Presentation Transcript

1. National Energy Program (NEP)

   Johnny
2. Background to the NEP Energy Crises of the 1970s: high oil prices resulted in economic problems. These included unemployment. It was introduced in 1980 by Trudeau’s Liberal Government, the purpose being to increase the control that Canada had on its own economy, through giving special benefits to oil and gas firms that were under Canadian ownerships. Part of the larger effort in the 1970s to limit American control on the Canadian Economy. As such there was a lot of American opposition to the NEP.
3. Goals: Canadian oil self-sufficiency Maintenance of oil supply Canadian ownership of the Energy Industry Lower costs Initiate the search for Oil Reserves in Canada Bring into play Alternative Energy Sources Introduce taxes that would increase government revenues from oil Petroleum Gas Revenue Tax
4. Three Principles to the NEP(Direct Quotes) “Security of supply and ultimate independence from the world market” “Opportunity for all Canadians to participate in the energy industry” “fairness, with a pricing and revenue-sharing regime which recognizes the needs and rights of all Canadians"
5. Elements of the NEP Price of Canadian Oil would be kept with a maximum of 85% of the lowest imported fuels cost Natural Gas prices would increase slower, but would include a federal tax You get the point!!!
6. Effects The effects are hard to determine, since a worldwide recession came into play after the NEP’s implementation Bankruptcies and real estate prices were better in Central Canada, and some argue that this was due to the NEP NEP failed to provide the forecasted revenues in the 1980 budget. In 1983 the federal government announced a deficit of $29.7 billion Western Canada’s distrust in the Federal Government grew as a result of the NEP. They believed that the government was intruding into provincial jurisdiction.