CALVERT CALLS FOR SASKATCHEWAN ENERGY ACCORD

Premier Lorne Calvert is calling upon Prime Minister Paul Martin to immediately start discussions to create a Saskatchewan Energy Accord similar to the recently signed Atlantic offshore energy agreements.

"We are lobbying the Federal Government for an equitable solution to the treatment of energy revenues that would see all energy producing provinces treated fairly. We are asking for the retention of 100 per cent of our energy resources, the same benefits as the Atlantic Provinces received," Calvert said. "The Prime Minister has provided a lucrative offshore energy agreement to the Atlantic Provinces on their oil and gas revenues, but has yet to provide similar financial returns on Saskatchewan energy to our residents. This is clearly unacceptable."

"The Prime Minister said the people of Newfoundland and Labrador and Nova Scotia must be the primary beneficiaries of their offshore resources. This same arrangement should be extended to the people of Saskatchewan. Instead, we are currently losing almost all our provincial energy revenues through equalization to other provinces," Calvert said.

Recent one-time payments by the federal government for high claw back rates in prior years have been appreciated, but it is now time to move forward with a permanent solution on the treatment of Saskatchewan's energy revenues.

The recent signing of the new Atlantic agreements has added to the inequitable federal treatment of energy revenues between provinces. The federal commitment guarantees those provinces 100 per cent of their energy revenue while Saskatchewan at times has lost 100 per cent of its energy revenues.

"I request that Saskatchewan and the Government of Canada immediately commence negotiating with Saskatchewan of a Saskatchewan Energy Accord," Calvert said. "It is our expectation that this accord would guarantee that Saskatchewan would retain 100 per cent of our energy revenues."

"These negotiations should be initiated in advance of the formation of the independent panel of experts that will examine equalization," Calvert said. "While this panel could provide an important opportunity to examine both the current program and possible future directions in delivering equalization, it should not preclude our bilateral discussions in the same way that you recently concluded the new Atlantic offshore agreements."

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