Weyburn 鈥� Of all the five candidates running for the leadership of the Saskatchewan Party, and position of premier, Ken Cheveldayoff has spent the most time as an MLA. First elected in 2003, the MLA for what is now Saskatoon-Willowgrove has served in several ministerial portfolios, including Crown Corporations, Enterprise, First Nations and Metis Relations, Environment, SaskWater, Public Service Commission and, most recently, Parks, Culture and Sport.
Cheveldayoff met with Pipeline Newsin Weyburn on Sept. 28, a week before TransCanada cancelled its Energy East Pipeline project.
Asked what his energy policy is, Cheveldayoff said, 鈥淚 strongly support the expansion of pipelines, to port development in Canada. I think it鈥檚 unfortunate the federal government is holding Canadian producers and pipelines to a double standard, compared to imports from other countries, with less rigorous environmental standards. Pipeline reviews should be based on high environmental and safety standards, not political considerations.
鈥淚 support the concept of developing infrastructure corridors in Canada, where projects like pipelines and other infrastructure projects, like electrical transmission, can be provided with more certainty concerning the approval process. This can be done with the same, or better, environmental and safety requirements. This approach would substantially increase the ability of investors to develop these types of projects in Canada, as compared to other countries. Pipeline projects will increase government revenues and create jobs, while ensuring high standards of environmental protection and safety. We have to clear the federal longjam,鈥� Cheveldayoff said, adding he鈥檇 work with other provinces on this.
鈥淏asically, I鈥檝e very pro-pipeline. I believe it鈥檚 the most efficient way and environmentally-friendly way to transport oil and gas, and I鈥檓 certainly wanting to do all I can to encourage, whether its Energy East or Keystone XL.
Asked how he would clear those logjams, Cheveldayoff talked about how Premier Brad Wall has worked with other premiers, talking about mutual benefits. Using science and keeping politics out of it are part of it.
Asked if Energy East went down, (which it did, a week after the interview), how he would differentiate markets, Cheveldayoff said, 鈥淔irst of all, as premier, you have to be clear on your stance. You have to be very supportive. You have to reach out to the oil and gas community and let them know you have an advocate for their position here, in the premier of the province, and in the cabinet. The energy minister is an important position. I believe we have done our job, in that regard. The people I talk to, in the oil and gas industry, very much approve on how we鈥檝e handled things. We鈥檝e been a strong, strong advocate, and the premier鈥檚 brought up things at the federal-provincial level, when the prime minister is in the room, and I think you have to continue to do that.
鈥淚f it goes down, you have to ensure the government is there to help the private sector.鈥�
Wall has gone to Washington several times on trade missions to support the energy industry, in particular, the Keystone XL project. Asked if he would do the same, Cheveldayoff said, 鈥淎bsolutely. I think the relationship with Ottawa and the relationship with Washington is very important. In fact, I had the opportunity to accompany Premier Wall on one of those initiatives to Washington. We have the benefit of some very good people working for the province of Saskatchewan in Washington. They were able to open some doors and allow Premier Wall to make the Saskatchewan position known to those like Senator Lindsey Graham, of South Carolina, and others. We have an opportunity to lobby key decision makers, and we lobby from a sound environmental and economic background. I think that鈥檚 key to the future in this industry.鈥�
Regarding energy royalties, Cheveldayoff said, 鈥淲hen I talk to CEOs of oil companies that have oil interests in Saskatchewan, what they tell me is what has had the most beneficial for their growth in the last 10 years has been stability. They say in Saskatchewan, you know what you get, you know what the future鈥檚 going to be. That has been so important for them to access capital and to go to the lenders and say we know what we鈥檙e going to get.
鈥淚s that going to be in place forever? I think a new government would have to take a look at where we are, and if any changes are needed. But if any changes come in, the most important thing is giving the industry a long lead time for them to understand. If there is even a slight change indirection, I would see the new premier and new cabinet giving the industry a long lead time so they can adjust to those changes as well.鈥�
He doesn鈥檛 feel the province needs a change at this time, but changes in taxation, such as the PST, needs to be addressed. He talked about a panel, like the Vicq panel, to look at it. On day one, he would appoint a tax commission to spend 60 days to look at taxation in Saskatchewan.
Asked if royalties could go down, he pointed out we鈥檙e short $1.2 billion on resource revenues. 鈥淭he bottom line is we have to be competitive on our rates in Saskatchewan,鈥� Cheveldayoff said, 鈥淏ut most importantly, they want stability.鈥�
Cheveldayoff says he would look at red tape to make it easier for the oilpatch to be ready for when the industry does come back and is ready to spend money.
He noted imported oil into North America has much lower emissions standards, and our companies meet very high standards.
鈥淵ou advocate, you listen closely to the industry, you make sure that all know the high standards we meet here.
Regarding carbon tax and carbon capture and storage, Cheveldayoff said he is absolutely against the carbon tax. 鈥淚 think you鈥檒l find every candidate in this leadership will be against the carbon tax. The next question is, 鈥楽o what?鈥�
鈥淚 believe if you鈥檙e against something, you have to be able to provide an alternative. What I鈥檝e done is gone to scientists at the universities and talked to them about alternatives to the carbon tax. To look at innovation in food science, for example. I鈥檝e talked to them about photosynthesis in plants, for example. It happens at six per cent, right now. If we could get it up to eight per cent, that would be the same objective of what the federal government is trying to do with the carbon tax. So given the opportunity to choose between a carbon tax, which would be so onerous for the entire economy, or investing in food science and innovation in the industry, I would invest in innovation, every time.鈥�
Asked to clarify on the photosynthesis point, he said he was talking about plants in general, all types of vegetation, work that鈥檚 being done at the University of Saskatchewan right now.
鈥淭here鈥檚 a scientific argument here, for how we can use innovation and plant science to reduce our carbon in Saskatchewan. That is one alternative, different from a carbon tax, that鈥檚 different in how we can do it.鈥�
He added that agriculture is a carbon sink in the province.
On the Boundary Dam project and carbon capture and storage, Cheveldayoff said he鈥檚 always been a proponent of the project. 鈥淭his is Saskatchewan punching about its weight, when it comes to world-leading technology. Are there risks involved? Absolutely. Again, we don鈥檛 get enough credit for the leading edge work that we鈥檙e doing. Federal ministers have come out here, the minister of environment has been out here and said positive things when they toured the facility. I just don鈥檛 think on the whole, national scale, we get enough credit.鈥�
鈥淧ersonally, I think there鈥檚 a future for it, but I鈥檇 have to have the detailed information in front of me to make that decision, for the new premier and cabinet to decide. On a personal basis, I very much believe in the technology. I believe it鈥檚 the way of the future. We have 300 years of coal here, and I鈥檓 very much a proponent of a balanced electrical generation cycle where we have wind, coal and biomass, hydro, for sure, as well,鈥� Cheveldayoff said.聽聽 聽聽
