Tag Archives: Kinder Morgan

Roundup: Justifying a belligerent tone

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Two days after the American tariff announcements, and I found myself still struck by the tone that the federal Conservatives have adopted with this, squarely blaming Trudeau rather than the uncertainty engine known as Trump, and engaging in the same kind of disingenuous narrative-building to justify their stance. In particular, they have been trying to claim that when Trudeau made his tour of steel and aluminium plants earlier in the year, that it was a “victory tour,” which is vastly different from how I remember it. Back then, it was about reassurance and the prime minister wanting to tell them that he had their backs and given that the government was ready for these tariffs to happen and had a package of retaliatory measures ready to go, it means that they didn’t take the reprieve for granted – entirely negating the premise of the Conservatives’ attack lines. Not that facts matter. They are also insistent that the Trudeau government has allowed itself to get “distracted” by the feel-good chapters around labour and gender in NAFTA negotiations, which again, is novel if you pay the slightest amount of attention to what’s been going on. But this isn’t about truth – this is about building their narrative that Trudeau is a dilettante who is incompetent and that the Conservatives are the real grown-ups in the room (despite evidence to the contrary). And because people have let Scheer and company lie with impunity on all sorts of files for months now, they feel emboldened to take this course of action, despite how gauche or out of step with other conservative voices in the country it may be, because they see this as their long-term game plan. And we’ll see if any of those voices call them out on it.

As for the impact of the tariffs, it turns out that they could have a far less detrimental impact on Canada’s aluminium industry because it exports more product to the US than we do steel, and America’s own smelters are older and less efficient than Canadian ones, meaning that these tariffs won’t do anything to help support the US industry, and American producers say that they could do more harm than good. Steel, of course, is a different story. The whole tariff issue, meanwhile, could mean that the lock that the American arms industry has on our military procurement may be at an end, and that our Forces may start looking to Europe for equipment instead – something that may actually be more affordable, but the tendency had been to buy from American producers under the guise of “interoperability” with American forces. As for the American companies facing retaliatory tariffs, well, they’re still learning about them, but most don’t seem too concerned. At least not yet. And many Republicans and businesses are lashing out at Trump for the move – including anchors at Fox Business.

In further reaction, Andrew Coyne believes that the sheer size of the US economy means that our retaliation will come to nothing, and even if we coordinate with other countries, we’re unlikely to change Trump’s mind, so better to work to contain the US presidency. Susan Ariel Aaronson suspects that the tariffs will weaken America’s national security interests rather than strengthen them, as Trump has used as the excuse to enact them, while Andrew MacDougall thinks that Trump’s move may benefit Doug Ford, who pledges to lower taxes and cut red tape that may appeal to people who think this can help keep Ontario’s economy competitive.

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QP: Cheap shots on a trade war

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While Justin Trudeau had intended to show up for Question Period today, the new imposition of tariffs by the United States had him off at the National Press Theatre instead. Andrew Scheer was also away, off to Nova Scotia instead. Erin O’Toole led off, decrying the steel tariffs and called the prime minister a failure on the issue, which ushered in cries of “shame!” from the Liberal benches. Marc Garneau admonished him for being partisan on this issue, and stated that the tariffs were unacceptable and that Canada would be imposing retaliatory tariffs against American imports. O’Toole insisted that the PM didn’t get anything for months while the Conservatives were engaged on the file, and demanded action. Garneau reiterated his response, and when O’Toole invited the government to work with the Conservatives on the issue, Garneau relate his response for a third time. Luc Berthold took over to make the charge of incompetence in French, to which Garneau repeated his response in French, and when Berthold accused the PM of naïvely believing the president when he said there would be no tariffs, Garneau said that Berthold should be ashamed of his partisanship. Ruth Ellen Brosseau then picked up the same line of questioning for the NDP, demanding to know what the government would do to protect workers, and Garneau repeated that they are consulting on retaliatory measures and would protect workers. Tracey Ramsey took over in English, and over two questions asked the same thing and made more accusations that the government was unable to secure a deal, to which Garneau repeated his response yet again. Karine Trudel took over for a final attempt at the very same question, and got the same answer. Again.

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Roundup: On track for a final cannabis vote

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Over in the Senate, some of the drama around the cannabis bill has resolved itself and we can look forward to some structured, orderly report stage and third reading debate leading up to the June 7thfinal vote. And yes, before you say anything, the Conservative senators are playing along and have been swearing up and down that they will respect this date and not try to play any games and delay it further. (They also know that they’ve burned a hell of a lot of political capital on unnecessary fights lately and aren’t keen to burn any more).

