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 Address by Prime Minister Jean Chrétien
to a Luncheon of the Canadian Association of Petroleum Producers

April 6, 2001
Calgary, Alberta

I am delighted to be back here in Calgary.

Some have said that I should come here to talk about the West. As though the West is a homogeneous reality. As though there is no difference between Saskatoon and Surrey, between Estevan and Edmonton, or between Weyburn and Winnipeg. Of course that is not true. The West is diverse. There are different political views in different parts of Western Canada. There are differences and disparities between the economies of different parts of Western Canada.

But what is true -- what is beyond debate – is that the example and influence of Western Canadians have been indispensable to the great Canadian success story.

Think of our artists and writers like W.O. Mitchell and Emily Carr. Think of the influence of J. S. Woodsworth from Winnipeg on the development of social policy.

Think of Medicare and hospital insurance, pioneered in Saskatchewan. On Wednesday, I asked Roy Romanow to lead a commission on the future of Medicare. A Commission whose head office will be in Saskatchewan.

Think of British Columbia. Canada’s window on the Pacific, with a vibrant and dynamic Asian population.

Think of the forward-looking policies of Peter Lougheed. Recognizing the need to diversify the Alberta economy, he created the Alberta Heritage Trust Fund to help foster world class research facilities. To build the new economy right here in Alberta, through the Department of Innovation and Science, the Alberta Science and Research Fund, the Heritage Foundation for Medical Research, and the Heritage Foundation for Science, Engineering and Research.

Our government is doing the same thing on a national scale with our emphasis on innovation, research and development. Through the Canada Research Chairs, an idea first proposed by Dr. Martha Piper, formerly Vice-President of the University of Alberta and now President of U-B-C. Through the Canada Foundation of Innovation, whose President is Dr. David Strangway of Vancouver, a former President of U.B.C. And through the Canadian Institutes of Health Research, a concept developed by Dr. Henry Friesen of Winnipeg, and formerly head of the Medical Research Council of Canada.

Like us, my good friend and partner, Premier Ralph Klein, is investing heavily in health research, science and engineering. Albertans are today reaping the benefits of these wise investments. Indeed, Calgary is not only the oil capital of Canada, it is the second city in Canada for corporate head offices. It has become a magnet for new economy jobs and investment and a hub in the expanding high- tech infrastructure that is developing in every region of the country.

I prefer to talk about the future than about old grievances. We all recognize that all regions of Canada have some historical grievances. I have been around a long time, but even I wasn’t there to debate Sir John A. Macdonald about tariff policy. Nor was I there to debate Sir Wilfrid Laurier about the control of natural resources in Saskatchewan and Alberta. And while I have had many jobs in my life, I have never worked for the C.P.R.

As far as I am concerned, old grievances are for historians and political scientists to debate. For those, in politics and business, who want to spend their time stuck in debates about the past, I would like to quote Winston Churchill, who said; "If the present tries to sit in judgment on the past it will lose the future."

I have come here to talk about the future. About making common cause with Western Canadians. About making the first part of the 21st century the greatest period of prosperity and opportunity that our country has ever known.

Since 1993, when both Premier Klein and I were first elected, we have worked well together -- as partners not opponents.

Both of our governments have balanced our books. We have both substantially reduced personal income taxes. The Canadian capital gains tax is now below that of the United States. Our corporate tax rate will soon be below that of the United States. And both the federal government and Alberta have reduced our public debt. As a result, the Canadian economy is very well positioned to face the economic uncertainty generated by the slowdown in the United States.

The leadership and influence of Ralph Klein have been extremely positive in federal-provincial negotiations. The unanimous Health Action Plan that we reached last fall would not have been possible without his help. And his government has done important work in defining meaningful measures of health care performance. Laying the groundwork for delivering on the promise, made in that agreement, to increase the accountability of all governments for how they invest their health care budgets.

As we keep our focus squarely on a more prosperous future, our government will continue to follow policies that support and sustain a dynamic energy sector.

A strong energy sector is not only a pillar of the Alberta economy, it is absolutely fundamental to Canadian prosperity. In 2000, the industry made $21 billion of capital investments. That number could reach $25 billion this year. The industry is also responsible for almost 50% of Canada’s trade surplus.

New frontiers of energy development continue to open up right across the country. From conventional fuels to the oil sands; from heavy oil and enhanced recovery in Saskatchewan to natural gas in British Columbia; from hydro potential in Labrador and Manitoba to offshore oil and gas in the Atlantic and gas in the High Arctic; to the next generation of fuels being developed through innovation by the energy sector.

We have fantastic potential and opportunities.

