Manufacturing Outsourcing to Korea (March 25)

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Mr. MacDonald: Thank you, Mr. Speaker. Last October 6 a South Korean steel fabricator signed a deal with Imperial Oil worth $250 million to manufacture at least 200 production modules for the Kearl oil sands project at Fort McMurray. 

These plant modules manufactured in South Korea will be provided by July 2011. My first question is to the Minister of Employment and Immigration. How many construction and steel fabrication jobs were lost here in Alberta as a result of this $250 million order being placed in South Korea, not south Edmonton?

The Speaker: The hon. minister.

Mr. Lukaszuk: Well, thank you, Mr. Speaker. I have to thank this hon. member for setting this up so perfectly for me. First of all, I’ve been itching to be able to stand up and report to this House that Statistics Canada has reported today that the number of Albertans on EI right now in Alberta has dropped by 14.8 per cent. That is 10,040 fewer unemployed Albertans, and we are leading Canada right now in recovery. That perhaps addresses your question in some part.

The Speaker: The hon. member.

Mr. MacDonald: Thank you, Mr. Speaker. Given that many of the EI recipients have been unemployed for so long that they have exhausted their benefits, I’d better ask the minister of finance. Does Imperial Oil get to deduct the construction and shipping costs of these modules from South Korea from the royalty payments that they pay here in Alberta?

Dr. Morton: Mr. Speaker, I have to wonder what world the hon. member is living in. It’s called the global economy. Does he want to actually put a wall around Alberta and say there is no procurement? What does that do to a province like Alberta that exports oil and gas, cattle and wheat, coal and timber? We’re an exporting country. It’s about free trade. Does he want to repeal the free trade agreement, too?

Mr. MacDonald: Mr. Speaker, this is the minister that wanted at one time to build a firewall around Alberta. Now, again to the minister of finance: does Imperial Oil get to deduct the construction and shipping costs from South Korea from their corporate tax payments?

Dr. Morton: Mr. Speaker, I’d be more than happy to provide bus fare for the hon. member to go right down Jasper Avenue to the buyer and seller forum . . .

Mr. Lukaszuk: One way, please.

Dr. Morton: One way, perhaps. There are 500 people from all over the world, Ontario, and Quebec here to do the supply chain into the oil sands. It’s good for Alberta. It’s good for all of Canada. You want a little wall around it. Welcome to the global economy is what I say to that.

Alberta Hansard, March 25, 2010

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