On January 20, shortly after his inauguration as President of the United States, Joe Biden signed an Executive Order cancelling the federal permit for the Keystone XL pipeline. This was not even remotely surprising given his role in the Obama administration that had refused to grant the permit in the first place, and his very clear promises during the Presidential election. Yet, within minutes, there were cries of outrage from Canada’s oilpatch and particularly Alberta whose furious little Premier went apoplectic. It was as if this was an ambush; as if a trusted friend had stabbed us in the back even though any moderately informed Canadian knew it was going to happen. In fact, we even knew when and how it was going to happen as that was communicated to us days before the inauguration.
And yet.
Premier Kenney, red in the face, went on national television descrying the action, attacking Ottawa for failing to more aggressively defend Alberta’s interests and demanding Canada immediately implement tariffs against American exports to Canada. In other words, Canada should start a trade war with the Biden administration on day one of its term. Huh?
His anger was undoubtedly stoked by the incredibly foolish decision he made a year earlier when, absent private sector investors willing to invest in the project, he decided the Alberta government would directly invest one billion taxpayer dollars and provide a further six billion dollars in loan guarantees to the pipeline. In other words, due to this extraordinarily bad decision the taxpayers of Alberta may be on the hook for seven billion dollars while the pipeline is effectively dead. Why, with an historically unpopular President in the White House and Democrats generally opposed to the pipeline, he thought this a wise course is beyond me; and why when the private sector was unwilling to make the investment this didn’t at least cause pause, beggars understanding.
But we didn’t hear anything about that in his reaction as he tried to focus the blame on Ottawa although it is manifestly clear the blame lies squarely with Edmonton. At one press conference Premier Kenney practically shouted that “if this hurt Bombardier in Quebec, or the auto sector in Ontario, or the shipbuilding industry in the Maritimes, Ottawa would immediately retaliate” which is, of course, nonsense. But it’s nonsense that plays to his conservative Alberta base, a significant proportion of whom, I suspect, would have preferred Donald Trump being re-elected and not just because of the pipeline but because his “populist” world view aligns nicely with their own.
And just in case there was any danger this dispute might be contained within Canada’s borders, Premier Kenney climbed onto Fox News to attack the Biden administration, something I’m sure appealed to Fox viewers and was noted by the new administration.
My question through all this has been: “what’s Plan B”?. As many of you know, I would have preferred the Keystone XL pipeline be completed, just as I support the twinning of the Trans Canada pipeline but, as I said earlier, it should have been blindingly clear to any reasonably informed person there was a considerable chance it would not be. The Keystone XL pipeline is mostly on American soil and, frankly, it is up to Americans to decide what they want on that soil. We may disagree. We may mount arguments that the decision isn’t wise for any number of reasons but, in the end, it is not our decision. So, what was/is Plan B? Unfortunately with Alberta, I suspect there is no Plan B; no alternative to get its oil to refineries; no real plan to transition away from its reliance on the extraction of fossil fuels; no plan to gain some kind of offset if the expected cancellation took place. It was their way or nothing. That said, it appears that once the twinning of the Trans Mountain Pipeline is completed, there will be ample pipeline to transport Alberta’s oil although that fact hasn’t gotten in the way of a tantrum. And, lest we forget, the twinning of the Trans Mountain Pipeline is only happening because Ottawa bought it with billions of Canadians’ taxpayer dollars.
I spent the better part of half a century negotiating contracts in Canada, many of them with governments, and there are a few lessons from that experience that could be usefully applied in Alberta. Especially in the public sector, when you are negotiating with a government or politician who has made a clear political commitment as a centrepiece of his/her campaign, there is no point in demanding he/she renig on it. It doesn’t matter how unreasonable you think it is; how many attractive alternatives you offer in its place; what kind of political pressure you try to exert. The world of politics has its own rules and expecting a politician to ignore them because you want him/her to is a fool’s game. President Biden made it clear from the beginning of his campaign for the White House that, if elected, he would cancel the pipeline. That may have been little more than a sop to the environmentalists on his left but that doesn’t matter. He committed to it and that is what he was going to do. And, of course, he did it right away. That a veteran politician like Premier Kenney would expect anything else raises real questions about his competence.
