LA REVUE GAUCHE - Left Comment

Business leaders tell Villepin to stand firm

Another executive who attended the meeting and declined to be identified was less optimistic.

"There was a feeling among many of the participants that if the law is withdrawn you can kiss goodbye to reform for the next 10 years," he said, according to his spokesman. "It would send a terrible signal.".

The businessmen's comments come against a backdrop of escalating social unrest over the First Employment Contract, an initiative known by its French initials as the CPE and closely associated with the prime minister, who drafted the new law in an effort to ease double-digit youth unemployment.

Six weeks after student organizations and labor unions embarked on their campaign to have the new contract scrapped, the latest battle on France's streets goes well beyond the fate of one unpopular law.

It has become a critical test of another French government to carry out economic change and has emboldened an opposition that has rallied around job security ahead of next year's presidential election.

"We are now at a point that is well- known in France: the point at which a reform measure has become a symbol of reform itself," said Elie Cohen, a member of the Council of Economic Analysis, a panel of independent economists advising the prime minister. "This is no longer just about the CPE, it is about the ability to reform France."

Beigbeder, another prominent entrepreneur, said that any future French government - even if it was a Socialist government - would have to attempt labor reform to jump-start economic growth.

"In the end there will be a flexible labor contract in France, even if we are the last in Europe to adopt this kind of reform," said Beigbeder, who also leads the research and innovation arm of the French employers' union, Medef.

Indeed, he said it might take a leftist government to win the fight on labor market reform in France.

"If the left wins," he added, referring to the 2007 elections, "they will present a similar contract, maybe even a better one, because sometimes it's easier for the left to get the support of the unions and others from the left."

So far, business has been slow to take a public stance on the contract, fearing that this could create an even-greater backlash against a law regarded by many as a charter for exploiting young employees.

Defence Minister Gordon O'Connor is adamant that there will be no vote on Canada's role in Afghanistan, even if that vote were to strengthen the Conservatives' mandate to continue that mission.

While Canadian troops have been in the nation since 2001, some have called for new debate as Canadian troops take on a more aggressive combat role that is at odds with Canada's more traditional role as peacekeepers.

However, O'Connor rejected that notion.

"Our policy is that if we take on a new venture in a different country, we will bring that forward to Parliament for a vote," the former general told CTV's Question Period Sunday.

- That virtually ties the record snowfall for a single day in March, when 23 cm fell at City Centre Airport on March 11, 1982.

- Record snowfall at International Airport for a single day in March was 21.1 cm, set March 13, 1974 .

(Source: Environment Canada)

SPRING March 20 2006 at 11:26

Premier Bernard Lord's Conservative government introduced legislation Wednesday that will clear the way for the city of Saint John to grant a special property-tax rate for Irving Oil and Repsol YPF, S.A., its Spanish partner in the LNG project.

The proposed rate is a fraction of what the property taxes would be normally.

''We're doing this on behalf of the city of Saint John for the LNG terminal,'' said Local Government Minister Brenda Fowlie.

''They felt they needed to do this in order to make sure the facility did come to New Brunswick and to the Saint John area specifically.''

The city of Saint John has voted to give Irving Oil, owner and operator of Canada's largest oil refinery, a fixed property-tax rate of C$500,000 per year for the terminal for the next 25 years. Irving Oil Gets Clearance for Major Tax Break

LNG is supercooled liquefied gas that is shipped from far-flung countries -- Iran, Qatar, Russia and Indonesia are major suppliers -- to coastline terminals, where it is heated, vaporized and fed into a pipeline. Sempra and other companies are convinced that LNG is key to keeping a lid on gas prices in the United States as domestic supplies dwindle.

The rub: Many coastal communities don't want massive fuel tankers hogging their shores. Regulators approved five new LNG terminals in Texas and three in Louisiana, but companies have struggled to find a home outside the Gulf of Mexico, particularly in California and New England.

That's not to say that all Mexicans welcome LNG either. Lobster fishermen and the owner of a neighboring resort say Sempra's hulking plant threatens business. Surfers say a phenomenal surfing spot was destroyed after the San Diego-based company began construction in March.

Environmentalists have waged a spirited -- and so far unsuccessful -- campaign to derail Sempra, regularly blocking traffic at the plant entrance and bringing activists from around the world to rally local opposition. They sued the California Public Utilities Commission in state court last year to force the regulator to reconsider a ruling that cleared the way for Sempra to pipe gas from the plant to the U.S. grid near Tecate, Calif. West Coast's first LNG terminal finds a home in Mexico

Saint John city councillor Glen Tait is dismayed at the pressure tactics used by Irving Oil Ltd. to extract a long-term municipal tax break for its latest megaproject. In his view, it's a form of blackmail. "They're big enough to come down with a hammer," says Mr. Tait, describing the ultimatum that forced city council to ram through a 25-year tax deal for Irving's $750-million liquefied natural gas terminal -- or risk losing the project for Saint John.

Irving Oil Eyes Global Expansion

Besides the Saint John oil refinery, Canada's largest, Irving Oil owns and operates more than 500 convenience stores in eastern Canada and New England primarily under the brand Bluecanoe. It has also partnered with Repsol YPF, the largest private energy company in Latin America, to develop an liquified natural gas terminal in the Port City, according to the report.

Alhajji said in the report Irving's dominance in the downstream oil industry makes it perfectly suited to jump into Ireland's market.

"They are suited to take over, basically, because they are focused to serving the consumer at the end," he told CanadaEast.com.

Bill Simpkins, an energy industry consultant in Halifax, said in the report that convenience stores are profitable operations for oil companies. The market for quick to-go foods and beverages can be quite lucrative.

"I think overall the Irving companies are very astute in terms of where they invest," he said.

Canadian Press