Canada's finance minister defends Trans Mountain equity offer to First Nations

CALGARY — Canada’s finance minister says First Nations groups along the Trans Mountain pipeline route to the BC coast deserve compensation after years of delayed ownership negotiations, while he defended the Liberal government’s offer of a combined 15% equity stake and a $2.5-million lump-sum payment to each participating community.François-Philippe Champagne told reporters on Tuesday that negotiations over indigenous ownership stakes in the federally owned pipeline should have been completed years ago and that the government is now working to honour its previous commitments.“[It should] compensate First Nations for the timeline that we have. This should have been done before, and that's why we're acting to make sure that people are duly compensated for the timeline,” Champagne said after being asked about the offer.“It's a very meaningful offer if you're talking about an existing asset which has been de-risked, very much in line with market practice. If you look at what we've done with the nuclear project recently in Darlington, I would say we have consulted with First Nations, and this is something that should have been done already.”.Trans Mountain expansion drives record oil tanker traffic in Burrard Inlet.The proposal was outlined in letters sent by Champagne’s office last week, according to the Globe and Mail, which obtained a copy of one of the letters.The minister's office confirmed the letters were sent to all 129 First Nations.Under the proposal, the ownership stake would be purchased collectively at what Ottawa describes as a fair price and divided evenly among eligible indigenous communities that choose to participate.Ottawa would also provide access to low-cost debt financing to help indigenous communities purchase their shares.The federal government has promised First Nations an opportunity to acquire a stake in Trans Mountain since 2019, but negotiations have dragged on for years.The new proposal has drawn criticism from some indigenous energy advocates, such as Stephen Buffalo, president and chief executive of the Indian Resource Council, who called the deal a “feeble attempt at economic reconciliation” and said the size of the ownership stake was disrespectful, according to the Globe and Mail.It was also reported that the Western Indigenous Pipeline Group, which represents 36 indigenous groups, submitted an offer to purchase 30% of Trans Mountain Corporation on September 8.Meanwhile, Champagne characterized the $2.5-million payments as compensation for the time communities have spent waiting for an ownership agreement, saying the amount was calculated to reflect what communities might have received had the negotiations been completed earlier.“The $2.5-million component is the calculation of what it would mean on average if we had done and completed the negotiation earlier,” he said.“We always say the federal government should act in good faith, and be at the table engaging. [This] is a reflection of that saying.”

Canada's finance minister defends Trans Mountain equity offer to First Nations

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