When it became clear Joe Biden was going to win the election the Alberta government should have pivoted to a Plan B if one had existed. It would have outlined alternatives that might be extracted from the U.S. or Ottawa in lieu of the pipeline. And it should have been developed with an eye to meeting the political needs of the leaders of Canada and the U.S.
But no, Alberta once again played the “victim” card and set about trying to damage Canada’s relations with the new administration in Washington. This really shouldn’t have surprised us because, if we’ve learned anything about Alberta in the past, it’s that it really isn’t interested in anything other than getting exactly its way and complaining bitterly when it does not.
Another example of this is its response to the roll-out of the COVID 19 vaccines in Canada (although I note Premier Ford in Ontario does a pretty good Jason Kenney imitation on this too). After blundering from one failed response to the pandemic to another, and then watching as Alberta predictably outpaced the rest of the country in infections, Premier Kenney now uses every opportunity to shift the blame to Ottawa by constantly announcing “Alberta is about to run out of vaccines”. No, Alberta is not running out of vaccines any more than British Columbia or Nova Scotia are running out of vaccines. The federal government tells the provincial governments when, and how many, vaccines they will receive, expecting they will then tailor their vaccination programs to align with that information. To say that “Alberta is going to run out of vaccines shortly” skates over the predictable organization and plan for the vaccine rollout. Yes, the interruption in the supply of the Pfizer vaccines because they are retooling their factory has delayed some of the expected deliveries, but that is hardly the fault of the federal government. And most Canadians know that including, I hope, most Albertans. What is really going on here is Premier Kenney attempting to deflect blame for his disastrous mismanagement of the pandemic in Alberta regardless how that might damage the fabric of Confederation.
And then there is Equalization, the program that distributes federal money to some of the provinces to ensure that all Canadians, irrespective of where they live, receive roughly the same level of public services. If you listened to Premier Kenney you would likely believe that once a week or so several large armoured trucks pull up to the Treasury Branch in Edmonton and load sacks of cash that are then trucked to Ottawa and then given, mostly, to Quebec. While there’s no doubt the Equalization system could use some change to better reflect the actual fiscal realities of the provinces, the belief that Alberta is being bled white by it is simply wrong and extremely mischievous. It should also be pointed out that the Conservatives were in power for eleven years that ended only a few years ago and Premier Kenney was a senior member of that government. But in all those years they didn’t fundamentally change Equalization. They did make some changes to it and surely if the unfairness Premier Kenney claims now existed then, that would have been a good time to address it. But they didn’t and he didn’t. And now we have him using the myth of Equalization to gin up his base regardless of the cost to Canada. Sounds like something that happened south of the border not so long ago.
As some of you know, I am a native born and raised Albertan. I moved to the West Coast in my teens but I still feel considerable affection for that province. Starting in the late nineteenth century, both my grandparents and then my parents worked hard to help build Alberta. Many of my ancestors are buried there. So it gives me no pleasure to call Alberta out. But call it out I must.
Alberta had the good fortune to be located atop Canada’s largest deposits of oil, not just the oilsands which, by the way, as a boy in Alberta we did call the “tar sands”, but also vast conventional supplies of oil first discovered in Leduc in the early part of the twentieth century. And it used the wealth from that oil to build a low tax and high service economy and government. It did not set aside reserves for the day the oil would stop flowing. Yet even today, as we in the rest of Canada hear the angry cries of Alberta and its claims to be impoverished, it still has the lowest provincial tax regime in Canada, including its vaunted lack of a sales tax. So don’t be surprised when there is less than complete sympathy when Alberta complains about its fiscal woes. Many of the tools to fix them are within its control.
And then there’s the tone. With the exception of the previous one term NDP government in Edmonton, most Alberta governments have made hay by attacking Ottawa and fostering the sense of victimhood amongst its citizens. Currently, we have a Premier who has taken this tactic to a whole new level, his response to almost any controversial issue entirely predictable and less and less effective in the rest of Canada. During one of his tantrums a year ago I asked that someone give him his teddy bear and take him to his room so the adults could have a conversation. And nothing has changed since then as he has increasingly turned Alberta into the spoiled child of Confederation.
just sayin
G
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