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Alberta Politics

War Room’s Twitter tirade against New York Times sends embarrassment shivers across Alberta.

Time to shut down the controversy-plagued Canadian Energy Centre.

Shoot, shovel, and shut up,” was how former Alberta premier Ralph Klein suggested some of the province’s self-respecting ranchers could deal with the mad cow disease crisis of the mid-2000s. And it is time that Premier Jason Kenney heeded Klein’s words and applied the same advice to the controversy-plagued Canadian Energy Centre.

Premier Ralph Klein
Ralph Klein

The Energy War Room, as Kenney called it during and after the 2019 election campaign, has been fraught with embarrassing missteps and blunders since it was created in October 2019, but today marked peak embarrassment for the CEC.

The Calgary-based publicly-funded private public relations company and blog was caught under fire today for posting a series of tweets attacking the New York Times and sharing links claiming the 169-year old newspaper of record held anti-Trump and anti-Semitic biases and a “very dodgy” record.

The CEC’s childish tirade of tweets appear to have been posted in response to a Times article about the decision by some of the world’s largest financial institutions to stop investing in oil production in Alberta.

Some international banks, pension plans and financial institutions appear to have included the impact of climate change into their long-term investments plans and have decided to move away from investing in some carbon-intensive resource extraction industries like Canada’s oilsands.

According to the Times, “BlackRock, the worlds largest asset manager, said that one of its fast-growing green-oriented funds would stop investing in companies that get revenue from the Alberta oil sands.”

Sonya Savage

The Times article noted that “Alberta officials didn’t immediately respond to questions about BlackRock’s announcement on Wednesday,” which is a shocking departure from Kenney’s pledge he would use “the persuasive power of the premier’s bully pulpit to tell the truth of our energy industry across the country.”

CEC Chief Executive Officer and Managing Director Tom Olsen publicly apologized on Twitter for the unprofessional tweet storm against the Times, a statement that is now being widely reported.

Olsen, a former United Conservative Party candidate and lobbyist, was appointed to the role when the CEC was launched in October 2019. The CEC is a private corporation created by the Alberta government and receives $30-million annually from the Alberta government to ostensibly correct misinformation about the oil and gas industry, but in reality appears to be doing a poor job conducting public relations for the oil and gas industry.

Doug Schweitzer Calgary Alberta Conservative
Doug Schweitzer

Another member of the CEC’s staff is Mark Milke, a former director of the Canadian Taxpayers Federation, former senior fellow of the Fraser Institute and lead author of the UCP’s 2019 election platform. Milke is the Executive Director in charge of Research, according to the CEC’s website.

Existing as a private corporation with a board of directors that includes Energy Minister Sonya Savage, Justice Minister Doug Schweitzer, and Environment and Parks Minister Jason Nixon, the CEC is not subject to the freedom of information rules that make other government institutions and agencies more transparent to the public and the media. Despite receiving $30-million annually from the government, the CEC appears to have no accountability mechanisms and its internal operations are kept secret.

While Kenney was recently lauded for changing his message about an eventual transition away from of oil (I suspect he is coopting language rather than changing his mind), some of the good for Alberta that his trip to Washington DC last week may have done has at least been partially damaged by the latest PR disaster exploding through the War Room in downtown Calgary.

Jason Nixon
Jason Nixon

What started a few months ago as a $30-million annual public relations subsidy to the oil and gas industry is starting to become a running joke that might hurt Alberta, and its oil and gas industry, more than it helps it.

As Finance Minister Travis Toews asks Albertans to accept deep cuts to public health care and education and for public employees to take salary rollbacks in his Feb. 27 provincial budget, it will become increasingly difficult to convince Albertans that the CEC’s $30-million annual budget is not a giant waste of money.

In this case, Kenney should take his own conservative free-market advice and let private sector industry groups like the Canadian Association of Petroleum Producers and the legions of public relations professionals working for Canada’s oil and gas companies handle their own public relations.

