Saskatchewan declares ‘victory’ in licence plate spat
What just might be the silliest trade war in history has ended not with a whimper but with a bang — the sound of Saskatchewan Premier Brad Wall shooting himself in the foot.
Wall’s government has tucked its tail between its legs and fled a battlefield it created in December when it banned vehicles with Alberta licence plates from Saskatchewan government work sites.
On Monday morning, Wall’s minister responsible for trade, Steven Bonk, sent a letter to Alberta’s trade minister, Deron Bilous, saying Saskatchewan would “suspend” the licence plate ban as a show of “good faith” in upcoming talks on cross-border issues.
What Bonk didn’t mention was that if he hadn’t dropped the licence plate ban by 11:59 p.m. Monday, the issue would have gone to binding arbitration through a trade dispute panel. If found guilty of violating the New West Partnership Trade Agreement between the two provinces, Saskatchewan would face a penalty of up to $5 million.
And it was very clear Saskatchewan would be found guilty.
Not only did the licence plate ban violate the New West Agreement, it also violated common sense and political logic.
When Wall announced the ban last month, he initially said he was retaliating for Alberta banning Saskatchewan-plated vehicles from Alberta’s highway construction sites.
The Alberta government, and construction companies, vehemently denied Wall’s accusation.
Wall presented no proof to back up his allegations. One of his ministers then said the ban was to help level the playing field because Alberta has no sales tax on construction material. That simply allowed Premier Rachel Notley to crow about Alberta’s low tax regime and suggest Saskatchewan lower its taxes.
Then Wall changed his explanation to say he was retaliating over Alberta’s decision last year to increase taxes on out-of-province beer.
Since then, the Alberta government has reacted with a mixture of outrage, exasperation and amusement. But mostly bewilderment.
There was a sneaking suspicion Wall timed his announcement during the Calgary-Lougheed byelection campaign to put the NDP on the defensive and help his friend, United Conservative Party Leader Jason Kenney, who was vying for a seat.
Kenney, of course, didn’t need any help. And all Wall succeeded in doing was giving a soap box to the Notley government to declare itself a champion of Alberta business while boasting about Alberta’s lower tax regime.
On Monday afternoon, Saskatchewan’s trade minister told reporters he was scrapping the licence plate policy, not simply suspending it.
And then he declared victory. Really? Bonk suggested he had won the fight by getting Bilous to agree that Alberta would abide by a trade panel’s final ruling on the provinces’ beer war.
But when has Bilous ever said he would not abide by the ruling?
This whole fiasco seems to have been generated by Wall’s intense, if not irrational, dislike of an NDP government next door.
His government backed down Monday for two reasons — it faced a potential $5-million penalty if it lost the battle, and this is Wall’s last week as premier before he retires Jan. 27.
His cabinet didn’t want to continue this self-destructive melodrama without the main protagonist.
The Notley government is quietly jubilant with Monday’s turn of events — and with the prospect of Wall’s imminent departure.
“I’m not about to weigh in too much on the personality difference between Premier Notley and Premier Wall,” said Bilous. “My hope is the new premier (of Saskatchewan) will recognize that there’s more opportunity and more we can get done for the people of Alberta and Saskatchewan if we work together rather than try to take political cheap shots.”
Bilous pointed out this is the second time in the last 12 months Saskatchewan has backed down over a trade dispute. The first happened last March when the Wall government sent letters trying to entice Alberta companies to relocate to Saskatchewan.
The Alberta government complained this was a violation of the New West Agreement. In May, the Saskatchewan government backtracked and sent out letters to the companies withdrawing any suggestion of incentives to relocate.
Bilous says he’s looking forward to better relations ahead with a post-Wall Saskatchewan. He and Alberta Transportation Minister Brian Mason will meet with their Saskatchewan counterparts Jan. 31 to discuss crossborder issues. But there’s a snag.
Bilous wants the meeting to be held in the cross-border city of Lloydminster. Saskatchewan insists it be held in Medicine Hat.
On Monday afternoon, a frustrated, and jubilant, Bilous sounded like he’s in no mood for compromise. “Mr. Mason and I will be going to Lloydminster,” he said with finality.
You get the impression Saskatchewan isn’t in any position to say no.