Both the Premier of Alberta, Rachel
Notley and of Premier
John Horgan from B.C. are engaged in
a rather silly game of one-upmanship solely to look good for their
constituents. Whether or not their antics will have any effect upon if or when
the pipeline gets built is anyone guess. At a quick glance it is hard to see
how either creating provincial policies that limit the transit of bitumen or
the importation of BC wine into Alberta will have much effect at all.
From Notley's
perspective, I would guess that she has little choice but to do everything she
can to ensure that a pipeline gets built to somewhere. Getting oil out of the
ground is Alberta's major industry. With the exception of agriculture, Alberta
has no other significant industries. Without oil/gas production Alberta has no
capacity to produce sufficient funds to support its schools and hospitals.
While there is no doubt that having a provincial income tax would be helpful - such taxes only generate income if
people have money to buy stuff. Alberta has struggled for the past few years
trying to develop other types of industries but it has been challenging. For
well over half a century Alberta's entire infrastructure has been based on oil.
Thousands of people have been convinced to move to that province because
Canadians needed access to oil - we needed it to travel and to heat our houses.
In fact almost
everyone has benefited from that oil production: from the pipe welders who have
made more money there than they could have anywhere else, to the families in
the Maritimes who were supported as their men folk worked the oil fields, to
all Canadians whose services were at least partially funded from oil money
raised by both the federal and provincial government through taxes and through
balance of trade payments. It is worth noting that Canadians did not suffer the
effects of the last major recession at least initially because our economy was
strong - bolstered by our oil sales. It is understandable that Notley and other
Albertans are frustrated that no one seems to want to have their oil be
transported across the country. Central Canada has clearly rejected the concept
of both pipelines and rail transport and now it appears as if BC has drawn a
clear line in the sand - saying no to oil flowing to the coast. It is the height
of NIMBY that it appears the only solution that might alleviate the stress is
if our neighbours to the south allow their pipeline to be built and therefore
accept all of the risks.
On the other hand,
Premier Horgan has an equally difficult problem. Letting three times as much
oil get to the coastal ports will not generate a significant amount of tax
revenue. There is almost no benefit to BC. As well there are thousands of BC
residents prepared to protest both the construction of additional pipeline
capacity through sensitive/vulnerable terrain and the risk that an increase in
the number of tankers parading up and down the coastline will bring to the
shore of the Pacific Ocean. To make
things more complicated there are some Indigenous communities who are
supporting the construction and some that are not. Hogan has little choice but
to at least look as if he is prepared to block any new construction. If he does
not, the three member Green Party who hold the balance of power, have
threatened to withdraw their support - and thereby causing an election. I am
quite sure that Hogan is desperately praying that someone else will take
responsibility for the decision - ideally the federal government or the courts.
That way he can blame someone else.
Similarly
Notley from Alberta, who I suspect is the "greenest" of the bunch of
them, would like someone else to make the decision so that during the next
election she can have a highly visible enemy to tilt at - which maybe her only strategy
to win the next election.
This is a
Canadian problem - we need to recognize that the cost of not doing anything or
doing something are equally as high. If Canadians are prepared to accept that a
province should be relegated to "have not" status, then we should be
prepared to pay for it which would in part mean invest billions of dollars into
Alberta to create other industries. If Canadians accept that the inherent risk
of transporting oil products (not if but when) are worthwhile because the
benefits are significant, then we need to be prepared to invest to billions of
dollars into building the best oil spill prevention systems in the world.
No matter what
the decision is - someone will be hurt. Our only real question is who.
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