Guest post by Deb ProtheroEver since last week's announcement by Harper about implementing some of the recommendations of the Competition Policy Review Panel's "Compete to Win" Report from June 2009, I've been wondering why in the world did he specifically talk about uranium? Who was that message for? Commodities investors, Bay Street, the average voter? It just didn't add up.
When things don't add up, I smell a rat and try to follow its tail.
Starting with the make-up of the Competition Review Panel: L.R. (Red) Wilson, CEO of BCE, chair; N. Murray Edwards, CEO of Canadian Natural Resources (one of the largest investors in Oil Sands); P. Thomas Jenkins, CEO of Open Text; Isabelle Hudon, CEO Montreal Board of Trade and Brian Levitt, Partner and Co-chair Osler, Hoskin and Harcourt (also member of board of BCE).
The Panel was appointed in June 2007 and issued their report in June 2008. Little commentary by the media or criticism by others of the report can be found online. Report here: http://www.ic.gc.ca/epic/site/cprp-gepmc.nsf/en/h_00040e.html
Their recommendations are worth considering but in the environment of a balanced analysis of the impact on the Canadian economy prior to implementation.
So, back to uranium.
I had recalled a CBC radio interview which I heard recently, discussing an agreement with the US for a "cradle to grave" approach to uranium. The agreement is called Bush's Global Nuclear Energy Partnership, a "cooperation of those States that share the common vision of the necessity of the expansion of nuclear energy for peaceful purposes worldwide in a safe and secure manner," according to the website of the organization (http://www.gneppartnership.org/). Did you know that Canada signed this? I didn't.
Reports (http://www.canada.com/montrealgazette/news/story.html?id=96ca068c-5191-4829-b63d-767648f0522f&k=76488) last fall claimed that, "The cornerstone commitment of the partnership is its 'cradle-to-grave' plan to have all spent fuel from the world's reactors shipped back to GNEP uranium-supplier nations for secure disposal at nuclear-waste sites."
Hey, wait a minute. Did that just say that the SPENT FUEL will be shipped back to GNEP uranium-supplier nations? Does that mean that Canadians get to take back all the spent fuel from the US? Well, yes on the surface and in the writing of the agreement that's exactly what it says.
But wait a second, our fearless new government, now dissolved and seeking reelection, wants to reassure us. Remember the brilliant star in Harper's cabinet who fired Linda Keen the evening before she was to give evidence to a parliamentary committee. Yeah, that Gary Lunn. Here's what he has to say.
"We made it unequivocally clear that we will, under no circumstances, ever accept any nuclear spent fuel back from any other country," Natural Resources Minister Gary Lunn said in another CanWest article (http://www.canada.com/topics/news/national/story.html?id=532e51e0-089b-4f55-a5af-6d99960282a7&k=23825). "So this is a good initiative and Canada should be at the table to ensure that we have a voice."
But how can he say that, when Harper has signed an agreement with the US (or has he not signed and its in the negotiation phase) indicating that in fact we will be required to accept their spent fuel, if we supply the uranium. Guess Gary Lunn is smarter than me. Or maybe Harper/Bush have a different concept of what cradle-to-grave means. I thought it was about much-valued social safety nets which we adopt from Scandinavian countries with a Canadian twist. They seem to be talking about protecting investors from risk and responsibility from cradle-to-grave for every penny they invest!
So how about other agreements with the US... what do they say?
Uranium production and management is definitely an SPP priority being discussed by the North American Energy Working Group: http://www.pi.energy.gov/naewg.html. See the following quote on the Department of Energy website in the U.S.:
"Specifically, the trilateral working group explores policies, regulations and technological innovations with a view to encouraging the most optimal, efficient and sustainable development of hydrocarbons, energy efficiency, renewable energy, clean power, and nuclear energy and their related infrastructure as well as ensuring frameworks are in place for markets to work most effectively."
Reducing the barriers to foreign involvement in Canada's uranium industry is, in a big sense, about creating a more seamless North American uranium and nuclear market, which is an SPP priority (probably the U.S.'s biggest priority.)
Now I'm getting worried. Harper is going to allow greater foreign investment in Canadian companies, especially uranium. Doesn't that mean that the profits leave Canada? So not only will the American-owned multi-nationals get the profit from our uranium. Canadians living in uranium rich areas will get the pollution from the extraction. Then once the Americans are finished with the uranium, they're going to ship us the spent fuel!
I thought the softwood lumber deal negotiated by Harper and Emerson was the sell-out of the century but this uranium deal takes the cake. The Americans couldn't convince the residents around Yucca Mountain to accept the spent fuel so now they're adopting the unique approach of shipping the used uranium back to where it came from - Canada!
When are we going to see some discussion about this agreement? If uranium is one aspect of the "Compete to Win" report, when are we going to see some healthy criticism of its recommendations and ideas? And when I say healthy criticism, I am serious. There are aspects of the Competition Policy Review Panel report's recommendations which may in fact be necessary or important since some parts were implemented 20 years ago and need updating.
BUT, I have not heard anyone in this campaign offer any information about this issue and I'm listening. When are the Canadian media going to inform us about our choices? When are all the parties going to give us some real information about our choices?
Tip of the hat to the local Council of Canadians for some tips and links.