MEDIA RELEASE
FOR IMMEDIATE RELEASE
July 15, 2002

Provinces challenge NAFTA provisions on natural gas exports

Fredericton, New Brunswick - Four provincial governments are demanding that Canadians have a fair opportunity to purchase domestic natural gas before it is exported to the United States. The Council of Canadians supports challenging NAFTA and free trade provisions that prevent greater Canadian access to this valuable domestic resource.

New Brunswick has requested and obtained hearings from the National Energy Board (NEB) to look into this unsustainable situation. The NEB hearings will commence today in Fredericton. The governments of Prince Edward Island, Newfoundland and Quebec support the New Brunswick challenge. All are upset with approvals of increasing export capacity to the US, while their citizens and industry have been denied access to this important development opportunity.

"We applaud provinces challenging a market based approach to our natural resources that denies development opportunities to their citizens," explained Anil Naidoo, Campaigner for the 100,000-member Council of Canadians. "The federal government has sold out provinces and Canadians by diluting the powers of the NEB and by giving away our energy security through NAFTA."

Increasing natural gas export capacity raises concerns for the future of Canadian energy security. Under article 605a of NAFTA, the proportion of this resource being exported cannot be decreased, regardless of domestic needs or falling supply. In the past 10 years the proportion of natural gas going to the US has increased from 40% to 60%. Canada is obliged to maintain this level of supply and further increases mean further obligations.

The original mandate of the National Energy Board was to protect Canadian interests and approve exports only if they are surplus to Canadian foreseeable needs. "Since deregulation and free trade, the NEB has become little more than a regulatory rubber stamp", says Anil Naidoo. "The NEB needs to be reformed to once more protect the public interest."

The Council of Canadians demands a moratorium on new export pipeline capacity until the implications of these new projects are examined within the context of our obligations under NAFTA.

The Council of Canadians, the Communications, Energy and Paperworkers Union of Canada (CEP) and the Conservation Council of New Brunswick, has jointly organised a public meeting on this issue on Monday, July 15, at 7 p.m., at the Sheraton Hotel, in Fredericton.

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