By Thomas I. Likness
EBC Edmonton Bureau

EDMONTON (Eagle News) — The Canadian economy and government revenues are in jeopardy because of negative energy prices, said Premier Jason Kenney Monday.

Kenney said for the first time in the history of the province, energy prices are trading below zero.

“This is sadly something I predicted was quite possible a month ago and it further underscores the devastating impact of recent events on the largest industry in this province, the largest subsector of the Canadian economy,” said Kenney. “We need to understand that hundreds of thousands of Canadian jobs are on the line.”

Kenney said half a million jobs in Canada are connected directly or indirectly to the energy industry.

He said governments, over the past 18 years, have received $370 billion in revenues from it to support critical services across the country.

“We simply cannot afford to see that industry permanently impaired,” said Kenney.

He said he appreciated the help the federal government has provided so far but much more action is needed.

“This is not an Alberta issue, this is not an industry specific issue, that this strike right at the heart of the Canadian economy,” said Kenney. “If we see the current negative price situation continue for any period of time, the implications obviously for this industry are very serious, could not be more serious.”

He says the fallout from negative energy prices will adversely affect the banking sector, the financial services industry, manufacturers and pension funds.

As well, Kenney said government revenues that pay for health care and other critical services could be jeopardized.

The premier wants the federal government to provide more help in the form of a credit back stop. He said it should be in the range of $15 billion to $30 billion to ensure the industry will survive the next 12 to 18 months of low prices.

Eagle News Service