Resignation of Pierre Fitzgibbon | A reform to be completed

(Quebec) In leaving his post, Pierre Fitzgibbon is leaving his energy reform, which will have a significant impact on Quebec electricity consumers over the next decade, and the development of the battery industry, which is not finished, in the lurch. Overview of his record.

A reform to be completed

When forming his government after the 2022 general election, François Legault pulled a rabbit out of his hat: Pierre Fitzgibbon inherited the Ministry of Energy, in addition to the Ministry of the Economy. He was given the title of “superminister”, in charge of the major shift towards electrification of Quebec’s economy. There was quickly a clash with Hydro-Québec (HQ) CEO Sophie Brochu, who was worried about seeing economic development transform Quebec into an electricity “Dollarama”. She slammed the door in 2023, and was replaced by the former CEO of the CDPQ, Michael Sabia.

Then, HQ announced colossal investments of more than 100 billion to increase electricity production by 9,000 megawatts by 2035. This is the equivalent of the production of the LG-2, Manic-5 power plants, and the entire Romaine complex.

This energy is needed to attract new businesses and to electrify the Quebec economy, which still runs on gasoline, propane and natural gas. To decarbonize Quebec by 2050, “we must practically double our current electricity production,” according to Mr. Fitzgibbon.

To meet this challenge, he has produced a bill, which must be studied this fall. It will allow Hydro-Québec to act quickly, sometimes without a call for tenders, and will launch a major debate: who will pay for this transition. “Businesses? Commercial? Residential? The government? Hydro-Québec? This is a debate that we must have,” said Mr. Fitzgibbon. His successor will have to answer this question. Mr. Fitzgibbon warned consumers: the bill will be steep: “in five or ten years, yes, there will be significant increases,” he said last week.

The battery industry is slowing down

Cathodes, anodes and cells: Quebecers have become familiar with these terms hammered home by Pierre Fitzgibbon, who rolled out the red carpet for foreign companies wishing to invest to create a battery industry in Quebec.

In September 2023, it attracts cell manufacturer Northvolt to Montérégie. The government estimates that this is the “largest private investment in Quebec history,” with costs of $7 billion, of which $2.7 billion comes from Quebec and Ottawa. In the spring, car manufacturer General Motors also chose Quebec to produce battery materials. The project is estimated at $600 million, including $210 million in public money.

And that’s just the tip of the iceberg, in an interview with The Press On August 31, Mr. Fitzgibbon claimed to have a “dashboard” showing 124 projects, representing potential investments of $36 billion.

But this sector is slowing down. A setback at Northvolt will delay the plant’s commissioning by 18 months. Announced with great fanfare a year ago, Ford’s $1.3 billion project is on ice for the second time in three months.

Mr Fitzgibbon assured The Press that there was no imminent danger. He argued that the money is only paid out as projects move forward: “In an apocalyptic scenario, I think the losses would be relatively small.”

A minister who doesn’t mince his words

Since entering politics during the 2018 general election, Terrebonne MP and Minister of Economy Pierre Fitzgibbon has always been outspoken: he says what he thinks, which can sometimes cause sparks to flare up. He had much more latitude than other ministers.

An example: in 2022, François Legault announced his wish that immigration controlled by Quebec be 100% French-speaking by 2026 to stop the decline of French. “It would be fun to have 100%. But we have to be realistic and balance that with the needs,” retorted Mr. Fitzgibbon, asking for exceptions.

In the debate on the energy transition, he says things clearly: for Quebec to be carbon neutral by 2050, the vehicle fleet must be reduced by half by 2050. “We must be consistent: if we ever want to be carbon neutral in 2050, there will not be five million cars in Quebec,” he argued in 2023. “It makes me laugh when people get offended by that!”

More recently, Mr. Fitzgibbon had said that the gasoline tax should be increased. He made this statement at the very end of a press conference where he announced the abolition of the fuel price floor.

“Lower fuel taxes? I think they should be raised, if I did anything,” Fitzgibbon said before leaving the press conference room Thursday. Fitzgibbon later clarified on social media that “the government has no intention of raising the fuel tax.”

Troubles with the Ethics Commissioner

Pierre Fitzgibbon’s political career was marked by his run-ins with the National Assembly’s ethics commissioner, Ariane Mignolet, because he refused to sell his shares in companies that did business with the government.

The situation culminated in June 2021 with the resignation of Pierre Fitzgibbon as minister, while he divested himself of his interests in White Star Capital and ImmerVision, two unlisted companies that had ties to the state. Finance Minister Eric Girard acted as interim minister during this hiatus.

This was the Commissioner’s fourth report targeting Mr Fitzgibbon.

“This continued failure to comply with the Code presents a real risk of fuelling the perception that elected officials are not subject to the law like the rest of the population and can deviate from their own code of conduct. This situation unfortunately contributes to undermining public confidence in their elected officials and democratic institutions as a whole,” the Commissioner wrote.

Mr Fitzgibbon’s “deliberate refusal to comply with the Code”, despite his previous reports, sets a “dangerous precedent”, according to Mr^me Cute.