Seeing the announcement of the installation of the Northvolt battery factory on the South Shore, older people will find it difficult to help but remember the arrival of a Hyundai factory in Bromont. There are huge differences between the two projects, but also some uncanny similarities.
But first, a little history. It was a recurring speech of the PQ governments of the 1980s and 1990s: the reason for the gap between the unemployment rate and therefore the collective wealth of Ontario and Quebec was the automobile industry. All of these “well-paying jobs” were in Ontario.
Hence the idea of bringing an automobile factory to Quebec. In 1988, the Hyundai plant opened in Bromont, at a cost of $450 million and generating 800 direct jobs. But the factory had to close its doors, temporarily first, in September 1993, then permanently in March 1994. The factory’s production had never exceeded 20% of its total capacity. In short, one of the greatest industrial failures in the history of Quebec.
Ancient history? Not really. The motivation of governments then as today was the same: Quebec had to be “in the parade”. The automobile industry was then the future and paid jobs. You had to be there.
There the parallel ends. With Hyundai, Quebec wanted a small place in an already mature industry. It was a catch-up investment rather than a forward-looking one.
With Northvolt, Quebec is at the forefront of the electric automobile industry parade. In addition, its batteries will have the lowest carbon footprint on the market. We are therefore not at the low end.
But among the questions that we can ask ourselves is whether the desire of our elected officials to be “in the parade” has not had the effect of somewhat affecting their wisdom. In Ottawa as in Quebec, for that matter.
For example, it is certain that one of the reasons to choose Quebec is its hydroelectricity, green and inexpensive. But aren’t we selling electricity that we don’t have? The question does not arise immediately, but it will quickly become unavoidable.
It is no coincidence that Northvolt’s announcement comes at a time when Prime Minister François Legault announces that three or four new dams could be considered in Quebec, in addition to what could come from Labrador, if negotiations with Terre -New ones are going well.
But then, aren’t we exactly in the “Energy Dollarama” development model? A vicious circle in which we will attract businesses thanks to our cheap hydroelectricity, even if it means building ever more dams to satisfy them?
Especially since the construction of new dams will also result in a significant carbon footprint which would counterbalance that of our green batteries.
Another question: the significant subsidies to Northvolt are justified, in part, by those that the American government has included in the poorly named Inflation Reduction Act or IRA. But what will happen if a future US administration (read: if Donald Trump wins in 2024) were to put an end to it?
If the IRA is no longer there, the government plans to end its own subsidies, but it is clear that this will create significant upheaval to the entire industry. What would be the effect on a start-up like Northvolt – a company that is not yet listed on the stock exchange?
Finally, there is the question of social acceptability. It is far from certain that the project will be the subject of a study by the Office of Public Hearings on the Environment (BAPE). Already, Minister Pierre Fitzgibbon has indicated that “three years is too long”. In any case, as we saw with the REM, governments only listen to what they want to hear in the BAPE reports. In the chosen words of Denis Coderre: “The BAPE is not the Pope! »
But above all there are the upheavals that the arrival of 3,000 Northvolt workers – almost all coming from elsewhere – will cause in the community, where housing, schools, hospitals and other services will have to be built. Which means we’ll have to bring in teachers, nurses and support staff to serve Northvolt’s “well-paying jobs.”
When we see the government’s salary offers to its employees, we cannot help but notice the gap between the “well-paid jobs” at the new factory and the much more modest salaries of those who will provide them with their services.
Ecology is, it is said, “the science of interactions between living beings”. This is why the disappearance of a small frog can ultimately affect the lives of large mammals.
For this small community on the South Shore, we will also have to question the arrival of 3,000 “well-paid jobs” compared to the very ordinary salaries of the public sector and services. In the ecology of the region, this is an imbalance that must be addressed.