As Ralph Klein might suggest, it’s time for Kenney to take the Canadian Energy Centre behind the proverbial barn and stop this embarrassing initiative from doing any more damage to Alberta’s reputation at home and abroad.

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Alberta Politics

Kenney declares victory but the pipeline fight is nowhere close to over

The 1358th chapter of the ongoing saga of the Trans Mountain Pipeline expansion project ended today as the Federal Court of Appeal unanimously ruled to dismiss four challenges by First Nations in British Columbia.

Speaking in Montreal today, Premier Jason Kenney lauded Prime Minister Justin Trudeau, telling reporters that “I have my disagreements with Prime Minister Trudeau on a number of issues … but I think they did realize there has to be at least one project that gets Canadian energy to global markets so we can get a fair price.

3000 kilometres away from Alberta is probably a safe distance for Kenney to effuse some praise for Trudeau, something he likely wouldn’t be caught dead doing back home. But praising Trudeau for a pipeline that is deeply unpopular in Quebec while he is in that province’s largest city is a shrewd piece of political theatre on Kenney’s part.

Since he jumped into provincial politics in 2017, Kenney has used the pipeline as a cudgel against his political opponents, tarring Trudeau and former premier Rachel Notley as opponents of a project they spent incredible amounts of political capital to see completed.

Nationwide support for the Trans Mountain Pipeline expansion dropped by 11 per cent since 2018, according to a poll released by Angus-Reid last month. Urgency about climate change has become a more front and centre issue since then, most effectively demonstrated by tens of thousands of Canadians participating in climate strike marches across Canada, including more than 10,000 people in Edmonton. And since Kenney’s United Conservative Party formed government in April 2019, his government has taken a hyper-aggressive approach to responding to opponents to oil industry expansion, which may have had an impact on national opinion. 

The creation of the publicly funded Canadian Energy Centre (aka The Energy War Room), a government-sponsored public relations company run by failed UCP candidate Tom Olsen and boasting a $30-million annual budget, has been front and centre in the government’s new approach.

The CEC largely duplicates public relations work typically done by industry associations like the Canadian Association of Petroleum Producers, and had a rough first few months as it was forced to replace a plagiarized logo and tell its staff not to identify themselves as reporters when writing content for the War Room’s blog.

The Canadian Energy Centre, the Public Inquiry into Anti-Alberta Energy Campaigns (which has been dogged by an alleged conflict of interest scandal), the pledge to open Alberta government offices in provincial capitals across Canada, and Kenney’s steady schedule of international travel, are part of what the UCP government calls it’s “Fight Back” plan.

The court ruled that First Nations have no veto and cannot refuse to compromise or insist a project be cancelled, and found that the federal government made genuine effort to consult and accommodated concerns raised by First Nations communities.

While this decision is expected to be appealed by First Nations groups at the Supreme Court, and will likely have political implications if UNDRIP is implemented in Canada, it is likely that the next round of opposition to the pipeline project will come in the form of civil disobedience and direct action.

This isn’t over yet.

UCP releases radical health care report, and look! Jason Kenney is leaving the country, again!

Tyler Shandro, Dr. Verna Yiu, and John Bethel (Source: YouTube)
Tyler Shandro, Dr. Verna Yiu, and John Bethel (Source: YouTube)

Perhaps it is just a coincidence, but it seems pretty darn convenient that Premier Kenney was on a plane to Quebec when Health Minister  Tyler Shandro shared a stage with Alberta Health Services CEO Dr. Verna Yiu and Ernst & Young spokesperson John Bethel (who attentive readers will remember as the 2004 federal Liberal candidate in Edmonton-East) in announcing the release of the international management corporation’s $2-million report on Alberta Health Services.

The report is big and bristling with the kind of ideological and predictable recommendations that you would expect from the right-wing Fraser Institute, which was cited a few times in the report. Privatization of services ranging from long-term care to security, gutting of collective agreements and salary rollbacks, and closure of rural hospitals were among the many recommendations included in the report.

