Equalization

If the rich Voisey's Bay mineral deposit were in Alberta or Ontario, Inco would be developing it today. Hundreds, if not thousands, of well-paid jobs would be created, generating lots of economic activity and new government revenue. Yet in Newfoundland, with its declining population, and high debt, taxes and unemployment, Voisey's Bay languishes. Why? Because of the silent third party to the talks, hovering like Banquo's ghost over the negotiations between Brian Tobin's government and Inco.

In an interview with Moncton CBC's Information Morning, AIMS President Brian Lee Crowley argued that there is lots of room for co-operation between New Brunswick Power and Nova Scotia Power, including a potential merger as one possible outcome. Before the region can realise the benefits of the potential synergies, however, New Brunswick must get politics out of its electricity industry, as Nova Scotia has largely done through privatisation. A privatised and regionalised power utility would be in a good position to cut costs and to compete in international export markets. New Brunswick's electricity status quo is untenable, and is certainly incompatible with the growing movement toward deregulation and open energy markets.

Calgary Herald columnist and Editorial Board member Danielle Smith has written a column about AIMS' new book Road to Growth. Click here to read "Jobs flourish when businesses earn big profits", which first appeared in the Herald on February 8, 2000.