Feds' pledge to financially back Trans Mountain pipeline won't eliminate all risk: Carr - Canadanewsmedia
Connect with us

Business

Feds' pledge to financially back Trans Mountain pipeline won't eliminate all risk: Carr

Published

on


OTTAWA—The federal government is willing and prepared to financially back the Trans Mountain pipeline expansion, whether or not Kinder Morgan is the company that ends up building it.

In Ottawa Wednesday morning, Finance Minister Bill Morneau laid out the Liberals’ three guiding principles as talks continue with Kinder Morgan about the fate of the cross-provincial project.

Specifically, the federal government is:

  • Prepared to indemnify the project from any financial loss;
  • Willing to offer this financial security to any company who wants to build the pipeline, should Kinder Morgan back out;
  • Ensuring the financial backing is fair and beneficial to Canadians.

"If Kinder Morgan isn’t interested in building the project we think plenty of investors would be interested in taking on this project, especially knowing that the federal government believes it is in the best interest of Canadians and is willing to provide indemnity to make sure that it gets done," Morneau said, noting that he is “confident” an agreement will be made.

Though, this step won’t address all of the business risk surrounding the much-debated pipeline project, rather it will take out the “political risk,” according to federal Natural Resources Minister Jim Carr.

In an interview with Don Martin, host of CTV’s Power Play, Carr said the federal move is about addressing “the delays as the result of the political risk,” the project has faced as a result of B.C.’s opposition.

Carr acknowledged that the indemnification won’t address other “normal” business risks to the project’s future, which with Kinder Morgan could include Indigenous blockades or environmental protests.

“We knew that we had to take some of the uncertainty out of the project, so one way to do that is to indemnify it… but only to take out the political risk,” Carr said. “This is an unusual risk.”

He also doubled down on the federal call-out of B.C. NDP Premier John Horgan over his pledge to stop the project from being built.

Earlier Wednesday, Morneau placed the blame for the current "exceptional situation" on Horgan’s shoulders, calling the delay deliberate and "politically motivated."

Morneau would not say how much money the federal government is willing to put into ensuring the $7.4-billion pipeline is built.

He said it is the federal government’s responsibility to resolve the dispute between Alberta and British Columbia over the pipeline that would move oil from Edmonton, Alta. to Burnaby, B.C.

 

"It’s not reasonable to expect a private sector actor to deal with disputes between governments. We’ve found a way, we believe, to deal with that political risk and should Kinder Morgan not want to move forward with that approach to dealing with it, we think there’s other private sector actors who would be willing to move forward," Morneau said Wednesday.

In an interview on CTV’s Power Play, B.C. Green Party Leader Andrew Weaver balked at the federal government’s approach.

“It’s outrageous that we’re actually having this conversation that somehow that there’s a duty for the taxpayers to bail anyone out. We know in any project there’s risks, investors know when they invest in a company there are risks associated with that,” Weaver said. “The problem here is that Trudeau and his government have been reckless in their promising, they’ve been chest beating, they have not been on the ground here.”

Weaver denied Horgan and the B.C. NDP — who are working in a coalition with the Greens to govern — have done anything to stall Kinder Morgan.

The federal government is continuing talks with Kinder Morgan, the developers of the Trans Mountain project, after the Texas-based company put the project on pause, demanding reassurance by May 31 that it can go ahead despite B.C. opposition.

The government’s announcement came hours before a brief meeting of Kinder Morgan’s shareholders in Calgary. The meeting lasted around 15 minutes and shareholders were met on their way in by supporters.

 

In a statement, Kinder Morgan Chairman and CEO Steve Kean said the company appreciates Morneau’s “acknowledgment of the uncertainty created by the B.C. government’s stated intentions to ‘do whatever it takes to stop the Trans Mountain Expansion Project.’”

Kean said the company will not be negotiating in public.

Political, activist reaction:

During a press conference Wednesday, Alberta NDP Premier Rachel Notley hailed the federal government’s pledge and took aim at her federal counterpart for his opposition to the pipeline.

Responding to federal NDP Leader Jagmeet Singh’s tweet Wednesday– in which he said the pipeline should not be built, deriding the Liberals for giving the U.S. company a "blank cheque while dumping all the risks on Canadians,"– Notley said: “I think Jagmeet Singh is absolutely, fundamentally, uncontrovertibly incorrect in every element of that tweet.”

 

Notley said her government is working closely with the federal government to see the pipeline construction resume this summer.

By day’s end the Alberta legislature is set to pass a bill that could restrict the flow of oil and gas to B.C. by giving the provincial energy minister discretion regarding natural resources being exported from Alberta.

According to the Canadian Press, Horgan is defending his government’s position, saying he is standing up for the interests of British Columbians. He is expected to address reporters later today.

In a statement, federal Conservative natural resources critic Shannon Stubbs took aim at the prospect of using tax dollars to backstop Kinder Morgan.

“Kinder Morgan never asked for taxpayer money or a federal backstop. They simply want certainty, clarity, and a solution to the ongoing challenges and delays. Nothing the Finance Minister said today will ensure that the Trans Mountain Expansion actually gets built,” Stubbs said.