To recap, part of the drama has been that the Conservatives still plan to move amendments at Third Reading, which is their right. But they wanted this as part of the structured plan, and the Government Leader in the Senate – err, “government representative,” Senator Peter Harder, wasn’t playing ball, and wanted the Social Affairs Committee – which funnelled all of proposed amendments from the four other committees that studied the bill and voted on them there – to have a look at those amendments first. And the Conservatives, rightfully, refused. And then members of the Independent Senators Group started giving quotes to newspapers about how they were open to real amendments and not those that were “superficial, tactical, unenforceable, or would only serve to delay this bill.” That, and throwing more shade about how they believed the Conservatives were just playing games, because the modus operandi seems to be that anything the Conservatives do is partisan and therefore bad, but anything they do out of a shared belief is not partisan and just fine, which is a lot of bunk. And some of the Independent senators are getting downright condescending in trying to make that particular case. Suffice to say, peace has broken out after the ISG got over their issues about the amendments, and they now have a plan for debate that will carry them through to the vote on the 7th.

Meanwhile, there is talk about whether the amendments to C-46 – the impaired driving bill – will survive a full vote in the Senate after the likely unconstitutional provisions around random alcohol testing. ISG “facilitator” Senator Woo is hinting that they would vote to reinstate the provisions. I will add, however, that I am not absolutely not buying their supposition that senators were trying to simply embarrass the government by returning the omnibus transport bill to the Commons a second time because it was their own Independent senators who insisted on those amendments. Sometimes senators insist on amendments because they think they’re in the right – which is a novel concept, I’m sure.

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QP: Pipeline project necromancy

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With the Trans Mountain announcement still reverberating in the political sphere, it was proto-Prime Ministers Questions, and it remained to be see how substantive the answer would be. Andrew Scheer led off, mini-lectern on desk, and he railed not only about this pipeline acquisition, but the fact that it threw New Brunswick under the bus because they killed Energy East. (reminder: They didn’t kill the project, the proponent withdrew after Keystone XL became viable again). Justin Trudeau replied with his tired platitudes about energy and the economy, and securing jobs for Albertans. Scheer railed that other projects were killed, including Northern Gateway, and that the demise of Energy East ensured that only foreign oil flowed to Eastern Canada. Trudeau shrugged this off as dwelling in the past because they couldn’t deal with the reality that this government was doing the right thing. Scheer insisted that the previous government didn’t need taxpayer funds to get pipelines built and approved — ignoring that most of those pipelines were simply reversals or refurbishing existing ones. Trudeau noted that the Conservatives were trapped by their “rigid ideology,” whereas he was standing up for Alberta and Canadian jobs. Scheer went another round, and this time Trudeau invoked the spirit of Peter Lougheed to justify his actions. Scheer returned to playing the economic nationalism card by highlighting that Kinder Morgan is Texas-based, and Trudeau again invoked Lougheed. Guy Caron was up next for the NDP, railing that Trudeau should have invested in clean energy, to which Trudeau reminded him that when Rachel Notley came out with her climate plan, the federal NDP cheered, but that plan had three parts — a cap on greenhouse gasses, carbon pricing, and a pipeline to new markets. Caron demanded to know what the impact on taxpayers would be, but Trudeau kept wedging that the NDP can’t bridge the energy and the economy. Nathan Cullen poured on the sanctimony to protest the purchase, brining in reconciliation and climate promises, and Trudeau reiterated his previous response about Notley’s plan in English. Cullen accused Trudeau of smoking weed to make the decision, and Trudeau noted that this was about certainty to get it constructed and getting it built as part of their plan to fight climate change and grow the economy.

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Roundup: Trans Mountain and Phoenix

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The government announced yesterday morning that they were going to acquire the Trans Mountain pipeline and the project to twin it from Kinder Morgan – but that this would be a short-term acquisition if another buyer can’t be found before August. In the meantime, a loan would be extended to Kinder Morgan to begin construction immediately. Rachel Notley cheered and said that it’s time for Albertans to pick up tools and get to work on building it. Morneau, incidentally, won’t say what those construction costs will be, as that’s commercially sensitive information that could undermine the process for finding a buyer for the pipeline. As for who some of those buyers might be, here’s a look at that question. The buyout – if it happens – won’t eliminate opposition, but it changes the legal situation for BC in that federal paramountcy is even more prevalent than it was before. BC premier John Horgan says that his fight will carry on, but he’s suddenly saying that this is all because the federal oceans protection plan isn’t good enough, which is…new, and not terribly convincing. As for Indigenous activists, some say that the announcement is tantamount to a “declaration of war,” but other Indigenous communities are seeing this as an opportunity to buy a stake in the pipeline to benefit their communities.

