Diane Francis on Canadian Politics

Canada's labor Woes

2006-06-24T14:49:00.000-07:00

Canadian labor market problems

Diane Francis column Friday Post June 23:

Canada's labor situation worsens because needed reforms elude and politicians don't get it.

For instance, Gatineau contractor Jocelyn Dumais has been fighting Quebec's closed-shop labor laws for years and he called recently with some upsetting news. The McGuinty government last month backed off a piece of legislation that was designed to force Quebec to level the playing field in the construction industry.

For decades, Quebec has forbidden non-resident Canadians from taking construction jobs while Quebecers have been free to work anywhere else in the country. Notably, they swamped the labor markets along the borders until the Mike Harris government passed Bill 17 which forbid them from working in Ontario until Quebec backed off its restrictions.

"Last month the Ontario government cancelled Bill 17 which forbid Quebec construction workers from getting employment in Ontario unless Quebec changed its unfair labor laws," he said. "They call it a shared labor mobility agreement, but it's a fake."

"The Ontario government tried to get me to support this but it's not what we've been fighting for," he said. "Here's what they said they got in exchange: Ontario workers may apply to work there but there were many restrictions. They had to pass an exam, provide certain evidence of experience and had to already be working in Quebec. That's not labor mobility."

Ontario added that Quebec agreed to let Ontario residents accept construction jobs involving Hydro Quebec contracts, but only if the salaries were $100,000 or more.

"That was just an exemption for big contracting companies like Ellis Don," said Mr. Dumais.

He's one of my favorite Canadians and is founder of the Association for the Right to Work (www.adat.ca). Over the years, he has lobbied provinces, staged road blockages and raised hundreds of thousands to mount a Supreme Court of Canada case which, unfortunately, lost. (His charter challenge argued that if workers have the right to associate they also should have the right to not associate. The Court disagreed.)

But he hasn't given up and hopes to reverse this unfair deal. He also wants to warn Ontario that the McGuinty government is looking at closed-door laws like Quebec's because of all the illegals and non-union members working in the province.

By the way, Quebec's unions run the show there and their construction sector is embarrassingly restrictive: Workers must be union members or obtain a special work permit from the province which are about as readily available as Green cards. People are routinely rounded up on sites for the "crime" of working illegally, fined and even jailed.

Another Voice of Reason

Meanwhile, the labor situation worsens nationally as the giant sucking sound from Alberta's megaprojects continues apace and unions stand in the way of labor mobility through featherbedding and apprenticeship restrictions. What follows is a thoughtful letter from union member John Gilmurray:

"The real problem with labour policy in Canada is the union `local' system. On a recent visit to England and Ireland I was surprised that there are no locals, just one trade union congress for each country.

Everybody is hired directly by a construction company based on their resume. There are no grandfather clauses, no middle-aged white guys hanging around a union hall dishing out jobs to friends. Supply and demand are the rule. Thousands in Dublin have vacated jobs as teachers and bank clerks to become carpenters and electricians. No wonder they have one of the the best economies in the world."

"The present shortage of skilled labour in Alberta/Fort McMurray is an almost entirely artificial creation. A small percentage of the millions of skilled labour unemployed all over Europe could be in Alberta within weeks if our bungling federal immigration bureaucracy and archaic union locals would get the hell out of the way and allow our efficient market system to work."

"There are more people getting hired from carparks and street corners in the U.S. than are now dispatched from union halls. Globalization is creeping in through the back door. In Canada, the young people from Eastern Europe and South America who are turning up on construction sites all over Ontario, Alberta and B.C. may be the trail blazers of our future labour policy. The recent mass hiring of non union workers in Ft. Mcmurray,the construction of new Toyota plants all over the USA and Ontario spells a seismic change is afoot for our unions. Either we change or the new world market will do it for us."

Canada's Labor Law Problem

2006-06-22T14:59:00.000-07:00

Diane Francis column Friday Post June 23:

Canada's labor situation worsens because needed reforms elude and politicians don't get it. For instance, Gatineau contractor Jocelyn Dumais has been fighting Quebec's closed-shop labor laws for years and he called recently with some upsetting news.

The McGuinty government last month backed off a piece of legislation that was designed to force Quebec to level the playing field in the construction industry. For decades, Quebec has forbidden non-resident Canadians from taking construction jobs while Quebecers have been free to work anywhere else in the country. Notably, they swamped the labor markets along the borders until the Mike Harris government passed Bill 17 which forbid them from working in Ontario until Quebec backed off its restrictions.

"Last month the Ontario government cancelled Bill 17 which forbid Quebec construction workers from getting employment in Ontario unless Quebec changed its unfair labor laws," he said. "They call it a shared labor mobility agreement, but it's a fake."

"The Ontario government tried to get me to support this but it's not what we've been fighting for," he said. "Here's what they said they got in exchange: Ontario workers may apply to work there but there were many restrictions. They had to pass an exam, provide certain evidence of experience and had to already be working in Quebec. That's not labor mobility."

"Ontario added that Quebec agreed to let Ontario residents accept construction jobs involving Hydro Quebec contracts, but only if the salaries were $100,000 or more. "That was just an exemption for big contracting companies like Ellis Don," said Mr. Dumais.

