Bonus Energy | The Press

It would seem that the government of Quebec wishes to invite foreign companies to establish themselves in Quebec, by offering them electricity supply contracts at good prices.

I do not doubt for a second that several foreign companies wish to establish themselves in Quebec, against the promise of an electrical energy contract as a bonus. The good business ! Especially in these times of energy insecurity, amplified by the war in Ukraine, and the disfavor for fossil fuels.

The presumed promoter of this project, Minister Pierre Fitzgibbon, is an activist for economic development in Quebec. And so much the better for us. Her activism and availability inspire confidence and are appreciated by local entrepreneurs. We also understand Prime Minister Legault’s motivation to develop our economy, instead of managing a pandemic. These ambitions are welcome.

But do we have to agree with this approach, which at first sight seems medieval, in relation to the evolution of Quebec?

I should point out that I once sat on the board of directors of Hydro-Québec.

My personal conception of economic development is based on the difference between endogenous development and exogenous development. Very big words, you will say to me, but the theory frames and directs the practice.

Endogenous economic development is created with the interaction of local actors. Entrepreneurs, financiers, managers, workers, and all the ingredients available locally to create businesses and wealth. The Canam Group, of Saint-Georges-de-Beauce, would be an excellent example.

Exogenous economic development, in short, hopes for salvation from outside to create this wealth. A little small life at the limit, almost third-worldist. Companies owning aluminum smelters in Quebec would be good examples.

They consume, without a doubt, a considerable amount of goods and services here, just as they directly employ several thousand Quebecers. But let’s admit that they might not exist on our territory, without very advantageous, if not juicy, electricity supply contracts.

Thus, their presence has a cost for Québec, in return for many advantages. Let’s also explain that they came to us precisely when it was important to create jobs.

But the priority for the next few years is and may no longer necessarily be to create jobs, but to find labor for the tens, even the hundreds of thousands of positions currently available, and In the coming years.

So where would these new businesses find labor? Statistically, at the expense of existing businesses in Quebec. So where is the gain? We’re shooting ourselves in the foot, I think. Better paid, these jobs ? Go tell that to the one who loses his employee to see.

I am sure that if we asked the question to Quebec entrepreneurs, they would give the government the priority of creating a workforce, well before welcoming foreign companies which would make the shortage problem worse.

And Hydro-Québec has no shortage of customers to export its surpluses at an excellent price. And these terawatt hours will always be more in demand, and paid for, among our neighbors to the South. So why sell them at a discount? And what would be the consequences on the bill of the consumer, ordinary citizen, or the Quebec company?

And so, in total, at the end of the story, would the government really gain, in terms of taxation and incidental taxation? Not sure at all, me.

We agree with Mr. Legault to increase Hydro’s production capacity, to build new dams for example. But it remains a very complicated process, for all the reasons we know. And this new production would probably only be available in almost a decade.

What means that the needs of new foreign companies would be met from existing capacity? Do we really have surpluses at this point?

The fundamental problem with the disposal of our energy wealth is too often the mismatch between the political imperatives of governments and the need for long-term direction, and sound management, of Hydro. In short, too often: the spectacular announcement against the planned management.

These conflicting interests have led, for example, to the harnessing of several small rivers in Quebec, for a few megawatts in each case. Of the peanuts on the whole work. Yes, revenue for some municipalities, but a marginal gain for Hydro, and a significant reputational loss among supporters of sustainable development. In short: a bad decision.

I myself have already worked on a project to set up a cogeneration plant in Quebec City, with an American company. A very big project. Ultimately, Hydro withdrew from this one, for reasons of long-term profitability. The entrepreneur in me was obviously disappointed, but the Quebec taxpayer, he understood the situation well.

Finally, why discounts only to new foreign companies, and not to those already established here? Strategic companies, we will be told. Well yes, I saw it coming, that one. Strategic, the perfect generic and all-purpose word. To see… And how many other questions.

If I shorten, a plan against the foot of a panacea.

In my opinion, there is much more, and better to do, to promote the revolutionary economic gestures made by René Lévesque and Robert Bourassa, who nationalized and developed hydroelectricity.

We’ll talk about it soon. Always the patroness who monitors me over the length of my epistles…