Good cop, bad cop.
That seems to be the routine that Prime Minister Mark Carney’s Liberals have settled into with British Columbia’s NDP government.
On the one hand, Carney and his ministers repeatedly come out and make statements in favour of developing Canada’s natural resources.
On the other hand, they keep giving provincial governments veto power over potential projects.
Take the recent statements of Carney’s Energy Minister Tim Hodgson.
On the surface, they seem to be encouraging.
On a recent trip to Germany, Hodgson lambasted the previous Liberal government, led by former prime minister Justin Trudeau, for closing the door to liquefied natural gas (LNG) exports to Europe.
“Unlike the previous Canadian government, which closed the door to LNG exports, prime minister Carney’s government has opened it,” said Hodgson. “If the demand is here, and the infrastructure is built, Canada will deliver.”
So far, so good.
But then Hodgson went on to offer a major qualifier, one that Carney has also repeatedly pushed since taking office.
“Potential projects are in the earliest of stages and no route is mapped out for sure,” continued Hodgson. “But any proponent who comes forward with a project that features good economics and buy-in from their province and Indigenous people, we will take a good look at it.”
Of course, any project is going to have to feature good economics. That’s just common sense if you’re looking for investment from the private sector.
But Hodgson once again repeated something that Carney has been pushing for months — a project must have buy-in from provinces and Indigenous people.
Establishing a sense of buy-in from Indigenous peoples has always been challenging, particularly when governance is so dispersed.
But it’s the provincial buy-in that should concern Canadians who favour oil and gas development the most.
Requiring provincial buy-in is just another way of phrasing something Carney said back in June: “We will not impose a project on a province.”
That may sound reasonable, but in B.C.’s NDP government, we’re not dealing with reasonable people.
Because most of the feasible projects to get Alberta oil and natural gas to market run through B.C., Hodgson and Carney are essentially handing B.C. Premier David Eby a veto over new pipelines.
Eby is leading a government that is ideologically opposed to the construction of new pipelines. And B.C.’s NDP government has led the charge against such projects by imposing things like tanker bans and production caps.
For example, one of Alberta Premier Danielle Smith’s recent top priorities has been the construction of a new pipeline to ship Alberta oil to the Port of Prince Rupert on B.C.’s northern coast. This would, however, require both the use of tankers and the building of a new pipeline.
Eby has repeatedly rejected the idea, claiming no one is out there and interested in the project. Smith, of course, has countered by insisting that no one is going to come out and propose such a project until bad policies, like tanker bans and production caps, are lifted.
The reality is that the federal government has the power to approve projects that cross provincial boundaries, even if one of the impacted provincial governments opposes the project.
But, by insisting that there be provincial buy-in, Hodgson, Carney and company are effectively allowing one man, Eby, to blockade oil and gas development, which Canada’s economy so desperately needs.
Here’s the reality. Canada’s economy is in trouble. Gross domestic product is down, and a recession is likely. Canada’s trade deficit continues to swell, joblessness is on the rise and there’s a general sense of unease from coast to coast.
U.S. President Donald Trump’s tariffs are having a biting impact. They’ve redrawn the boundaries of global trade. And the Carney government keeps talking about the need to diversify Canada’s trading partners.
This is a perfect opportunity for Canada to step forward and provide Europe and Asia with the energy both regions need. But it won’t happen if Carney continues to allow Eby to stymie development progress.
It’s time for Carney to take away Eby’s veto power and move forward with energy projects that are in the national interest.
Originally published here