He's one of my favorite Canadians and is founder of the Association for the Right to Work (www.adat.ca). Over the years, he has lobbied provinces, staged road blockages and raised hundreds of thousands to mount a Supreme Court of Canada case which, unfortunately, lost. (His charter challenge argued that if workers have the right to associate they also should have the right to not associate. The Court disagreed.)

But he hasn't given up and hopes to reverse this unfair deal. He also wants to warn Ontario that the McGuinty government is looking at closed-door laws like Quebec's because of all the illegals and non-union members working in the province.

By the way, Quebec's unions run the show there and their construction sector is embarrassingly restrictive: Workers must be union members or obtain a special work permit from the province which are about as readily available as Green cards. People are routinely rounded up on sites for the "crime" of working illegally, fined and even jailed.

Another Voice of Reason

Meanwhile, the labor situation worsens nationally as the giant sucking sound from Alberta's megaprojects continues apace and unions stand in the way of labor mobility through featherbedding and apprenticeship restrictions. What follows is a thoughtful letter from union member John Gilmurray:

"The real problem with labour policy in Canada is the union `local' system. On a recent visit to England and Ireland I was surprised that there are no locals, just one trade union congress for each country. Everybody is hired directly by a construction company based on their resume. There are no grandfather clauses, no middle-aged white guys hanging around a union hall dishing out jobs to friends. Supply and demand are the rule. Thousands in Dublin have vacated jobs as teachers and bank clerks to become carpenters and electricians. No wonder they have one of the the best economies in the world."

"The present shortage of skilled labour in Alberta/Fort McMurray is an almost entirely artificial creation. A small percentage of the millions of skilled labour unemployed all over Europe could be in Alberta within weeks if our bungling federal immigration bureaucracy and archaic union locals would get the hell out of the way and allow our efficient market system to work."

"There are more people getting hired from carparks and street corners in the U.S. than are now dispatched from union halls. Globalization is creeping in through the back door. In Canada, the young people from Eastern Europe and South America who are turning up on construction sites all over Ontario, Alberta and B.C. may be the trail blazers of our future labour policy. The recent mass hiring of non union workers in Ft. Mcmurray,the construction of new Toyota plants all over the USA and Ontario spells a seismic change is afoot for our unions. Either we change or the new world market will do it for us."

The New Canada

2006-06-03T12:20:00.000-07:00

May 23 Post column:

NEW YORK CITY -- Canada's Minister of Finance, Jim Flaherty, brought an upbeat message to Wall Street and to expatriates living in New York City yesterday about "the New Canada".

"There's optimism up there and you should think about coming home," he told a lunchtime audience at the Canadian Club. "I'm told there's a bit of a reverse brain drain in the financial sector these days."

Canadian unemployment is the lowest it has been in 30 years and employment rates have set new records, he said. Increasing investments in new machinery will enhance productivity levels in manufacturing, which is being hurt by the soaring Canadian dollar.

"There's going to be C$5.6 billion of investments in the auto sector," he said. "And C$45 billion in the oil sands by 2010. Exports will triple in ten years."

He also fielded questions from expats such as the cost of bilingualism and the danger of commodity price volatility to the Canadian economy and its currency.

"We like to avoid sudden changes and watch commodity prices carefully. We also watch U.S. housing starts," he told the audience of 200. "But these are markets and markets do what they will do."

As for the Canadian dollar, he cited China, other Asian economies and U.S. fiscal deficits as being part of the problem.

"I don't talk about the value of the Canadian dollar, but it certainly has borne the brunt of the reduction in the value of the U.S. dollar," he said. "There are three big risks in the global economy: global economic imbalances; the inflexibility of certain Asian currencies and concern about some fiscal policies in western countries that don't lead to balanced budgets."

Another audience member asked why French is emphasized when Mandarin or Cantonese are far more important languages in the global economy.

"Canada has two official languages. My ability in French is limited and it's something I'm working on," said Mr. Flaherty, a native Montrealer. "But there are more languages spoken in Toronto than any other city in the world and in my view that's an enormous asset."

In a press conference, and then in a private interview, Mr. Flaherty elaborated on his remarks.

Q: What about bank mergers and allowing banks to sell insurance?

A: "We have said there will be no change in the status quo. Parliament has a role to play in this and certain of its committees will look at the issues."

Q: Will the new Tory government allow the takeover of Falconbridge or Inco or both by a foreign corporation such as Xstrata Inc . or others?

A: It's not my responsibility as Minister of Finance. But the minister involved is reviewing that. Obviously, we're more inclined to be free and fair traders. But I'm not referring to any specific transaction. And there are other issues involved in this case I'm told.

Q: You and Treasury Board minister John Baird are searching to cut C$1 billion from spending this year, are you looking at cutting the CBC's subsidy which is nearly that size?

A: "We're going to look at everything in coming weeks. There are no sacred cows."

Q: You're top of the polls, could win a majority if you called an election sooner rather than later, but are you going to do that given the cost of an election (C$200 million)?

A: "We want to govern and we are not shy about putting forward our priorities even though we are a minority government. We are keeping our commitments about tax cuts and accountability. We think we have voters who voted for change."
"But I have noted recently a more obstreperous attitude in Parliament. And we still have our budget bill and accountability bill to pass, then we will go from there. The Liberals will have no new leader until December."

Q: What do you think Canada will look like in five years if you win a majority?

A: "It will look more like Ireland, more dynamic, more attractive to investors, brighter, more positive, outward looking."

