B.C. Premier John Horgan vowed to fight threats from Alberta to use legislation to cut off oil supply to the province, claiming the move would be unconstitutional.
Newly sworn-in Alberta Premier Jason Kenney has been critical of B.C., claiming the government has purposefully obstructed resource development, specifically the Trans Mountain Pipeline, which he believes is responsible for high gas prices in the Lower Mainland.
In a press conference, Horgan pushed back against this claim, noting his team had made a point to not put taxpayer money in jeopardy by meddling in the process. The province has filed legal paperwork to fight Alberta’s Bill 12 on constitutional grounds. The law gives Alberta the power to limit the allowable daily quantities of petroleum products shipped. B.C.’s lawsuit seeks an injunction halting operation of the Alberta law until the case is resolved.
“We agreed as a cabinet that thwarting permits is not the way forward if they are permits that are required and legal,” said Horgan. “I have tried since the day I was sworn in to not incur legal costs to the province.”
Horgan reiterated his government’s position that Burrard Inlet, the centre of the largest metropolitan area in B.C., should not be a terminus point for the export of diluted bitumen, citing environmental concerns.
Horgan also revealed he had his first phone call with Kenney last night, noting that despite the public spat, the two premiers had a cordial discussion.
“The travelling public has to have confidence that I’m going to be defending their interest against provocative actions by Alberta, but I will say Premier Kenney did not make any threats of any kind,” said Horgan. “We had a diplomatic and courteous conversation last night sprinkled with some humour and some hope and I am confident that we can get these prices down. But we need co-operation from Ottawa and we do not need provocative action from our neighbours.”
However, in his own press conference on May 1, Kenney reiterated that his “turn-off-the-taps” threats were not idle.
“We are serious about it,” he said. “This is not some bluff. We will protect the value of Alberta’s resources.”
Horgan urged Ottawa and Alberta to work with B.C. to try to reduce the export of diluted bitumen and increased refined product.
“I don’t want to start on a bad foot with the new premier,” said Horgan. “I want to work with him to the best of my ability as I tried to the best of my ability with the former premier. I’ve tried not to be provocative, I’ve tried not to elevate the rhetoric, and I think that is what most people would prefer to see.”
Alberta has 20 days to respond to the suit.
Chris Atchison, president of the B.C. Construction Association said the dispute causes unnecessary uncertainty in business community and called on the federal government to step up and take action to resolve it.
“It is unfortunate that it would come to this,” said Chris Atchison. “We do think that the longer this carries it will continue to undermine confidence and stability in the Western Canadian market, never mind just B.C.”
Atchison said it is the responsibility of the federal government to step in and resolve the issue.
“I think at the end of the day we understand that the pipelines are more of a federal issue,” said Atchison. “This another call to the federal government to restore some confidence in Canada, to be the peace maker.”
Atchison added that having just won an election, Kenney likely is moving quickly to make good on campaign promises and make a statement to struggling Albertans.
“Calgary has the highest unemployment of any urban centre in Canada,” he said.
“B.C. looks like we are in a very favourable labour market and that’s got to hurt, and may be causing unnecessary, but understood, friction. But this is a federal fight, not a B.C. or Alberta fight, and the federal government needs to be the one to move on this and by doing so they will help solve whatever impasse these two are in.”
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