|
Asset Rank
2006 |
Pre-Tax Profit Rank
2006 |
Return on Asset Rank
2006 |
Bank
|
Assets ($millions CDN)
|
Pre-Tax Profit ($millions CDN)
|
Pre-Tax Return on Assets (%)
|
40
|
33
|
59
|
Royal Bank of Canada
|
557,147
|
6,439
|
1.16
|
47
|
38
|
41
|
Toronto-Dominion Bank
|
407,822
|
5,737
|
1.41
|
49
|
44
|
56
|
Scotia Bank
|
393,387
|
4,722
|
1.20
|
56
|
60
|
62
|
Bank of Montreal
|
324,622
|
3,587
|
1.11
|
58
|
65
|
67
|
CIBC
|
315,519
|
3,441
|
1.09
|
109
|
107
|
74
|
Desjardins Group
|
135,126
|
1,404
|
1.04
|
119
|
112
|
75
|
National Bank of Canada
|
117,454
|
1,225
|
1.04
|
Exchange rate 1 USD = 1.1653 CDN December 29, 2006
|
Global Total
|
71,646,418
|
718,893
|
1.00
|
||
Canadian Banks
|
3,136,757
|
35,996
|
1.15
|
Canadian Energy Capital
Canadian Association of Petroleum Producers (CAPP) represents companies that combined produce 95% of all crude oil and natural gas in Canada. According to CAPP’s June 2007 report: Crude Oil Forecast, Markets and Pipeline Expansions, “Together, these members and associate members are an important part of a $100 billion-a-year national industry that affects the livelihoods of more than half a million Canadians”.
The US Department of Energy (DOE) Energy Information Administration (EIA) is a close and very well informed detail watcher of Canadian energy developments. In the April 2007 EIA “Country Analysis Brief – Canada” said, “In total for 2006, Canada exported to the United States 2.3 million barrels per day (bbl/d) of oil and petroleum products (11percent of U.S. supply), 3.6 trillion cubic feet of natural gas (16 percent of U.S. supply), and 41.2 billion kilowatt-hours of electricity (1 percent of U.S. supply).” The report confirmed that Canada “sends over 99 percent of its oil exports to the U.S.”.
In 2006 Canada’s total oil production including liquids was 3.3 million bbl/d compared with a daily consumption of 2.2 million bbl/d. Simple mathematics will support the fact that despite Canada’s status as a “net exporter” in 2006 1.2 million bbl/d was imported. Primarily imports were to eastern Canada and came from Algeria and Norway for crude oil and the US for refined products.
The EIA report underscored this fact by saying, “Canada’s major population centers in the eastern part of the country are not well connected to its principle production facilities in the western interior, meaning that it is often easier to import oil along the coastlines rather than transport it domestically.”
Similar patterns are continuing in the power generation and transmission sectors. In the November 7 Globe and Mail article “Newfoundland Looks South”, Virginia Galt reported that Newfoundland is “frustrated by the lack of an east-west power grid in Canada” and the large sources of clean and renewable hydro-electric power of Newfoundland could be a major source for Ontario and other Canadian markets. Galt reported that Dean MacDonald chairman of Newfoundland and Labrador Hydro said that Newfoundland decided to build a new power transmission system to ship power south into US markets due to the absence of an all Canadian power grid.
Canada’s natural gas reserves, after years of US plunder, have declined at a rapid pace. Despite being the 3rd largest global producer of natural gas Canadian proven reserves have shrunk to a fraction of previous sizes to 58 Tcf. By comparison US proven reserves are 204 Tcf.
Threatened with significant reductions in revenue through reduced gas royalties the Alberta Royalty Report findings can be traced to simultaneous increases in tar sands productions. After initial dire warnings from CAPP about the demise of Alberta’s “booming” economy the warnings have ceased and it is business as usual. Why? As Gordon Laxer reported in the Edmonton Journal on October 22, 2007, “Rather than increasing royalties by 20 per cent as headlines tell the public, the panel's recommendations would, if fully implemented, reduce them by 20 per cent by 2016…Alberta would collect only $7.6 billion in 2016, compared to $9.5 billion in royalties in 2006.” Big oil is delighted with Premier Ed Stelmach.