Q: Are you talking to the Governor of the Bank of Canada about keeping interest rates down to take the steam out of the Canadian dollar's rise?

A: "We don't speak about it. We do have discussions and it's my legal obligation to do so."

Q: What do you feel about Kyoto?

A: "It's a failure with unrealistic targets, a policy written on the back of an envelope by the former government, according to Scott Brison, now running for the Liberal leadership. It's a charade. Emissions are up. It's a serious issue and we have allocated funds to mass transit and reduction of emissions."

Q: Are you surprised at how well the government is doing in the polls in Canada?

A: "Polls are polls. But I think it's a credit to Prime Minister Stephen Harper because Canadians are thirsty for a real leader. They don't agree with everything he has done but he is businesslike and gets it done. And I don't have to flatter him either because I'm already doing okay. I'm Finance Minister.

Ambassadorial View from Washington

2006-05-24T13:38:00.000-07:00

Diane Francis column may 23

NEW YORK CITY - Canadian Ambassador Michael Wilson set aside some time this week for an interview on his new job. His tenure has been dominated by the softwood lumber file, allowing him to spend only a handful of days in Washington, but there are many other interesting challenges ahead.

Q. How did your ambassadorship come about?
A. It came out of the blue. Derek Burney asked me early on in January, during the election, if I was looking for anything. I said no. I just want to see this team win. After the election, the rumor about me was bubbling and this was the only thing that would have brought me back in public life."

Q. What's the attraction?
A. "The attraction is to be in the most important capital of the world today...to be there, when both the president and prime minister have gotten around bumps in the road and all those problems are behind us."

Q. What's the attitude toward Canada?
A. "Certain people in the administration were quite upset with the Iraq decision. Some people said they were less upset by the decision than by the way the decision was given [without advance warning].

Q. What's the view toward Canada as an ally today?
A. "It's clear we are an ally because the Prime Minister's first international visit was to Afghanistan. This sent an important signal to our troops over there. It sent a signal to the Canadian people that it's important to us as a country to help a democracy survive and it also sent an important signal to our 34 allies in the Afghan coalition."

Q. The Canadian tourist industry is concerned about the new requirement, as of January 2008, that anyone entering the U.S. must have a passport. This will mean that Americans visiting Canada will have to have a passport to re-enter the U.S. and since only 20% have passports it will destroy tourism and conference sectors. What are we doing about this?
A. "Americans are not saying there has to be a passport. There could be an identity card. There is a group of Canadians and Americans working on the technology, how people can acquire cards and systems integration, or linking cards to data bases. Until they determine the action required, there's no need to pound on the table. Let's wait to see if we're facing a real problem on implementation."
"We have no quarrel with the security concerns. Security trumps most things in Washington. And Canada has been pulling its weight since 9/11. We have spent C$10 billion on border and customers securities, immigration cooperation, sharing information. Have we done enough? We have to do more."
"We also have to address misinformation. Two months ago, someone said 11 of the 19 terrorists involved in the 9/11 attacks had come from Canada. Not one of them did. This is frustrating. We are looking at ways of addressing that challenge by identifying what we've done to the American public. We don't want terrorists in our country anymore than Americans do. We don't want people blowing up the TD Centre or whatever."

Q. What dangers do you see lurking in the U.S. political climate that could adversely affect Canada?
A. "This country is thinking in a more protectionist and isolationist way than we've seen in a number of years. Leadership is important, both in the administration and Congress. They cannot let the most powerful nation in the world withdraw into itself."

Q. What about Canada's energy trump card?
A. "Energy is number one for us. Our export of energy is very definitely appreciated but this is not a card to play at this time."
"In oil, we are the number one exporter and sell more to the U.S. than Mexico, Venezuela and Saudi Arabia. These countries have a less secure profile and we must nremind people of this reality so when the Americans come to us with another problem they have a more positive mindset. Our energy situation, particularly the oil sands, becomes a beneficial backdrop to any discussions with Americans."

Q. Given the C$'s strength is there any chance of a single currency?
A. "No. Look at the last 20 years. In 1986, the C$ was 69 cents, in 1990n it was 88.5, in 2002, 62 cents and now it's 90ish. Take that flexibility out of the economy, and you have to get flexibility somewhere else. One part of the economy might benefit from a fixed dollar and it would be worse for another part. By blending the currencies you would build in a new stress."

Genghis Con Job

2006-05-17T19:19:00.000-07:00

Diane Francis column Wednesday may 17:

Mongolia will be kicked into the economic dark ages if its President signs a draconian law passed last week which virtually confiscates all mining operations.

And the Canadian government should get involved. Ottawa should issue a stern rebuke given the damage that will be caused to Canadian companies and their investors who have poured millions into Mongolian exploration and operations in good faith.

Canada's mining industry dominates exploration and development in that country. Hundreds of Canadian companies, led by Ivanhoe Mines Ltd. and Centerra Gold, will be adversely affected by the law which abrogates agreements made with the industry since the collapse of communism there in the early 1990s.

Their shares fell dramatically this week on news of the tax which was passed late last Friday night. It must be signed by the President of Mongolia to become law.

"The problem with Mongolia is that there is a lot of government there, but no leadership," said mining consultant Terry Ortslan with TSO & Associates in Montreal. "This will look bad on them and if the President signs this legislation, mining activity will dry up."