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The Conservatives immediately stated that this was all because of Liberal incompetence, that Kinder Morgan never said they wanted to sell, that they only wanted “certainty,” and then Andrew Scheer engaged in a bunch of revisionist history that falsely claimed that other pipeline projects never got government financing (it’s like he’s never read about the Trans Canada Pipeline construction in the 1950s, not to mention the development of the Hybernia offshore oilfield, or the development of the oilsands themselves). Oh, and Scheer’s definition of “certainty” that he would provide includes forgoing the current environmental assessment bill (has he talked to environmental lawyers or looked at the kinds of court challenges that the Conservative legislation has generated?) and his insistence that they could somehow “assert” federal jurisdiction by means of a declaration or a bill is ridiculous because they already had jurisdiction. The pipeline crosses a provincial boundary, thereby making it federal. Jurisdiction was never seriously in question. His MPs and other federal and provincial mouthpieces have been trying to spin this as some kind of conspiracy that Trudeau is only buying the pipeline in order to take control of it and shut it down so that they can shut down the entire oil sector. Seriously? You expect people to believe that, after Trudeau has staked an enormous amount of political capital on this very move? Really?

In other reaction, Andrew Coyne sees this as not all bad news (though I’m not sure how much more the Liberals could have done to avoid it), while John Ivison sees irony in the government “getting into the pipeline business” on the same day as the Auditor General blasted them for an inability to manage big projects. Tim Harper sees this as a potential precursor to tougher days ahead for Trudeau, while Jason Markusoff notes that this will make it hard for Albertans to sustain the narrative that Ottawa hates them (though by gods, the Conservatives in Ottawa are really trying). Andrew Leach also gives a very detailed analysis of the purchase in Twitter threads here, here, here, and here.

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QP: Investing in assets

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While the prime minister was away after this morning’s major announcement on the government decision to acquire the Kinder Morgan Trans Mountain pipeline, all other leaders were present — for a change. Andrew Scheer led off, mini-lectern on desk, and he railed about the Trans Mountain announcement, before demanding to know that it wouldn’t cost more than the $4.5 billion. Bill Morneau responded with a bit more fire than we usually get from him, decrying the audacity of the Conservatives for demanding the pipeline get built and then complaining when they assured it would be. Scheer offered some revisionist history when it comes to governments paying for pipelines (there is in fact a long history of it), and Morneau reiterated that the project was in the national interest. Scheer played the economic nationalist card in that $4.5 billion going to “Texas” shareholders, and Morneau repeated the points about jobs and the economy. Alain Rayes took over in French, and demanded to know how much it would cost taxpayers, and Morneau repeated that it was important to invest in the project, that their investment ensured it would be completed. After another round of the same, Guy Caron got up to rail that this investment was a betrayal, rather than investing in the clean economy. Morneau said gave the usual line about the environment and the economy going hand-in-hand, and that while they invested in clean energy, this project was still necessary. After another round of the very same, Nathan Cullen got up to ramble sanctimoniously about what was in the public interest, and Morneau reminded him that they went through a robust process, and that people need to respect the rule of law. Caron piled on more sanctimony, and Morneau made points about stepping in between provincial squabbling.

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Roundup: Trans Mountain decision day?

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It looks like today will be the day we get some kind of answer on the Kinder Morgan Trans Mountain expansion pipeline, and everything will likely be confirmed in the morning as Cabinet meets earlier than usual. The three options on the table are the previously announced indemnification, as well as the option to either buy the pipeline outright (though I’m not sure if that means just the expansion or the original pipeline itself that the expansion twins) in order to sell it once the expansion completes construction, or temporarily buying it long enough to sell it to someone else who will complete construction. The word from Bloomberg’s sources is that the government is likely to buy it outright, on the likely option of buying it long enough to find someone who can guarantee its completion.

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As for what this will mean politically, you can bet that there will be no end to the howls of outrage from both opposition parties – from the Conservatives, we’ll hear that this never should have happened, and it’s only because of the federal government’s incompetence that it did. (While one can certainly question their competence in a number of areas, this is one where they had few good options, and no, a court reference or a pipeline bill would not have helped because they already have the necessary jurisdiction they need). The NDP, meanwhile, will howl that this is a betrayal of their promises on the environment and the rights of First Nations, and that it pays billions to “Texas billionaires” rather than Canadians, and so on (though one would imagine that the NDP should be all for nationalizing infrastructure projects). And one can scarcely imagine the invective we’ll hear from Jason Kenney, as helpful as that will be. Suffice to say, the next few days (and weeks) will likely be even more dramatic that they have been. Because this time of year isn’t crazy enough in Parliament without this.