This rapid decline in natural gas production is resulting in the construction of 6 new liquid natural gas (LNG) plants for regasification (turning the LNG back into a gas for transport by pipeline) of imported LNG being proposed. The combined capacity will be approximately 5.0 bcf/d. In 2006, Canada exported 3.6 Tcf of natural gas to the United States, representing 86 percent of total U.S. natural gas imports that year. The proposed plants are planned to position Canadian pipeline operators Enbridge, EnCana, Kinder Morgan and others and their large gas transmission pipeline system as a continental natural gas broker and to maintain their dominant position in the “export” market.
The majority of Canadian finance and industrial capital is now “underwritten” by the “equity” in Canada’s tar sands. The US DOE/EIA 2006 annual report shows that “North America” is 2nd in global crude oil reserves at 317 billion barrels. North America follows the Middle East which accounts for 743 billion barrels. In a foot note to the North American reserves the report says that Alberta’s tar sands account for 174 billion barrels or 55% of the total known “North American” reserves.
Canadian Mining Capital
PM Harper’s recent tour of Haiti, Columbia and Chile was a play to position Canadian mining and banking interests as dominant hemispherical players and to situate Canada as a regional imperial power broker.
While on his July tour of the region Harper made stops at Barrick Gold’s head quarters in Santiago and stopped at Scotia Bank to glad hand. In his July 17th 2007 speech to the Chile-Canada Chamber of Commerce in Santiago Chile Prime Minister Harper indicated that Canada is willing to become a bigger player in the region and “to doing so for the long term”. Harper said, “Foreign direct investment from Canada into the Americas now stands at close to 100 billion dollars – a number that is more than twice the size of Canadian investment in Asia.”
This places Canada 3rd in direct foreign investment in the Caribbean and Latin America with banking and mining as the dominant players. Harper also expressed Canadian energy capital is ready to supply energy to South American markets and that Canada is prepared to challenge Venezuela in reversing the “return to the syndrome of economic nationalism, political authoritarianism and class warfare”. Harper’s thinly veiled warning to South American workers to abandon a path of independent socialist development and return to capitalist relations pleases his mining bosses.
Harper said, “Canada is an emerging energy superpower and is committed to working with you in addressing this challenge”.
Canada’s dominant position in mining is described by Mandeep Dillon in the April 20, 2007 Canadian Mining Watch report entitled “Canadian Mining in Mexico: Made in Canada Violence” as, “Canadian mining corporations lead the global mining industry”.
Dillon sights that, “The Canadian industry ranks first in the global production of zinc, uranium, nickel and potash; second in sulphur, asbestos, aluminium and cadmium; third in copper and platinum group metals; fourth in gold; and fifth in lead. It has interests in over 8,300 properties worldwide – 3,400 of which are in 100 foreign countries. In Latin America and the Caribbean, which have been identified as the main current geographical target for mineral exploration, Canadian mining corporations represent the largest percentage of foreign mining companies – with interests in more than 1,200 properties”.
Canadian Military Capital
Canadian capital in some sectors is tied more closely to US markets such as energy exports while other capital has more “freedom” to move illustrated by Canadian mining capital. Canadian military capital is particularly sensitive to US foreign policy as it derives the majority of its profits from supplying US-NATO military hardware, services and technologies.
This dependency is illustrated in a January 15, 2007 Maclean’s article by Colin Campbell entitled “Canada’s Arms Industry is Under Attack”. Campbell sights Stockholm International Peace Research Institute 2005 annual report which places Canada as “6th largest seller of military weapons in the world”. Canadian defence industry is worth $7 billion (US) per year and employs 70,000 Canadian workers. Half of all sales come from the US and close to 80% is to NATO allies.