The proposed windfall profits tax would allow government to grab 68% of the prices above levels not seen in several years. For instance, the government would take 68% of copper prices above $1.18 a pound. It's currently trading as high as $4 a pound. It would take 68% of gold prices above $500 an ounce. Gold is currently above $700 an ounce.

Centerra, spun off from Saskatchewan's Cameco Ltd., is producing gold in Mongolia and will be immediately impacted. Ivanhoe is still exploring and has yet to sign a binding agreement with the government there.

Mongolia's parliamentarians appear to have been swept up in a form of misguided economic nationalism aimed at grabbing revenue in light of record commodity prices.

Threats of new royalties, and more drastic measures, are sweeping Indonesia, Africa and parts of Latin America. Venezuela is threatening to nationalize its oil industry. Bolivia recently seized gas fields. Peru is talking about high royalties after the fact on mining operations.

"Mongolia is not unique," said Ortslan.

But what was unique about Mongolia was its business-like approach to attracting exploration. Its Mining Act was drawn from similar laws in Australia, Canada and the United States and offered great incentives for companies to explore and promised to reward success.

It was the most generous regime in the world which was necessary to attract activity to a hostile, cold, landlocked and remote country perched atop China.

I visited the country in August and its officials sounded convincing.

"Mongolia looks forward to becoming a mining powerhouse," said Mongolia's Minister in charge of resources, Lursanvandan Bold, in an interview in his office in Ulaan Bataar last August. He spoke flawless English and German to a group of European money managers assembled to learn about the country's mining regime. '

"Last year, 4% of all exploration dollars spent around the world were invested here," he said. "We are now one of the top ten exploration destinations in the world and the only Asian country in that list."

The country had a right to be proud.
'
Currently, there are 6,000 licenses for exploration and mining granted to 800 companies. Nearly one-third of its total land mass, which is three times' bigger than France, has been licensed for exploration.

The country is an Asian version of Canada complete with its cold climate, space, sparse population and resource wealth which includes everything from oil and natural gas to coal, uranium, gold, copper, lead, zinc, rare earth elements, phosphorite and silver. There are also discoveries
of massive underground water reserves beneath the Gobi.

But last week's events show that its politicians seem bent on reneging on their promises.

This will cost the country its credibility and prove to be an enormous mistake. Mongolia will revert to its backward state. Before the 1997 Minerals Act, the country's mining industry consisted of a handful of foreign explorers and a few inefficient Russian mines in operation.

"The Russians have a gigantic, joint venture mine with Mongolia and will be furious over this," said Mr. Ortslan. "That mine represents half the trade earnings for the entire country."

Ivanhoe Chairman Robert Friedland was one of the first to be attracted to Mongolia and within short order his geologists made a massive copper-gold discovery, Oyo Tolgoi. Ivanhoe has been spending US$10 million a month drilling holes, testing results and pouring a gigantic
concrete shaft in preparation for production.

Ivanhoe's find is Mongolia's flagship mining prospect and helped spawn a mining boom in this landlocked country of 2.5 million Mongols and 40 million livestock.

"It's unfortunate for Mongolia to make such a major error. They are sending a message to the world. The President should come out and say he's not signing it and that the country keeps its promises."

Stephen Harper's Business Smarts

2006-05-10T10:26:00.000-07:00

Diane Francis column for Wednesday Post May 10:

Canadians finally got it right when they turfed out the Liberals and took a
chance with the Tories and Stephen Harper.

Business is satisfied with his government so far, and should be. The tone of this government is vastly improved and in just three months there have been two achievements - the settlement of the softwood lumber deal and an excellent budget last week.

The budget hit all the right notes and even drew fire from the country's handful of neo-con commentators, all three of them. The significance

of this is that it means the budget positioned the Tories dead centre and away, policy-wise, from the extreme right as well as the extreme left.

In other words, the Tories are the country's only pro-business party of the
center. And that's a winning franchise in Canada from coast to coast. This is because the majority of Canadians understand that their welfare state can only be fuelled by wealth creation.

The budget also benefited everyone. Lower income families gained the most, proportionately, from the lower GST and the $100-a-month child allowance. The childcare funds also disproportionately benefit immigrants, who often share childrearing responsibilities in their homes among family members and do not desire, nor need, institutionalized daycare.

Clearly, the business-like manner of this government and the absence of scandal puts the lie to the labels of Stephen Harper as "scarey" or that the party is “populated by extreme wing nuts” ready to gut the social safety net.

Harper's leadership style is also a winner in the eyes of business. He
leads his caucus like a CEO runs a public corporation which means transparency, full disclosure to "shareholders” and clear messages from a single spokesperson.

The control of press communications has upset the Liberal media, and various scrum-rats, who are really fight promoters, not political reporters. They love nothing more than to ferret out showboats like Carolyn Parrish or other loose cannons. So far, so good and caucus discipline has held firm.

Most of all, the Harper government is good news because it means that the country's business community can relax a little. Business life is tough enough without facing worries over anti-American remarks by Liberals in cabinet or policies imposed by closet socialists who misunderstand or dislike capitalism.

Of course, not everything has been handled well by the Tories. The flag flap was a mistake and the government had no business making unilateral decisions without consulting veterans, the military or bereaved families.

