Trans Mountain

Thursday February 6, 2020

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Thursday February 6, 2020

One step forward, another one back: What the Trans Mountain ruling means for Trudeau

In sports, you win some and you lose some. In politics, it’s possible to win and lose at the same time.

Pipeline cartoons

Take, for example, yesterday’s Federal Court of Appeal ruling on the Trans Mountain pipeline expansion project.

The court ruled unanimously that the federal government had fulfilled its duty to consult meaningfully with a handful of First Nations opposed to the project, clearing a major hurdle in the drawn-out battle to build a second line to carry bitumen from Alberta’s oilsands to Burnaby on the B.C. coast.

The federal and Alberta governments immediately claimed victory, putting Prime Minister Justin Trudeau and Premier Jason Kenney on the same side for once.

“This project is in the public interest,” federal Natural Resources Minister Seamus O’Regan told reporters shortly after the decision was released.

“We also know that this is a project that can deliver significant economic benefit to Alberta, to Canadians across the country,” added Finance Minister Bill Morneau. “And more importantly, we are going to put that economic benefit back into the environment.”

Their sense of relief was palpable. Ottawa spent around $4.5 billion in 2018 to buy TMX — a last-ditch effort to ensure the pipeline would be built after its owner, Kinder Morgan, announced plans to step away.

That price, hefty as it is, doesn’t include construction costs or any overruns the project has incurred because of the various stop-work orders that have put construction well behind schedule.

But with the victory comes a major setback in relations with those Indigenous groups who continue to oppose the $7.4-billion project, and will no doubt seek to appeal the decision to the Supreme Court of Canada.

“Reconciliation stopped today,” said Rueben George, of the Tsleil-Waututh, his voice cracking with emotion.

The band was one of four Indigenous groups behind the court challenge. It argued that the second, court-ordered round of consultations also failed to respond adequately to their concerns about the impact the project would have on marine life.

“This government is incapable of making sound decisions for our future generations,” George said. “So we will — even for their children — we will take those steps to make sure Canada stays the way it is.” (CBC)

 

 

Thursday June 20, 2019

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Thursday June 20, 2019

Scheer’s climate pledge is nonsense, just like Trudeau’s

Conservative leader Andrew Scheer’s long-awaited climate change plan means the Tories will now join Prime Minister Justin Trudeau and the Liberals in lying through their teeth leading up to the Oct. 21 election.

May 2, 2019

Scheer’s 60-page plan released Wednesday, which does not include a carbon tax, says the greenhouse gas reduction targets agreed to by Trudeau under the Paris climate accord in 2015, “are Conservative targets and our plan will give Canada the best chance at reaching them.”

Scheer has to say that because Trudeau’s targets used to be Stephen Harper’s targets and Scheer previously said he supports the Paris accord.

But in the real world Scheer’s plan, containing 50 initiatives, has as much chance of hitting the Paris targets as Trudeau’s, meaning somewhere between slim and none and slim just left town.

This as evidenced by the fact Scheer’s plan contains no timeline or deadlines for actually achieving the Paris target of reducing our emissions to 30% below 2005 levels by 2030.

That means Trudeau and Environment Minister Catherine McKenna will spend the election denouncing Scheer for not having a plan to meet the Paris targets.

Of course, they will ignore the fact the federal environment commissioner, nine of 10 provincial auditors general, the United Nations, the federal government’s own studies and the Parliamentary Budget Officer, say the same thing about Trudeau’s plan. (Toronto Sun)

April 11, 2018

Meanwhile, Canadian Prime Minister Justin Trudeau is an icon of progressive politics who has promised to “put a price on pollution”. Last week, to much applause, he proposed a ban on single-use plastics. On Monday night, his government declared a national “climate emergency.”

He is also now the public face of a Canadian plan to expand a pipeline that would triple the amount of crude oil that moves from the Alberta tar sands to the Pacific Coast for shipment around the world.

Such is his dilemma — and Canada’s.

Trudeau’s Liberal government announced Tuesday it will push ahead with the stalled Trans Mountain Pipeline expansion, $5.5 billion project that has long pitted the country’s energy sector against the concerns of environmental and some indigenous groups.

December 1, 2016

Trudeau, announcing the decision at a news conference in Ottawa, pledged that every dollar earned from the pipeline will be used to fund projects to power Canada’s transition to clean energy.

“We need to create wealth today so we can invest in the future,” he said. “We need resources to invest in Canadians so they can take advantage of the opportunities generated by a rapidly changing economy, here at home and around the world.”

The move will be welcomed by the country’s struggling oil sector and the many Canadians whose fortunes are tied to it. Landlocked Alberta produces four-fifths of Canadian crude but struggles to get it abroad, and so must settle for selling at steep discounts against global benchmarks — hitting the province hard.

But many Canadians have protested the expansion proposal out of concern for oil spills and the continuing promotion of climate-changing fossil fuels. They question whether this is the moment to increase Canadian shipments of oil.