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QP: Borders and pipeline taxes

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While Justin Trudeau was present today after meeting with the prime minister of Estonia, Andrew Scheer was away. In his place, Lisa Raitt led off, worried about irregular border crossers, and the strain it was putting on housing. Trudeau stood to respond, script in hand, to say that they have robust processes, but the previous government left them backlogs that they were still cleaning up. When Raitt insisted that there were three separate problems as a result of his #WelcomeToCanada tweet, the lack of clarity from the immigration minister, and the international development minister welcoming those migrants because they helped with a labour shortage in her riding. Trudeau didn’t take up a script this time and reminded Raitt that they have a system that applies to everyone, and when Raitt tried a third time, Trudeau got more vociferous in his reiteration that there is a proper process, that they ensure that everyone goes through it, whether there are backlogs or not. Gérard Deltell took over in French, reiterating the previous question, to which Trudeau noted that while Canada welcomes people a from around the rule, the system is applied with integrity and that we are a country with a rule of law. On a second time around, Trudeau noted that they still had irregular migrants under their watch, and they cut their healthcare on top of resources to CBSA and the IRB. Guy Caron led off for the NDP, and accused Kinder Morgan of avoiding Canadian taxes, so why would the government give them a blank cheque. Trudeau started with the tired environment and the economy talking point before transitioning to the fact that without the pipeline, our economy is losing out of a $15 billion because of a lack of access to other markets. Caron tried again, and Trudeau doubled down on the need for a better price for our oil. Ruth Ellen Brosseau took over to ask the same again in English, and Trudeau reiterated his answer, and again on a second go around.

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Roundup: A tire fire of a debate

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Last night was the third and final leaders’ debate in the Ontario election, and it was…terrible. Painful to watch. And yet here we are. Doug Ford promised all kinds of increased spending, and promised not a single layoff, while he offered no specifics on any promise, and a false version of history of when he was at Toronto City Hall. Andrea Horwath promised some different spending than the Liberals, that she would end “hallway medicine,” while being overly generous on the hole in her party’s platform and the fact that she doesn’t stand for Hitler memes (while not having actually rebuked or dumped the candidate accused of posting one). Kathleen Wynne was sorry that people don’t like her personally, but isn’t sorry for her record, and she offered detailed policy in a format that didn’t let leaders fully answer questions and where Horwath in particular kept interrupting and aggressively talking over everyone else. In all, a demonstration that this whole election is absolutely terrible.

In reaction, Chris Selley remarks on Ford’s performance – that the only place he stood out was his promises around childcare (though he didn’t offer specifics, which are that his tax credit won’t amount to much for parents), while David Reevely noted Horwath’s aggressive challenges around Ford’s lack of platform or Wynne’s stance around collective bargaining, showing more fire than Wynne, who was building an intellectual case in a lawyerly tone for much of the debate, only really finding her own fire when she pushed back against accusations around the Hydro One sale.

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Roundup: A major amendment at committee

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There will be another looming showdown between the Senate and the Commons in the coming weeks, as the Senate’s Legal and Constitutional Affairs Committee narrowly voted to remove the random mandatory alcohol testing provisions from Bill C-46, the government’s new impaired driving legislation. And this wasn’t just the Conservatives being obstructionist – Liberals joined in this too, the tie-breaker coming from Senator Serge Joyal. Why? Because this provision is almost certainly unconstitutional. Senator Denise Batters, who moved the motion, explained the reasons in this video here:

It can’t be understated that the criminal defence bar has been warning for months that this will lead to even more court challenges, including Charter challenges, and that it will do nothing to alleviate the backlog in the courts, and would only make them worse in the post-Jordandecision world of tight timelines. And if you don’t think that this won’t create problems, then just look to BC to see what moving to administrative roadside penalties for impaired driving did to their court system – it’s created a cottage industry of court challenges to those citations. I’ve interviewed these lawyers before. One of them, for whom this is her specialty (as tweeted below) knows what she speaks when it comes to what this bill will do.

The government will point to constitutional scholars that told them their plans were sound, but again, this likely won’t be definitively be answered until it gets put to the Supreme Court of Canada. And plenty of lawyers will also point out – correctly – that just because the police are looking for certain powers, it doesn’t mean they should get them because they will infringe on Canadians’ Charter rights. The funny thing is that this creates a schism within the Conservative caucus, with the MPs being in favour of the bill (much of it having been copied from a bill that Steven Blaney tabled), but then again, the Senate is more independent than people like to give it credit for.

So now the justice minister says that this is unacceptable, that it guts the bill (not really true – the marijuana provisions are all still intact I believe, which is why this bill was a companion piece to the marijuana legalisation bill in the first place), and she won’t have these amendments. We’ll see whether the full Senate votes to adopt these amendments or not – there’s been a lot of talk from the Government Leader in the Senate – err, “government representative,” Senator Peter Harder, that they shouldn’t vote down bills of dubious constitutionality because that should be the role for the courts (I fundamentally disagree with that – it’s actually the Senate’s job), and we’ll see how many of the new Independents are swayed by Harder’s arguments. But it’s one more bit of drama to look forward to.

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