Pierre Duhaime, president and CEO of SNC LavalinJeff McIntosh/The Canadian Press
Government must set stricter environmental standards for the oil sands if it wants to combat the negative perceptions directed at industry today, the head of Canada's largest engineering and construction firm is warning.
"I would like to see the government taking more leadership," said Pierre Duhaime, chief executive of SNC-Lavalin Group Inc.
That means not working to sell the economic benefits of the industry - "I would not spend too much time saying we bring money to you," Mr. Duhaime said. Instead, he called for provincial and federal leaders to set clear goals that will allow companies to provide proof of real progress.
For example, "We should know exactly what should be the water recycling standard," he said. Governments should also set more rigorous rules on carbon emissions, land use and cleanup of toxic mine effluent, or tailings, he said.
"Right now we don't have yet this in place. We are starting and it's not enough," he told reporters following a speech to the Calgary Chamber of Commerce.
"To get the acceptance by the public, the public needs to see the government is playing its role as a regulator. And companies have a role - it's to follow what the leaders want us to do."
For the oil sands, however, buffing performance records is just one of a series of major challenges. Another is coping with another boom that is now beginning to strike, stirring new worries about labour shortages and the cost spiral they often trigger. Companies have engaged in a series of strategies - including labour caps and halting construction over the holidays - to avoid a repeat of the pain they felt as recently as 2008.
But Mr. Duhaime warned that it may not be enough, especially as major construction projects in Saskatchewan and the East Coast attract workers that will now not be able to travel to Alberta.
"Unfortunately, the same things may happen again," he said. "I hope it would be better. But the risk is there."
SNC-Lavalin, meanwhile, continues to focus on growth outside of the oil sands. The company is now committed to a solo bid for Canadian nuclear company Atomic Energy of Canada Ltd. Mr. Duhaime confirmed that the Ontario Municipal Employees Retirement System walked away from a joint bid, and said SNC-Lavalin is not looking for other partners "at this time."
He expressed confidence that negotiations toward a sale will proceed more quickly under a Conservative majority.
"We continue to have our discussions, and having now the government back to work just could help," he said.
But, he added, the company is not counting on a discounted purchase price, even as the Japanese nuclear disaster creates new doubts about the future pace of nuclear energy expansion.
"The acquisition price is based on business which we all know. I don't think that Japanese disaster has an impact on these," he said.