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The National Energy Program Revisited - Research Paper Example

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The policy was created by the then energy minister Marc Lalonde under the governance of Pierre Trudeau who was the Prime Minister by that time. The…
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The National Energy Program Revisited
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The National Energy Program Revisited

Download file to see previous pages... The program also aimed at finding new sources of the Canadian gas and oil (François 2006). Lastly, the program was aimed at increasing federal share on oil and gas revenues. This meant that the program was economic minded. To achieve these objectives, the program then introduced several rules, tax rates and several regulations including the petroleum compensation charge, which was imposed on the country’s domestic refiners (Robert, 2011).
The Western provinces especially Alberta were not impressed by the program making the federal-provincial relations reach one of their lowest points. In other words, it meant that the program was not popular in the Western province thus Alberta which also produces most of the oil in Canada (François 2006). With indications that the natural resources in the nation would fall constitutionally within the provincial jurisdiction domain, most of the Albertans felt that the program was a detrimental incursion by the federal government especially where province affairs are involved. To the Albertans, the program was perceived to be only benefiting the eastern provinces. Economically, the Western province felt that the program was sidelining it and instead favor other parts of the country. Furthermore, there were bankruptcies in the Western province as a result of the program. Businesses such as real estate performed poorly in not only Alberta but also other parts of the country and other petroleum exporting economies including the United States and Norway (François 2006). This prospect weakened Alberta in terms of its economic dominance hence faulting the National Energy Program. Generally, the National Energy Program cultivated to federal deficits due to the substantial revenues increase from the gas and the oil sectors. At the same time, Western province GDP fell due to the ...Download file to see next pagesRead More
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