Question

Overview The National Energy Program (hereafter referred to as “the NEP”) was devised by the Liberal government under the sponsorship of its leader, Pierre Trudeau, the Prime Minister, in the early 1980’s. It was, at that time, the most controversial piece of legislation that the federal government had produced in decades and, to this day, remains at the core of the negative feelings that many Albertans still have toward the Liberal Party of Canada and anyone associated with it (this is not a personal opinion but, rather, a conclusion made by many observers and is a reflection of the opinions of many people connected with the energy sector in Alberta, politicians, and the general public). As controversial, and divisive, as the NEP turned out to be, it did have honourable goals at the time. This assignment is not intended to become a piece of political analysis but will, for reasons that will become apparent as you conduct your research, involve public policy, political opinions, economic realities, and insights. This assignment is intended to help you to effectively present ideas based upon economic positions and conclusions and to see how federal government plans, though well intended, can go very “wrong” for the country. Questions 1. What were the three ( 3 ) main objectives of the program, and what were the economic intentions of each of those three ( 3 ) objectives? 2. How was the NEP interpreted by the Western provinces, in terms of the economic consequences upon the affected provinces? (You can focus entirely upon Alberta’s position, if you choose but, to earn full marks, you will need to address elements that affected British Columbia and Saskatchewan). 3. Could there ever be economic conditions that might make it possible for a “new” NEP to be introduced by the federal government? If you believe it to be “yes”, explain how a new NEP would help the Canadian economy. If you believe the answer to be “no” then please explain why a “new” NEP would hurt the Canadian economy.

Answer 1

SOLUTION:-

The 1980 National Energy Program (NEP) was an attempt by the federal government to gain greater control over the Canadian petroleum industry, secure Canadian oil supplies, and redistribute Alberta's oil wealth to the rest of the country.

The 1980 National Energy Program (NEP) was a sweeping attempt by the federal government to gain greater control over the Canadian petroleum industry, secure Canadian oil supplies, and redistribute Alberta's oil wealth to the rest of the country. Introduced by the Liberal regime of Prime Minister Pierre Trudeau, the now defunct program angered many Albertans and led to decades of resentment throughout the West against the federal Liberal Party.

1) The NEP had three main objectives:

a) Reduce Canada's dependence on foreign oil, by encouraging greater self-sufficiency in domestic supplies;

b) Redistribute oil wealth via taxes and resource royalties, from Alberta towards the federal government and consumers; and

c) Gain greater Canadian ownership of the oil industry.

The federal government adopted a wide set of measures to reach these goals. It issued grants to encourage oil drilling in remote areas, especially the North, where Ottawa, not the provincial governments, had jurisdiction over natural resources and the right to earn revenue from them. It gave grants to consumers to convert away from oil to gas or electric heating. And it imposed a 25 per cent federal ownership share on all oil and gas discoveries made by private companies in the North, and offshore.

2) The NEP was extremely unpopular in Western Canada, especially in Alberta where most of Canada's oil is produced. With natural resources falling constitutionally within the domain of provincial jurisdictions, many Albertans viewed the NEP as a detrimental intrusion by the federal government into the province's affairs. Edmonton economist Scarfe argued that in Western Canada—and Alberta especially—the NEP was perceived to be at their expense in benefiting the eastern provinces. Particularly vilified was Prime Minister Pierre Trudeau, whose Liberals didn't hold a seat west of Manitoba. Ed Clark, a senior bureaucrat in the Trudeau Liberal government, helped develop the National Energy Program earning himself the moniker "Red Ed" in the Alberta oil industry. Shortly after Brian Mulroney took office, Clark was fired.

Petro-Canada, established in 1976, was responsible for implementing much of the Program. Petro-Canada was backronymed to "Pierre Elliott Trudeau Rips Off Canada" by opponents of the National Energy Program.

According to Mary Elizabeth Vicente, an Edmonton librarian who wrote an article on the National Energy Program in 2005, the popular western slogan during the NEP – appearing on many bumper stickers – was "Let the Eastern bastards freeze in the dark".

McKenzie argued in 1981 that politically the NEP heightened distrust of the federal government in Western Canada, especially in Alberta where many Albertans believed that the NEP was an intrusion of the federal government into an area of provincial jurisdiction.

3) Yes, The NEP was designed to promote oil self-sufficiency for canada, maintain the oil supply, particularly for the industrial base in eastern canada, promote canadian ownership of the energy industry, promote lower prices, promote exploration for oil in canada, promote alternative energy sources, and increase government.

Please Upvote sir......???