alberta's exports or not, curtails Ontario exports. There can be no question about that!

Alberta is presently collecting zero for royalty for the province and we were told by Minister Ron Liepert this would be the case for the next 6 years under this Government!

On the eve of the last election Alberta changed the funds for collecting royalty from the universally accepted US dollar to Canadian dollars; a loss to the taxpayers of 18% at that point in time.

This means the resource companies are picking up the exchange on the royalty payment figure at a direct loss to the taxpayers.

Redford is not speaking for Alberta or Canada in her position. Likewise the Tory professor. She is protecting the position of the oil companies.

A complete history from conception to present day on Alberta's royalty regime can be found here:

http://albertathedetails.blogspot.com/2012/02/alberta-royalty-explained.html
05:12 PM on 03/02/2012
So, 65,000 new jobs created through the oil sands... but about 300,000-500,000 jobs LOST due to the high canadian petrodollar... what kind of D-grade math student considers that to be a good thing?

By any kind of accounting, we would be better off if we just left the damn stuff in the ground.