Sunday, October 23, 2011

Look to China for economic salvation?

The bad news just keeps on coming for Ontario.

On Friday, a group of native chiefs from Ontario’s far northern region announced that they were withdrawing their support from an environmental assessment of a proposed chromium mining project.

The chiefs want one particular process – a joint panel review -- and the federal agency in charge of environment assessments has opted for a different process – a comprehensive environmental assessment. The chiefs don’t like that decision, so they are vowing to do everything in their power to block development until they get exactly what they want.

The announcement by the Matawa chiefs was not unexpected. They have been calling for a joint review panel for several months.

In fact, cynics have been waiting for this kind of announcement since the premier started extolling the Ring of Fire mineral zone a couple of years ago. Development of this area has the potential to light a fire under Ontario’s stuttering economy. It is important to Ontario’s economic future.

The premier was foolish enough to say so.

That was a very bad idea, because it raised the stakes. It also signalled to certain malevolent forces that there are significant benefits in opposing Ring of Fire development. Oppose it they will. At every turn. Because they stand a good chance of winning.

Cynics won’t be surprised. They don’t believe Ontario has the political will to undertake industrial development of this scope. Not in this part of the province. Not in this environment of political correctness. Not against the combined forces of native power-brokers, a reconciling court, Dudley Do-Right citizens, the U.N. and opaque social activism, much of it funded by organizations based in other countries.

So what to do?

Maybe Ontario should look to China.

Many years ago, China faced a similar problem -- impotent governments, factious regions and external mischief-making. It leased Hong Kong to the English for 99 years, got annual revenue and received back a thriving capitalist hub for its emerging economy. Today, China is flush with funds and actively searching for natural resource opportunities to feed its burgeoning industrial development.

Excellent deal all around.

If the premier is really committed to the development of the Ring of Fire, he should take a trip to China and pitch the opportunity to people who can actually make it happen. A good annual lease rate for the next 99 years would help pay the bills and pull down the debt. It's a heck of a lot better than what we’re facing now in the province's far north – high costs, low rewards, failure and frustration, international criticism, legal paralysis, endless obstructionism….

It’s not a great answer, but it’s probably the best we can do in the circumstances.

Let's face the fact that we’re outgunned and over-matched in our efforts to develop these contested lands. Maybe in 99 years we’ll have grown enough to be up to the challenge.

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