Gov’t must review proposed Suncor merger. Ottawa. The federal government must tell Suncor and Petro-Canada to slow down until the government and the public have reviewed the proposed merger, says Canada’s energy union, the Communications, Energy and Paperworkers Union of Canada.

“There must be a thorough review of the proposed merger between Suncor and Petro-Canada to protect the public interest,” says Dave Coles, president of CEP. “This is not just a financial deal, it will affect Canada’s energy security.”

“The proposed merger of the two companies would create a new giant in the Canadian oil and gas sector with 2008 profits exceeding $5 billion. The companies have stated that they can merge without changes to the Petro-Canada Public Participation Act which restricts ownership levels in the former crown corporation, but Coles says that government must review the transaction and impose conditions on it.

“I think Canadians expect the Harper government to conduct a full review, with public input, before agreeing to a proposal from the CEOs of these companies to end the 33-year history of Petro-Canada,” said Coles.

Mr. Coles says the deal should be reviewed by the Natural Resources Committee of Parliament in the context of a Canadian energy policy.

“This proposed merger would create an integrated company that extends from the tar sands to gas stations across this country, including offshore oil, natural gas, and other production that would dominate our oil and gas sector. This new company would be so fundamental to Canada’s energy security that Parliament really must ask itself if it made a mistake by privatizing Petro-Canada.” Mr. Coles says that, at the very least, Parliament has a duty to ensure that any new company must:

• Be Canadian, with future guarantees that it remain Canadian.
• Continue the public interest mandate that it inherits from Petro-Canada, including a Canadian head office and limits on ownership.
• Maintain all current upstream and downstream operations refineries, and other facilities.
• Make firm commitments to value-added production in Canada.
• Be committed to sustainable energy and help to meet Canada’s international obligations on climate change.

The 150,000-member CEP represents more than 35,000 workers in the oil, gas and chemical industry across the country.