PROVINCES BOTH LOSE IN TRADE WAR
Chambers of commerce in Saskatchewan and Alberta want constant bickering to end
A new year, an old beef.
In a nutshell, that’s the status of the trade war between Prairie premiers Rachel Notley and Brad Wall over Saskatchewan’s recent ban of Alberta licence plates from government work sites.
The two sides indicated in mid-December they would meet in the demilitarized zone of Lloydminster sometime this month to discuss their differences.
No date has been set for the Border City showdown, however.
The dust-up prompted the Alberta and Saskatchewan chambers of commerce to hold a joint phone call Wednesday and agree to write a letter to cabinet ministers in both governments, encouraging them to resolve the quarrel.
“Our fear is (both governments) are becoming a little more protectionist and certainly that doesn’t benefit anybody,” said Ken Kobly, head of the Alberta Chambers of Commerce. “Get together, sit down and iron out these trade aggravations.”
Likewise, Saskatchewan Chamber of Commerce CEO Steve McLellan said it’s important both provinces spend more time trying to grow trade and less time bickering in the media.
“Working together is a much better solution than fighting together,” he said.
However, if you were expecting goodwill from the holidays to carry over into the political realm in early January, forget it.
Alberta says if it doesn’t get a resolution by Jan. 22, the matter will be headed to a binding arbitration panel, part of the dispute resolution process within the New West Partnership agreement signed in 2010.
If that happens, Economic Development Minister Deron Bilous is confident Alberta will win, leading to penalties of up to $5 million imposed on Saskatchewan.
“The only acceptable resolution is for them to completely kill this discriminatory and ridiculous restriction on Alberta plates,” Bilous said.
“We are also demanding they reissue any of the discriminatory tenders that they put up on their websites.”
Well, that doesn’t sound likely, as Saskatchewan insists they haven’t issued any highway construction tenders since the ban took effect.
But such rhetoric isn’t unexpected.
Alberta and Saskatchewan have been sniping at each other for a couple of years, with the NDP government in Edmonton and Saskatchewan Party government in Regina at philosophical loggerheads on several issues.
Last year, Wall unsuccessfully tried to entice Calgary-based energy companies to relocate to Saskatchewan.
Alberta poked Saskatchewan’s craft beer industry in the eye by providing grants to local brewers — subsidies that weren’t available to other competitors in Canada.
But the tit-for-tat tactics turned into a full-scale firefight last month.
Saskatchewan Infrastructure Minister David Marit banned Alberta licence plates on government-funded project work sites, citing feedback from provincial contractors who felt their vehicles weren’t welcome on Alberta job sites and they were blocked from bidding on Alberta contracts.
No one could offer any tangible examples or proof of such discriminatory tactics.
Closer to the mark was a Facebook post from Wall that cited “a series of provocations from the NDP government of Alberta,” that made retaliation necessary.
In turn, Alberta set a deadline on the plate ban to be pulled. When it wasn’t met, the province filed a complaint through the New West Partnership, which states governments must ensure they don’t restrict or impair trade, investment or labour mobility between provinces.
After a phone call between the Saskatchewan and Alberta ministers last month, it appeared the two sides would meet in Lloydminster by Jan. 31.
On Tuesday, Bilous said they’ve proposed three dates but haven’t received a firm response from Saskatchewan. Officials in Regina said they’re still nailing down a date.
Bilous said about a dozen Albertans responded to the government’s call to contact them over concerns they have with Saskatchewan’s actions.
The Edmonton MLA acknowledged he hasn’t heard of any Alberta businesses or workers being kicked off Saskatchewan job sites, but insisted the ban is having an impact.
“We’ve heard from companies that they are scared to bid on Saskatchewan contracts, so you’ve got companies passing up bidding on work,” he said.
“The Saskatchewan government needs to recognize this has consequences.”
Despite the political tussle, there is the possibility of real implications for the economy if the ban extends beyond the departure of Wall, who is retiring later this month.
In Lloydminster, there is concern the issue could take on a life of its own, complicating life for businesses and employees working with relative ease in both provinces.
Cody Bexson, who runs a Lloydminster construction company that has business in Alberta and Saskatchewan, noted if the change is enforced, it could require Alberta companies to remove their plates when they head east to work on government projects.
Getting Saskatchewan licence plates would require an inspection and Saskatchewan vehicle insurance, driving up costs and red tape.
Bexson, who is also president of the Lloydminster Construction Association, hopes the joint meeting happens in his city, but isn’t confident it will occur.
“I’d be surprised if the meeting actually happens ... because it just seems so — the whole thing seems so fake,” he said.
Saskatchewan Party MLA Colleen Young, who represents the riding of Lloydminster, said she only heard from a couple of groups worried about the new policy since the issue arose.
“I believe that once people meet and come to a table and have discussions about the issues that are there, things possibly can be worked out,” she said Wednesday.
Cross-border trade between the provinces topped $20 billion in 2014, and both sides have a lot to lose if they successfully — and ineptly — thicken the border between Alberta and Saskatchewan.
As McLellan points out, both sides are wasting resources that could be better used promoting interprovincial trade and pursuing international export markets.
“Every effort we’re making that is circling, chasing our tails — versus chasing new markets — is a waste of effort,” he said. “We need to get past this.” He’s right. It’s a new year. Time for Alberta and Saskatchewan to bury old beefs.