Oil Sands politics and silly demands by incompetent governments on the mining industry

The Madison Dialogue is a website of breathtaking scope and arrogance. Here is how they described themselves:”The Madison Dialogue was launched at a meeting in New York (on Madison Avenue), in August 2006. Participants in that meeting included EARTHWORKS, WWF, Partnership Africa Canada, Tiffany & Co. Foundation, The Council for Responsible Jewelry Practices (CRJP), the Diamond Development Initiative, Jewelers of America, Conservation International, Leber Jewelers and others.” They want to” “promote communication and collaboration among companies, civil society groups and others seeking to encourage: best practices; sustainable economic development; and verified sources of responsible gold, diamonds and other minerals.” Participants in the Madison Dialogue are working on a number of initiatives to promote sustainable development, best practice, and certification or assurance in the sector. These include the Kimberly Process, the Diamond Development Initiative, the Initiative for Responsible Mining Assurance, and efforts to certify fair-trade gold, diamonds and other minerals.

I subscribe to the principles of Responsible Mining—it all just makes ethical good sense. But I am profoundly suspicious of any site, publication, or organization that bandies about the word SUSTAINABLE. At this link is an E-Book I have compiled from posting on this blog on mine stories that highlight the realities and illusions of the concept of sustainable mine development and closure.

My suspicions are best expressed by these quotes from a piece that hit my e-mail in-box. In its entirety it is a statement by Kevin Taft, Leader, Alberta Liberal Official Opposition. He states (and I quote, select, and edit for context.)

“Only the current provincial government could have been surprised when the energy sector raised sharp concerns last month for failing to plan ahead for an oil sands boom for which everyone else spent a decade preparing. The Stelmach Cabinet’s response to the criticism was to say that the oil sands companies should be building homes in Fort McMurray, or public highways, or other public infrastructure.

When the wealthiest government in the Western world sidesteps an issue as big as our oil sands infrastructure deficiency and points its finger at the private sector and the beleaguered municipal council in Ft. McMurray, it’s a golden opportunity for Albertans to see how seriously Conservative governments have lost touch with the very concept of government’s role in society.

It’s the energy sector’s job to raise capital, develop technology, hire workers, build plants, process and sell product, earn profit, pay taxes and royalties, and obey the law. Government’s parallel role in the equation is to use the taxes and royalties to make sure that education, health care, housing, transportation, utility and community services will support the anticipated growth, and benefit the citizens at large.

Working with a capable civil service, a far-sighted provincial government could easily have built infrastructure in advance of need, at pre-boom prices. Instead, our government nodded off and actually created a crisis with very serious human, social and financial impacts.”

Kevin Taft hit a home run, in my opinion, for highlighting the difference between the role of industry and the role of government. In short, industry raises capital, grows business, pays taxes, and obeys the law. Governments must use the taxes to provide community services including, but no limited to, defence, welfare, and infrastructure.

I reject the all-too-common, but erroneous claim that mines should provide social services above and beyond those reasonably associated with their operations. I have friends who believe the mining industry should pay to house the homeless of East Vancouver and provide for their safe-injection houses. You see, there is no end to the silliness of claims that mines and the mining industry should do this and that and pay for everyone’s favorite charity, however deserving or undeserving. That is the job of good government responding to the intelligent debates and decisions of an informed and free electorate. And where the government is irrational, dictatorial, or plain incompetent, I submit that neither mines nor the mining industry has an obligation to substitute for good government. George Bush tried that in Iraq, and look how far he got.

We proffer our best wishes to the Madison Dialogue. I see them as an integral part of a free society informed by intelligent discussion and dialogue. Just like this Blog? And just like Kevin Taft even though he promises something as ambitious (and silly) as this:

An Alberta Liberal government will appoint a Commissioner of Oil Sands Infrastructure, someone with a lifelong, can-do private sector track record. Reporting to the Premier, the Commissioner will be given temporary extraordinary powers to marshal provincial resources across departments and to enlist a wide variety of private sector resources, all in the interest of getting the job done both well and as quickly as possible. Government’s place is NOT on the sidelines screaming for someone else to pick up the oil sands infrastructure ball. An Alberta Liberal government will be right in the action, willingly doing our job – providing the infrastructure that allows the rest of the team to score its touchdowns.