DEFIANT HORGAN REFUSING TO GIVE AN INCH ON PIPELINE
Letting courts decide jurisdiction may be only way to save face — and project
As Premier John Horgan tells it, the pending showdown over the Trans Mountain pipeline poses no threat to the Canadian federation or the country’s economic wellbeing.
Crisis? What crisis? Horgan challenged again and again Monday as he took on all comers from the Opposition side during question period in the legislature.
The exchange was prompted by the announcement-cum-threat from Texas-based Kinder Morgan that it will cancel twinning of its Trans Mountain pipeline through B.C. by May 31 unless it sees a clear way past the continued opposition from the government of B.C.
“All of a sudden, when the shareholders in Texas issue a press release, it’s a constitutional crisis,” Horgan scoffed at one point in the proceedings Monday.
“It was not a crisis when Energy East went down. It was not a crisis when Keystone XL went down. One investment project does not an economy make,” declared the premier, discounting a project that would generate billions of investment dollars and thousands of jobs.
When the Liberals quoted a Globe and Mail editorial that “this is nothing short of an economic and constitutional disaster for Canada” Horgan fired back: “I don’t give a damn what the Globe and Mail says.”
As for the federal government concern that B.C. was being “reckless with the financial well being of Canada and the fabric of the federation itself,” here’s Horgan:
“We said over a year ago that we would pursue a course to protect and defend our coast, and that’s exactly what we’re doing. We’re not doing it with threats. We’re not doing it with intimidation. We’re not stomping our feet. We’re in court. We’re in court, making the argument that British Columbia should have jurisdiction over our air and our water and our land, and the risks are too great.”
And when the Liberals charged that Horgan now stood alone in his fight against the twinning of the pipeline, the Greens Andrew Weaver heckled a reminder of the legislative seat count: “No, we’re with him.”
When B.C. Liberal MLA Peter Milobar made reference to the threat from Indigenous leader Grand Chief Stewart Phillip to turn the pipeline protest into “a war zone,” Horgan defended him.
“When you identify passionate people as enemies of British Columbia, you’re on a slippery slope, my friend,” replied Horgan. “Take it from me. I understand that.”
In short if there is any chance Horgan would back away from his predetermined course of opposition to the pipeline, he betrayed not a hint of it during Monday’s performance in question period.
But for all his bravado, the latest development on Kinder Morgan amounts to more than a press release.
Company founder and executive chair Richard Kinder himself led off a conference call with financial outlets Monday morning, declaring that the decision to suspend most work on the project was “the correct and appropriate economic decision from the standpoint of the shareholders.”
The opening remarks from the 73-year-old billionaire, and the followup with CEO Steve Kean, left little doubt that the company is prepared to write off the more than $1 billion spent to date on the project, rather than risk billions more on an uncertain outcome.
Nor is the situation strictly comparable to those of Energy East and Keystone, the premier’s characterization notwithstanding. Trans Mountain was approved by the federal government, which has also declared the pipeline to be in the national interest.
Moreover, Prime Minister Justin Trudeau has staked his own prestige on the project, linking it to the fate of his climate plan and saying again and again that it will be built.
For all that, Horgan insisted the Prime Minister voiced no threats toward B.C. when they spoke on the weekend. But apparently the feds are preparing a rougher range of responses, though precisely what is not yet clear.
Horgan, inadvertently, acknowledged one area of vulnerability when he boasted of the province’s economic and fiscal performance — “credit ratings affirmed, three balanced budgets going forward.”
Ottawa could dent one or both of those accomplishments by holding back discretionary federal dollars for cost-shared programs and/or infrastructure. But the move could backfire, if B.C. fought on against the pipeline and Kinder Morgan still walked away.
The New Democrats discounted another hardball option — Alberta cutting off the flow of oil to B.C., thereby driving up the price of gasoline.
Unconstitutional? Perhaps. But according to Alberta, so is B.C.’s effort to stall a federally-approved interprovincial pipeline.
Horgan half-hinted at a more constructive possibility with references to B.C.’s earlier invitation to the federal and Alberta governments to join the province in asking the courts to resolve the jurisdictional question.
“They declined to do so,” noted Horgan, leaving open the possibility that the offer still stands if there were a change of minds in Ottawa and/or Edmonton.
Risky, as one never knows what the courts will do with a dispute as political as this. Plus the reference case would leave the question of how to placate Kinder Morgan while the judges sort things out.
But perhaps Alberta’s proposal to take a stake in the project would help mitigate the risk for investors, particularly if Ottawa joined in. Then all three governments would have to agree to abide by the court decision, however long it takes.
Not the most timely outcome. But it might be the only option that could save face all around and keep the project alive beyond May 31.
All of a sudden, when the shareholders in Texas issue a press release, it’s a constitutional crisis.
B.C. PREMIER JOHN HORGAN