04) ENBRIDGE LIES ABOUT PIPLELINE JOBS

By Kimball Cariou

            A leading British Columbia economist has demolished the myth that the Enbridge Northern Gateway pipeline project would bring massive economic benefits, including thousands of desperately needed jobs.

            Robyn Allan is the former CEO of the publicly-owned Insurance Corporation of BC, which provides auto insurance for most drivers in the province. A well-known skeptic regarding the project, she has spent two years assessing the economic and financial case for the pipeline presented to the National Energy Board by Enbridge. Her August 13 commentary in the Vancouver Sun focuses on basic facts about the project.

            Allan's findings should be carefully studied by trade unionists. Last November, delegates at the BC Federation of Labour convention were sharply divided over the Northern Gateway proposal. A clear majority appeared to oppose the project, but some opponents argued that a composite resolution on the issue was too weak. Building trades unions and some others argued that the pipeline will create important jobs and economic growth, and that steps can be taken to prevent environmental damage from potential spills. In the end, some of the strongest opponents of the project joined with the building trades to vote down the composite resolution - for entirely different motives. These differences within the labour movement became a factor in the victory of the BC Liberals in the May provincial election.

            A clear presentation of Robyn Allan's research could well have resulted in a very different outcome at the BC Fed.

            Her Sun article came in response to recent claims by Enbridge executive Janet Holder that the Northern Gateway pipeline would bring a $6.5‑billion investment in the provincial economy, creating 3,000 jobs during construction and 650 permanent jobs.

            However, Allan notes that "a significant portion of the project's capital cost relates to the condensate import line. Condensate is used to mix with oilsands bitumen to move the heavy, tar‑like product down a pipeline."

            In fact, Canada imports condensate, then exports it back out mixed with tar sands bitumen, at considerable economic cost, rather than upgrading bitumen to synthetic crude oil in Alberta.

            As for the "3,000 jobs" claimed by Holder, Allan points out that this figure comes from Enbridge's project application, which actually specifies that 3,029 person years of construction employment are expected only during a three month period in the third year of a four‑year project.

            As she stresses, "person‑years of employment are not jobs. If you work for a company for five years as a carpenter or an electrician: that is a job. Enbridge would call it five."

            In fact, Enbridge calculates that construction jobs from Northern Gateway are actually just over 1,000, and these are not guaranteed jobs for British Columbians or Albertans; many could be offshore temporary workers.

            Wrapping up her expose of Enbridge's inflated figures, Allan goes on to explain that most of the so-called "650 permanent jobs" are actually spin-offs: "Only 78 jobs are related to the actual project. The rest are estimates of employment from direct input purchases, indirect and induced impacts over 30 years... Only 12 per cent of the projected 650 jobs in B.C. come from operating the pipeline and marine facilities."

            Allan's article does not go into the economic costs of bitumen spills. But such an environmental catastrophe along the coast would devastate B.C.'s tourism industry, which provides many thousands of full-time and seasonal jobs. This helps explain why many trade unions stand with First Nations and environmental groups in the struggle against the Northern Gateway pipeline.

            (Cariou is the editor of People's Voice.)

(The above article is from the September 1-15, 2013, issue of People's Voice, Canada's leading communist newspaper. Articles can be reprinted free if the source is credited. Subscription rates in Canada: $30/year, or $15 low income rate; for U.S. readers - $45 US per year; other overseas readers - $45 US or $50 CDN per year. Send to People's Voice, c/o PV Business Manager, 706 Clark Drive, Vancouver, BC,