But Harper’s economic policies are pretty flawless to date. And he deserves full marks for tabling legislation that will clean out the corruption that the Liberals left behind. Giving the Auditor General teeth is a great step forward, along with other measures.

Diplomatically, the Tories have pulled off the unattainable by settling the software dispute. For years, the nation’s softwood lumber producers have been damaged by the nastiness of the Liberals toward Americans.

The problem began when Jean Chretien appointed his nephew, Raymond Chretien, as Canada's Ambassador to the United States. Clearly, Raymond was better suited to another line of work. In 2000, he was quoted in the press undiplomatically favoring the Democrats over the Republicans in that election.

After the Republicans won, the gaffe was never overcome despite Raymond’s sudden transfer to Paris. Worse yet, Uncle Jean escalated the disdain through his own ill-considered words and deeds, then unleashing his name-calling anti-Americans. This was equivalent to the captain of the hockey team swinging at the referee.

So the Liberals lost the only viable solution to the softwood problem. To look like they were doing something productive, they foolishly opted to spend tens of millions of dollars in American and international trade courts.

It was a doomed strategy because appeals are endless, the softwood lumber has always been a special managed relationship exempt from the Free Trade deal and because American trade courts always favor the home team.

Softwood lumber has never freely traded because of politics and the Liberals under Chretien and Martin never understood how the U.S. system works.

Washington is not a parliamentary hierarchy, but a co-management system. This means that the only lobbyist and litigator that can help, or will, help foreigners fend off Congressional protectionism is the occupant in the White House.

And all it took on the part of the Tories was to bring back civility in its dealings with the White House. In no time, the administration waded into the controversy and stopped the damages imposed by protectionists on Canada’s softwood lumber producers.

Such relations are part of the DNA of the Tory party, by the way. This is because a pro-business party understands that diplomacy and trade are no

different than any deal between two parties. Mutual respect is the infrastructure needed in order to do business.

How about getting Canadians working???

2006-02-11T15:14:00.000-08:00

Diane Francis column Tuesday Feb. 7:

NEW YORK CITY -- Australia is desperately looking for tradesmen and has undertaken its largest immigration drive in 40 years across Europe. Like Canada, Australia is a resource-rich country in the middle of a commodity price boom without enough skilled workers to realize its potential.

The Australians are offering four-year visas to anyone under 45 years of age with six years’ experience in a trade that’s on Australia’s “skills shortage list”. They promise entry within three working days,

Canada, on the other hand, faces an even greater shortage, particularly in its booming oil sands region
And yet, Ottawa’s immigration department remains snail-like in its processing of workers with needed skills. Even more puzzling, unemployment among construction workers in Quebec and the Maritime Provinces is between 30% and 40%, according to StatsCan figures.

There’s also thousands of illegal construction workers who have filled shortages in booming Ontario from Ukraine and Poland. They would love to get visas so they could move out west or wherever there was work. But Ottawa has yet to admit, or process, these people.

The province with the biggest looming crisis is Alberta and its Premier Ralph Klein has begun to look for solutions.
"There are lots of big projects on the books here in Alberta, and the only thing holding them back is a shortage of skilled labour,” he said,

For instance, Alberta is contemplating new roads to link the oil sands region to remote aboriginal communities in order to tap manpower.

The province has also earmarked millions to train another 5,600 technical workers. The number of licensed apprentices has increased by 50 per cent since 1997. The government is working with school boards to promote the trades as a viable career choice, and moves are being made to try and open doors to temporary foreign skilled workers to help meet the demand, he added.

Meanwhile, the oil patch is not standing still. Canadian Natural Resources Ltd.’s oil sands play is the country’s most ambitious. The company’s contractor, Horizon Construction Management Ltd., has undertaken an aggressive and innovative recruitment strategy. It has overcome the accommodation and transportation problem by creating a fly-in camp at a nearby resort to house workers. Some are on a two-week-on, one-week-off work stint.

“Horizon invites all qualified trades people and indentured apprentices to express an interest in joining our contractor’s teams,” reads its website. “The Horizon Project offers flights to and from worksite, first class camp facilities and leading edge work force and skills upgrading opportunities.”

The trades sought are: carpenter; scaffolder; skilled laborer; ironworker; plumber; crane operator; pipe fitter/steamfitter; millwright; electrician; welder; instrumentation; insulator; equipment operator; boilermaker and cement finisher.

Debbie Wershler, staffing manager at Duke Energy, said in a recent Canwest interview, that individual companies have been trying to solve many of these problems without much success and now they have a platform to find common solutions in an industry that is fiercely competitive.

"The best way to make a big impact is for all of the industry to pull together," says Wershler. She says if companies wait too long, they will find themselves scrambling to find the workers required for the industry to increase production by the 50 to 100 per cent expected within the next 10 years.

Fortunately, industry organizations are beginning to consult with one another in the country’s petroleum regions – the oil sands; the east coast; the far north and the traditional basins in the three westernmost provinces.

Add to those challenges will be the thousands of workers needed for the construction of pipelines to link the oil sands, far north and Alaska gas to markets.

Large companies can mount campaigns to attract employees, but the issue affects all businesses in western Canada. A recent Canadian Federation of Independent Business survey in Alberta found that 60% of its members cited worker shortages as their biggest challenge.

What’s needed is pretty obvious. More efficiency and targeting in terms of immigration and more encouragement of kids by their teachers and parents to enter trades.

