In 1972, Perrin Beatty won his first seat in the House of Commons. He was 22. It was the beginning of a distinguished political career that saw Beatty become the youngest-ever cabinet minister in 1979, then serve in a number of high-profile posts, including Minister of National Revenue, Solicitor General of Canada and Minister of Defence.
After leaving government, Beatty served as chief executive officer of the Canadian Broadcasting Corp. Today, Beatty is the president and chief executive officer of the Canadian Chamber of Commerce and chancellor of the University of Ontario Institute of Technology in Oshawa, Ontario.
Business in Vancouver spoke with Beatty about the challenges facing Canadian energy markets, in advance of his upcoming presentation “Energy Markets Are Changing: Will Canadians Adapt?” at the Vancouver Board of Trade.
Q&A
Q: What are the issues that need to be resolved to ensure growth in B.C.’s energy sector?
A: Clearly, one of the key priorities is to find a way to resolve outstanding issues such as contracts and infrastructure that will allow us to connect Canadian energy, including B.C. liquefied natural gas, with global markets. In particular, as it relates to LNG, the window is very tight. Our competitors are signing contracts now in Asia to lock down those markets before we have the infrastructure in place to be able to serve the markets.
Q: What are the challenges B.C. faces in the energy sector compared with other jurisdictions? Are there any unique B.C. troubles?
A: No, I think B.C. is uniquely well positioned if there is the will in B.C. to take advantage of the opportunities being offered here. The key thing is to get infrastructure in place so that we can not only do the deal but also deliver the product. And B.C. has natural advantages relative to other international competitors and relative to other parts of Canada as well. The shipping times to Asia are shorter and transportation costs are lower as a result.
Q: How little time do we have to make this work?
A: It is my single greatest concern. We need to have a framework, a clear understanding among ourselves as Canadians as to what our role in global markets will be. We are at a juncture; everyone has to understand that not making a decision is, in fact, making a decision. If we defer or delay or dither these contracts will be signed by other suppliers, and we are going to be out of the game.
Q: The other side of LNG exports is the construction of pipelines from the northeast to the northwest. And, of course, we also have the Northern Gateway and Trans Mountain pipeline proposals. How do pipeline companies, governments, citizens and environmental groups evaluate these projects constructively?
A: Do we believe it is in the Canadian national interest to get our natural resources to international markets? If the answer is yes, then the debate focuses on how we do that in a way that is respectful of the environment and of community rights. If we can move the dialogue away from shouting at each other and bumper stickers and shift it to discussing where there are problems and how we can fix those problems to everyone’s benefit, then we can have a respectful dialogue. I am certainly not an advocate of doing away with environmental assessments or of not allowing communities to be heard. That has to be a key part of the process. But the process also has to be able to come to a conclusion in a timely basis so that decisions are being made actively as opposed to being made by default. •
