Western premiers seek 'to keep things going'

May 28, 2008
The Globe and Mail
Written by: Dawn Walton

PRINCE ALBERT, SASK. — As Canada's new economic powerhouse, the West has a historic opportunity on the national and international stage to forge united policies on the economy and environment when the western premiers begin two days of meetings Thursday.

Grievances about western alienation and have-not status seemed like ancient history as the four premiers and leaders of the three northern territories began arriving in Prince Albert Wednesday, anxious instead to talk bout growth and competitiveness.

“This is going to be a different tone,” said Chaldeans Mensah, a political scientist at Grant MacEwen College in Edmonton. “Previous sessions were about griping and complaining about being hard done by. The tone here is about the ascendancy of the West and growing economic clout.”

Rookie Saskatchewan Premier Brad Wall, host of the annual conference, has dubbed the western block of provinces the New West and is urging his counterparts to work toward greater economic co-operation.

“We see many of the jurisdictions leading in any number of economic categories: Wealth and jobs being created,” Mr. Wall told reporters after meeting Wednesday with aboriginal and business leaders. “… This is a great chance for all of us to examine opportunities to sustain the momentum, to keep things going.”

Alberta Premier Ed Stelmach has called this a “once-in-a-lifetime opportunity” for Western Canada to create a larger economic marketplace and have more influence with the federal government.

Indeed, the boom has spread beyond Alberta's energy-fuelled economy.

Investment is pouring into its neighbours, which are also building their economies on commodities, including oil, gas, potash and uranium as well as agriculture.

Economic growth in Manitoba and Saskatchewan is predicted to surpass Alberta's this year, according to a recent Conference Board of Canada report. Saskatchewan recently jumped into first place in retail-sales growth, leaping over Alberta. The prospects for the North also look bright, as the region's importance to Canada is high on Ottawa's agenda.

But all this growth has brought challenges that the premiers also hope to tackle.

A labour crisis has forced employers to look for foreign temporary workers. Meanwhile, shortages of rental housing and high house values are pricing people out of many markets.

Roger Gibbins, head of the Canada West Foundation, a public-policy think tank, hopes breaking down interprovincial barriers to trade and mobility, already set out in an Alberta-B.C. agreement, can be expanded eastward to help alleviate pressure and promote growth. He also wants to see climate-change policies that do not fragment the regional economy.

The premiers also face hard questions about environmental sustainability.

Prof. Mensah said it is incumbent on them to come up with a common position on climate change and design a national strategy to present to Ottawa, something he acknowledges will be tricky, because their approaches to global warming are far from united.

“They will need give and take on both sides,” he said.

Under Premier Gordon Campbell, British Columbia has become the first jurisdiction in North America to unveil a levy on fossil fuels to persuade people to cut their consumption.

The so-called carbon tax, which takes effect on Canada Day, will start at $10 a tonne on carbon – or about 2.41 cents per litre of gasoline – which will rise by $5 per tonne a year over the next four years.

It is a bold initiative, particularly when compared with Alberta's much-maligned approach. The province is a significant contributor to greenhouse-gas emissions, particularly from the oil sands. However, instead of taxes, fines and hard caps, Alberta has announced a plan to cut emissions to 14 per cent below 2005 rates by 2050 or by 200 megatonnes a year. It is injecting millions into creating technology for the capture and storage of greenhouse gases.

Saskatchewan is also interested in reducing its emissions through carbon-capture technology, but Mr. Wall said Wednesday he is not looking at a B.C.-style carbon tax.

Mr. Stelmach said he will remind his counterparts that his government is committed to “sustainable and environmentally responsible development” of its energy resources. He will be promoting “realistic solutions” that won't affect the economy and jobs.

“Carbon capture and storage must become a national priority,” he said.

The premiers will not be addressing issues in isolation from Canada's biggest trading partner. U.S. Ambassador to Canada David Wilkins, as well as Wyoming Governor Dave Freudenthal, who is chairman of the Western Governors' Association, are also scheduled to attend the conference. They will discuss “smart and secure” borders as well as concerns about energy.

The premiers will also talk about issues unique to remote and rural communities, and while it is not specifically on the agenda, democratic reform may also arise.

Saskatchewan just announced its plan to join Alberta in electing senators, and Manitoba Premier Gary Doer said his province is about to launch public hearings on reforming the Red Chamber.