News Release
Office of the Official Opposition

Energy Plan: A mere sketch charges Opposition
September 11, 2007

Opposition Leader Gerry Reid calls government’s proposed energy plan a vague and sketchy document long on assumptions and promises, yet short on specifics. 

Reid was responding to the long-awaited policy document outlining the province’s energy development direction.  The document entitled “Focusing Our Energy” was finally unveiled today after government promised to do so during the past four years. 

“This document is no more than a collection of rehashed government press releases, past campaign promises and heaps of political clichés,” says Reid, who notes that a more appropriate name might be a discussion paper and not a plan, as it includes few details on costs, timelines and specific directions.” 

Reid points out as well that the document includes no generic royalty regime and only a proposed draft for a natural gas royalty regime.  “Industry has been waiting for the province to provide a regime of stability and certainty so they can decide on and proceed with development.  These glaring omissions will ensure only more questions instead of answers. After all this time and waiting, nothing definitive has been offered or guaranteed which makes me question whether this might not be more an opportunistic electioneering strategy. This is one of the most expensive campaign brochures ever produced by government. 

“Even on environmental issues, the government’s proposal is weak and flimsy.  The pollution emissions issue at Holyrood, for example, will not even begin to be addressed at the earliest until 2013 when scrubbers and precipitators will be installed should a transmission line to the island from Labrador not proceed. 

“This government has made an equity stake in future energy projects a cornerstone of its rhetoric, but this document equivocates. The province has set out a 10 per cent equity stake in future energy projects if necessary, but there is flexibility for modifications should government choose to negotiate at the time.  That is certainly not a recipe for industry certainty and stability as many had hoped, nor does it respond to those looking for the logic of why an equity position is more beneficial than a royalty regime when other provinces including Alberta are staying away from such an arrangement.”

Media Contact:
Kim Ploughman
Caucus Communications
Office of the Official Opposition
709-729-6427