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Last Updated: Monday 14 May 2001  OPINION

Jim Sinclair:
Liberals' power plays


DEREGULATION AFOOT: A labour leader warns that if Liberals tamper with B.C. Hydro, British Columbians will pay higher prices.

Jim Sinclair Special to the Sun

Damian Dovarganes, Associated Press / Near Irwindale, Calif., power lines, a billboard advertising an Internet Web site plays off the state's current power troubles.

When I arrived home the other night, I realized I'd forgotten to turn on the porch light. Fumbling around in the dark to find the right key, opening the door and quickly turning on the light brought that familiar sense of relief.

In B.C., we take that relief for granted -- for good reason. Publicly owned B.C. Hydro has the responsibility to make sure that, when I flick the switch, the power is there. Not only is the power there every time, the price is right too. The most recent survey shows our average power prices as the third lowest in North America, behind Manitoba and Quebec.

What could be wrong with this picture? To most of us, absolutely nothing.

However, across Canada and the United States pressure continues to grow to bring "competition" to the energy industry so consumers can have choice and lower prices. The only flaw in this theory, embraced by the energy industry and the political parties they support, is reality.

In California, so-called competition and deregulation have bankrupted utilities, fuelled a recession and are now draining the public treasury of billions of dollars. Still residents are experiencing power shortages and brownouts. Closer to home, Washington state is looking at cost increases of up to 250 per cent while major industries such as aluminum and paper producers are facing closures and layoffs. In Alberta, deregulation means, despite $4 billion in government rebates, consumers pay nearly twice as much for electricity as their B.C. counterparts.

As pressure grows, British Columbians are now looking at the premier-in-waiting, Gordon Campbell, to see if his party, which is backed by the private energy sector, will drag us also into the "market economy" for our electricity costs. For anyone trying to follow the Liberals' position on B.C. Hydro, nothing short of a neck-brace is needed to keep track of their ever-changing position.

Campbell's most recent pronouncement came during the leaders' debate when he said the "core" assets of B.C. Hydro will not be sold and deregulation will not be introduced.

However, just weeks before the election, when veteran Liberal MLA Gary Farrell-Collins was asked if a Liberal government would sell B.C. Hydro, he responded, "We don't rule it out." Within one hour of the interview, he was flip-flopping his way out of that position.

Several months earlier, Campbell told an audience of energy corporations that he was leaving no doubt where he stood on privatization and deregulation.

"I am committed to looking at B.C. Hydro -- indeed we are committed to looking at all Crown corporations," he said.

Despite his reversal, Campbell left little doubt on April 19 when he told the Georgia Straight, "I believe that public sector monopolies are just as bad for consumers as private sector monopolies. We're seeing that with B.C. Hydro."

If he doesn't like B.C. Hydro or public monopolies, what does he like? His plans came through loud and clear during his major presentation on energy in November when he said, "My party strongly endorses and believes in the principles of competition. My goal is to encourage competition because I believe it is the best way to increase efficiency, productivity and consumer choice."

"The challenge is to prove that deregulation works for consumers on both ends of the scale," he explained. "Competition requires access to markets. We need to ensure the transmission infrastructure is available to all producers and consumers, on an equal and non-discriminatory basis."

For Campbell to protect British Columbians from the disasters of neighbouring provinces and states, he must reject his promises to the energy corporations to deregulate and introduce competition.

That means protecting B.C. Hydro and refusing to introduce market-based pricing. It also means refusing to bow to pressure from the U.S. and large energy corporations to break up our publicly owned monopoly by dividing power lines from generation so competition and high prices can begin in earnest.

British Columbians can see what's happening in Alberta and California. We've also been writing cheques for natural gas bills this winter and we know that competition for natural gas has meant the doubling and tripling of prices despite an abundance of natural gas in this province. A recent study showed consumer gouging on natural gas prices was translating into record profits for energy corporations totalling $2 billion to $3 billion in B.C. alone.

The Liberal platform promises lower energy prices. We will all have to be vigilant after May 16 to ensure that the temptation to reward energy corporations at the expense of our economy and working families doesn't win the day.

Ultimately, what's at stake is a viable economy in B.C. That's what we all want, isn't it?

Jim Sinclair is the president of the B.C. Federation of Labour.

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