Letters to the Editor Free trade & coal

As you have pointed out in your editorial (N.M., Aug 1/88) coal is a great mineral asset of our country and as a nation we should not ignore it at any time. Brought on stream at the right time any mineral resources gives the economy a shot in the arm that benefits all. Brought on stream at the wrong time, often pushed by governments, it diverts capital from investments of greater potential. In my opinion, the economy has been greatly hindered by the uneconomic development of the Northeast coal block in British Columbia and by government support of uneconomic coal mining in the Maritimes. So much better if government would stay out and let development follow economic lines.

You state that coal is Canada’s third most valuable mineral commodity. After a number of years in economy related positions in the coal industry, I would point out that a huge industry with a marginal profit often dependent on non-competitive pricing is a risky and potentially disastrous business with a rather smaller net benefit than your words indicate.

The one thing that government could constructively undertake and which I’d like to see you, as Easterners, advocate would be to allow free trade in energy within Canada. Under such a scenario, coal would take its rightful economic place with all the other fuels and power would be generated close to the coal fields here in western Canada rather than wasting liquid fuels moving it to eastern Canada simply to satisfy Ontario Hydro’s desire to monopolize the power industry. If this were allowed we might even be able to compete with the power Ontario Hydro generates from imported coal. Acid rain would be reduced and is less of a hazard in the west. Such a move would be made even more economic when super conductivity reduces losses. No comparable economy is physically possible in land transport.

I believe that advocacy of this form of free trade and free economy would be consistent with The Northern Miner’s editorial policy and would be the most constructive aid you could give the coal industry. A. Hugh M. Jones H & M Jones Geological Services Ltd. Calgary, Alta.