Mackenzie Valley Pipeline Project Case Study

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In 1970, the Mackenzie Valley Pipeline project was proposed. It was to transport natural gas from the Beaufort Sea through Canada's Northwest Territories to tie into the gas pipelines in northern Alberta. It was a major construction project and would have a heavy impact on the northern environment. Therefore, The Canadian government in 1974 ordered Mackenzie Valley Pipeline Inquiry. It was ordered to investigate the social, environmental, and economic impact of the proposed gas pipeline that would run through the Yukon and the Mackenzie River Valley of the Northwest Territories. Thomas Berger was asked to conduct the inquiry of the gas pipeline project. From 1974 to 1977, Berger traveled to the Mackenzie Valley and through the Canadian Arctic to listen to what the people of North had to say about this pipeline project. He wanted to know if the pipeline would have a negative or a positive impact on the people of the North. This paper will demonstrate that Berger’s inquiry aided in delaying the project for some time, …show more content…
If the project proceeded, a lot of employees would be needed and most of the labourers would be hired from the North. While there would be an increase in labour, economically the North would benefit. However, the indigenous people did not see it this way. They believed the jobs would be temporary. Once the project is completed all the labourers would be laid off. Secondly, these jobs with high wages would attract the locals on construction jobs. In order to compete with these wages, the local businesses would have to increase their wages as well. “In this way, the influx of cash from wages would overheat the local economy, causing a sharp rise in prices. Later, when the construction "boom" was over, the local economy would be subjected to a "bust" situation.” In both situations, the Northern economy would go downward in the long