But governments can and should only do so much. The real solution – given Canada’s western boom and eastern stagnation -- is for the market to adjust. Western Canada’s businesses and oil companies will have to dramatically up the ante to attract workers. As they increase wages, along with housing and other benefits, the workers will come.

Teapot Tempest

2006-02-07T08:26:00.000-08:00

Prime Minister Stephen Harper named a “lean and mean” cabinet yesterday devoid of patronage plums to unseasoned rookies.

Controversy over his appointment of a Liberal, who just crossed the floor, and a Quebec lawyer via the Senate have generated some heat but no light. Harper is a guy who picks quality, not tokens or favorites. Stay tuned. This little tempest is very forgettable.

My Feb. 7 National Post column:

The reduction to 26 from 40 is a welcome step in a country where the cabinet has often been the size of Jamaica’s parliament and sometimes populated by persons whose only obvious attribute was loyalty to the PM.

Stephen Harper is a loner, politically speaking, and has chosen a cabinet based on his opinion as to their suitability for the job. That means he will just as easily unseat those who don’t work out and replace them with others more capable.

His appointment of Jim Flaherty as finance minister is welcome. Jim is really smart, hard working and distinguished himself in the financial portfolio in the Mike Harris Tory government.

It’s also really important that Flaherty has a key job because he proved in Ontario that he’s a no-nonsense executive who both inspires, or fires, civil servants who are insubordinate or who insist on answering to other political agendas.

Likewise, Harris cabinet ministers Tony Clement and John Baird have good track records. And Peter MacKay will be a credible and personable Foreign Affairs Minister.

Bottom line is that Canada’s business community should be much relieved at this turn of events. Finally, the country has a “board of directors” that understands and admires free enterprise.

Hopefully, this minority government will have at least 18 months or more to implement some important policies and convince more Canadians that it’s time that the business of Canada was business.

Here are the priorities as I see it:
1. If this government does nothing else it must address the over-taxation of Canadians. The lowering of the GST is a brilliant, progressive form of tax cut which benefits middle and lower income Canadians who spend most if not all of their disposable income and are fully tax on those expenditures. Capital gains taxes and others which enhance capital markets and job creation are also badly in need of reduction.

2. There should not be any in-country bank mergers allowed, but the Tories should open up the banking system to foreigners. Mergers are merely financial engineering exercises which will cause huge job losses and reduce choices available to businesses.

3. Re-create the Department of Manpower and Immigration to insure that newcomers will have required skills which means that all entrants will land jobs immediately. Processes should be revamped so that skilled workers can gain entry within weeks not years.

4. Waiting times are not only a problem when it comes to health care. The Conservative government must force the Departments of Environment, Industry, Transportation and Natural Resources to deal promptly with project requests and decisions. Waiting periods are excessive and unnecessary, often due to anti-business obstructionism inside the civil service. The country must streamline its processes.

5. Public Works, the source of so much corruption, should open up its tendering process internationally and the Requests for Proposal (RFP) process should be eliminated for the most part. Where necessary these should be adjudicated by independent people and results should be completely transparent.

6. Similarly, defence contracts should be transparent and open to the lowest bidder irrespective of what region of the country to avoid the favoritism of the past.

7. This government should also make it a priority to repair the frayed relationship with the Americans in Washington. Of course, their election is a de facto fix. That’s because they get it. The Americans are not there to heckle and bait for some imagined political gain as the Liberals have done.

Most interesting about this election is that Quebeckers voted strongly for a new pro-business party and rejected the statist, socialist Bloc or the patronage-riddled Liberals. The number of ridings where Tories came in as a strong second, bodes well for the possibility of another Tory election win.

But the Tories have to prove they can deliver credible and improved government services.
They also have to demonstrate that Canada can match American living standards, and enhance its social safety net, by shrinking the size of its federal government and making it more efficient and business-like.

To do so, Canada must capitalize on the commodity price boom underway. That means cutting red tape when it comes to starting needed mega projects, whether they be in the tar sands, the arctic or infrastructure such as pipelines, roads or bridges to facilitate the flow of goods south of the border.

It also means mending fences in order to enhance trade opportunities. All over the world.

O Canada

2006-02-04T05:40:00.000-08:00

Canadian expats are an interesting crew but their sentiments are well expressed in a recent blog by an Iranian blogger Hossein Derakhshan. Seems his story isn't newsworthy according to the elite's mouthpiece, the CBC.

That broadcaster, with a tiny market share and annual taxpayer subsidy of $800 million, has long outlived its purpose and should be privatized or commercialized.

Stay tuned.

Canadian Politics: Tory Triumph!!

2006-01-24T08:54:00.000-08:00

What's most important about the Tories taking control of the federal government is that the public at large will be able to realize the Liberal scare tactics (i.e. Harper's a fascist, Bush lapdog who will gut our welfare state) for what they are. Decades of destructive lies that have robbed Canada of proper policy debates and choices.

The Tories should avoid any controversial platforms which may result in another election and simply show that they can govern properly. This means attendance at important international events such as the G8 in June and elsewhere so that Canadians can see that Harper can deport himself with dignity and prime ministerially.

The Tories must understand that they have to overcome and put to the lie these decades of Liberal propaganda, that the Grits are the only governing party. So they must stay away from divisive votes. My guess is that the only winning platform for the Tories to pursue is the proposed reduction of the GST and the only way that Harper will get Bloc support, which he will need, is to agree to a compromise.

