AN OPEN. LETTER
TO THE MINISTERS

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We understand that the forthcom-
ing Conference of the Prime Minister
and Provincial Premiers is to discuss

energy in general and oil .prices in_

_ particular. These questions are obvi-

ously of considerable importance to

Canada and her people. What is in-

_ volved is: shall the profit hungry oil
corporations prevail, or the real Cana-
dian interest? The answer to this ques-
tion will have much to do with the
immediate and long-term prospects of
Canada.

GOVERNMENT CAPITULATION

1. From what has been reported in
the press the Government appears to
have capitulated to the pressures and
blackmail of the multi-national cor-
porations and of the Alberta Govern-
ment, and may propose to raise the
price of a barrel of oil by $2.50 and

more. The Government has ©

- also agreed to remove the price ceil-
ings from petroleum products.

We see no justification for an in-

crease in the price of oil. There has

no substantive increase in the

secretary William

provincial premiers
growing economic

that increased costs made that neces-
sary. What new costs? There were no
new investments and no new produc-
tion costs then or now. The claim
of increased costs is merely a pretext
for raising prices on oil petroleum pro-
ducts.

According to Mr. Phillips, president
and chief executive officer of Home
Oil Company, the oil companies are to
get at least $1.00 a barrel more, or
40% of the proposed increase. That’s
not bad considering that in 1974 Shell
Oil showed a profit increase of only
61%. Imperial Oil didn’t do badly
either. And that is true of all the oil
corporations.

The proposed increase in a barrel
of oil and petroleum produtts will not
only guarantee these corporations addi-
tional profits; it will enable them to
extend their ownership and control
over Canada’s energy resources, as in
Syncrude, at the expense of the real
Canadian interest.

The Communist Party of Canada sees

“no valid reason for a price rise in oil

and petroleum products for the domes-
tic market and urges the Conference
to reject such a proposition.

To increase prices means to increase
costs to the consumer, the car driver,
the home owner, industry and agricul-
ture. The increase will add to the in-
flationary spiral, and create new prob-
lems with respect to Canada’s trade.
It will lower living standards and add

_ to already high unemployment.

Instead of complying with the black-
mail of the multi-national corporations
and those governments which support
them, the Federal Government, with
the agreement of all the Provinces,
should adopt legislation giving it the
power to set Gomestic crude oil and
natural gas prices. This is essential if
curbs are to be placed on the voracious
appetites of the multi-national oil cor-
porations and those governments under
their influence. Neither these corpora-

trol must have the power to blackmail
the country and set prices at “will,”
or all the traffic “will bear,” irrespec-
tive of the real cost of production, the

overall interests of Canada and her

people, and the long term all rounded
economic development of the country.

There must be no price increase on
oil, natural gas and petroleum products.
Qn the contrary they should be rolled
back to January 1973 levels.

ENERGY POLICY |
URGENTLY NEEDED

2. The present situation arises due to

‘the failure of the government to form-

ulate and adopt a fully integrated all
Canadian energy policy embracing all
sources of energy. A hand to mouth

policy, a bits and pieces policy marks.

a government policy of complete ac-
quiescence to the oil monopolies. It is
this lack of an all-Canadian policy
which has enabled the U.S. corpora-
tions to achieve almost complete own-
ership and control of a priceless nat-
ural asset, a motive force for the all-

sided industrial development of the

country.
Therefore, alongside regulatory legis-
lation to control and fix prices on oil,

natural gas and petroleum products for
the domestic market, measures must be . -

taken without further delay to adopt

a fully integrated all-Canadian energy .

policy embracing all aspects of energy
throughout the country. :

We need an independent inventory
and estimate of all sources of energy,
based on reliable sources, not the in-
formation provided by multi-national

‘corporations, or their representatives on

the National Energy Board. We re-
quire as well effective measures for

' their development and utilization on

the basis of public ownership. This

‘should include Syncrude. It is unreason-

able and highly irresponsible that the
multi-national oil corportations should
have 70% ownership of Syncrude with
only 25% total investment while the
Canadian people, with 75% costs of

ANADA'S NATURAL WEALTI
-FOR PEOPLE OR PROFIT

Syncrude through investment, loan
and tax concessions, will retain only

~ 30% of ownership. With all the public

funds already invested in Syncrude,
and those to come, there is absolutely
no reason why public ownership ©
should not be established over that
enterprise.

This can be done through a Federal-
Provincial Crown Corporation, open to
all provinces wishing to join it. On this
basis it should be possible to estab-
lish a two price system — a low, fixed
price in Canada — a world price for
exports. The profits from Syncrude, in-
stead of going into the coffers of the

‘multi-national oil corporations, could © |

and should be used to strengthen the
Canadian economy and subsidize lower
prices for oil, gas and petroleum prod-
ucts in Canada.

HOLD BACK
MACKENZIE PIPELINE
3. Until it is satisfactorily established

that the long term needs of Canada
and the Canadian economy can be fully

met, there should be a cessation of — ;

exports of oil and natural gas. If this
course were pursued there are ample

stocks of energy available to supply Be

the needs of Canada for the next 30
years or more. f

Such a decision would make possible ~

a second decision, the holding up of
construction of the Mackenzie Pipe-
line until such a time when there is —
assurance of Canadian control -
ownership of the pipeline and energy
resources and their use for Canadian
development. It would also make pos-
sible the satisfaction of the land claims
of the Native Peoples and the protec:
tion of the ecology of the North.

The construction of the. Mackenzie :

Pipeline at this time would not serve
Canadian interests. It would serve U.S.
interests primarily. Building a pipeline
down the Mackenzie River Valley will
guarantee the wholesale export

Canadian resources to the USA. In this”

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