Canada’s Trudeau to press British Columbia to accept pipeline -source
Canadian PrimeMinister Justin Trudeau is set to pile pressure on BritishColumbia's provincial government to drop its resistance to apipeline project, but will try to avoid tougher measures thatmight alienate voters who helped his Liberals win power, asource close to the matter said on Wednesday.
Trudeau is racing against time. Kinder Morgan Canada said it would scrap the C$7.4 billion ($5.9 billion)Trans Mountain pipeline expansion from Alberta to the west coastunless all legal and jurisdictional challenges facing theproject are resolved by May 31.
The pipeline, which Canada's oil industry considers crucial,is opposed by British Columbia's left-leaning New Democraticprovincial government. Environmentalists and aboriginalactivists are mounting frequent protests and British Columbiapolice have arrested about 200 people around Trans Mountainfacilities since mid-March.
Trudeau's Liberals picked up seats in the province in thelast election, but the federal NDP – which opposes the pipeline – remains a force there.
This could make Trudeau's federal government cautious as itis locked in a rare standoff with a provincial counterpart.British Columbia opposes the expansion, citing fears that therisk of a spill in the Pacific province is too great.
Ottawa insists it has jurisdiction over the project andTrudeau is under huge pressure to crack down. For now, he willpress the provincial government, pointing to polls showing mostCanadians want the expansion to go ahead.
"We need to take actions that are focused on the governmentof British Columbia," said the source, who requested anonymitygiven the sensitivity of the situation. Trudeau will hold moretalks with the province as well as Kinder Morgan Canada, thesource added.
Trudeau must be careful because British Columbia voters andenvironmentalists gave him strong support that helped bring himto power in 2015. A crackdown could cost him support in bothcamps ahead of a federal election set for October 2019.
Although Ottawa says it is exploring all regulatory, legaland financial alternatives, the source conceded "there aren't anawful lot of options for the prime minister."
Federal Finance Minister Bill Morneau discussed the matterwith Alberta Premier Rachel Notley in Toronto on Wednesday andtold reporters that Ottawa had yet to make a final decision.
"We are working, using all the tools at our disposal, tomake sure we move forward in short order to absolutely ensurethis project goes forward," he said, without giving details. "Wehave to ensure the rule of law in this country works."
Some pipeline supporters have urged Trudeau to declare anational emergency to push through the pipeline, but the sourcesaid that idea is "preposterous."
Also off the table for now are calls from opposition membersto reduce the payments Ottawa sends to British Columbia to helpfund social programs.
"Are they actually suggesting we cut … health and socialtransfers to hard-working British Columbians?" said the source.
Ottawa and Alberta have talked about investing in theproject, though it was unclear how that would lessen BritishColumbia's opposition.
Some commentators suggest provincial and federal governmentsunderwrite the project by providing insurance, essentiallyleaving them on the hook if the company decides to walk away.
If pipeline supporters view Trudeau as too soft, they couldaccuse him of not doing enough to prevent a constitutionalcrisis and of abandoning the energy industry in Alberta, wherethe Liberals also picked up extra seats in 2015.
"I don't think it's a win for him in British Columbia orAlberta under any circumstances," said pollster Nik Nanos ofNanos Research. "The problem is that is this open warfare onprinciple."
(Additional reporting by Anna Mehler Paperny in TorontoEditing by Denny Thomas, David Gregorio and Richard Chang)