Oilpatch welcomes Lunn

By James Stevenson
Times Colonist (Victoria)
24-Feb-2006

CALGARY -- Natural Resources Minister Gary Lunn's first meeting with oilpatch officials Thursday was short on specifics and full of group hugs, with a general pledge to work closer with his provincial counterparts.

Lunn, a nine-year veteran of federal politics from Saanich Gulf Islands, has a forestry background but is new to the energy sector. His visit to Calgary is part of a cross-country trip to get acquainted with the large portfolio, which also includes forestry and mining.

Following a meeting with oilpatch leaders and Alberta Energy Minister Greg Melchin, Lunn said that while "enormous challenges" are facing the energy sector, there are also great opportunities.

"Alberta's leadership in these areas cannot be overstated ... what they've done here we have a lot to learn from them. So I look forward to this relationship and looking for solutions."

Melchin said the Alberta government expects a "fresh start" and an open
dialogue with the federal government on the energy file. "It'll be no surprise to you that we're quite electrified in Alberta by the prospect of working with the Conservative government in Ottawa," he told reporters.

Andre Plourde, a professor of energy economics at the University of Alberta, said one of the most critical elements for the sector is making sure there are no fundamental policy differences between Alberta and Ottawa.

"The lack of conflict and the lack of damaging policy has been really important," Plourde said.

But Plourde says Canada has had "a reasonably clear" energy policy for years now and doesn't expect major changes from the Conservative government.

"Market forces are going to be playing an important role, with interventions only in cases where it's felt there's some specific issues that markets won't deal with."

Lunn is Canada's fifth natural resources minister in five years, with former Liberal minister John Efford quitting last September due to health problems and being replaced only on an interim basis by former revenue minister John McCallum until the federal election. "The previous minister has had some health considerations and so his absence has obviously created some difficulties," said Lunn.

Many of the biggest issues facing the energy sector -- such as labour shortages, climate change and trade relations with the U.S. -- will involve collaboration with other federal departments like Environment, International Trade and Indian Affairs.

Lunn said he wants to work on reducing the overlap of regulations between federal government departments and the provinces.

The ongoing softwood lumber trade dispute with the United States will be handled by Trade Minister David Emerson. But Lunn said settling the issue was "an enormous priority," and his department will help out with scientific research. But outside of the softwood issue, Lunn refused to specify which files were of key importance for his new Conservative government.

Energy analyst Wilf Gobert said one of the biggest things for the Natural Resources ministry to keep a close eye on is the regulatory process for the $7-billion natural gas pipeline proposal to take gas from the Mackenzie delta in the Northwest Territories south to markets.

Pierre Alvarez, president of the Canadian Association of Petroleum Producers, said his hour-long meeting with Lunn was "incredibly positive."

"Unlike some politicians who view the resource sector as being kind of sunset industries, he's very much one who sees there are tremendous opportunities across the country and wants to see those taken advantage of."