Bloc leader Gilles Ducette suggested in 2004 that the entire GST be assigned to the provinces, which is something that I don't disagree with. It will force the federal system to shrink, give required funds to the provinces for health, education and welfare (which is their constitutional responsibility, not the federal government's) and make Canadians realize that the federal government is bigger than need be.

If they distinguish themselves over the next two years -- and gain credit for what should be a booming economy -- they can convince Canadians there are choices at the ballot box. And, more importantly, their success in steering carefully while in office will create chaos in the Liberal party where the knives will be drawn for Mr. Martin.

The Grits are also hugely in debt now which makes a new leader more nervous about challenging Martin. And Martin as a leader will continue to prove to be an unmitigated disaster.

Finally, the Liberals have gone too far.

Canadian Politics: Canada's Election and Checks and Balances

2006-01-19T08:52:00.000-08:00

Power corrupts and absolute power corrupts absolutely.

That's the lesson that Canadian should learn from the 2006 federal election. Throw out the corrupt Liberals, but demand that the Conservatives put in place the checks and balances in the Canadian parliamentary system that are missing.

These include only a few simple measures, none of which require an amendment to the constitution.

Here's what needed:

1. Place the Treasury Board outside of cabinet and give it sweeping powers to inspect, expose and rollback excessive spending when necessary. The Treasury Board was an independent watchdog until Mackenzie King made it a cabinet position answerable to the prime minister. Watchdog became lapdog.

2. Remove the Privy Council Office from the Prime Minister's Office. This was another measure by Mackenzie King, which enhanced a Liberal dictatorship, which defanged the Governor General who was left by the British in charge of making patronage and other appointments. This measure, putting the PCO into the PMO, seeded several generations of Liberal-leaners on the bench and civil service.

An independent Privy Council Office with appointments made at the pleasure of a committee of Parliament, proportionate to party representation, would clean up Canada within a few years.

3. Remove non-confidence motions except for fiscal votes. That would free up backbenchers to vote as their constituents wish. Parties should use whips sparingly, not constantly as is the case in Canada. In Australia and Britain, Whips are on around 20% of the time. In Canada, the Liberals use Whips all the time.

Obviously, there are many more. Here's a sampling of what other conservative/democrats suggest: See progressive right or blueblogging soapbox or smalldeadanimals or a view from the right or the good fight for starters.

Canadian Politics: A Surprising Vote

2006-01-17T08:52:00.000-08:00

Add to that the Financial Post and Roynat Forecast tour enjoyed huge turnouts with new people. Canadians will register a surprising vote.

Canadian Politics: The Canadian Election

2006-01-17T08:51:00.000-08:00

Canadians are ready to get even. It's pretty cool. They have alot of patience. But the propaganda from the federal Liberals is finally being understood for the nonsense it is. It's sweet.

Canadian Politics: Ignatieff's parachute

2005-12-09T08:48:00.000-08:00

The Ignatieff debacle worsens with news that he told the Boston Globe that he would return to Harvard if he loses the election in Canada, thus underscoring his opportunistic commitment to the country of his birth.

Also, there is a 25-page legal opinion (undoubtedly by a Liberal law firm) which states that Ignatieff is a resident of Canada technically. This is important, and ridiculous, only because one must be a resident of Canada in order to run for Parliament.

In his case, one must be a Canadian resident by intention, or by hours, in order to be parachuted into Parliament.

The Potemkin Democracy of Paul Martin strikes again.

Canadian Politics: Canada's Potemkin Democracy

2005-12-03T08:24:00.000-08:00

Potemkin was a term applied to the practice by former Tsars of Russia to erect facades of happy villages in order to delude foreign officials into believing that the country was a pleasant and prosperous place.

Canada's Liberals, also erect happy riding associations in order to delude people into believing that the country is a democratic and just place. Ignatieff's coronation as a candidate is simply the latest manifestation of the undemocratic practices in Canada.

Read this and weep.

Posted on Asian Tribune

Date : 2005-12-03

Canada's Prince of Darkness, Michael Ignatieff Or Thomas Friedman in Stripped Trousers, Silk Stockings and Garters By John Chuckman

If Michael Ignatieff is anything, it's connected, and I do not mean just to the relatively small establishment of Canada, I mean connected to the shadowy godfathers of World Empire.

Ignatieff has a rich career in America where truly loyal service, whether by natural or adopted sons, is always handsomely rewarded. Another Canadian, David Frum, made it all the way to the White House with his custom-tailored scribbling. So too such a genuinely dangerous American as Pat Buchanan. How does a man like Thomas Friedman pick up prizes writing advertising copy for the Pentagon?

As I said, loyalty is handsomely rewarded. David Frum and Pat Buchanan both fell from grace, but there is little danger of Ignatieff's doing so. He almost perceptibly pants and gasps when he applies words to the imperial splendor of which he stands in awe.

Ignatieff, while running what is essentially a marketing program for America at the forty-billion dollar endowment called Harvard, has kept in touch with Canada. Every once in a while he is interviewed by someone at the CBC or the Toronto Star. The interviewer's tone typically is toe-scrunchingly along the lines of, "Here is one of the age's great intellectuals, and he's from Canada!"