In an emailed statement, Greenpeace spokesperson Mike Hudema said the risks to the project go beyond financial, citing the ongoing legal challenges and on-the-ground resistance.

"Signing a taxpayer-backed blank cheque with Kinder Morgan’s name on it is the definition of throwing good money after bad and Canadians shouldn’t be on the hook for the big losses this project will likely incur," Hudema said. "The federal government should cut their losses not double down on them."

Trudeau was in Calgary Tuesday to announce transit funding and was met by pro-pipeline demonstrators yelling "Build KM," and "build that pipe."

After an emergency meeting with the feuding British Columbia and Alberta premiers last month, Trudeau first said financial talks were being initiated, and pledged legislative measures that have yet to be tabled.

Earlier this month, the federal government announced it would be intervening in the British Columbia government’s court reference on the Kinder Morgan pipeline, to assert the federal government’s jurisdiction.

Let’s block ads! (Why?)



Source link

Continue Reading

Business

New Zealand economist says foreign buyer ban unlikely to curb housing prices

Published

on

By


While New Zealand's just-passed foreign buyer ban is getting a positive reception from some in B.C., an economist in the southern hemisphere is calling it misguided.

On Wednesday, New Zealand banned most foreigners from buying most types of housing in that country, where affordability has become a struggle.

B.C. Green Party leader Andrew Weaver wants the province to look at a similar ban, but Auckland, New Zealand-based economist Shamubeel Eaqub calls it "a rushed bit of policy, and not very good."

"Be very careful what you wish for because public policy quite often is complicated and has unintended consequences," Eaqub told On The Coast host Gloria Macarenko.

"Getting rid of the foreigners is not going to make housing more affordable. The way that the legislation has been written… it's probably going to make it harder for overseas investors to supply new housing in New Zealand."

Eaqub says the policy is weak in several regards.

First, foreigners are still allowed to buy apartments in new developments.

Second, it still allows Australians and Singaporeans to buy property in New Zealand because of existing free trade deals. Australians alone, he said, account for about 30 per cent of foreign buyers in the New Zealand market.

But, he also said the ban is a solution in search of a problem.

In Auckland at least, which is the largest urban area of the country, foreigners make up less than 10 per cent of all buyers. "We are trying to deal with something that is very much at the margin."

Home prices are increasing all over New Zealand, he said, not just where foreign buyers are active. There are also widespread supply issues and construction comes at a slow place.

He believes there are better solutions to housing problems in his country: renting could be made more affordable and have more secure rules; social housing supply could be increased; and policies and planning could be improved to encourage affordable housing.

Listen to the full interview:

While New Zealand's just-passed foreign buyer ban is getting a positive reception from some in B.C., an economist in the southern hemisphere is calling it misguided. 9:30

With files from CBC Radio One's On The Coast

Let’s block ads! (Why?)



Source link

Continue Reading

Business

Donors have stepped up, but urgent need for blood hasn't gone away

Published

on

By


Canadian Blood Services issued a call for donors and though Londoners have largely stepped up to help, there remains a pressing need as the Labour Day weekend draws near. 

Kendall O'Neill of Canadian Blood Services says the clinic on Wharncliffe Road South has been busy since a call for donations was issued last week, highlighting a need for 22,000 donors nationally ahead of the weekend.

"The response has been incredible," said O'Neill. 

When CBC News visited the clinic Friday, every donation chair, the waiting area and the post-donation reception area was full of clients there to donate whole blood, platelets and plasma. 

And while it's a welcome response, O'Neill says more donors are still needed to re-stock supply heading into the long weekend. For example, the London clinic needs 50 donors to fill up booking spots for Monday, Sept. 3.

She said getting donors to show up for the Labour Day weekend is a annual challenge. 

"People are on vacation," she said. "They're doing stuff with their families, but it is still important to come out and donate." 

Canadian Blood Services is trying new ways to get younger people to donate, through pop-up donation clinics at schools, including Western and Fanshawe, and an app that will issue a text alert when your donated blood is used.

 There wasn't an app available when 66-year-old Alex, who spoke to CBC Friday at the London donation clinic, began donating as an 18-year-old.

Since then he's donated more than 120 times. 

"I think it's the best gift one human being can give to another," he said. 

Other than free drinks and snacks afterward, donors in Canada aren't compensated. Alex says he's fine with that. 

"It's a natural high," he said. "I feel good after I walk out of here."

For information about how to become a donor visit blood.ca or call 1-888-236-6283.

Blood donation facts

  • The need for Type O-negative blood is always pressing because it's the only type compatible with all other blood types. In an emergency when there's no time to check for blood type, patients receive O-negative.
     
  • Only four per cent of people eligible to donate blood actually donate. O'Neill said  some people falsely believe they aren't eligible to donate when they actually are. "The criteria is alway changing," she said. "It's always good to go on Blood.ca to check availability to make sure you can actually donate."  
     