Trudeau has been left to walk a tightrope between the two sides, taking heat from both as he limps toward a federal election this fall. (Washington Post) 

 

Saturday September 1, 2018

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Saturday September 1, 2018

Pipeline ruling comes at bad time for Trudeau Liberals

April 11, 2018

For Justin Trudeau’s governing Liberals, the timing couldn’t have been worse. On Thursday, as Canadian negotiators in Washington were struggling to salvage whatever they could from the floundering NAFTA talks, the Federal Court of Appeal ruled against the government’s signature Trans Mountain Pipeline project.

Both the North American Free Trade Agreement fiasco and the pipeline decision strike at the heart of Prime Minister Justin Trudeau’s economic strategy. That strategy relies on free trade deals and oil exports to keep the economy humming while the government concentrates on its ambitious social policy agenda, such as bettering the lot of Indigenous Canadians.

Of the trade deals, the NAFTA pact tying together Canada, the U.S. and Mexico was the most crucial. Similarly, of the pipeline projects, none was more important to the federal government than the $7.4-billion Trans Mountain expansion. It would bring heavy oil from the Alberta tarsands to British Columbia’s Pacific coast, where it could be loaded into oceangoing tankers.

Indeed, the Trudeau government deemed the Trans Mountain Pipeline so important that it agreed to buy it for $4.5 billion from its U.S. owner and pay all the costs of expanding it. This no longer seems like such a good deal.

The Federal Court of Appeal ruled that the government’s National Energy Board failed to take into account the effect of increased tanker traffic on B.C. coastal communities. It also ruled that the government failed to adequately consult Indigenous communities affected by the pipeline. It said construction cannot continue until these two defects are remedied. (Continued: Toronto Star) 

 

Friday May 18, 2018

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Friday May 18, 2018

Morneau says government willing to compensate Kinder Morgan against political delays

Canada is willing to write Kinder Morgan — or anyone else who steps up to the plate — a cheque to ensure the Trans Mountain pipeline expansion gets built despite British Columbia’s opposition, Finance Minister Bill Morneau said Wednesday.

Morneau said the federal government is willing to compensate the pipeline’s backers for any financial loss due to British Columbia’s attempts to obstruct the company’s Trans Mountain pipeline expansion.

“The indemnification would allow Kinder Morgan to finish what they started, what they received federal and B.C. approval to do,” he said Wednesday morning during a news conference that laid out in broad terms what his government is willing to do to move the project ahead.

Morneau’s statement came just hours before Kinder Morgan Canada’s stakeholders met in Calgary, and offers the company an incentive to proceed with the project just weeks ahead of its potential drop-dead date. Kinder Morgan has threatened to abandon the project if a clear path forward isn’t reached by May 31.

“As a government we need to ensure that the rule of law is respected and that investors have the certainty needed to complete the Trans Mountain expansion project, because it’s in the national interest to do so,” Morneau said.

Morneau said that if Kinder Morgan bails on the project, the government would reimburse any financial losses related to B.C.’s political opposition incurred by any other investor willing to take the project on — as long as reimbursement is “sound and fair and beneficial for Canadians.”

Morneau wouldn’t say if there’s a limit to how much the government is willing to spend to compensate the pipeline’s backer. (Source: CBC) 

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Wednesday April 11, 2018

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Wednesday April 11, 2018

Kinder’s Pipeline Pause Puts Pressure on Trudeau to Act, Somehow

Justin Trudeau has a lot riding on the Trans Mountain pipeline expansion. But the Canadian prime minister has few viable options to save it.

June 27, 2013

Kinder Morgan Inc. halted most work on the project Sunday, ramping up pressure on the federal government to somehow deter provincial opposition and protests from environmentalists before a May 31 deadline. Trudeau’s energy strategy is at stake, along with overall business confidence and the price of Canadian oil landlocked in neighboring Alberta.

His problem is that opposition from British Columbia has been mostly talk, leaving Trudeau essentially in a war of words that’s been enough for the Houston-based company to warn the uncertainty has become too great. Trudeau’s team backs the pipeline and flatly promises it will be built, though with the project already approved its options are few beyond trying to cajole the Pacific coast province.

June 8, 2017

“The consequence of their indirection has created a problem of certainty for the proponent. That problem is real,” Natural Resources Minister Jim Carr said Monday in an interview at his Ottawa office. “We will look at every option available to the government of Canada — financial, regulatory, legal.”

Shares of Kinder Morgan Canada Ltd. fell 13 percent Monday, the biggest decline since its initial public offering last May.

While cross-border pipelines are under federal jurisdiction, provinces have asserted themselves in recent years, muddying the outlook and allowing new challenges to pop up. In this case, British Columbia’s New Democratic Party government — whose razor-thin command of the provincial legislature relies on support of Green Party lawmakers — has dug in its heels. (Source: Bloomberg) 

Published in the Western Star, Corner Brook, Newfoundland

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