The latest salvo is that they are blaming the drop in pricing that Canada charges for oil exports on the fact that we sell primarily to the US. Read here that Canada needs to expand to markets in Asia... thus the Northern Gateway Pipeline must be built. The reality though is that the price we receive is falling because oil sands bitumen is heavy oil and costs more to ship and refine than does light or medium crude.
Just prior to that, came the message that the economy is slipping based on lower petrochemical royalties. Unless the royalties go back up (How? Expanding to the Asian market! See above.) then the balanced budget promised for 2015 will have to be pushed back again. The reality is that the structural budget deficit created by the 2% point drop in the GST is what is causing them the problem. Combine that with the poor stewardship of the economy and the Canadian dollar, and there you go. So much for the fiscally conservative and wise Cons!
I wrote in an earlier blog entry that the so-called Dutch Disease, where petrodollars currency inflation killed manufacturing in the Netherlands, was not the only issue with so-called Dutch Disease. Dutch Disease also led the government to focus their effort on the petrochemical industries while ignoring other industries, such as manufacturing. When was the last time the Cons talked about manufacturing?
The Cons are cagey. They will eat away at the pipeline debate without ever mentioning it by name. It is up to Canadians to stay alert, because this government does not seem to want to represent Canadians.
