CEP & CAW Statements to the House of Commons Committee: Pipelines and Dutch Disease

The federal House of Commons Committee on Natural Resources began hearings on “Market Diversification in the Energy Sector” on April 18th. (Previous hearings were on “Innovation in the Energy Sector”).   On April 23, the Communications Energy and Paperworkers Union submitted its position paper to the Committee, opposing pipeline development such as Northern Gateway and Keystone XL.  However, “CEP endorses that decision (i.e. approval of Enbridge’s Line 9A pipeline) and supports Enbridge’s current application for Line 9A to extend supply to the Montreal Suncor and Quebec City Ultramar refineries. CEP supports Line 9B on the basis that its 300,000 bbl/d capacity will provide just 75% of the capacity of the two Quebec refineries. CEP does not support a further expansion or a revival of the “Trailblazer” project which would have transformed Line 9 into an export line to Portland, Maine.”

In the Canadian Auto Workers submission by Jim Stanford, also submitted on April 23, the focus is on reviewing the economic debate about “Dutch disease”, or what Stanford calls “resource-driven deindustrialization”.  The paper summarizes the arguments and reviews 7 previous studies, concluding that resource-driven deindustrialization does exist. He then raises (but does not answer) the questions: how large has the effect been, have the costs to manufacturing been offset by the benefits of resource expansion, and should the government and the Bank of Canada intervene?

Many others have appeared before the Committee, including representatives from the Fraser Institute, Conference Board of Canada, and Macdonald Laurier Institute. Unions have been represented by:  Christopher Smillie (Building and Construction Trades Department, AFL-CIO) on April 25; Gil McGowan (President, Alberta Federation of Labour) on April 30.

LINKS

CEP submission is at http://www.cep.ca/sites/cep.ca/files/docs/en/130424-Fred-NatResCmttee.pdf

CAW submission, Resource-driven Deindustrialization   is at http://www.cep.ca/sites/cep.ca/files/docs/en/130424-Jim-NatResCmttee.pdf

Transcripts are available at the Committee website, by date, (in English)  at http://www.parl.gc.ca/committeebusiness/CommitteeMeetings.aspx?Cmte=RNNR&Language=E&Mode=1&Parl=41&Ses=1  and (in French) at http://www.parl.gc.ca/committeebusiness/CommitteeMeetings.aspx?Cmte=RNNR&Mode=1&Parl=41&Ses=1&Language=F

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