Slick Differences Between East and West
Author:
Sara Macintyre
2004/11/08
The federal government is consistently inconsistent when it comes to provincial relations. Offshore oil and gas is but one example of Ottawa's asymmetrical parenting. While Newfoundland's industry has flourished, British Columbia hasn't been permitted to conduct exploration activities.
The east-west dichotomy became all the more obvious a few weeks ago when Newfoundland's premier, Danny Williams, stormed out of a first ministers' meeting. The premier says the prime minister made an election promise to allow the province to keep 100% of its offshore oil and gas royalties but is now trying to wriggle his way out of the agreement.
In response, Mr. Williams is threatening to embark on a cross-country crusade to pressure the prime minister to live up to his word. With a minority government and five Liberal members from Newfoundland, Paul Martin may have to cave, never mind the fact that Nova Scotia is also on his heels. Stephen Harper and the Opposition have decided to exploit the rift in east coast Liberal support by introducing a motion calling on the prime minister to fulfill his election promise. While the Newfoundland premier prepares for his road tour, the clock is ticking for the prime minister.
If the east coast crusade hits the ground and marches on to BC, it may prove to be a bit 'rich' for Mr. Williams to ask for the west coast's allegiance. Why Despite the fact that BC has four known offshore resource basins, we do not have a dollar's worth of offshore oil and gas revenues to fight over because we haven't been allowed to develop an offshore oil and gas industry. A little different than the east coast where industry and revenues have been around for decades.
In 1972, the federal government imposed a moratorium on all offshore activities in BC, including exploration. The decades following witnessed numerous commissions, panels, studies and federal-provincial attempts to conclude a Pacific Accord, similar to the Atlantic one that allowed Newfoundland and Nova Scotia to build their offshore industries. After several starts and stops, Ottawa left the moratorium intact until further notice from the government of British Columbia.
Once Gordon Campbell took office, he politely asked the federal government to look at the moratorium. In true Ottawa fashion, a federal panel was appointed to conduct hearings and recommend whether or not the moratorium should be lifted.
The Priddle Panel, named for its chair Roland Priddle, is expected to make its recommendations this month. What happens next will depend on Paul Martin (that's right, not David Anderson). There is a genuine possibility the offshore moratorium will be lifted, with the usual caveats of course. If so, what can BC expect from an offshore oil and gas industry
Before anything resembling an 'industry' takes root, an adequate fiscal and regulatory regime needs to be developed. The provincial oil and gas team has been working on such a regime but will need more time to consult with business and relevant stakeholders.
Once regulation is in place, companies will decide whether to invest in exploration activity. Because the moratorium applied to all offshore activity, little is known about the quantity, quality and commercial viability of BC's offshore resources. If there are sufficient resources and interest, an offshore industry may develop if BC maintains a competitive policy. Interventionist policy decisions have cost investment and jobs for our eastern cohorts. Hopefully, BC will learn from their experiences, if and when the time comes to define our offshore policies.
As we celebrate the fifteenth anniversary of the fall of the Berlin Wall, Canada's own east-west divide lives on. Mr. Martin, if you want to let the west coast in, lift the moratorium.