A new pipeline agreement is causing division in Western Canada.
The federal government has signed a memorandum of understanding with the province of Alberta to build a pipeline to the West Coast. The agreement would enable the export of oil through a deep-sea port to Asian markets and possibly adjust the coastal tanker ban to make that happen.
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The agreement will pair the pipeline project to the proposed Pathways Alliance carbon capture project.
The announcement between the federal government and Alberta has caused a stir, most notably B.C. Premier David Eby, who called the project an unnecessary distraction, as well as a group of First Nations in the province who, just prior to the announcement, stated that a new pipeline to the Pacific would never be built.
Canada’s Minister of Energy and Natural Resources Tim Hodgson recently joined The Evan Bray Show to discuss the agreement, which he says marks a significant moment amidst foreign trade wars.
Listen to the full interview here:
The following transcript has been edited for length and clarity.
Bray: Do you see the MOU as a win-win between the federal government and Alberta? What do you feel is the likelihood of this actually coming to fruition?
Hodgson: Tt was a very significant moment yesterday, because what it what it showed is that there’s a shared understanding between the federal government and provincial governments that we are in a moment.
We are in a hinge moment, as the prime minister says. We have had economic rupture in the global trading system that is putting real pressure on Canadians, and I know farmers in Saskatchewan are feeling that with some of the getting caught in these trade wars.
We need to respond, and we need to respond by growing energy and natural resources sectors so that we can retool our economies and build Canada strong. We’re going to do that in an environmentally responsible way, and we’re going to do it in partnership with First Nations.
The agreement was about more than just a particular pipeline. It was about building a whole new industry around carbon capture, storage and utilization. We will be building the largest project in the world. It will create exportable technology all over the world for Canadians.
It talks about interties between Saskatchewan, Alberta and British Columbia to strengthen our electricity grids.
It talks about advancing nuclear energy and building data centers.
Bray: Does the federal government have a role in negotiating with B.C, or is this now all on Alberta’s shoulders?
Hodgson: The MOU clearly lays out a number of work streams. One of them is dialog between the Alberta government, the B.C. government, and the federal government. The federal government will be at the table, working with each of the provinces to figure out how we grow our economy.
This is going to be work. We’ve got some challenges in front of us, but that’s what Canadians expect of their politicians.
Bray: Does the premier in B.C. have veto power on this agreement, or is it baked into the MOU that the federal government ultimately has the final say?
Hodgson: Approval of an interprovincial pipeline rests with the federal government. The project will be referred to the major projects office, and the proponent needs to work with the affected jurisdiction. That is what Alberta has signed up for. That is what the federal government will make sure happens.
Bray: After the resignation of Steven Guilbeaut, is there a unanimous Liberal caucus on this decision to sign the MOU?
Hodgson: We’re committed as as a government to meet the moment.
Bray: Are we going to see further changes inside the Liberal cabinet?
Hodgson: No, I don’t think so. That’s ultimately the prime minister’s decision, but I think we have a clear understanding that we’re about results, not how we get there. The prime minister is committed to growing the economy in an environmentally responsible way, in partnership with First Nations.
We’ve got a path forward for doing that with Alberta right now through this MOU and we’ll work the same way with all of the provinces. I think all of our caucus is comfortable with that.
Bray: Is this Liberal government is moving away from the path that the former Liberal government was taking on climate?
Hodgson: This government is clear that we need to grow our energy and natural resources. We need to do that in an environmentally responsible way, and we need to do that in partnership with First Nations.
If we do that, we will protect our economic sovereignty. We will keep the greatest country in the world, and we’ll be the strongest growing economy in the G7.
The prime minister has said his climate competitiveness strategy and his economic strategy will attract a trillion dollars of investment to Canada. That’s what we need to put Canadians to work. That’s what we need to show young people that there’s a future in this country, and that’s what we’re going to do.
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