Trudeau defends pipeline takeover

Prime minister says purchase is vital decision for Canadian economy

OTTAWA— Prime Minister Justin Trudeau was on the defensive Wednesday, touting his government’s $4.5-billion takeover of the Trans Mountain pipeline project as a vital economic move, even as opposition MPs condemned it as a costly folly.

Conservative Leader Andrew Scheer went after the government for making the big investment with no assurance that the promised pipeline expansion to help move Alberta bitumen oil to the west coast will actually go ahead.

“He is writing a cheque for $4.5 billion for an existing pipeline. Not a single centimetre of new pipeline will be built with this bill to the taxpayer,” Scheer said in question period.

But Trudeau said the move will mean higher prices for oil exports and secure jobs in the resource sector, while dodging questions about what it may ultimately cost Canadians.

“We are proud to make sure that we are supporting the growth in the economy, the good jobs for Albertans and all Canadians while we protect the environment,” he said. The Liberal government announced Tuesday that it would buy the assets associated with the Trans Mountain pipeline project from U.S.-based Kinder Morgan. Long adamant that the pipeline expansion would go ahead, the govern- ment had its hand forced after the American energy giant backed away in the face of ardent opposition in B.C.

The Liberal government is hoping to entice another company to take over the project but if not, cabinet ministers have said they will move ahead with the pipeline expansion at a cost likely to top $7 billion, all at taxpayers’ expense.

Senior cabinet ministers travelled to western Canada Wednesday to highlight the government strategy, with Finance Minister Bill Morneau in Calgary and Public Safety Minister Ralph Goodale speaking in Fort McMurray as Trudeau served as point man in Ottawa.

The Tories accused Trudeau of a double standard for not showing the same concern when TransCanada Corp. halt- ed work last October on the Energy East pipeline, a 4,600-km pipeline to move Alberta oil to a terminal in New Brunswick.

“Will the prime minister promise to enter into negotiations to provide the same level of certainty for Energy East?” Conservative MP Lisa Raitt said, challenging the prime minister to revive the megaproject to move oil eastward.

But Trudeau dismissed it as “old news” and said the Conservatives were “playing politics” on the issue. NDP MP Guy Caron demanded to know what risk assessments the federal government did before making the deal to take over the existing Trans Mountain pipeline.

But Trudeau said that Alberta’s agreement on a carbon pricing strategy was contingent on the expansion getting built.

While the expansion has the backing of some Indigenous groups along the route of the new pipeline — including some who have signed formal agreements to share the economic benefits — others remain opposed. That could spell trouble for a Liberal government that has made reconciliation with Indigenous peoples a priority.

The pipeline takeover carries political risks for the Liberals too in B.C.,where the party has 18 MPs. Vancouver Quadra MP Joyce Murray said the Trans Mountain takeover is not a “popular decision” among her constituents. Asked whether she was worried it might cost her votes in next year’s federal election, Murray said it’s up to the voters to weigh what their MP has been doing.