MORGAN: If Canada must nationalize pipelines to build them — the country is broken

In 2018, when the Trudeau government painted itself into a corner leading to the purchase of the Trans Mountain Pipeline by taxpayers, Danielle Smith’s commentary on the issue was critical and uncompromising. In an article written for Global News, she said, “I hope I’m wrong, but we may be witnessing the biggest boondoggle in Canadian history.”At that time, the estimate was that an expansion of the pipeline would cost $7.4 billion on top of the $4.5 billion in tax dollars spent to purchase the existing pipeline. Smith estimated that with government delays and general ineptitude, the cost of the pipeline would likely rise to $20 billion. The future premier probably thought she was being cruel in her pessimism, and it turns out her prognostication was incorrect. The final tally for the pipeline expansion was $34 billion, and it came in years late. She was right in that it was a boondoggle, however.Some things have changed in the nine years since Danielle Smith wrote that article. She is now Alberta’s premier rather than a radio host. She has different obligations and has learned more about how the gears of government turn from the inside. It’s understandable how her views must be tempered by pragmatism. To embrace an even larger nationalization of a pipeline today, though, isn’t a pragmatic shift in ideals. It is a full betrayal of conservatism and fiscal responsibility.Smith’s role may have changed, but the logistics of getting a pipeline built in Canada haven’t. The mountains are in the same places. The streams haven’t shifted. And the residents living near the proposed new pipeline are still there with the same concerns. The only additional costs to building a pipeline should be due to inflation. If anything, with modern technology, it’s easier to safely and efficiently build pipelines than ever before.The handicap to pipeline construction was and remains governments at all levels. Municipal governments attach layer after layer of redundant and pointless licencing requirements to all aspects of construction. In BC, the provincial government has made itself a hindrance in every way possible for political reasons. On the federal level, callow leadership has led to policies of permissiveness and indulgence with anti-pipeline activists rather than working to use constitutional authority to get the job done. Even if it means offering a reality check to indigenous activists and reminding them that they have no veto authority..The true experts in the field are in the energy sector, and they never made bones about why they refuse to invest in new pipelines.It has nothing to do with the world market or demand for oil and gas. They know the world wants Canada’s oil.It has nothing to do with the mountains or risks of leaks or accidents in constructing a pipeline. They built a major line through the Rocky Mountains over 70 years ago, and it has been operating safely ever since. They know how to get that job done.It’s not for lack of capital. The oil and gas sector has funds from existing operations within and outside of Canada that can be invested into new infrastructure. In fact, they are doing so all over the world. Except within Canada.Energy companies have been screwed by Canada too many times now. They aren’t willing to spend billions more only to have the government pull the rug out from under them, as happened with the Northern Gateway project. Or to have pipelines regulated to death, as happened with Energy East and the Mackenzie Valley pipeline project. A head from Cenovus made it clear last month when he said that Canadian pipelines are “unfinanceable” and he laid the blame squarely at the feet of the government..Courageous government leaders would work to strip away these self-imposed roadblocks. Even if it will be tough.Cowardly government leaders toss tax dollars at the issue and hope it solves itself. It’s the same approach as with healthcare, and we all see how that’s turning out.Smith and Carney took the chicken-hearted path, and we will all pay dearly for it.If the governments don’t have the guts to strip some current regulations, will they have the courage to stand up to the inevitable protesters and activists who will delay the construction? Will they tell the regulators who will add layer after layer of requirements for more licences and studies that there has been enough? Will they lay down the law with indigenous activists who have an insatiable appetite for consultation?.Of course, they won’t.Smith predicted the biggest boondoggle in Canadian history nearly ten years ago and is now a key participant in what will surely be an even bigger boondoggle. Instead of making demands of the federal government, she offered concessions.The token involvement of Pembina Pipelines, who have a 10% stake with a clear escape clause, is an insult to common sense. Just dump them and admit the entire project will now be nationalized.Smith said in a past interview that it would be considered a failure if public dollars had to fund oil pipelines. She has managed to be right in her interviews and dead wrong in her actions. What she may feel is that the easiest path to getting a pipeline done is simply charting a path to nowhere.If the only way to get things done in Canada is to nationalize them, then Canada is truly broken. There is only one place where that path ends.

MORGAN: If Canada must nationalize pipelines to build them — the country is broken

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