Lougheed wary of battles with feds, U.S.

Canada's doing just fine, thanks, according to former Alberta premier Peter Lougheed.

Lougheed served as premier of the province from 1971 - 1985, a pivotal time in the development of Canada's constitution. On campus Jan. 15 to deliver the 18th annual Merv Leitch QC Memorial Lecture, Lougheed asked the question: Is Canadian federalism working?

"There's something about this country that's hard to describe. We really do function as a federal system. You can see it around the table, you can see it today," he said. "We do have a country where federalism is working. So, what we have to ask ourselves is: Can we continue to function this way? Can we continue to work without Quebec being a part of it? Can we continue to bring the disparate forces together and deal with them in an appropriate way?"

"My answer to that is a resounding 'Yes.' Is Canada working? I say, unequivocally, yes."

In his address, the U of A's Faculty of Law alumnus detailed his participation in formative events in Canada's evolution, such as the signing of the North American Free Trade Agreement and the development of the constitution in 1982.

"What I'd like to point out about that process, because it's easy to forget, is that it was an open process. The public came to understand what was going on and took an interest in it," Lougheed said, adding that he didn't like the closed-door meetings recently held between Canada's premiers and Prime Minister Stephen Harper. "Imagine that, a constitutional conference and millions of people watching it on TV. But it happened."

Despite the country's current success, Lougheed warned of two possible scenarios he sees emerging as major challenges for Canada's future - a federal carbon tax and a strained relationship with the United States.

"At some point, I think we'll see a major conflict arise around environmental issues, especially water issues emerging around our oilsands," he said, suggesting the issue could even lead to a constitutional crisis. "I foresee a possible major confrontation coming up around the federal government's environmental policy versus provincial control and ownership of our resources. It would be maybe the toughest question I could think of that the Supreme Court of Canada could face."

But he rejected the idea that the issue could fuel the fire of any Alberta separatist sentiment.

"You're not going to have a separatist movement in Alberta," Lougheed said. "Never has been. Never will be."

Canadian leaders will have some hard decisions to make if the U.S. government continues to take an isolationist path, he added.

"Then we really have a tough question in Canada, if they get too difficult and here we are, their major supplier of energy, both oil and natural gas, what should we do?"

"And I'm not sure of the answer to this question. Should we bring it into the discussion? Should we make it very clear to the American legislators that they can't have it both ways? They can't have first call on our resources and at the same time be bringing in these other measures that are penalizing our country in a protectionist way."

"I have an instinct that, depending on the nature of the next U.S. Congress and the next U.S. president, that could emerge as a very significant confrontation between our two countries, and I hope we're smart enough to find a way to overcome that."