Moose Jaw 鈥� Dr. Ryan Meili is taking his third shot at the leadership of the Saskatchewan New Democratic Party (NDP), having run in 2009 and 2013 unsuccessfully. The Saskatoon physician was elected as MLA for Saskatoon Meewasin in early 2017.
As one of two leadership candidates, the winner will challenge whomever wins the Saskatchewan Party leadership race, which is running concurrently, but will conclude at the end of January. The provincial NDP will choose their leader on March 3, 2018. With the next general election expected in 2020, it will feature new leadership from both of the leading parties.
Meili spoke to Pipeline Newson Nov. 30 via cellphone from Moose Jaw, outlining what his energy policy would be, should he be elected premier.
鈥淎 lot of our energy policy focuses on the opportunities in renewable energy. We are a place with abundant sun, wind, opportunities for geothermal and other sources of renewable energy. That鈥檚 an area we haven鈥檛 invested in in a considerable way.
鈥淥il and gas is a very important industry in the province. Obviously we need to continue it, but at the same time recognize that that鈥檚 not the only form of energy and not the only energy industry we should be involved in. We need to be diversifying both our sources for our own use in the province as well as the types of industries built up around energy,鈥� Meili said.
Asked for his thoughts on royalties, Meili responded, 鈥淚 think that we do need a royalty review. We need to make sure we鈥檝e got the royalty structure that is both competitive enough to allow the oil and gas industry to succeed in the province, but at the same time making sure that we鈥檙e have fair return on that product, which is a natural resource that belongs to the people of the province. A lot of the profit from oil and gas is leaving the province. We need to make sure we鈥檙e getting our fair share of that in such a way that doesn鈥檛 impede the industry.
鈥淥ne of the things that concerns me is the practice of royalty holidays, multiple-year royalty holidays that encourage fast expansion and resource depletion without getting a fair return. I don鈥檛 think that鈥檚 the best way to advance the industry.鈥�
鈥淚 want to have a good, hard look and make sure we鈥檙e not leaving anything on the table, that we can make sure the people of Saskatchewan are able to have all the revenues they need for all the other programs we need, but doing so in a way that doesn鈥檛 actually impede those revenues by slowing down the industry,鈥� he said.
It鈥檚 important to have consistency, so he wouldn鈥檛 be in favour of reviews excessive in frequency. There also needs to be transparency on what they are trying to achieve.
Could royalties go down? 鈥淚t鈥檚 possible, but I don鈥檛 think that鈥檚 my inclination. I want to make sure we鈥檙e getting sufficient amount as we鈥檙e needing to pay for other investments, that we are getting a return on our oil and gas investments.鈥�
Asked if he would go on trade missions, like outgoing Premier Brad Wall has, in support of the oil industry, he said he wouldn鈥檛 know on what case that would be. 鈥淚f there鈥檚 something in the best interests of the Saskatchewan people, and it makes sense for me to go to Washington or Beijing or whatever, I would do that, but I鈥檓 not going to forecast any of those trips at this time.鈥�
Regarding new export pipelines, Meili said, 鈥淧ipelines are a way of transporting liquids. That鈥檚 a really basic thing to say, but the reason I say that basic thing is because they have become, in many ways, a very polarizing concept. Either their they absolute cure for everything in the economy or they鈥檙e the end of days. I think we need to take these pipelines through a very diligent process, that analyzes it through. Is it economically sound? That decision will be made by companies like TransCanada might decide that if an investment isn鈥檛 what they want to do. It need to be looked at, from us, from the government, from a regulatory point of view, but also looking if this actually going improve the economy of the province? Is it going to result in new jobs? Will it result in long-term income?鈥�
It鈥檚 also important to look at the pipelines route and what it carries.
鈥淵ou also need to look at the social costs and value of the pipeline,鈥� he said, adding there is now a 鈥渜uadruple bottom line,鈥� with the impact on First Nations and their land as the additional bottom line item.
Any revival of Energy East is up to TransCanada, and the regulatory bodies. 鈥淚鈥檓 not trilled by political posturing around these pipelines,鈥� he said.
He suggested that because Keystone XL has been approved, Energy East wasn鈥檛 a project TransCanada wanted to continue with.
Regarding the downturn, with pressures to use less fossil fuels because of climate change and no control over international prices Meili spoke of the need for diversification so we鈥檙e not entirely dependent on this one resource.
鈥淚t鈥檚 an area that鈥檚 been hit hard, and an industry that鈥檚 been hit hard. We鈥檝e seen lots of people unemployed. We need to do what we can to support the ongoing success of that industry, but also recognize they鈥檙e not the only types of employment and we need to figure out what are the ways we can assist with transition as people have left that industry. What are the other options for them?鈥� he said.
He would like to see significant investment in renewable energy in southeast Saskatchewan as it will be affected by changes in coal-fired power.
鈥淐arbon capture and storage is a very interesting technology, but it鈥檚 been a very expensive investment, a billion-and-a-half dollars. The real return, in terms of reducing carbon emissions, is not significant, in part because the way we鈥檙e operating it is using that carbon to extract more oil. You can make the business case for that, but from a pure emissions reduction point of view, it鈥檚 not a very great argument.
鈥淢y approach, and I see this is what SaskPower is doing, would be no further carbon capture storage units, but keep the current one operating and continue to use it for its lifetime,鈥� Meili said.
鈥淲e need to phase out coal by 2030, and I think that鈥檚 the right thing to do.
鈥淎re there some of these plants, that, for energy needs, or for the need of transition, there鈥檚 an argument to negotiate with the federal government that it could have a 53-year lifespan. That鈥檚 something, obviously, would be worth examining and discussing. But I鈥檓 actually in favour of the phase out of coal by 2030. In terms of it鈥檚 impact from a carbon emissions point of view, it鈥檚 very significant, but also in terms of other things produced 鈥� heavy metals and other gases that cause health problems for people living around coal plants.
鈥淲e鈥檝e got some time. Let鈥檚 be working. This is what frustrates me about the Sask. Party. We鈥檝e had a decade of boom times, but everybody knows the boom times don鈥檛 last. Was there planning for diversifying the economy, to spread out the risk? In the years until 2030, that鈥檚 what we have to be doing as we look at the communities that will be affected by the closure of coal plants as well as we look at the electricity needs that we have.鈥�
He thinks we missed the boat by not having a sovereign wealth fund, and that鈥檚 something he would explore in the coming years, after looking at spending priorities and diversifying the economy. Should resource revenues rise sufficiently, that would be a place to invest any surplus, he said.
鈥淐arbon pricing is a means of putting a price on carbon. As such, using a market-based measure to decrease use. Now, that鈥檚 been shown to be a pretty effective mechanism in this field and other fields.鈥�
He said tobacco taxation has reduced its consumption, as an example.
鈥淚t has to be done right. The very first thing I would use the income coming for carbon pricing for would be in employment that is less carbon intensive 鈥� green jobs, renewable energy production, green building, etc., all ways to keep people working while we reduce emissions.鈥�
He spoke of protecting agriculture and trade-exposed industries from carbon tax disadvantages compared to the United States.
鈥淭his is a very important industry, but also a volatile one. We need to make sure, in times that are really good, Saskatchewan people are getting their fair share. In times are tougher, that we鈥檙e making the changes we need, having the flexibility to encourage the industry to be successful, but also putting it in the context of a larger approach to energy overall, looking at how we deal with the need to decrease our carbon emissions overall by 30 per cent by 2030 and looking at our long term success in terms of employment and investment in the people of the province,鈥� Meili concluded.