While Shandro was clear that he would not risk further alienating his party’s rural base by closing rural hospitals, despite the report’s recommendations, the report did deliver the UCP with a powerful talking point – $1.9 billion in potential savings.

The report suggests that if all its recommendations were implemented, the government could potentially save $1.9 billion in costs to the health care system (of course, many of those costs could be transferred to patients). It might be unlikely that all of the recommendations will be implemented, but expect to hear Shandro repeat that $1.9 billion number, a lot.

Meanwhile, Kenney will soon leave Quebec for meetings in Washington D.C.

Kenney’s office stops releasing public travel itineraries

The Premier’s Office under Kenney appears to have stopped publicly releasing the Premier’s itinerary ahead of inter provincial or international trips. Previous premiers commonly released a brief daily itinerary that listed who or which organizations the Premier and their staff were scheduled to meet with.

A lack of publicly released itinerary meant that Albertans discovered on Twitter that Kenney’s trip to New York City in September 2019 included a speech at a reception hosted by the right-wing Manhattan Institute. It was also revealed by the Alberta Today newsletter through Freedom of Information requests that Kenney also held court at a historic speakeasy in midtown Manhattan, an event that was not listed in the standard government press release announcing his trip.

Kenney’s office also did not release an itinerary for his December 2019 trip to London, UK, citing concerns that individuals he was meeting with could be targeted by climate change advocacy groups.

With no journalists from Alberta accompanying Kenney on his international trips, the release of public itineraries is an important way to ensure some basic accountability and transparency when the Premier is travelling out of province on the public dime.

Note: Past requests for public itineraries of Premier Kenney’s international trips have gone unanswered by the Premier’s Office.

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Alberta Politics

Alberta Separatism is the political equivalent of a toddler’s temper tantrum. It’s embarrassing and a bad idea.

Reading the pages of the Postmedia newspapers or the #ableg hashtag on Twitter you might believe that Albertans from roughneck Fort McMurray to trendy Kensington are calling for Independence and rising up in arms against their political overlords in Ottawa. 

Nope.

A flurry of recent opinion-editorials and columns in the pages of Canada’s Postmedia newspapers have been fanning the flames of discontent and frustration in Alberta. The discontent and perennial alienation from Ottawa is mostly a result of the economic slump and a delay in the expansion of the Trans Mountain Pipeline, but it is difficult to believe that there is any real appetite for Albertans to leave Canada, and the consequences that would follow.

University of Calgary economist Jack Mintz wrote in the Financial Post newspapers this week that an “Albexit” could draw inspiration from the United Kingdom’s disastrous “Brexit” from the European Union. Mintz drew inspiration from another European dumpster fire in 2015 when he penned another cringeworthy Financial Post op-ed predicting that “Alberta is not yet Greece, but it’s heading along that path.”

Three years later, Alberta is not Greece and probably should not be looking to Brexit for inspiration.

The arguments for Alberta’s separation from Canada are so weak and the concept of forming an Alberta Republic is so ridiculous that even the thought of writing this article made me cringe. It is the political equivalent of a toddler’s temper tantrum. But because I am a sucker for punishment, here I go.

Among the many of the disastrous consequences of Alberta leaving Canada would be that it would become virtually impossible to get any new pipelines constructed to the deep water ports that pipeline proponents argue the province’s oil industry needs. 

If you believe it has already been acrimonious to get the Trans Mountain Pipeline expansion built in two provinces, just imagine how difficult it would be to negotiate a pipeline project with a suddenly hostile foreign government, whether it be the prime minister of Canada in Ottawa or the president of the Pacific Republic of British Columbia in Victoria. Not to mention the inconvenient fact that the Government of Canada actually owns said pipeline and its expansion project.

Some will argue that the United States of America would open its borders to Alberta or even welcome it as the 51st State, but it seems unlikely that the American government would want to antagonize Ottawa by dealing with a landlocked rogue nation and cause trouble on it’s northern borders.

