Canada's premiers stopped short of an agreement on lowering greenhouse gas emissions Friday, but managed to take a united stand against high energy costs.
The premieres and territorial leaders had sought to lay the groundwork on a plan to fight climate change. British Columbia and central Canada wanted a cap-and-trade system for emissions, but Alberta and Saskatchewan wanted to take a different route: carbon capture.
Other provinces, like Newfoundland and Labrador, were torn between the two options.
"I guess if we had a leaning at all, it's cap and trade," said N.L. Premier Danny Williams. "But. . . we're in a unique position in Newfoundland and Labrador because we have a nice mix of renewable and non-renewable energy."
In the end, the 13 leaders decided to focus on lowering energy costs and overall demand, committing to a 20 per cent increase in energy efficiency by 2020 from coast to coast.
The premiers -- who met in Quebec City this week -- also met with Canada's top banker, Mark Carney, to discuss the country's economic situation and interest rates.
Some provinces could benefit from interest rate cuts, but there are also concerns lower interest rates could raise the inflation rate.
Ontario Premier Dalton McGuinty had said before the meeting that he wanted to speak to Carney about the pressures his province is facing. Ontario has seen thousands of job cuts in its manufacturing sector this year. At a press conference with the premiers after the meeting McGuinty didn't offer many details about the discussion.
"(Carney) provided us with his insights," McGuinty said.
"He certainly conveyed to me the challenges and opportunities associated with Ontario's economy."
McGuinty did not say if he asked for an interest rate cut, but he noted the issue came up.
Carney would argue he "has his eye on the inflationary ball," McGuinty said.
Friday's meeting follows on the heels of Carney's announcement Thursday that Canada's economy will continue to improve in the coming months, and should return to "full capacity" by 2010.
Carney also noted Canada benefits from the rising cost of oil and natural gas, and the economic benefits aren't limited to just energy-producing provinces such as Alberta.
Carney said industries that feed into the energy sector, including manufacturing industries in Ontario and other areas of Central Canada, gain residual economic benefits.
But while Alberta and other western provinces have seen a relative boom in the past year, Central Canada's economy has suffered. Ontario, in particular, is dependent on exports, which have been slowed by a strong Canadian dollar and an ailing U.S. economy.
At the three-day conference yesterday, the premiers said they had reached an agreement to cut the layers of red tape workers face when moving between provinces.
The plan, which is expected to be in place next year, would recognize professional qualifications across provincial and territorial lines and make it easier for Canadians to work anywhere in the country.
With files from The Canadian Press
