AN OPEN. LETTER TO THE MINISTERS 7 3 x ? z s. z \ eee A‘ V 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” SACU RUNE CREAT Wem: OL) EM