American corporations already dominate our economy, which saves the US government the messy business of having to govern us. And the likelihood that most Albertans would be inclined to vote for the Democratic Party would also make the statehood route less appealing for many in America’s political establishment.

The Canadian Government saved Trans Mountain by purchasing the pipeline and the expansion project just as Texas-based Kinder Morgan Inc. was preparing to withdraw their application for expansion. The government of Liberal Prime Minister Justin Trudeau paid $4.5 billion for the pipeline and project, and it is expected Ottawa could spend another $7 billion on the project after it meets the necessary conditions set by the Federal Court of Appeal. 

The Federal Court of Appeal ordered a stop to the project in August 2018 after the National Energy Board and federal government failed to conduct a proper environmental impact assessment of the increase of marine traffic and failed to properly consult First Nations communities along the route in the final phase of the approval process. 

While Trudeau clearly sees the pipeline expansion as a national priority worth spending serious political and real financial capital on, it is unlikely to bring him positive electoral returns in Alberta in 2019. Despite purchasing the pipeline, ensuring it will be built, and announcing $1.6 billion in loans and financial support to the oil and gas industry, support for Trudeau in Alberta has dropped like a lead balloon.

We didn’t ask for the opportunity to go further into debt as a means of addressing this problem,” Alberta Premier Rachel Notley said in response to the federal government’s bailout package.

It is unclear what Alberta’s politicians want to be done in the meantime. Many are calling the pipeline the only solution to Alberta’s economic problems. The big problem with that argument, if you believe pipelines are the solution, is that even if the Trans Mountain expansion project meets the conditions set by the Federal Court of Appeal in 2019 it might not actually be finished construction until 2022 or 2023. And even if other failed pipeline projects are resurrected, they might take even longer to complete.

That a Prime Minister named Trudeau is not popular in Alberta is no shock. The ingrained hatred for Trudeau and his father in the minds of many Albertans ensures that no matter what the Liberal government in Ottawa does to support our province, it will be seen as either a failure or a hostile attack.

While separatist sentiments bubble up in Alberta politics every decade or so, the last serious political push happened more than 35 years ago, when Western Canada Concept candidate Gordon Kesler won a February 17, 1982 by-election in the former Social Credit fortress of Olds-Didsbury.

The separatist MLA said at his swearing-in ceremony that he had “a lot of responsibility to those who believe in freedom and free enterprise,” but then spent the next few months in the Assembly railing against the metric system and official bilingualism. He and his party were crushed by Peter Lougheed’s Progressive Conservative juggernaut in the November 1982 general election.

Other separatist parties have come and gone since, but they have all faded in the right-wing fringes of Alberta politics.

And with provincial and federal general elections expected to be held in the next 10 months, Conservative Party leader Jason Kenney and federal opposition leader Andrew Scheer are only too happy to stoke the flames or western alienation and resentment over pipelines, equalization payments, and new energy regulations included in Bill C-69: An Act to enact the Impact Assessment Act and the Canadian Energy Regulator Act, to amend the Navigation Protection Act and to make consequential amendments to other Acts.

Meanwhile, outside of the margins of conservative opinion writers and anonymous twitter accounts, two recent polls show that while Albertans might be a little angrier, support for separation remains consistently low.

A recent poll conducted by the research company Ipsos found that “Albertans are a little angrier at the moment, but across the west there is little interest in separation and most measures of connection to Canada are consistent with prior polls taken conducted as long ago as 1997.

The level of support for the idea of an independent Alberta is roughly the same as it was in surveys conducted in 2014 and 2016,” said Mario Canseco, President of Research Co. “Four years ago, with a Progressive Conservative government in Edmonton and a Conservative government in Ottawa, the findings were similar to what is observed in 2018.”

The vast majority of Albertans remain proud Canadians regardless of which party has been elected to run the government in Ottawa. The frustration felt by many Albertans towards Ottawa over pipelines construction delays and the low international price of oil should not be ignored, but let’s not pretend that separating from Canada is a viable solution to our economic problems, because it’s not.