Certain Canadians do have an embarrassing tendency that way. So I am familiar with Ignatieff's quietly arrogant tone. Oddly, it is almost the tone of a minister of the Gospel, educated and polished to be sure, one of those New England clerics safely ensconced in a sinecure at some dignified pile of stones where he only has to address a small, blue-haired congregation once a week to earn his keep, but a preacher none the less.

Ignatieff doesn't give speeches or write essays, he gives sermons, rather dull sermons with just a hint of suppressed rage under the surface. The rage, perhaps regarded as appealing or even sexy by some, if you listen carefully, is directed at people who do not embrace his views.

Yet I have only now discovered the immensity of Ignatieff's arrogance. You see, he's been dropped into a federal riding (for American readers, the equivalent of a congressional district) to run for Canada's Parliament. He is being dropped by national leaders of the Liberal Party in search of "star" candidates for an approaching election which is expected to be close, but he has been dropped into a riding where a substantial number of Liberal faithful disagree with his alien views.

Moreover, he has written in one of his books, as we shall see, words insulting to many residents of the riding. Here is one Toronto columnist's description of Ignatieff's proud path to achieving the great honor of his life:"And snookering one potential opponent, name of Shwec, on the grounds that he wasn't a party member, although he'd paid his dues, and another, name of Chyczij, who also happens to be the association president, on the grounds that he hadn't resigned the presidency when he filed. Not to mention locking the office door ahead of the deadline so they couldn't file in time."

It sounds a great deal like politics in Richard J. Daley's Chicago or President Mubarak's Egypt.

Ignoring requests for his withdrawal, Ignatieff spoke at the riding association meeting to tell them what a great honor - the greatest of his life, as he put it - it was to be acclaimed candidate.

In this case, however, the words were almost lost in catcalls and heckling from members of his own party. At one point about a third of the audience got up and walked out of the meeting. At the end of a truly shabby performance, Ignatieff's handlers helped him through a side door to a waiting car.

You cannot completely judge Ignatieff's tone from printed words. You had to have heard CBC Radio's report with his voice to catch the full nuanced snottiness. One of Ignatieff's lines was "You must understand" that being dropped into a riding the way he was being dropped was an old party practice."You must understand" to people whose democratic rights he was opposing!

At the same time he pontificated, "I have stood all my life against intolerance. Do you seriously think I would insult any community in our country?"

Here the self-appointed candidate leaned on his role as self-appointed secular saint. The tone was exactly that of some earlier words of his, with reference to Canada's honorable stand against joining Bush's illegal invasion of Iraq. He said then, "If you oppose America, you pay," with a slight but discernable emphasis on "pay," almost relishing the word.

Ignatieff's "Do you seriously think" concerned Ukraininan-Canadian objections to demeaning descriptions in his writing. Judge for yourself, here is one of the most offensive passages from his 1993 book, Blood and Belonging: ''I have reasons to take the Ukraine seriously indeed. But, to be honest, I'm having trouble. Ukrainian independence conjures up images of peasant embroidered shirts, the nasal whine of ethnic instruments, phony Cossacks in cloaks and boots . . . ."

The attitude on display is perhaps best explained in an article by Sarah Schweitzer in Toronto's Globe and Mail where she gave the following précis of Ignatieff's family history:"His paternal grandfather, Count Paul Ignatieff, was minister of education for Czar Nicholas II of Russia. Following the Russian Revolution, the family moved to Canada, where Ignatieff's father, George, became a leading diplomat during Cold War era. Ignatieff's maternal great-grandfather, George Munro Grant, was a well-known Canadian advocate of British imperialism in the late 19th century, and an uncle, George Parkin Grant, was a conservative political philosopher."

Almost certainly there's an arrogance gene, the Russian aristocracy having been notorious for arrogant behavior. The people of Etobicoke-Lakeshore Riding in Toronto were not just expressing their anger at past words. This great worker for human rights has been a consistent advocate for Bush's illegal invasion of Iraq - that is, for the mass murder of one hundred thousand innocent civilians and the utter destruction of their country as a decent place to live. Ignatieff is also on record as a supporter of "mild" torture.

Here is an apologist for international lawlessness and selected barbarism, so long as they serve those who provided his sinecure.These are not views the majority of Canadians support. Since there are many rumors that this unpleasant man is to be groomed as a potential future prime minister, there is great cause for concern.

Paul Martin, Canada's current prime minister, is essentially a decent man, and I don't wish his government harm, but it is important to end the horribly archaic and anti-democratic practice of dropping candidates into ridings where they don't live and with which they have no attachment. Martin could only enhance his credibility by quickly finding a way to dump Ignatieff.

It's more important still to stop this barely-disguised American Neo-con from securing a future in Canadian politics where he can serve little other purpose than a kind of fifth-columnist for destructive interests. I will watch the election in this riding with more interest than the national contest, hoping people in Etobicoke-Lakeshore demonstrate genuine courage and independence.

And you needn't worry about Ignatieff's future. He has all bets covered. In preparation for his glorious entrance into Canadian politics, he recently became a visiting professor at the University of Toronto, having sought a two-year leave from Harvard. His New England sinecure and its wealthy blue-hair congregation quietly await his return.

By John Chuckman, a retired Chief Economist for Texaco Canada. He is a prolific writer and his articles can be found on websites such as CounterPunch, SmirkingChimp and Asian Tribune .