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Higher oil prices certainly justify some transfer of resources into oil production. However, artificially low provincial royalties have arguably driven this transfer past its optimal point. Furthermore, it is not a given that the resources transferred into oil production needed to come out of manufacturing. (The price of oil has increased in relation to the price of almost everything else, not just manufactured goods.)

Also, an op-ed by Donner and Peters posted in The Star’s online edition does not necessarily reflect the editorial board’s views.

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