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Alberta Politics

Alberta threatens to turn off the taps to BC as the Trans Mountain pipeline dispute continues

With little appearing to have changed after Sunday’s pipeline summit in Ottawa, the political dispute over Kinder Morgan’s Trans Mountain Pipeline continues to escalate.

Marg McCuaig Boyd (photo by Connor Mah)
Marg McCuaig Boyd (photo by Connor Mah)

In Edmonton today, Alberta Energy Minister Marg McCuaig-Boyd introduced Bill 12: Preserving Canada’s Economic Prosperity Act. The bill would give the Minister of Energy sweeping powers to “make an order directing an operator to cease transporting natural gas, crude oil or refined fuels in the operator’s provincial pipeline, or by the operator’s railway or commercial vehicle.”

It makes February’s wine boycott sound cute.

Use of the powers included in Bill 12 could have serious political and economic consequences for Alberta and BC. Ceasing the transport of oil and gas to BC could convince BC Premier John Horgan’s government to back down from its opposition to the pipeline expansion, but it could also backfire by escalating political tensions between the two provincial governments.

There is a little bit of irony in the Alberta government granting itself the powers to slow down the shipment of oil and gas to BC. The BC government’s initial move to limit shipments of diluted bitumen 11 weeks ago, a move Notley then described as unconstitutional, is what escalated the current political dispute between the two provinces.

It is not clear whether Premier Rachel Notley‘s government would actually ever use the powers include in Bill 12. But at the rate this political dispute is escalating, I would not be surprised if McCuaig-Boyd started threatening to turn off the taps by next week. It feels very Lougheedian, but without the $100/barrel oil.

David Swann Liberal MLA Calgary-Mountain View
David Swann

Bill 12 will likely get unanimous support from the Jason Kenney-led opposition, leaving Alberta’s lone Liberal MLA as its only critic in the Assembly.

“The NDP Government wants extraordinary powers to interfere with the oil and gas industry but won’t provide specifics or limitations on those new powers,” said Calgary-Mountain View Liberal MLA David Swann, criticizing the the lack of details in Bill 12.

BC Environment Minister George Heyman says his government could take the Alberta government to court over Bill 12. “I’m not counting on Alberta taking extreme or unlawful actions, but if they do, we’re prepared to defend British Columbia’s interests with every legal means available,” Heyman said.

Hogan says his government will continue with its legal case to determine if the province has the jurisdictional right to stop the project. But it is unlikely the court will rule on this case before the May 31, 2018 deadline imposed by Texas-based Kinder Morgan Inc., which succeeded in generating a quick response from the Alberta and federal government.

A political dispute, not a constitutional crisis or a broken country.

As the political rhetoric runs high, it is important to take a deep breath. We are not on the verge of a constitutional crisis, as Notley has suggested. The country is not broken, as Kenney suggested. And we do not need to call in the army to protect the pipeline from eco-terrorists, as former Alberta energy minster Rick Orman suggested on CBC radio this morning.

As David Moscrop wrote in Macleans last week:

“What we’re seeing with the Kinder Morgan Trans Mountain pipeline debate is democracy, federalism, and the rule of law at work: a divided country working out their opinions on the matter, split jurisdiction actors pursuing their interests, responsive governments keeping their promises, political and legal battles across several sites of licit contestation—and, to boot, a market response of potentially pulling the plug on the project as shareholders vote with their confidence and their dollars.”

BC MPs face civil contempt charges over acts of civil disobedience

Meanwhile, Green Party leader and Sannich-Gulf Islands Member of Parliament Elizabeth May and NDP MP Kennedy Stewart face criminal contempt charges after entering a 5-meter ‘no-protest’ zone surrounding Kinder Morgan’s pipeline construction site on Burnaby Mountain. A conviction will not necessarily lead to the two MPs losing their seats in the House of Commons.

Section 750(1) of the Criminal Code, which applies to members of both the Senate and the House, stipulates the following:

Where a person is convicted of an indictable offence for which the person is sentenced to imprisonment for two years or more and holds, at the time that person is convicted, an office under the Crown or other public employment, the office or employment forthwith becomes vacant.

