Province Opposes More Federal Intervention in Energy Market

ENERGY--Province Opposes More Federal Intervention in Energy Markets

The province of Nova Scotia is presenting evidence to the National Energy Board today, June 18, that shows how New Brunswick's plan for new regulations and red tape on natural gas markets could damage the economies of both provinces.

Nova Scotia will argue at the board hearing in July that New Brunswick has failed to make a case for further federal intervention into the marketplace.

"Despite repeated claims by New Brunswick that the market isn't working, they have not proven their case," said Energy Minister Gordon Balser.

The province will also argue that the New Brunswick proposal to solve the unproven problem would hurt both provinces.

"We are committed to keeping Nova Scotia's offshore competitive," said Mr. Balser. "We see the actions proposed by New Brunswick will make our natural gas less competitive. Being less competitive will lead to less exploration and development."

The minister also suggests New Brunswick's proposals could have a negative effect on that province in the long run.

"Both Nova Scotia and New Brunswick will see increased business opportunities from new gas discoveries," said Mr. Balser. "By discouraging exploration, New Brunswick is reducing opportunities in both provinces."

The minister said Nova Scotia's basic position is that encouraging investment will lead to more discoveries, more developments and more pipelines to move the gas to more markets.

"Our fear is that New Brunswick's solution will lead to less drilling, fewer discoveries, less pipeline infrastructure, fewer customers and lower royalties to the people of Nova Scotia," he said.

The National Energy Board will hold hearings in Fredericton, N.B., on July 15.