Varcoe: Alberta wants a new oil pipeline — history warns of billion-dollar risk and reward of government financial backing
Article content
Don't forget about history.
Article content
Article content
Past Alberta governments have a painful record of losing money when they get directly involved in major projects, seeking to de-risk developments and encourage the private sector to build.
Article content
Article content
'The track record is, I think, pretty one sided . . . not in the favour of governments and taxpayers,' he said this week.
Article content
'The bottom line is governments routinely get out-negotiated, and the public, the taxpayer, gets stuck with the bill.'
Article content
Today, the country is contemplating building new energy infrastructure after the Carney government passed Bill C-5, which will fast-track nation-building projects. The prime minister has also said he wants Canada to become an energy superpower.
Article content
Article content
In Alberta, part of the discussion has focused on how to best attract the private sector to develop a greenfield pipeline project to move more oil to the B.C. coast for export.
Article content
Will it require direct government involvement to make it happen, given the past failures of Energy East and Northern Gateway to proceed, and the high cost needed to get the Trans Mountain expansion built?
Article content
Will it be enough if Ottawa scraps legislation such as the tanker ban off the northern B.C. coast, the Impact Assessment Act and the oilpatch emissions cap?
Article content
'There are only two ways for governments to de-risk (a pipeline). The easy way — and the wrong way — is to pony up, cover costs or reimbursement. (In) both Keystone and Trans Mountain, that's what happened,' said Morton.
Article content
That could happen with Bill C-5 being passed, although the concept still needs to be proven.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Calgary Herald
13 minutes ago
- Calgary Herald
Varcoe: Carney government needs 'quick wins' from energy projects and to address internal challenges on Bill C-5, says new report
Article content 'This is an existential moment for Canada where we have both an opportunity and an obligation to become both more prosperous and more sovereign.' Article content Article content Prime Minister Mark Carney told the Calgary Herald recently it is 'highly likely' an oil pipeline to the Pacific Coast will be included on the federal list, although he said it will be up to private sector proponents to drive any proposal. Article content The report calls Bill C-5 a 'welcome transformative step' as it will allow Ottawa to streamline the authorization of major projects and approve them within two years, co-ordinated by a single federal office. It will also help meet the growing need for energy in the world. Article content 'There is low-hanging fruit. Some things are ready to go . . . Time is ticking,' report co-author Heather Exner-Pirot said in an interview. Article content 'Let's start seeing some action. Let's start seeing some projects.' Article content Article content If the changes under Bill C-5 had been in place for three energy projects that were completed earlier this decade — the Trans Mountain expansion, LNG Canada and the Coastal GasLink pipeline — it would have been valuable, but led to a 'relatively modest' average time savings of 1.5 years, the study notes. Article content These findings highlight the need to address challenges early in the development of a major project, it states. Article content Projects that should be on the list and can move quickly include the Ksi Lisims LNG project on the northwest B.C. coast, a second phase of LNG Canada, and steps to boost the capacity of Trans Mountain, said Exner-Pirot, who is also director of natural resources, energy and environment at the Macdonald-Laurier Institute. Article content However, the bill has sparked some criticism about the impact of speeding up the approval process, and Carney met with First Nations leaders last week and heard some of their concerns with Bill C-5. Article content Article content 'Free, prior and informed consent on First Nations Lands is non-negotiable. An advisory role is inadequate for real partnership,' Grand Chief Greg Desjarlais of the Confederacy of Treaty 6 First Nation said Friday in a news release. Article content 'I will trust actions over words as we look to move forward.' Article content To mitigate risks and concerns about an expedited approval process, Ottawa needs to 'deepen Indigenous engagement . . . to ensure genuine, equitable partnerships and meaningful participation,' states the report from the Expert Group on Canada-U.S. Relations, which includes academics, energy experts and business leaders. Article content 'Consultation should begin as early as possible and continue throughout the project lifecycle.' Article content The report says Ottawa should launch a formal process surrounding co-developing benefit-sharing and equity ownership agreements with Indigenous communities for major projects. It recommends transparent standards for consultation, such as timelines and public disclosure of the outcomes.
Ottawa Citizen
10 hours ago
- Ottawa Citizen
Premiers meeting in Ontario to tackle Trump tariff ultimatum and internal trade barriers
Article content Tariffs and trade are top of the agenda as the country's premiers arrive in Ontario's cottage country for a three-day meeting that comes at a pivotal time for both Canada-U.S. and domestic relations. Article content The premiers' summer gathering in Muskoka will also feature a Tuesday meeting with Prime Minister Mark Carney, as trade talks with the United States are expected to intensify. Article content Article content Most of what the premiers are likely to discuss stems from U.S. President Donald Trump's tariffs: trade negotiations, the direct impact on industries such as steel and aluminum, the increased pushes to remove interprovincial trade barriers and speed up major infrastructure and natural resource projects to counteract the effects of tariffs, as well as Indigenous communities' concerns about them. Article content Article content Day 1 of the premiers' meeting Monday involves discussions with Indigenous leaders including the Assembly of First Nations, the Metis National Council and the Native Women's Association of Canada. Article content Carney himself is fresh off a meeting with hundreds of First Nations chiefs, many of whom have expressed concerns about their rights being sidelined as the prime minister looks to accelerate projects in the 'national interest.' Some of the top priorities premiers are pushing include pipelines and mining in Ontario's Ring of Fire region, and chiefs have said that must not happen by governments skirting their duty to consult. Article content Article content Ontario Premier Doug Ford, who has served for the past year as head of the Council of the Federation, is host of the meeting and said in a statement that protecting national interests will be top of mind. Article content 'This meeting will be an opportunity to work together on how to respond to President Trump's latest threat and how we can unleash the full potential of Canada's economy,' Ford wrote. Article content Trump and Carney agreed in June at the G7 summit to try and reach a trade deal by July 21, but Trump recently moved that deadline to Aug. 1, while telling Carney he intends to impose 35 per cent across-the-board tariffs on Canada that same day. Article content Carney has said Canada is trying to get an agreement on softwood lumber exports included in the negotiations with the United States.
