Trudeau offers few specifics to help ailing Alberta
PM supports ‘sustainable’ pipelines but reiterates opposition to Gateway
Prime Minister Justin Trudeau offered words of support for Alberta — and its quest to get new oilsands pipelines built — but reiterated his opposition to current plans for the proposed Northern Gateway project as his Liberal cabinet wrapped its retreat in the Rockies on Tuesday.
Speaking to reporters in the mountain resort following three days of meetings, Trudeau said he brought his ministers to Alberta so they could better understand the economic stress the province is facing due to low oil prices.
He said there were discussions around specific measures to foster economic growth in Canada, with a particular emphasis on Alberta, though he provided no details when pressed.
“We continue to monitor the situation around employment numbers, we continue to be very aware that one of the fundamental responsibilities of any government is to get our resources to market, but the way to do that in the 21st century is to make sure that it’s done responsibly, sustainably,” said Trudeau.
Alberta’s economy is in the second year of recession and the government is projecting a $10.4-billion deficit in 2016 as oil prices stagnate under US$50 a barrel. New pipelines to coastal waters are seen as key for Alberta to open new markets and access better prices for its landlocked energy resources.
In opposition, Trudeau had rejected Enbridge’s proposed Northern Gateway line aimed at sending Alberta oilsands crude to Kitimat, B.C., for shipment to Asia. On taking office last fall, he committed to a moratorium on tanker traffic carrying crude oil on the northern coast of B.C., which many observers suggested would essentially kill Gateway.
In recent days, however, Alberta Premier Rachel Notley, who had previously dismissed Gateway as unachievable due to the level of opposition in B.C., has said there is now a potential path forward for the project.
Notley met with Trudeau on Sunday and spoke to members of his cabinet to make the case for pipelines.
One of the items that was discussed was Gateway, including the possibility the project could be rerouted away from Kitimat.
Trudeau said he would not comment on a “hypothetical” new route for Gateway but stated “the Great Bear rainforest is no place for a … crude pipeline” — a comment he has made in the past to explain his opposition to the Enbridge proposal.
Ivan Giesbrecht, spokesman for Northern Gateway, said in a statement that Enbridge is committed to the pipeline but is open to change around the project.
“Northern Gateway is listening to and consulting with First Nation and Métis communities, governments and other stakeholders to chart a path forward for the project,” he said.
The Notley government’s primary push on pipelines has been around Kinder Morgan’s proposed expansion of the Trans Mountain line to Vancouver and TransCanada Corp.’s plan for Energy East to the Atlantic Ocean.
The premier told reporters Tuesday she believes the Liberal sojourn to Alberta was ultimately worthwhile.
She said federal cabinet ministers now have a better understanding of the issues and pipeline prospects are looking up.
“Are we there yet? No. We are not yet to tidewater. But I believe very much that we are closer,” said Notley, who has also been pressing Trudeau to expand beefed-up employment insurance benefits to the Edmonton region, which has been left out of enhancements provided to the rest of the province.
Mount Royal University policy studies professor Lori Williams said the Kananaskis event was a success for Notley but somewhat of a “paradox” for Trudeau.
The Liberal cabinet came to Alberta because of the economic shock facing the province but Trudeau’s team was ensconced in a mountain resort, isolated from ordinary Albertans, she said.
Trudeau will ultimately be judged in Alberta for progress on getting pipelines built and ensuring employment insurance is functioning as it should, said Williams.
“I don’t think symbolism is going to cut it,” she said.
Among the issues under discussion by cabinet was the economic role of Asia.
Trudeau left the door open Tuesday to lifting restrictions on Chinese investment in the oilsands.
The former Conservative government brought in new rules restricting investment by stateowned enterprises into oilsands operations — measures aimed primarily at Chinese companies — after allowing the takeover of Calgary-based Nexen by China National Offshore Oil Company (CNOOC) in 2012.
In the run-up to the federal election last year, Liberal MP Scott Brison — now Treasury Board minister — harshly criticized those restrictions as “cultural condescension” and said the rules would be loosened.
Trudeau would not directly answer a reporter’s question on the issue but said “we continue to believe foreign direct investment is important.”
“We will always make decisions based on what is in Canada’s interest,” he said.