NDP and Liberals fight for credit on LNG project
VICTORIA B.C.’s New Democrat and Liberal parties are jockeying to take credit for a $40-billion liquefied natural gas project in Kitimat, even before it’s been announced.
MLAs returned to the legislature Monday for the fall session, and immediately began politicking over the LNG Canada project. The export terminal and pipeline would be the largest capital project in B.C.’s history, and is expected to be officially announced later this week by a consortium of companies led by Royal Dutch Shell.
“We know that if we see success it’s a big part because of our new LNG framework by this government,” said Energy Minister Michelle Mungall.
Mungall and other New Democrats brushed aside several years of work by former premier Christy Clark’s Liberal government, which set a regulatory and tax regime after the 2013 election to encourage large oil and gas companies to invest in LNG facilities.
“Under the B.C. Liberals, it just didn’t happen,” Mungall said. “They put a lot of effort into it, but it just didn’t yield any results.”
That prompted a retort from Opposition Liberal Leader Andrew Wilkinson, who insisted the natural gas market dynamics prevented companies from proceeding during the Liberal administration. He said the province will benefit from the foresight his party had years ago to develop the industry.
“We think it’s kind of sad the NDP would try to score cheap political points on what is probably the biggest industrial development in Canadian history,” Wilkinson said.
Liberal MLAs took to social media to post old quotes from NDP MLAs who were critical of LNG projects while in opposition.
“Watch for the smiling NDP faces if LNG Canada gets approved,” wrote Liberal MLA and former LNG minister Rich Coleman. “They will be walking, talking, smiling, hypocrites. The project will be good for BC inspite (sic) of them.”
The Liberals proposed a seven per cent income tax on LNG terminals, which was in 2014 revised down to 3.5 per cent amid worsening market conditions.
The NDP called the plan a giveaway to foreign oil and gas companies, but after assuming power in 2017 announced it would eliminate the income tax entirely, forgoing a potential $6 billion in revenue over 40 years, but still leaving B.C. in line to receive an estimated $22 billion.
The NDP also proposed exempting LNG Canada from paying provincial sales tax on its construction (recovering the costs over 20 years of operation), exempting the project from scheduled $20-a-tonnecarbon tax increases and reducing electricity rates.
The tax changes will require legislation. Green Leader Andrew Weaver said Monday he won’t vote with the NDP on the changes.
“Will my caucus support the development of LNG? No we won’t,” he said. “(The NDP government) will have to get the B.C. Liberals.”