Newfoundland water sale might open floodgates, Anderson fears

By MARK MacKINNON
March 29, 2001

Ottawa - Environment Minister David Anderson said Wednesday that if one province allows bulk exports of water, it will be difficult for the federal government to prevent foreign companies from gaining access to the rest of the country's lakes.

One day after Newfoundland Premier Roger Grimes announced his intention to allow the export of billions of gallons of water from Gisborne Lake, Mr. Anderson said such a move would make water a "good" - tradeable under the North American free-trade agreement.

Under NAFTA, Canada would then be forced to grant companies from the United States and Mexico access to lakes across the country.

"We believe it's very important to protect water at the source, not at the border," Mr. Anderson said. "If Canada starts treating water as a commodity, or an item of trade, it will ultimately be treated as an item of trade under NAFTA.

"Mr. Anderson said he is also concerned that moving bulk water from one ecosystem to another could have unpredictable side effects.

Fresh water has been dubbed by some the "oil of the 21st century" because of the increasing demand for it in arid parts of the world. For instance, China alone has about 80 million hectares of farmland considered too dry for use.

Mr. Grimes revived a dormant debate in his province by suggesting that the royalties the province would receive could eliminate tuition fees for the province's university students.

"If it means being offside with the government of Canada, then so be it," he told the provincial legislature as his Liberal colleagues pounded their desks in approval. "If it means being offside with other provinces because they have concerns...then so be it.

"Bulk water exports "probably have the greatest single potential to generate revenue, year in and year out," Mr. Grimes told reporters later.

The scheme - advanced by businessman Gerry White - was rejected in 1999 by then premier Brian Tobin. Now the federal Industry Minister, Mr. Tobin seemed caught off-guard by the move yesterday.

"I think you know my position. It was very well articulated when I was there," he said outside the House of Commons. He said he planned to contact Mr. Grimes Wednesday to speak with him about the reversal.

Every province in Canada has either passed or introduced legislation banning the bulk export of fresh water. The federal government promised to do the same, but has yet to deliver.

Mr. Grimes stressed that no final decisions have been made and that the matter would be debated in the legislature.

Ed Byrne, leader of Newfoundland's Conservative Party, attacked the move as erratic, pointing out that Mr. Grimes was Mr. Tobin's environment minister when the proposal was rejected.

"I think everybody's been perplexed by [Mr. Grimes's] bizarre behaviour since he's become Premier," he said.

The province's largest student group has condemned the government for linking water exports with a proposal to eliminate tuition fees.

"The students across this province have struggled too long toward tuition elimination to take such a ridiculous idea seriously," Allison North, head of the Canadian Federation of Students in Newfoundland, said in statement. "It's too big a price to pay. We refuse to have our concerns pitted against environmental concerns."