News release

N.S. Policy on Gas Distribution Outlined

Premier Russell MacLellan says Nova Scotians will have access to Sable Gas to heat their homes and run their businesses. "Any proposal that wants to pit urban Nova Scotia against rural Nova Scotia will be unacceptable," said the premier. "It's the people's resource and they have a right to access."

Regulations covering the distribution of natural gas within the province will be released in a few weeks. The Utilities and Review Board will use the regulations to guide them as they conduct hearings on various applications for the distribution rights. MacLellan made his comments in a speech to delegates attending the 1998 Canadian Offshore Resources Exposition (CORE) conference in Halifax.

There are four main principles to the gas distribution policy. The first is that Nova Scotia must have a safe, reliable distribution system.

"Natural gas is new to most Nova Scotians. If we are going to heat our homes and run our factories with this new energy source, we must ensure distributors are competent and experienced and that the regulatory framework is strong," said the premier.

The second principle assures that Nova Scotians benefit from the cost advantages associated with natural gas, and are assured of a long-term supply at fair prices.

The third underlying principle of the regulations deals with the cost of installing the necessary distribution network throughout the province. MacLellan said these costs must be fair to all Nova Scotians.

"The cost of installing a distribution network cannot be placed on the shoulders of homeowners alone. Industry, which will benefit from a lower cost energy source, must also pay their share."

The fourth and final principle specifies that gas distributors must make gas available to as many Nova Scotians as possible.

"Whether you live in the western part of the province or in eastern Cape Breton, Nova Scotians will have access to natural gas. Any company interested in distributing natural gas here must adhere to each and every one of these principles,@ said the premier. "We intend to ensure that Nova Scotia gas benefits Nova Scotia people."

MacLellan also told delegates about a new cooperative learning program related to the offshore industry. Government will provide wage subsidies to offshore-related firms that hire post-secondary students for work experience. The program will assist 150 students over three years to gain experience in the province's offshore sector.

The first students will be matched with companies later this year. "It's an investment that can pay big dividends," Premier MacLellan told delegates. "Companies can attract prospective leaders and mold them to better suit their objectives. Students get real experience that can lead to real full-time jobs here at home."