Conservative Leader Andrew Scheer raised a red flag Friday over the potential use of taxpayers’ dollars by the federal and Alberta governments to backstop the expansion of the Trans Mountain pipeline.
With British Columbia’s NDP government trying to kill the $7.4-billion pipeline project, and proponent Kinder Morgan setting a May 31 deadline for the uncertainty around the project to be resolved, one option raised by the Notley and Trudeau governments to move the pipeline forward is public investment.
Possibilities that have been floated range from insurance guarantees to reimburse Kinder Morgan for losses caused by delays, to equity investments, to Alberta’s outright purchase of the pipeline.
Scheer, speaking at a Calgary Chamber of Commerce luncheon at the Westin Hotel, said it’s absurd the situation has devolved to a potential government subsidy for a private company willing to spend its own money as long as it is confident it can proceed.
“I think everyone can agree, regardless of their political stripes, that the federal government investing tax dollars in an energy project is not the optimal solution,” said the Regina Qu’Appelle MP, who was elected Conservative leader in an extremely close race last year.
However, Scheer did not categorically rule out backing government investment in the pipeline, given that Kinder Morgan could walk away from the project at the end of the month.
“We’ll wait and see,” he said.
Alexandre Deslongchamps, press secretary to Liberal Natural Resources Minister Jim Carr, said in an email that financial discussions between Finance Minister Bill Morneau and Kinder Morgan are underway, “the result of which will be to remove uncertainty overhanging the project.”
“Our government continues to assess appropriate legislative options,” he added.
But Scheer chastised the Liberal government for only now looking at legislation that would “entrench and defend the relevant sections of the Constitution.”
He laid the turmoil around Trans Mountain at Justin Trudeau’s feet, blaming the prime minister for undermining confidence in Canada’s energy regulatory system in opposition, rejecting the proposed Northern Gateway pipeline project after taking office and crafting policy that helped lead to the demise of the Energy East line.
However, in his question and answer session with chamber of commerce president Sandip Lalli, Scheer declined to go after Rachel Notley’s NDP government over its handling of the pipeline fight.
“I think Premier Notley is in a tough spot, and whoever was premier of Alberta would be in a very difficult position having to deal with British Columbia,” he said to a friendly crowd of about 250.
Scheer acknowledged there are worries over the NDP government’s Bill 12, which would give the province’s energy minister the ability to cut off oil, gasoline and natural gas to other provinces.
The bill is seen as a way to inflict economic pain on B.C. by driving up gas prices.
The legislation is backed by the United Conservative Party, with leader Jason Kenney having first proposed the idea last year.
But at least one member of Scheer’s caucus, Calgary Nose Hill MP Michelle Rempel, has characterized Bill 12 as “the same type of policy that Hugo Chavez uses to control natural resources in Venezuela.”
“We do not want a socialist having consolidated power to control Alberta’s natural resources,” she recently tweeted.
Scheer told reporters he has concerns “when any level of government assumes massive control or ownership or interference in various aspects of the economy,” but he understood where the legislation is coming from.
“It’s an expression of frustration that people in Alberta are facing, that they would consider going to those lengths,” he said.
The chamber’s Lalli said both Bill 12 and the prospect of public investment in Trans Mountain represent government going into areas it shouldn’t be in.
“Trade wars are never good for business. They’re not good for investor confidence, they’re not good for scaling your business, nor are they good for increasing consumer confidence,” she said in an interview.
