The people's voice. [volume] (Helena, Mont.) 1939-1969, 1961-06-09
Continued From Last Week. .
Ottawa Considers Power
"A Capital Asset"

ottawa CONSIDERS Power
"a Capital Asset"
In national policy, power is re-
garded as a capital asset, the fue
of future Canadian industry and
unlike ordinary goods or individual
industries, is not for sale to foreign
ers who may agree to return it at a
certain date but may again fail to
honor the contract. Bennett and pow
erful British Columbia business in
terests consider these fears quite
groundless. By inviolable treaty. they
say, Canada can unquestionaboy re-
cover it's power at specified time.
Up to this point also, Ottawa had
assumed that it was engaged only in
a routine, passing disagreement with
Bennett, who flourishes on contro-
versy and indignation. Now it dis
covered that in the case of the Co
lumbia he had undertaken to smash
the nations no-export policy.
Ottawa was ready to let the
United States have part of Cam
fits until all the power was needed
by Canadian consumers a few years
hence but it had never contem-
plated the long-term foreign sale
of power made in Canada, at Mica
Creek or anywhere else.
Victoria argued that all power not
Immediately disable in Canada should
be sold for fixed period of years,
the American dollar thus earned be-
ing used to pay part of the cost of the
Canadian dams and to keep the price
of Canadian electricity at minimum.
The clash between the two govern
ments on the old issue of power ex-
ports was finally clarified but that
cloud on the horizon looked only as
big as mans hand when Bennett in
vited Fleming to Victoria. The pre-
mier was not going as a supplicant
to Ottawa; the federal government
could come to him.
Fleming came and hopefully en-
tered the office that had been barred
to Fulton. Two days later a grim
tightly buttoned lips and double
barreled ultimatum in his pocket.
BENEFITS ULTIMATUM
The federal government, said Ben
nett, could finance and build the
whole Columbia scheme alone. Or,
the provincial govern
ment would build it, but only under
guarantees.
After posing for a ritual photo
graph with his host before a map of
he Columbia men wreathed
n transparent newspaper smiles
Fleming returned to Ottawa in 81
ence. 1t was soon clear, as Bennett |
doubtless knew in advance, that his
could not be accepted by |
he federal government.
Ottwa is not prepared to build
the Columbia scheme alone, first
because it thinks British Columbia
should pay at least half the capital
cost; second, because it is not sure
of selling the power thus produced
to the only available customers,
the private BIC. Electric utility
empire and the provincial BIC.
Power Commission, both of them
effectively controlled by Bennett.
What if the nation spent half a
illion to tap the Columbia, and then
ound that the two customers refused
o buy power at an economic price?
ottawa didn't intend to get out on
hat limb at the risk of being sawed
IF by Bennett.
The alternative of a purely pro-
incial scheme was perhaps even more
to Ottawa ON Benefits
erms, since Ottawa was asked to
"by appropriate financial
leasures'' that Columbia electricity
vould be delivered in Vancouver at
maximum cost of 4.25 mills.
Bennett had been generous, as he
bought, in raising Fulton's earlier
igure, but Ottawa, unable to foresee
ne cost of borrowed money and hence
ne cost of construction, was not pre-
AIRED to make the required guaran-
&c at the risk of heavy financial
uses. Moreover, the provincial offer
as based ON the assumption that