Liberal MPs downplay caucus divisions over energy deal, as energy minister briefs B.C. caucus

OTTAWA — Liberal MPs tried on Wednesday to downplay concerns about any caucus divides on the eve of the expected signing of a new energy deal with Alberta, which could see Prime Minister Mark Carney offer a conditional path for a new oil pipeline to British Columbia’s coast.

Energy and Natural Resources Tim Hodgson briefed the Liberal B.C. caucus on Wednesday morning, according to a government official. His appearance was meant for MPs to field questions and receive an update on the state of negotiations of a new memorandum of understanding (MOU) between Carney and Smith.

That deal, which Smith has said she wants to see include some commitment to repealing or granting a reprieve from a suite of environmental policies ushered in under former prime minister Justin Trudeau, to outline a path for a new Alberta-B.C. bitumen pipeline, has been roundly rejected by coastal First Nations, along with NDP B.C. Premier David Eby.

B.C. Liberal MPs have spent the past week lining up to say approval for any future pipeline to B.C’s coast would need to secure the support of First Nations in the region, as well as Eby’s government, conditions that Carney reiterated to the House of Commons on Tuesday.

Still, questions and concerns have nevertheless swirled about the impending deal and the prospect of offering support for a new oil pipeline, which would require at least a possible partial lifting of an oil tanker ban off B.C.’s coast, and what such a project could mean for the Liberals’ mission to reduce carbon emissions.

On his way into the Liberals’ weekly caucus meeting, outspoken Ontario Liberal MP Nate Erskine-Smith said he “lived through one grand bargain” that “I don’t think went so well,” referring to the deal the Liberals struck under Trudeau with then Alberta premier Rachel Notley. It saw Trudeau support the Trans Mountain pipeline expansion in exchange for Alberta signing on to its national carbon pricing plan.

Notley eventually pulled her support from the climate plan after a court ruling against the project. In 2018, the Trudeau government announced it was purchasing the pipeline from Kinder Morgan for $4.5 billion to ensure the expansion went ahead.

“I’m a little skeptical of grand bargains,” Erskine-Smith said. “And look, I’ll look at the overall picture of the deal in the MOU when it’s announced on Thursday, and we’ll see what Prime Minister has to say today, and I’ll have lots to say once I see the details.”

Calgary MP Corey Hogan, who worked in the Alberta government as a deputy minister during the time, said today’s situation is different from those years, given the conversation is now on the need to diversify Canada’s global market access.

“I think that before anything concrete comes out, is always a moment of maximum anxiety,” he told reporters, underscoring that the exact details of the deal were not yet known.

Hogan said he was hopeful about the prospect of Ottawa striking a deal with Alberta that would see Smith’s government commit to strengthening the province’s industrial carbon pricing system and offer more support for expanding carbon capture and storage technology, which has been Ottawa’s ask in exchange for creating a new path to a pipeline.

He said those moves, combined with Alberta taking more steps to strengthen methane regulations, “would be incredible for the climate.”

“I think that’s something that my B.C. colleagues would be very excited about.”

Several B.C. Liberal caucus members whisked by reporters heading into the Liberal caucus meeting without stopping to speak. Only Ernie Klassen, who represents the B.C. riding of  South Surrey — White Rock, quickly answered to suggest he left the meeting with Hodgson feeling assured.

Parm Bains, Liberal MP for the Richmond East—Steveston riding in B.C., said afterwards that the meeting with Hodgson was positive and cautioned against anyone speculating about the impending deal until the final product was released. He added that he had not received many calls or emails from constituents about the matter, adding that discussions were still ongoing.

One Liberal MP, who spoke to National Post on the condition they not be named, said Hodgson is respected in caucus, given his depth in the file.

Still, the MP said concerns around the impending deal with Alberta lie within two groups: Centre-left members of the Liberal caucus, who have some “hesitation” based on worries about the impact of pipelines on the environment, and then B.C. caucus members who have “anxiety.”

“Understandly so,” the MP said. The MP pointed to someone like Will Greaves, who captured the riding of Victoria, a typically NDP stronghold for the Liberals in the last election, who would likely be hearing about this pipeline proposal from constituents.

“There’s real anxiety around this.”

Greaves told National Post back in October, shortly after Smith first released her pipeline proposal, that his office had been “inundated” with emotional correspondence from constituents and that his community was “pretty overwhelming” in its opposition to another oil pipeline. 

On Wednesday, the president of a group representing coastal First Nations issued a statement, rejecting any idea of a new pipeline and blasting the federal government for its “wall of silence” about the deal with Alberta.

“As the Rights and Title Holders of the Central and North Coast and Haida Gwaii, we are here to remind the Alberta government, the federal government, and any potential private proponent that we will never allow oil tankers on our coast, and that this pipeline project will never happen,” said Marilyn Slett, President of the Coastal First Nations – Great Bear Initiative and Chief of the Heiltsuk Nation. 

Ontario MP James Maloney, who chairs the Liberal caucus, told reporters he does not believe there to be any problem with divides within caucus and that, like on any issue, there would be “several views.”

“We continue to work as a group, and we will come out of this united, as we always do.”

National Post

Our website is the place for the latest breaking news, exclusive scoops, longreads and provocative commentary. Please bookmark nationalpost.com and sign up for our politics newsletter, First Reading, here.