Toronto Sun
11 hours ago
- Toronto Sun
WIENS: Defending Canadian dairy farms is worth taking a stand
Dairy cows on a farm in B.C. on December 19, 2024. Photo by Postmedia Files With the increasing volatility in global supply chains, there's never been a better time to defend Canada's food security and sovereignty. Unfortunately, in his editorial opinion column, Postmedia's Lorne Gunter feeds into a misleading narrative about the dairy trade with the United States and disregards the strength and stability supply management delivers for Canadians. This advertisement has not loaded yet, but your article continues below. THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. SUBSCRIBE TO UNLOCK MORE ARTICLES Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. REGISTER / SIGN IN TO UNLOCK MORE ARTICLES Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account. Share your thoughts and join the conversation in the comments. Enjoy additional articles per month. Get email updates from your favourite authors. THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK. Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account Share your thoughts and join the conversation in the comments Enjoy additional articles per month Get email updates from your favourite authors Don't have an account? Create Account Under several trade agreements — chief among them, the Canada-United States-Mexico Agreement (CUSMA) negotiated with the first Trump administration — a large quantity of dairy products enter Canada tariff-free until they reach the tariff rate quota. Under CUSMA, the U.S. can send 49 million litres of milk to Canada every year, before a single drop would have a tariff imposed. And that tariff-free amount is set to continue to grow gradually over the next 13 years. Canada presently has a $520-million dairy trade deficit with the U.S. and American dairy exports to Canada have increased by 67% since 2021, to $877 million in 2024. Canada is America's second-largest dairy customer and is also its largest customer per capita. Your noon-hour look at what's happening in Toronto and beyond. By signing up you consent to receive the above newsletter from Postmedia Network Inc. Please try again This advertisement has not loaded yet, but your article continues below. Supply management has delivered food security and sovereignty to Canada for more than six decades by producing dairy here for Canadians. It aligns production with demand to deliver high-quality, diverse products at stable prices for consumers and a fair return for farmers. It also strengthens our economy, with 339,000 Canadian jobs fuelled by the supply-managed dairy, poultry and egg sectors and $30.1 billion contributed to Canada's gross domestic product. If anything, the recent trade dynamics show us we need to be able to take care of ourselves. Supply management means we have a steady supply of key food items, like dairy, made here when we need it. It protects consumers from shortages driven by supply chain disruptions, diseases or natural disasters. For example, egg prices in the U.S. skyrocketed this year because of avian flu. Canadians were not impacted thanks to the strength of supply management. This advertisement has not loaded yet, but your article continues below. Moreover, the price of supply-managed products is generally in line with or below inflationary trends in Canada. In December 2024, the 12-month average dairy consumer price index increased 2%, compared to a 2.7% increase in food generally. In 2024, Canadian milk averaged $1.64 per litre, close to the U.S. price of $1.44. Over the same period, yogurt, cheese and butter prices were similar or lower in Canada compared to the U.S. It should also be noted that countries such as the United States heavily subsidize their dairy industry for production, forcing taxpayers to pay twice for their milk (once at the store and again through their taxes). In contrast, Canadian dairy farmers do not receive similar production subsidies. This advertisement has not loaded yet, but your article continues below. With over 9,000 dairy farms spread across every province, the benefits of supply management extend far beyond any single province or region. Gunter overlooks the importance of supply management to the vibrancy of rural communities from coast to coast. As a Western farmer from a small community in Manitoba, I know family-owned dairy farms bring stability to local economies by creating jobs in not just agriculture, but transportation, veterinary care, nutrition, etc. Canadians can also find local dairy products on store shelves in all provinces. As dairy farmers, we are proud to take a Team Canada approach, focused on doing what we do best — producing quality Canadian milk for Canadians. And dairy farmers have been heartened by the tremendous support consumers have expressed by choosing Canadian products. In this time of increasing global volatility, the facts demonstrate that supply management continues to prove its value, delivering stability, security and high-quality local food on our tables in every part of this country. Canadians have every reason to stand behind it. David Wiens is a dairy farmer and president of the Dairy Farmers of Canada Toronto & GTA Editorial Cartoons Toronto & GTA Toronto Blue Jays World
