Taking issue with Daudrich’s comments
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Having read the story and the comments from Wally Daudrich, a possible candidate to represent the riding of Turtle Mountain, I was amused and somewhat perplexed by some of the statements he made to the press concerning oil development in southwestern Manitoba and equalization payments.
Currently, Manitoba’s crude oil production is equivalent to approximately 43 per cent of the province’s refined petroleum products requirements. (Source: Manitoba Government website.)
To quote Mr. Daudrich, “I don’t see why Manitoba is burning a single drop of oil or using natural gas from outside Manitoba.” Unfortunately, I certainly do see why Manitoba imports oil from other jurisdictions. It’s called math.
Wally Daudrich
We don’t produce nearly enough oil and natural gas locally, and what is produced is already under contract to the companies working in the oil field.
Any company that steps forward to build an oil refinery would have to monopolize all of the current supply, plus find another 57 per cent from other jurisdictions.
It is also estimated that construction of a brand new oil refinery would start at $10 billion and rise from there, depending upon the scale and complexity of the build.
As of today, no company has expressed any interest in such a project in Manitoba.
Simply put, does Manitoba produce oil? Yes.
Does Manitoba produce enough oil to satisfy its own needs? No.
Secondly, to quote Mr. Daudrich again, “We are living on the good graces of our neighbours in Saskatchewan and Alberta and British Columbia, which actually pay into this equalization fund.”
This is a tired falsehood that has been repeated ad infinitum by various politicians who should know better.
Provincial governments make NO contributions to the equalization program in any way, shape, or form.
Equalization payments are financed by the Government of Canada from general revenues, which are raised through federal taxes. All Canadians pay into the same federal tax system, at their appropriate rate, regardless of where they live in our nation.
If Mr. Daudrich wishes to turn Manitoba into a “have” province from, in his own words, a “third-tier province,” I would hope he starts from a baseline of reality rather than flights of fancy and outright falsehoods.
STUART OLMSTEAD
Carberry