By Trevor McLeod
In the National Post

Dec. 3, 2014


 

Last week, the premiers of Quebec and Ontario ripped a page right out of B.C. Premier Christy Clark’s old playbook when they set conditions that must be met if they are going to support oil pipelines.  But, if premiers Philippe Couillard and Kathleen Wynne want to turn those demands into dollars and jobs for their provinces, they will need to transition quickly to Clark’s new playbook.

Clark’s old playbook was written in advance of a highly contentious election in British Columbia, when the premier needed to demonstrate that she would be the chief defender of the province’s interests. She crafted five conditions and demanded that they be met if proponents of oil pipelines wanted the support of the B.C. government.

The five conditions did the job; she became the chief defender of B.C.’s interests while maintaining a focus on the economy, and that helped to get her elected. But, in the process, the fifth condition (a demand for increased economic benefit to B.C.) led to great acrimony with former Alberta premier Alison Redford and her government. Since then, the big challenge has been finding a way to rebuild the relationship to the benefit of both provinces.

Clark’s new playbook has her working quietly and constructively with her counterparts, as she did during a recent meeting of the New West Partnership (NWP) premiers (Saskatchewan, Alberta and B.C.) and western industry leaders hosted by Premier Brad Wall in Regina. Premiers and industry leaders met to figure out a better way to get western Canadian goods to market.

It is good news for the country that the three western premiers agreed on tangible actions to improve access to markets and create jobs. This type of collaboration is (and will be) critical to breaking Gordian knots that happen in the federation from time to time. And we have reason to be hopeful that the momentum of collaboration will make it easier to find a solution to B.C.’s troublesome fifth condition.

The premiers instructed the Pacific Gateway Alliance (which was expanded to include ministerial representation from the three western provinces) to devise a cost-sharing partnership with the federal government (to the tune of $1-1.5 billion) and the private sector to maximize Canada’s export capacity.

The Pacific Gateway Alliance was also tasked with creating a report by May 2015 (shortly before the next federal election) identifying key projects which must include high-volume marine ports and rail and pipeline systems. They emphasized that future infrastructure planning and development must include the following key components: world-class environmental and safety performance; reduced negative impact on local communities; and the engagement of Aboriginal Peoples. All of this helps Clark make her case to British Columbians – and backstops the five conditions with real action.

The infrastructure ask should be welcomed by a federal government facing an election in which the Conservative Party’s preferred ballot question focuses on the economy, resource development, infrastructure and trade. The recent challenges to western market access for energy are a threat to this narrative. Clearly, the federal government’s $5.8-billion infrastructure announcement this week reinforces its willingness to spend in areas that will shore up this critical narrative leading up to the election.

The government will be even more likely to provide the money if it helps to secure B.C.’s support for oil pipelines and efficient access to critical Asian markets. If the ask is successful and the Pacific Gateway Alliance skillfully includes infrastructure projects (primarily in B.C.) that benefit all three western provinces, then Clark will have delivered for British Columbians and potentially satisfied the stubborn fifth condition.

Meanwhile in Ontario and Quebec, Wynne and Couillard are just starting the game – they, too, are casting themselves as the chief defenders of their provinces’ interests. If they want to get in on a deal that brings significant economic benefit to their provinces, they need to find a way to move quickly from the demand phase to the co-operation phase.

The NWP premiers have demonstrated that they know the way and have paved the path. Wynne and Couillard need to get into Clark’s new playbook soon and team up with Saskatchewan and Alberta – provinces led by premiers who know the way.

Trevor McLeod is the Director of the Centre for Natural Resources Policy at the Canada West Foundation.