I don't see what the 'soap opera' has to do with anything down south. Both major parties are pretty much agreed on the 'business first' agenda and making sure energy supply meets american demand. The soap opera doesn't change any of the business fundamentals, perhaps if Canada had somebody along the lines of a Chavez who was 'rocking the boat' then they'd be concerned, but even the NDP does not espouse radical policy changes in the energy field. Even if they did the US knows full well that provincial governments would just ignore them. In New Brunswick the provincial government just made a law specifically to give Irving a $100 million municipal tax rate (previously such moves were illegal because the province wanted to get away from the politically, and economically specious practise of municipalities attempting to 'outbid' one another as is current between the provinces. Likewise giving special tax breaks merely means that some companies are favoured over others. Since most economic initiatives are partnerships between corporations this virtually guarantees that outside investors will only deal with Irvings, who have the clout to get such benefits.<br /> <br /> However, the property tax break notwithstanding the entire natural gas refinery and pipeline is completely a private venture, taking New Brunswick back 50 years when it could not compete with Ontario because the latter had stable energy costs with a public utility while NB had various private schemes which could not guarantee low costs or even supply.<br /> <br /> My point here is that this has a direct federal effect. After the second world war this inequality was recognized and with federal investment NB Power was created with Point Lepreau and the Mactaquac hydro station (dam) being constructed primarily with federal money. The investment was well made. For the next twenty years New Brunswick's industry leapt by the same leaps and bounds which the rest of the country did. Although it did not gain on Ontario, Quebec, or BC (it fell behind) it still doubled its GNP by providing stable utility costs which corporations demanded, and kept prices low for New Brunswickers.<br /> <br /> Here's the rub, currently the economy is hanging on the same thread as it was in the forties and fifties. Lepreau is being shut down and the federal government refuses to invest in energy production in the province, fearing the quite likely scenario that other provinces will demand equal treatment and that corporations may challenge it under NAFTA. The provincial government showed it's inexperience when it refitted coal plants to burn orimulsion, a product only made in Venezuela, before signing a contract guaranteeing the supply. Venezuela has stopped producing orimulsion, leaving the province in a more precarious position than ever. All these factors have led to the 'least instrusive' decision of granting the tax break to Irving and hoping they will step in to fill the energy void. This is by no means certain as currently northeastern states are looking to buy and since they will pay higher prices, there's no guarantee that Irving will supply New Brunswick prior to the US.<br /> <br /> Sorry, I've just been researching this and thought it was worth sharing. The federal position obviously has been to stay out of energy policy so much as possible by refusing to get involved (the same is true of the wind power in PEI) while relaxing any of the few environmental and regulatory laws that may be in the way (by simply refusing to enforce them). The 'doing nothing' policy virtually guarantees that most provinces will have to go to private sources which will begin competing with public ones. The 'national grid' which many espouse will be coming, it just won't be public.<br /> <br /> So far as I know there are no federal parties looking to change that, in their electoral information the NDP never even talked about energy policy so no matter what kind of soap opera goes on in Ottawa this will continue. From an industry point of view it is in fact ideal as it keeps the populace and media focused on the vagaries of federalism, while the issues of federalism go unexamined, as usual.

   

Wow, way more input than I expected, and from one post. Thanks very much.