The United States needs Canadian energy. In my first meeting with President Bush, I raised large issues of concern especially to Western Canada: agriculture, softwood lumber and, of course, energy.

In a subsequent telephone conversation with Vice-President Cheney, I spoke about the vast potential of our energy sector. President Bush referred specifically last week to Canadian natural gas from the North West Territories as an important source of supply for the United States.

I have established a committee of ministers on energy, chaired by John Manley, and including Ralph Goodale and Anne McLellan, two Westerners who chair our two major Cabinet committees: Economic policy and social policy. The energy committee will coordinate the work required at the federal level to ensure that we take full and quick advantage of the opportunities available to Canada.

We already export more oil and product to the US than does Saudi Arabia. And just think about the oil sands. I am proud to have been part, with Peter Lougheed, of the Winnipeg Agreement of 1975. Which enabled Syncrude to go ahead and be the start of a fantastic development for Alberta. And something that we have to talk about more.

When I was in Washington a few weeks ago, few people I spoke to knew much about the oil sands. They did not know that by 2005, production from the oil sands is expected to exceed that from the north slope of Alaska, or that by 2010, it is expected to exceed the total current output of Nigeria.

The potential is enormous. And it will take massive investments to realize it. These investments are being made, and planned. About $4 billion per year has been invested since 1996. The positive investment climate required to make this happen came about as a result of strong representation from Anne McLellan and many in this room. We have worked with you to develop a fiscal regime that has seen additional investments of $50 billion announced for the next ten years. And we will continue to work together with you to maintain a positive investment climate

Our reserves of natural gas are also vast. We must develop Canadian natural gas resources in the North West Territories and the Mackenzie Delta, and bring this gas south as soon as possible to meet market demands. The Government of Canada will do what is required to ensure that the proper regulatory regimes are in place to facilitate the earliest possible movement of Canadian and American gas from the North to southern markets.

I have every confidence that we will be able to make the Canada-US energy relationship grow and prosper, to the benefit of both consumers and producers. And that we will do so without sacrificing our Canadian energy needs or sovereignty.

But I also want to make three other points before I close.

First, our government’s approach to all of these exciting energy opportunities will be governed by an unswerving commitment to competitive markets and fair regulation.

Second, it is important that we maintain high standards of environmental protection and enforcement. We must not -- indeed cannot -- allow the lowest common denominator to prevail. We must meet our commitment to the sustainable development of our natural resources. Indeed, Canada views maintaining a healthy environment as not only a challenge but also an economic opportunity. Allowing us to build on the expertise we have already demonstrated in efficient energy development. As well as in renewable and alternative power supplies and the efficient use of energy.

Third, in all the talk of opportunity, profit and investment we tend, too often, to forget those who are left behind in our society. In general, Western Canada, and especially Alberta, may be doing very well economically. But Aboriginal Canadians are not. And they are a fast-growing part of the labour force in Western Canada. I believe that our success as a country will be judged, in part, by the extent to which all of us -- governments and business -- take action to ensure that Aboriginal Canadians are full participants in our society.

Last week in Toronto, Eric Newell, President of Syncrude, made a very important speech about the responsibility of the business community and the energy industry to provide real employment opportunities for Aboriginal Canadians.

I congratulate him for his leadership in helping Aboriginal Canadians become part of his team. I urge you, here in Alberta, across the West -- indeed right across Canada -- to take his message and example to heart.

Ladies and gentlemen, I want to thank the Canadian Association of Petroleum Producers for allowing me this opportunity to address you.

As many of you know, I speak often about my many family connections to Alberta. The warm welcome and good life they have found here has always symbolized for me, in a very personal sense, that the West is a place of new horizons and endless possibility.

That is why I did not come here today to debate old grievances but to talk about new opportunities and new partnerships.

At the same time, as I reflect on my party’s fortunes here in the West, I know that Laurier was the last Liberal to win a majority of the seats in Alberta. And that it is more than half a century since our party won a majority of seats in Western Canada.

I understand the populist tradition of voting for parties from the United Farmers to the Progressives, to the C.C.F. to Social Credit, to the Reform Party. I know that those parties are a profound part of the political culture of the four Western provinces. And so the challenge for my party is very great.

In my experience, when you face a big challenge, a master plan is no substitute for hard work. And all the fine words in the world are no substitute for concrete action. I believe that our government has taken concrete action since 1993. But there is more that we can do. And we will.

It is hard work and concrete action -- in a spirit of respect, listening, honest dialogue, and partnership -- that I, as Prime Minister of Canada, offer Albertans and all Western Canadians in the years to come.

Let’s roll up our sleeves together. And get to work.

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