Ganong CEO says N.B. must take advantage of proposed sale of NB Power assets

SAINT JOHN, N.B. - New Brunswick must produce a clear strategy to create new businesses and jobs through lower power rates secured by the proposed NB Power deal, says one of the province's business leaders.
David Ganong, president and CEO of Ganong Bros. Ltd., is also chairman of an advisory panel that said the $3.2-billion deal to sell NB Power assets to Hydro-Quebec would be good for the province.
He believes it's crucial that Business New Brunswick and the Energy Department work together to tap into the opportunities generated by the revised agreement.
"What we've got here is a bit of a gift in terms of lower power rates," he said. "But the real question for government is, what are we going to do with them?"
Ganong stressed the need to balance business growth and energy conservation so the province doesn't exceed the 14-terawatt heritage pool of electricity provided under the deal.
Business New Brunswick launched a comprehensive review of its programs and incentives last fall and is getting closer to presenting its findings to the government, said the department's minister, Victor Boudreau.
"There's no question that things like the power deal and the tax plan - tools we didn't have before - will be incorporated into our plans," he said, citing the province's lower corporate and personal income taxes as another draw for businesses.
While energy costs affect all industries, the department plans to target top electricity consumers, such as data centres, Boudreau said.
"We need to identify those sectors and go after them aggressively based on what we have to offer," he said.
At the same time, the department will work with existing companies to help lower their energy consumption and make up for the added demand from new businesses, he said.
David Campbell, a Moncton-based economic development consultant, said Business New Brunswick should provide incentives for large industrial users to produce their own power - a strategy that has paid off in U.S. jurisdictions such as Michigan.
It also needs to encourage new businesses around green energy and conservation, Campbell said.
"We need to understand that this is a major growth industry, and work backwards, see what we can do to get our share."
Boudreau said the department still needs to consider a range of options, including the recommendations outlined in the report issued Monday on the proposed NB Power deal.
"We want to make sure we take advantage of this opportunity," he said. "But as a government, our priority is getting the deal done."
In Fredericton, the proposed sale continued Thursday to dominate business in the legislation.
The Liberal government used its majority to vote down an Opposition motion that called for the final contract on the Hydro-Quebec energy deal to be tabled 30 days before it is signed.
Conservative Leader David Alward said he was disappointed but not surprised by the government vote.
He said Premier Shawn Graham has kept New Brunswickers in the dark about the deal to sell NB Power assets to Hydro-Quebec since it was announced last October.
"This whole deal has been done in a veil of secrecy," said Alward.