Rewards of oilsands to rest of Canada unclear – by Gillian Steward (Toronto Star – November 19, 2013)

The Toronto Star has the largest circulation in Canada. The paper has an enormous impact on federal and Ontario politics as well as shaping public opinion.

The Alberta and federal governments say oilsands development creates jobs and prosperity across the country. The evidence suggests otherwise. One of the strongest selling points used by the Alberta and federal governments to convince Canadians that rapid oilsands development is good for everyone is that it will mean jobs and prosperity for people across the country.

A new report by Alberta-based Pembina Institute shoots a few holes in that piece of propaganda. It points out that Alberta stands to gain almost everything when it comes to jobs and revenue.

Not only that, because the Canadian dollar is so robust, mainly due to commodity exports, manufacturing spinoffs from accelerating oilsands development may well end up in the U.S. or other countries because it would be less expensive than relying on Canadian manufacturers in Ontario and Quebec.

Pembina has gained a solid reputation for providing research and insight into the environmental aspects of rapid oilsands development. But it has never called for a dead stop of oilsands development. As it states in this recent study: “There have been and will continue to be tangible economic benefits from oilsands development to the Canadian economy.”

But Pembina, which partnered with Equiterre, a Quebec environmental group for this study, also asks a valid question: is rapid oilsands development creating problems that may soon outpace the benefits?

One of those problems is the uneven distribution of new employment. According to economists’ reports cited in the Pembina/Equiterre report between 74 and 86 per cent of new jobs created by tarsands development will be in Alberta. Alberta will also realize 95 per cent of GDP investment.

Most Albertans, especially all those thousands who moved here from other provinces, certainly see that as an advantage. On average since 2008, the per-capita income differential between Alberta and the rest of Canada was $12,000.

For the rest of this article, click here: http://www.thestar.com/opinion/commentary/2013/11/18/rewards_of_oilsands_to_rest_of_canada_unclear_steward.html