Categories
Alberta Politics

Oil Pipeline still King in Notley’s Interprovincial Agenda

Three years ago this week, Conservative Premier Alison Redford took to the airwaves to warn Albertans about the ominous “bitumen bubble.” Ms. Redford warned that a pipeline bottleneck and a dramatic drop in the price of oil would rob the provincial government of up to $6 billion in natural resource revenue.

Rachel Notley Alberta NDP leader
Rachel Notley

Ms. Redford spent much of her two and a half years in office focusing on pipelines, as did her successor Jim Prentice during his short eight months in the Premier’s Office.

One of the jobs Mr. Prentice left when he decided to run for the leadership of the Progressive Conservative party in 2014 was as liaison between the (now moribundEnbridge Northern Gateway Pipeline and First Nations in northern British Columbia. Despite this experience, there was little evidence of pipeline advancement during his brief time as premier before the PCs were defeated in the May 2015 election.

Kathleen Wynne

The politics of pipelines continue to dominate Alberta’s interprovincial agenda under Premier Rachel Notley’s New Democratic Party government. Riding the success of the National Energy Strategy accepted at the Premier’s Meeting in St. John’s, Newfoundland last summer, Ms. Notley secured the tentative approval from Ontario Premier Kathleen Wynne for the TransCanada Corporation’s Energy East Pipeline.

As AlbertaPolitics.ca publisher David Climenhaga noted last week, “Premier Rachel Notley, after less than nine months in office, secured the tentative approval of the premier of Ontario and the enthusiastic endorsement of the prime minister of Canada, both members of a different political party than hers, for a pipeline to carry diluted bitumen from Alberta to New Brunswick for refining.”

Alison Redford Alberta Election 2012 Conservative leader
Alison Redford

What we are witnessing is unfamiliar: an NDP Premier advocating for this approval of a privately-owned, privately-operated pipeline that would ship oil from Alberta’s oil sands to a privately-owned and privately-operated refinery in New Brunswick. This is hardly characteristic of the radical marxist socialist extremist that Ms. Notley’s more fanatical critics claim she is.

This pipeline will not save the Alberta government from the revenue shortfall caused by the drop in the international price of oil, which is intensified due as a result of poor long-term planning during the previous 44 years of conservative governments. But it could narrow the price gap between West Texas Intermediate and Western Canadian Select and provide a new point of export for Canadian oil while also keeping refinery jobs in Canada rather than exporting jobs to refineries overseas.

Denis Coderre
Denis Coderre

The decision to approve this pipeline will be up to the federal Liberal government, which includes strong representation from Alberta Members of Parliament.

Edmonton-Centre Liberal MP Randy Boissonnault reiterated his support for TransCanada’s Energy East pipeline last week. “Our government is committed to ensuring our natural resources have access to market.  This process will include a credible environmental assessment process based on science, facts and evidence,” Mr. Boissonneault said in a statement.

Randy-Boissonnault Edmonton Centre Liberals
Randy Boissonnault

Building a national consensus around climate change and the transportation and export of Canada’s oil will be helpful for future projects. It also gives Ms. Notley an opportunity to highlight her government’s climate change plan, which includes the phasing out of dirty coal fired power plants by 2030, a move that could significantly reduce Alberta’s carbon emissions.

While Wildrose opposition leader Brian Jean squabbles with Montreal Mayor Denis Coderre over the municipal politician’s opposition to the pipeline, it would appear that Ms. Notley’s quiet diplomacy might be showing results. These type of public spats distract from the reality that Mr. Jean supports TransCanada’s Energy East pipeline but would cheer if Ms. Notley’s bid fails.

If TransCanada’s Energy East pipeline is approved before the 2019 Alberta election, Ms. Notley will be able to make the claim that an NDP Premier was able to accomplish something her conservative predecessors could not: get a new pipeline built from the oil sands to an ocean port.