The Canadian Association of Defence and Security Industries (CADSI) says that the biggest threat to the Canadian defence industry is the US State Department’s increasing strict regulations on the sharing of its military technologies. Tim Page, president of CADSI says that if it is not resolved, “The reliable, long-standing Canadian supplier may find itself on the outside of a good bit of commercial business”.
Canada now ranks twelfth among the world’s nations in military spending. For 2005 Canada’s military expenditures were $10.6 billion ($327 per capita) representing 1% of the all military expenditures on the globe. Prime Minister Harper’s decision to turn a war of occupation in Kabul into a war of aggression in Kandahar has increased military expenditures to $15 billion and rising. Canadian Government spending on NATO for 2005 (combined personnel and equipment) was $6.4 billion, or 60.4% of total military expenditures and an increase of 20% over year 2000. The Canadian Government spends 60% of its military expenditures on NATO and only 40% on the defence of Canadian territory, airspace and coastal waters.
US military expenditures for 2005 were $482.2 billion ($1,604 per capita) exceeding by $116.6 billion the expenditures of the next fifteen highest nation states put together. The US economic dependency on war and military expenditures is the Achilles heal of US imperialism not as many opine, its great strength. US military expenditures on NATO for personnel and equipment totalled $192.23 billion in 2000 and rose to $262.29 billion by 2005 a rise of 36.4% in five years.
It is clear from these figures why Canadian military decisions are taken at Brussels and not in Ottawa. The big money is at NATO. On September 18th 2006, the Assistant Secretary General for Defence Investment of NATO announced that the 26 member countries have begun building a 75 million euro command and control system for missile defence. This is only the start. NATO has produced a 10,000 page report that endorses the US plan to deploy ballistic missiles to space that will increase the initial investment to unlimited heights. It is the anticipation of huge profits that has caused the Harper Government to state its willingness to re-open talks with the Bush Administration on Canadian participation in Ballistic Missile Defence.
Not satisfied with current levels of military expenditures and Canada’s current rejection of US BMD, J.L. Granatstein in the Fall 2007 CDFAI report entitled “A Threatened Future: Canada’s Future Strategic Environment and its Security Implications” recommends that “Given Canada’s impressive economic capacity, we think an overall defence budget at a level equivalent to the NATO average (2.2 per cent of GDP) would be a reasonable target. In 2007 dollars, that would generate an annual budget of approximately $25 billion, or roughly $9 to 10 billion more than the current figure.”
David S. McDonough, Ph.D. Programme, Department of Political Science, Dalhousie University in the Spring 2006/07, Volume 9, Issue 3 edition of the Journal of Military and Strategic Studies report entitled “BMD and US Strategic Doctrine: Canadian Strategic Interests in the Debate on Missile Defence” conclude that, “In the end, Ottawa should go into any deliberation on missile defence with its eyes open and recognize that a more sophisticated and ‘limited’ approach to missile defence, while having a clear relationship with an aggressive American strategic doctrine, could also be in Canada’s strategic interest.”
Labour and Peace – an Alliance to Challenge Harper’s Superpower Dream
So what does all this have to do with labour and peace? Put plainly - profit at the expense of Canadian workers jobs, wages and dignified retirement. Canadian workers have no quarrel with workers of other nations. Canadian workers will not accept protection of Canadian jobs at the expense of exploiting the most poor and vulnerable workers of other nations. Canadian workers will not accept that the “interests of the Canadian people” are the interests of finance-oil-military capital. Labour has the capacity to unite and lead the nation around a peaceful program of national economic development.
When Prime Minister Harper speaks of “emerging energy superpower” this is what is meant. Export of capital and the means to ensure super-profit returns for a handful of power elites and the military capacity to sit at the supreme council of NATO with clout. In essence “emerging energy superpower” status is to project Canadian corporate banking and mining interests globally with military force through US-NATO alliances and US BMD strategic defence plans, all under written by Alberta tar sands and Canadian energy resources. Imperialism never looked so good in Canada.