Western premiers fume as Mulcair sticks to ‘Dutch disease’ guns

[CHIMO]

Tom Mulcair isn’t backing down from his controversial diagnosis that Canada is suffering from “Dutch disease,” despite conflicting evidence and a mounting backlash from western premiers.

The NDP Leader insists that statistics on manufacturing job losses are “irrefutable” and that “everyone” agrees more than half of those losses are the direct result of the artificially high Canadian dollar created by booming energy exports, particularly from Alberta’s oil sands.

The phenomenon is known as Dutch disease, in reference to the manufacturing decline that occurred in the Netherlands after a boom in natural gas exports in the 1970s.

http://www.theglobeandmail.com/news/politics/western-premiers-fume-as-mulcair-sticks-to-dutch-disease-guns/article2434996/


Fume away. The majority wants control!

[Joe Shlabotnik]

1. I think Mulcair has to be careful with this one.

First off, he and the NDP have few friends in the media, compared to their adversaries. While linking environmental regulation to innovation and therefore job creation may be true in theory, the media and his adversaries are simply portraying his stance as 1)anti-western provinces, and 2) anti-oilsand growth. His pitch about sustainability is being lost in the counter-spin.

I think he would have more success by highlighting the tax breaks for big oil, noting the over-all decline in manufacturing over the last 10-20 years due to free trade agreements, and emphasizing growth by increasing the value-adding industry over the simple raw material extraction industry and foreign ownership of resources. Sustainability through diversification, will win over many more voters, then going back to the cap and trade ideas that sunk Stephane Dion (in a better economic times). There is far more low hanging fruit for the NDP to grab at this time, and expecting average Canadians to embrace the Porter Hypothesis is asking a bit much. I honestly hope this story dies quickly.

[CHIMO]

2. Perhaps

Then again perhaps not.

The "Dutch Disease" exists. It is just a simple, specific case of making money the easiest way.

What all the shouting, screaming and stamping of feet is ignoring is; It is our resource. It is being sold below market value because there is a glut. If it was processed further, the value added would be ours.

This is not a new idea. This is not an idea that a certain Albertan has not exposed.

Peter Lougheed opposes Keystone pipeline
Former Alberta Premier Peter Lougheed is adding his voice to the opposition to the controversial Keystone X-L pipeline project.

However his opposition is based on economic reasons, rather than environmental.

"We should be refining the bitumen in Alberta and we should make it public policy in the province," he said.

While he continues to favour development, he told The Current he would like to see the province control the rapid growth in northeast Alberta.

http://www.cbc.ca/news/business/story/2011/09/13/edmonton-alberta-lougheed-oilsands-keystone.html
Sep 13, 2011 2:09 PM ET

Do you think that Thomas was stealing some words and ideas?

Nikiforuk: Yes, Refine Oil Sands Crude Right Here

http://thetyee.ca/Opinion/2011/09/22/Refine-Oil-In-Canada/

[Joe Shlabotnik]

3. I think the way the discusssion is unfolding is wrong.

Lougheed was right. Mulcair surely knows it. However true and serious the environmental concerns are though, approaching the problem of Dutch disease by saying 'part of the cure is slowing growth by internalizing environmental costs, and thereby creating innovative technologies and jobs to curb pollution' is a HUGE stretch of reasoning for most people. The public hears this and thinks 'curb growth = economy shrinks', 'internalize environmental costs = expensive gas'. Mulcair should not try to tie green jobs into this. What he is afraid to say is what needs to be said: 'Industrial policy', 'National Energy Plan', 'Sovereignty over resources'. All of which are traditional NDP policies. Either way he's never going to win over the hearts and minds of conservative Albertans en masse, or neoliberal globalists.

[CHIMO]

4. Forget

About the Albertans.