Bay du Nord: A step closer to victory… but the battle isn’t over yet

Oil and gas supply and service companies in Eastern Canada, together with industry association Energy NL, cheered the release of the proposed Bay du Nord offshore oil project from environmental assessment earlier this year. But there have been stark reminders since that resistance to local oil production is not letting up.

Opposition to Bay du Nord followed project developer Equinor to its home in Norway, particularly in May, when the Norwegian company held its annual general meeting. Newfoundland and Labrador’s coastline popped up in news-papers throughout the country, not as a tourism campaign but as part of a full-page ad protesting Bay du Nord. And if you missed the papers, it was hard to miss the large outdoor projections in Stavanger, at locations including the Norwegian Petroleum Museum and Equinor headquarters. From Canada, petitions have been sent and rounds of calls made to company headquarters from people opposed to the project.

At home, a small group including volunteers with the Council of Canadians showed up outside company satellite offices in St. John’s, on the same day as Equinor’s AGM. But greater waves were caused by Ecojustice lawyers—on behalf of environmental groups Équiterre and Sierra Club Canada Foundation—filing suit on May 6, challenging Environment and Climate Change Canada, the Impact Assessment Agency of Canada and Equinor on the project’s release from environmental assessment. The approval announced in April by Environment Minister Steven Guilbeault included conditions that the project become “net zero” and offset all emissions from production by 2050. However, those opposed say the approval failed to properly consider greenhouse gas emissions from oil produced off Newfoundland and Labrador as it is transported, refined and final fossil fuel products are used.

 

 

“Globally there’s a recognition that we’re in a climate emergency and it’s imperative that we stop looking for additional opportunities to extract more fossil fuels that will produce more greenhouse gases,” Ecojustice lawyer Ian Miron told Atlantic Business Magazine. “Our clients want people to hear their position, which is that Canada can’t be a climate leader and approve fossil fuel projects like this at the same time. It just can’t do that,” he added.

As of writing, Equinor had yet to file a benefits plan and development application with the Canada-Newfoundland and Labrador Offshore Petroleum Board (CNLOPB) for public review. The development application is expected to address areas of environmental concern, including spill response plans, maintenance, safety and decommissioning plans. The CNLOPB says the format and timeline of the Bay du Nord review, should a development application be made in June or thereafter, has yet to be decided.

Should Equinor push forward before the environmental review lawsuit is settled, Miron said the Ecojustice team would look to their clients for instruction on whether or not to get involved in the CNLOPB process. But the review offers another opportunity for any public concerns around the project to be heard. As a “fundamental decision,” the development application will demand approval from both the provincial and federal ministers of Natural Resources (not Environment) before the oil company can proceed.

 

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Naming rights: Experience the Epekwitk Crossing

Did you know the structure connecting Cape Tormentine, N.B. with Borden, P.E.I. across the Northumberland Strait was always meant to be known by an Indigenous name? In 1997, a seven-member panel created to pick the name for the bridge—including project builders, public works staff and politicians—unanimously approved of Abegweit Crossing. But it was called Confederation Bridge instead, another name on a list of three suggestions (the third was Northumberland Bridge).

 

 

It was something the Canadian Press reported ahead of the bridge’s opening but has gained new traction in this International Decade of Indigenous Languages (2022-2032) and a push for truth and reconciliation with Indigenous peoples.

On April 29, the Legislative Assembly in P.E.I. voted unanimously to re-address the bridge’s name. As “Abegweit” was an Anglicized version of “Epekwitk” (ehb’-uh-gwid) the Mi’kmaq word for P.E.I., they have asked the Government of Canada to help see the bridge re-named the Epekwitk Crossing.

Premier Dennis King referred to history, saying it was essential to “get the name right.” Senator Brian Francis, also a past chief of Abegweit First Nation, has been vocal in support of the change, along with fellow senator Percy Downe. “The renaming of the bridge to ‘Epekwitk Crossing’ would serve to honour the strength and resilience of the Mi’kmaq as well as to promote greater awareness and understanding of our distinct society and culture,” Francis said in a statement. The issue was passed to the federal government.

Meanwhile, the Government of Newfoundland and Labrador is also considering re-naming the Colonial Building in St. John’s. Any re-naming would be easier in that case, since the federal government is not involved. It would also be a departure from the building’s history rather than reconciling it with an overdue moniker. The Colonial Building was constructed in 1850 for the purpose of supporting colonial governance. What became a provincial legislature was moved to the newly constructed Confederation Building in 1959. The Colonial Building was designated a provincial historic site in 1974 and extensive restoration work began in 2009. As of deadline, it is due to be finished… any minute now.

