Provinces locked in trade tiff over oil-and-gas offer

RED DEER, Alta. (CP) — Cross-boundary political sniping between Alberta Premier Rachel Notley and Saskatchewan’s Brad Wall has escalated over Wall’s attempt to poach oil and gas firms.

Wall’s government sent letters earlier this week to several Calgary-based energy companies offering them incentives to relocate to Saskatchewan. The government is offering to subsidize relocation costs, trim taxes and royalties and help find space in unused government buildings.

Notley on Thursday called Wall’s plan short-sighted and self-defeating. She said it probably breaks regional free-trade rules as well.

“The efforts of the province of Saskatchewan at this point likely do violate the New West Partnership, as well as the (federal Agreement on Internal Trade),” Notley said in Red Deer where she was announcing a new courthouse.

“If I was a business owner that resided in a smaller market, say Saskatchewan, that depended on an agreement that gave me access to a bigger market, say Alberta, I would be very concerned.

“(The New West) trade agreement actually promotes back and forth of business operations that contribute to prosperity on both sides of the border. And you don’t touch one without pulling a really large string.”

Notley said her government will review the trade agreement and decide how to respond, but won’t pull out of the deal, which reduces trade barriers among the four western provinces.

Speaking in Regina, Wall said he doesn’t believe he is violating any trade agreements, although he acknowledged he did not consult legal counsel before sending the letters.

“We are letting folks know about existing policies. I think all provinces will continue to do that, and have done that,” Wall said. “We haven’t got a specific relocation program we are putting in the window . . . that would be counter to the spirit of those trade deals.”