There are at least three current models of economic development consistent with Preston Manning's vision for Atlantic Canada. I would like to discuss one, the electric power system of New Brunswick Power.
In the early 1960's, the executive of New Brunswick Power, which then functioned at arms' length from government, contemplated its strengths, weaknesses opportunities and threats.
They found:
* The system was isolated, so any major failure would and did result in a province wide blackout.
* The system was small, and only small expensive generating could be installed without risking major failure.
* A consequence was that any major expansion by industry require close co-ordination with the utility or else power would not be available the industry when it began operation. This was a major impediment during the war effort of the 1940's
* The ultimate consequence was that electric power rates were among
the highest in the country.
The first step in this change process was education and over the next 20 years more than half of the executive undertook postgraduate studies in the United States focusing on the development and management of large electric power systems.
The first real breakthrough came in 1970 when the 345,000-volt transmission line was completed between Bangor and Fredericton. This connected New Brunswick to the North American power grid and dramatica1ly reduced the risk of blackout. It also connected the utilities of northern Maine to the rest of that state through New Brunswick. The electric power systems on both sides of the international boundary are thus integrated
The second breakthrough came with the development of the Churchill Falls project and the power surplus which for a time existed in Quebec. This permitted the construction of the world's first large solid state HVDC facility between New Brunswick Power and Hydro Quebec;
The power purchase, up to 400,000 kilowatts, enabled New Brunswick Power to defer adding generation for a number of years until the then state of the art 1,000,000-kilowatt Coleson Cove generating station could be constructed.
Using the Churchill Falls development model, a portion of Coleson Cove power was sold to electric utilities in New England for a number of years, until it could be fully used by New Brunswickers.
The same logic was applied to the development of the Point Lepreau Nuclear Generating Station.
The result of all this has been the development of an electricity market extending from Montreal to New York by way of New Brunswick That is not to say that there are not direct links between these two cities but a person of limited vision would have very .quickly concluded there was no opportunity in this network for New Brunswick. New Brunswickers by hard work have proved otherwise!
The ultimate consequence of this development was documented in The Daily Gleaner's, April 30, 1997, ranking of Canadian electric utilities, by the cost of 3000-kilowatt-hour of electricity, a simple measure that everybody can understand: the cost in Manitoba was $204.50; British Columbia $228.34; Quebec, $230.48; New Brunswick, $238.30; Newfoundland, $276.65; Saskatchewan, $301.48; Ontario Hydro, $304.98; Alberta, $307.11; Nova Scotia, $348.39; and Prince Edward Island, $377.50.
New Brunswick has never had the natural energy resources of the leading three provinces on this list. This achievement of fourth place in the country, by a have-not province, must stand as a tribute to the ingenuity and hard work of the many New Brunswickers who have contributed to that success.
That same outward looking vision has also driven Irving and McCain to be the world scale success stories that they are.
There is at least one model for Preston Manning's vision of economic development in Atlantic Canada.
As Lester Pearson once said:"Canadians don't want handouts, they want constructive help so they can help themselves."
It is indeed unfortunate that the old line parties have so lost or distorted Mr. Pearson's vision that they can see nothing but perpetuation of the unsatisfactory status quo.
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(Frank H. Ryder, P. Eng., is an associate of the New York consultancy Technology Assessment Group, Power Technologies Inc. During his career with New Brunswick Power, among other posts, he was director of planning, director HVDC Project and executive director for the nuclear power program)