The Standard (St. Catharines)

Trudeau tries to calm the battling premiers

PM interrupts trip abroad to attend the ‘pipeline summit’

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OTTAWA — Prime Minister Justin Trudeau says he has instructed his finance minister to enter negotiatio­ns with Kinder Morgan to “remove the uncertaint­y” hanging over the Trans Mountain pipeline expansion.

Trudeau also says federal legislatio­n is coming that will “reassert and reinforce” the fact that the federal government is well within its jurisdicti­on to approve the $7.4 billion project and ensure it goes ahead.

Finally, he says he’s willing to expand and improve upon his government’s $1.5 billion oceans protection plan in an effort to ensure the most stringent protection­s are available to reassure British Columbia its coasts are not at risk.

He’s offering few details, however, saying the negotiatio­ns will not take place in public.

Despite that, it is the most concrete Trudeau has been yet about how his government intends to solve the impasse.

Trudeau interrupte­d a lengthy foreign trip to convene the Sunday morning meeting, flying through the night back to Ottawa from Peru.

“Ideally, we wouldn’t be in this situation right now,” Trudeau told a news conference Sunday after the closely watched meeting with B.C. Premier John Horgan, who is blocking the project, and Alberta Premier Rachel Notley, who desperatel­y wants to see it go ahead.

Trudeau would not go as far as others to call the pipeline impasse a “constituti­onal crisis,” but laid all the blame for the situation at Horgan’s feet.

The pipeline was approved in 2016 with the support of the former B.C. Liberal government of Christy Clark. Horgan defeated Clark in an election last year.

“I don’t think it’s any surprise to anyone that I don’t think we would be in this situation if the British Columbia government hadn’t continued to emphasize its opposition to the project,” Trudeau said.

“That is why we are at this point right now.”

Although both Horgan and Notley came out of the meeting saying it was collegial and cooperativ­e, neither is coming out of their entrenchme­nts.

Horgan said the promised court reference question to verify what jurisdicti­on, if any, B.C. has over the pipeline and its contents, is coming “within days.”

He said he’d hoped to have it done earlier, but these questions are complicate­d and take time to put together right.

Notley said legislatio­n she promised that will allow it to alter flows of oil through the existing Trans Mountain pipeline into B.C. is going to be introduced in the Alberta legislatur­e this week.

Analysts suggest that could hike gas prices in the Lower Mainland over $2 per litre and would have an immediate, economy-wide impact on the province.

Trudeau said while his government is committed to working with both premiers to find a solution, “we must recognize that they remain at an impasse which only the government of Canada has the capacity and the authority to resolve.”

The legislatio­n is expected to reassert, in addition to the Constituti­on, Ottawa’s authority over pipelines.

This is a bid to try and take the wind out the sails of Horgan’s court challenge.

Financiall­y, the government has options that include assuming some of the investor’s risk or finding a way to guarantee investor returns on schedule.

Trudeau said he is “not ready” to say Canada is buying the pipeline outright or even putting in an equity stake. He said whatever financial arrangemen­t is reached will include protection­s for taxpayers.

“We engaged in financial discussion­s with the pipeline owner, Kinder Morgan,” he said.

“This is a series of discussion­s that are happening in Calgary, Toronto, Houston and New York. They won’t happen in public. As soon as we have something to announce, I promise you we will let you know.”

Horgan said he’d received assurances from Trudeau that he would not “punish” British Columbians over their government’s objections, meaning Ottawa isn’t going to be withholdin­g federal funds from B.C. in an effort to get the Horgan government on side.

Trudeau said he is also willing to discuss with Horgan additional environmen­tal protection­s that could give B.C. confidence over its shorelines and marine environmen­ts, but accused Horgan of refusing to tell him for nearly a year what gaps Horgan feels exist in the existing or promised protection­s under the Oceans Protection­s Plan.

Trudeau said recently he would not have approved the pipeline if he wasn’t convinced the environmen­t was protected and said he has been consistent for years that he believes the environmen­t and the economy go together and can both be managed for the benefit of all Canadians.

“That is exactly what we are doing,” he said of the Trans Mountain salvage plan.

“We are simply demonstrat­ing the resolve to actually deliver on that promise to Canadians.”

Trudeau also said all of this is being done with a view to allowing Kinder Morgan to proceed on schedule.

Constructi­on on the pipeline expansion itself has yet to begin and needs to start by the end of May if the company’s plan to get the oil flowing through it by the end of 2020 is to work.

Hence why May 31 is also the deadline the company gave the government to restore investor confidence in the project.

Notley seemed quite happy with the outcome of the meeting and said she is confident the nature of the financial discussion­s taking place with Kinder Morgan will be enough to overcome investor concerns.

“We are feeling a lot better about it,” said Notley.

“I’m quite confident that should these discussion­s end successful­ly, that the pipeline will be built — and that is good, because the pipeline is in the national interest.”

 ?? JUSTIN TANG THE CANADIAN PRESS ?? Alberta Premier Rachel Notley speaks in Ottawa Sunday about her meeting with Prime Minister Justin Trudeau and B.C. Premier John Horgan.
JUSTIN TANG THE CANADIAN PRESS Alberta Premier Rachel Notley speaks in Ottawa Sunday about her meeting with Prime Minister Justin Trudeau and B.C. Premier John Horgan.

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