 

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Above the poverty line: Cost of living brings wages to fore

Christine Saulnier, director with the Canadian Centre for Policy Alternatives (CCPA) in Nova Scotia, suggests employers facing a competitive labour market should assess their company remuneration in the context of a living wage.

Living wages are higher than minimum wage and are meant to allow for a basic quality of life. A living wage calculation would include, for example, transportation and toiletry costs but not, say, retirement savings or life insurance.

Saulnier, author of a late-2021 CCPA report titled “Living Wages in Nova Scotia 2021”, said employers can’t afford to ignore the needs of their lower income workers. She points out workers earning a living wage are more likely to be loyal to a company, thereby reducing costs associated with recruitment and training. Having more employees who are capable of affording company products and services might even contribute to the bottom line. If nothing else, employers won’t run the risk of being accused of worker exploitation.

Atlantic Central, the regional trade association for credit unions in Atlantic Canada, confirmed living wage has had attention from its executives since at least 2015, when the organization went through the exercise of benchmarking corporate social responsibility practices. “Since that time we’ve conspicuously monitored what the living wage for our region was and how our wages compared,” said company director of human resources, Heather Wagner.

It’s important to note that a living wage is site specific, as the Human Development Council made clear in its report on living wages for New Brunswick at the end of 2021. A living wage in New Brunswick was estimated to range from $17.50 to $21.20 per hour, depending on location. In Bathurst, for example, without public transit, the recommended living wages included enough for an additional taxi trip each week. In Saint John, shelter amounted to $1,320.37 per month, with $1,025 a month for rent and the rest for insurance, power and internet bills.

The province’s minimum wage, as of April 1, 2022 is $12.75 an hour.

Recommended Living Wages for N.B. and N.S. (November, 2021)

 

 

Sources: “Living Wages in Nova Scotia 2021: Working for a living, not living to work” by Christine Saulnier, Canadian Centre for Policy Alternatives, Nova Scotia, November 2021; “Living Wages in New Brunswick 2021,” Human Development Council, November 2021)

 

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Fuming mad: Fuel prices driving inflation

In March, the inflation rate in Atlantic Canada was the highest in 20 years. Real income is not keeping up. The spinoff for businesses, aside from their own direct costs, has been a chill in the consumer base relative to an environment with lower gas prices. We all get it. Having to spend $100 instead of $50 for a fill-up can quickly lead to a change in plans.

One target for relief has been the taxes applied to fuel. Yet, gas taxes are an essential part of Canada’s plan to address climate change, to change our habits and car culture, to promote public transportation and electric alternatives. Apart from a carbon tax, provincial and municipal gas taxes are important fundraisers for essential public infrastructure particularly for strapped treasuries, leaving no easy answers.

 

 

 

Did you know?

• Gasoline prices are under provincial, not federal, jurisdiction.
• Taxes as a percentage of provincial gas prices have decreased. January 1, 2021 compared
  to June 1, 2022:
  P.E.I. = 36.05/26.9%
  N.B. = 38.9/28.4%
  N.S. = 36.8/25%;
  N.L. = 37.8/26.6%
• Crude oil prices were a main driver in year-over-year price changes (accounting for at least 35 cents on a litre). Other factors include inventory levels coming out of peak pandemic, refining costs and margins, higher transportation costs and local supply troubles.
• Gas prices go up in the summer as Canada imports additional gas to feed summer travel.
• Price differences within a province can be affected by: taxes, competition between stations, sales volumes and distance from bulk fuel supply. For instance, wholesalers can offer volume discounts but stations further afield may see less business with the same or higher operating costs, meaning less opportunity to lower prices.

“While some provinces have opted to regulate gasoline and other fuel prices, this approach has not resulted in lowered prices for consumers in these jurisdictions.”

—Natural Resources Canada

More miles to the gallon

You may save a few dollars by paying attention to price forecasts, timing fill-ups before expected price jumps or after they drop. Properly inflated tires can also save a few dollars in the long run. And, depending on where you’re located, other assists like the GasBuddy app
(GasBuddy.com), giving prices by station, might help. Just remember that the gas you burn driving to specific pumps may cost you more than you’d save.

A cooling economy

On Prince Edward Island, home heating oil was hit particularly hard this spring. According to the Atlantic Provinces Economic Council, heating oil prices were the main driver of price growth on the Island earlier in the year. P.E.I. was seeing 8.9% year-over-year inflation in March, versus 7.3% for the region and 6.7% nationally. Lower income residents are due to see inflation relief payments in July.