"We believe that federal ownership could further galvanize opposition to the project from special interest groups while complicating the federal government's ability to provide protection over project construction in (British Columbia's) Lower Mainland."
– Desjardin analysts Justin Bouchard, Kristopher Zack and Chris MacCulloch
Here we are on the ninth day of June, and what is different from what it was ten days ago? Well for one thing, we Canadians are the potential owners of a thousand kilometres of pipeline from Sherwood Park to Burnaby, B.C. And potentially we may also be the owners of a second pipeline paralleling the existing 1953 Westcoast Transmission pipeline. Philosophically, I don’t believe governments should be involved either in owning or building pipelines but under the circumstances that may be the solution to what has been an impasse for the Kinder Morgan pipeline which proposed to take our bitumen to tidewater and eventually to foreign markets.
But really, has the purchase of the Kinder Morgan line really changed things? The only difference is the ownership of the existing pipeline. The protesters are still protesting, the Premier of British Columbia is still vowing to do everything within his power to stop construction of the line, court decisions are pending; these are the issues that have held up construction for over a year and there is nothing to indicate that they will go away anytime soon.
There are a few positive issues on the horizon. Several Indigenous bands, including Alberta’s own Fort Mackay First Nation have expressed interest in becoming a shareholder in TransMountain. Other native organizations also appear to have an interest in participating in investing.
It is also positive to note that Kinder Morgan will continue to lead the construction of the line. However, unless the federal government is able to divest itself of ownership in the pipeline, I shudder to think of the political interference that is likely to occur if government retains project management. We could be looking at a $14 billion dollar bill rather than $7 billion!
But the key issue is still the same as it was before, and it still requires some bold action by the federal government. Not more money but firm action to ensure that construction can commence and proceed peacefully.
Does the Prime Minister have the audacity displayed by his father when Trudeau Senior said “Just watch me!”? Is Trudeau Junior prepared to stop the protesters by calling in the Army? That is very likely what will be required to fend off the environmentalists and the native protesters. Will this be another Oka?
So, I reiterate – What has changed in the last ten days by the federal government laying out $4.5 billion dollars of taxpayers money to purchase Kinder Morgan? My answer – very little. We need action – not more taxpayers dollars.
Ken Allred is a former St. Albert Alderman and MLA.
