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Opposition Critic for Natural Resources and MHA for the District
of Burgeo & La Poile, Kelvin Parsons, says he is concerned with
the premier’s strategy to rely solely on the federal
government’s support for fallow field legislation. Parsons feels
this will hamper other efforts to advance development of the
Hebron-Ben Nevis oil field.
The Liberal MHA was reacting to the premier’s recently
expressed optimism that, with the support garnered at the
Premiers’ Council on the Federation, he is now in a better
position to make his case to Ottawa on his fallow field proposal
which would impose a use-it-or-lose- it condition on the
development of the province’s offshore oil fields. Prime
Minister Harper has previously rejected getting involved with
the fight over the Hebron oil field.
"The premier is being overly optimistic if he thinks he can
change the mind of the prime minister on the Hebron file. The
prime minister has all but told the premier he will not touch
this issue with a ten foot pole," says Parsons. "What is
worrisome is that while the premier spends time chasing this
option other efforts to revive the talks between ExxonMobile and
the provincial government will not be pursued.
"The premier has to appreciate that time is of the essence
here and we are at a crunch time for the oil industry, the
spin-off industries and the province as a whole. We have seen a
drop in the real estate market, attributable to the fall-out
from failed Hebron talks and just last week, the Scotiabank
predicted that next year’s economic growth for our province will
be negatively affected by the lack of any new oil projects on
the horizon to boost the positive impact levered by the White
Rose and Voisey’s Bay projects. Further, if labour negotiations
are not resolved in a reasonable time on the Voisey’s Bay
project, our economy will be even more acutely affected. Another
outmigration spike will bleed us even further.
"There’s a sense that the premier has misplayed his hand, as
echoed in a recent Globe and Mail article. I am once again
encouraging the premier not to allow his need to appear tough
for the sake of heightening the bravado get in the way of
reaching a workable deal that benefits this province. In the
next few years, production from the existing three fields will
have peaked and then fall of sharply. It’s time the premier’s
self-professed negotiations skills come to play on this critical
deal, not relying on what appears to be a dead prospect."
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