  • A common misconception is that blood donations are only used in emergency situations. "That's not usually the case," said O'Neill. She said blood is needed for everything from treating cancer patients to surgeries like hip replacements.
     
  • Blood donated in London is taken to a screening facility in Brampton. Then it comes back to be used in the community where it was donated. Most blood units are used within five days of donation.

Let’s block ads! (Why?)



Source link

Continue Reading

Business

Trump administration reverses decades of policy, says conserving oil no longer an economic imperative

Published

on

By


Conserving oil is no longer an economic imperative for the U.S., the Trump administration declares in a major new policy statement that threatens to undermine decades of government campaigns for gas-thrifty cars and other conservation programs.

The position was outlined in a memo released last month in support of the administration’s proposal to relax fuel mileage standards. The government released the memo online this month without fanfare.

Growth of natural gas and other alternatives to petroleum has reduced the need for imported oil, which “in turn affects the need of the nation to conserve energy,” the Energy Department said. It also cites the now decade-old fracking revolution that has unlocked U.S. shale oil reserves, giving “the United States more flexibility than in the past to use our oil resources with less concern.”

Story continues below advertisement

With the memo, the administration is formally challenging old justifications for conservation — even congressionally prescribed ones, as with the mileage standards. The memo made no mention of climate change. Transportation is the single largest source of climate-changing emissions.

President Donald Trump has questioned the existence of climate change, embraced the notion of “energy dominance” as a national goal, and called for easing what he calls burdensome regulation of oil, gas and coal, including repealing the Obama Clean Power Plan.

Despite the increased oil supplies, the administration continues to believe in the need to “use energy wisely,” the Energy Department said, without elaboration. Department spokesmen did not respond Friday to questions about that statement.

Reaction was quick.

“It’s like saying, ‘I’m a big old fat guy, and food prices have dropped — it’s time to start eating again,“’ said Tom Kloza, longtime oil analyst with the Maryland-based Oil Price Information Service.

“If you look at it from the other end, if you do believe that fossil fuels do some sort of damage to the atmosphere … you come up with a different viewpoint,” Kloza said. “There’s a downside to living large.”

Climate change is a “clear and present and increasing danger,” said Sean Donahue, a lawyer for the Environmental Defence Fund.

Story continues below advertisement

Story continues below advertisement

In a big way, the Energy Department statement just acknowledges the world’s vastly changed reality when it comes to oil.

Just 10 years ago, in summer 2008, oil prices were peaking at $147 a barrel and pummeling the global economy. The Organization of the Petroleum Exporting Countries was enjoying a massive transfer of wealth, from countries dependent on imported oil. Prices now are about $65.

Today, the U.S. is vying with Russia for the title of top world oil producer. U.S. oil production hit an all-time high this summer, aided by the technological leaps of horizontal drilling and hydraulic fracturing.

How much the U.S. economy is hooked up to the gas pump, and vice versa, plays into any number of policy considerations, not just economic or environmental ones, but military and geopolitical ones, said John Graham, a former official in the George W. Bush administration, now dean of the School of Public and Environmental Affairs at Indiana University.

“Our ability to play that role as a leader in the world is stronger when we are the strongest producer of oil and gas,” Graham said. “But there are still reasons to want to reduce the amount we consume.”

Current administration proposals include one that would freeze mileage standards for cars and light trucks after 2020, instead of continuing to make them tougher.

Story continues below advertisement

The proposal eventually would increase U.S. oil consumption by 500,000 barrels a day, the administration says. While Trump officials say the freeze would improve highway safety, documents released this month showed senior Environmental Protection Agency staffers calculate the administration’s move would actually increase highway deaths.

“American businesses, consumers and our environment are all the losers under his plan,” said Sen. Tom Carper, a Delaware Democrat. “The only clear winner is the oil industry. It’s not hard to see whose side President Trump is on.”

Administration support has been tepid to null on some other long-running government programs for alternatives to gas-powered cars.

Bill Wehrum, assistant administration of the EPA’s Office of Air and Radiation, spoke dismissively of electric cars — a young industry supported financially by the federal government and many states — this month in a call with reporters announcing the mileage freeze proposal.

“People just don’t want to buy them,” the EPA official said.

Oil and gas interests are campaigning for changes in government conservation efforts on mileage standards, biofuels and electric cars.

In June, for instance, the American Petroleum Institute and other industries wrote eight governors, promoting the dominance of the internal-combustion engine and questioning their states’ incentives to consumers for electric cars.

Surging U.S. and gas production has brought on “energy security and abundance,” Frank Macchiarola, a group director of the American Petroleum Institute trade association, told reporters this week, in a telephone call dedicated to urging scrapping or overhauling of one U.S. program for biofuels.

Fears of oil scarcity used to be a driver of U.S. energy policy, Macchiarola said.

Thanks partly to increased production, “that pillar has really been rendered essentially moot,” he said.

Let’s block ads! (Why?)



Source link

Continue Reading

Trending

Copyright © 2018 Canada News Media

%d bloggers like this: