Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
David Frum, in a debate with Lawrence Martin at the Museum of Civilization in Ottawa this September, looked at Pierre Trudeau’s legacy.
Frum said Trudeau’s turn at prime minister was a disaster for Canada. One of the many transgressions was the National Energy Policy:
The NEP tried to fix two different prices of oil, one inside Canada, one outside. The NEP expropriated foreign oil interests without compensation. The NEP sought to shoulder aside the historic role of the provinces as the owner and manager of natural resources.
Most other Western countries redirected themselves toward more fiscal restraint after 1979. Counting on abundant revenues from oil, the Trudeau government kept spending. Other Western governments began to worry more about attracting international investment. Canada repelled investors with arbitrary confiscations. Other Western governments recovered from the stagflation of the 1970s by turning toward freer markets. Under the National Energy Policy, Canada was up-regulating as the US, Britain, and West Germany deregulated. All of these mistakes together contributed to the extreme severity of the 1982 recession. Every one of them was Pierre Trudeau’s fault.
Image is from Chiloa
5 Comments
Dave
I am generally a fan of free markets, but the pricing of world oil was certainly not set in a free market but rather by a cartel at economic war with other oil consumers. Why Trudeau would allow Canadian producers to benefit from cartel prices to the detriment of the owners (Canadian citizens) of the countries resources would be illogical to any reasoning person. The same should be true for any commodity where a mafia of sorts, whether by another name or not, is setting a price fix is beyond me.
FoodProcessorVillain
Trudeau is a prime minister with a controversial legacy, of course I get that. To say that the policies were a disaster for Canada however is the kind of statement an unacknowledging red necks would do. This is especially true based on the points brought forward in the excerpts listed above, yes he spent (but for what kind of priorities? the excerpt does not say anything), yes he regulated (to what effect?), yes his choices were not always cool with the provinces but such in the grand bargain Canadians have to still live with today. The fact that he went against the established dogmas of this period does not mean he was a complete ass-hat but maybe simply acknowledging the counter-evidence.
Also, I will say it is about time that the West digest the NEP. After 30 years of NEP, to be so immature in assessing anything related to it, is just a sign of unchecked stupidity. Stop, think, reassess.
Biddulph Art
This man Trudeau will be hated in western Canada forever.
Biddulph Art
I would never reassess or forgive the bastard that caused me and thousands like to go broke over his NEP and I will never let anyone else forget either.
JC
Everyone seams to forget that during the energy crisis of the 70s Canada got screwed by the american oil company as it’s supplies were diverted from Canada to US to address the needs of the US first. In other words, Canada had no leverage on it’s Oil supply and got screwed big time. That’s what led to the NEP, it was an imperfect reaction to being abused by the oil cartel. (They did not like that! at least Trudeau had the guts to stand up to them)
JC