SKIRMISH SQUASHED
Licence plate ban lifted
It began as a fight about nothing.
And in the end, nothing much happened.
But a bizarre feud between Saskatchewan and Alberta over licence plates successfully highlights the deeply damaged relationship between two prairie governments — of different political stripes — that just can’t get along.
On Monday, the inexplicable trade spat between the two provinces ended with barely a whimper. In Regina, Premier Brad Wall decided to immediately revoke Saskatchewan’s ban on Alberta licence plates showing up on government-funded highway and infrastructure job sites.
The policy, instituted with great fanfare in December, could have driven up expenses and created obstacles for Alberta contractors and employees working on construction projects in Roughrider territory, although there’s no evidence that ever happened.
Ending the battle is a wise decision for all sides.
In an era where NAFTA could soon be in big trouble, the last thing either province needs is a brouhaha rooted in petty partisan politics, but with the realworld possibility of crimping businesses and costing people jobs.
Yet, even in agreeing to resolve their disagreement, the two sides could not do so graciously, with each side saying the other blinked first.
In a letter, Saskatchewan Trade Minister Steven Bonk tied the resolution to Alberta saying it will change its own beer policies that have angered Saskatchewan, if it loses an upcoming trade appeal over subsidies the NDP government gives craft beer brewers in this province.
“Since they backed down, we’ve decided in good faith that we’ll back down on the highways issue,” Bonk told reporters in Regina.
“It’s absolutely a victory for Saskatchewan.”
That’s an interesting spin to put on a fight it was likely to lose.
I also don’t recall Alberta saying it would not live up to the upcoming ruling from the appeal panel on its beer policies. Nor does the company that launched the booze complaint after the NDP increased beer markups in 2016 and then established a grant program available only to small Alberta brewers.
From Alberta’s perspective, it was Wall who crumbled.
“What Saskatchewan is trying to do now is just play politics. At the end of the day, when you’re wrong, you’re wrong,” Economic Development Minister Deron Bilous said in an interview.
“Brad Wall knew they were going to lose and have to pay up to $5 million in penalties.”
To recount, Saskatchewan Infrastructure Minister David Marit last month banned Alberta licence plates showing up on government-funded work sites, pointing to feedback from provincial contractors who claimed their vehicles weren’t welcome on projects next door.
However, he provided no specific examples, nor did anyone else, of companies being shut out of Alberta tenders.
There were also references to contractors from Wild Rose Country having an unfair advantage by not facing a provincial sales tax, and the need for Saskatchewan to level the playing field.
Later in the month, Wall said a number of provocations from Notley’s NDP government “made retaliation necessary.”
However, there was just one little problem: the New West Partnership agreement signed by B.C., Saskatchewan and Alberta in 2010 is meant to stop retaliatory action and trade shenanigans from starting in the first place.
In its operating principles, the pact specifically says all sides agree to co-operate on matters of trade, investment and labour mobility.
Alberta filed a complaint over the plate ban. Monday was the end of a consultation period between the two sides, with the dispute headed to a binding arbitration panel.
Any attempt to link licence plates and beer was simply an attempt to “save face,” Bilous said.
“Alberta will honour the ruling of the (beer) appeal panel. That was our intention from Day 1. We play by the rules,” he added.
For businesses and employees working on both sides of the border, the end to this mess couldn’t come soon enough.
Contractors who operate in both provinces were unsure what impact the licence plate policy would have on registering vehicles or bidding on new projects when the spring construction season arrives.
“A waste of my time would be the best way I could put it,” said Cody Bexson, president of the Lloydminster Construction Association.
“Why couldn’t they just sit down and figure it out?” Why, indeed? The head of the Saskatchewan Chamber of Commerce, Steve McLellan, called the resolution great news and said the struggle was always about beer policies, with a chaser of politics served up on the side.
As any good bartender knows, mixing beer and politics can be a volatile combination.
“There is enough blame to go around for everyone on this one,” said Ken Kobly of the Alberta Chambers of Commerce.
“There is collateral damage to everyone in one of these spats. Businesses are the ones that get affected.”
Monday’s resolution will, hopefully, spur a more gracious and co-operative tone going forward between the Saskatchewan Party and NDP governments in Regina and Edmonton.
Saskatchewan will get a new premier as Wall retires this weekend, and that may provide an opportunity to reset relations.
It would also be helpful if the Notley government stopped pointing out how lousy Saskatchewan’s economy is these days. It’s hard to look your neighbour in the eye when they keep putting their finger in it.
If there’s any good that can come out of the conflict, it’s that the two sides have agreed to meet on Jan. 31 to discuss trade matters further.
Of course, they still can’t agree on where it should take place.