NORTHWEST TERRITORIES

Western Arctic MP Dennis Bevington is standing behind NDP leader Jack Layton when it comes to ending federal subsidies for the oil and gas sector.

Dennis Bevington: Western Arctic MP says oil and gas industry doesn't need federal subsidies. - NNSL file photo

In Montreal on March 31, Layton announced he would cancel the Conservative government's $2.5 billion in subsidies to the fossil fuel industry – particular the Alberta oil sands – and instead invest the money in clean energy.

Bevington said he supports that idea.

"I think we need to put a lot more effort into renewable energy throughout Northern Canada because that's going to reduce the cost of living for people…." he said."With oil at $110 a barrel, we hardly need to subsidize the oil production in this country."

The MP said the subsidies made some sense when oil was selling for $30 a barrel in the 1990s, especially for the Alberta oil sands where the resource is difficult to extract.

Bevington doesn't think the NDP stance conflicts with possible federal support for the proposed Mackenzie Valley gas project, noting the Conservative government has signaled it's most likely to provide help to build a pipeline by investing in Northern infrastructure, such as roads.

"If industry can better do the work that it has to do because Canada invests in the country and in the region for public infrastructure, I think that's entirely appropriate," he said. "I'm sure Mr. Layton would agree with that."

Bevington noted that's much different than giving the industry breaks on taxes or royalties, which would be paid for by Northerners.

The MP does not believe subsidies for the fossil fuel industry will become an election issue in the Western Arctic.

"The Conservatives have had about five years to come out with some kind of subsidy for gas development in the Northwest Territories. Have you seen anything other than some talk about infrastructure?" he said. "So that's what they're talking about. That's what I'm talking about. I think everybody is talking about that. And that's not a subsidy, that's an investment in the country."

However, Layton's comments caught the attention of one high-profile politician in the NWT – Premier Floyd Roland.

"If you look at our economy, what has driven our economy? Non-renewable resources," Roland said. "So what is he saying? Is he going to create a welfare basis for the territories? That would be a concern for us and I believe the majority of people across the North."

A federal investment in the Mackenzie Valley gas project would mean revenues for governments, energy security and positive impacts for other provinces, the premier noted. "If they want to shut down that kind of money that would be returned to the federal government for its investment, I question the logic in that."

We welcome your opinions. Click here to e-mail a letter to the editor.