British Columbia

In ride-hailing dispute with the province, Doug McCallum can win even if he loses

The province is content — at least in the short-term — to see how potential legal battles, and talks between municipalities to create a regional business licence, go. In the meantime, Doug McCallum can tell people against ride-hailing that he's fought for them.

Whether he blocks Uber from operating under the current rules may be less important than fighting for his base

Surrey Mayor Doug McCallum looks at a map of his municipality, which shows the extensive growth and sprawl that has taken place over the last three decades. (Denis Dossman/CBC)

People hoping for a quick resolution in Surrey's ride-hailing standoff may be waiting much longer than it takes to hail a cab from YVR.

"The province's role is really to establish the framework for ride-hailing and make sure that it gets up and running," said Transportation Minister Claire Trevena, when asked if the government would take immediate steps to stop Surrey from issuing $500 fines to Uber drivers, as Surrey Mayor Doug McCallum has threatened.

"We're aware that Surrey is denying issuing business licenses to try to block ride-hailing. We hope that they can sort out their business licenses with the others in the region."

In other words, the province is content — at least in the short-term — to see how potential legal battles, and talks between municipalities to create a regional business licence, go. 

The group overseeing those negotiations is the TransLink Mayors' Council. While they're meeting on Thursday, any proposed bylaw isn't expected until late February or March, and there's no guarantee Surrey will even participate in the process. 

And while the stalemate continues, and Uber turns to the courts, the opposition party wants the government to intervene.

"It's government's obligation now to ensure that the laws are being followed," said B.C. Liberal MLA Stephanie Cadieux, who represents the riding of Surrey South.

"The citizens of Surrey have been waiting for this ... and it's time for government to step in and ensure that they have that opportunity."

Cities governed by the province

In any dispute between a province and a city, the province tends to holds the upper hand. 

"Usually a local government official will huff and puff, but be pretty careful not to dare the provincial government," said Frank Leonard, the former President of the Union of B.C. Municipalities and longtime Mayor of Saanich.

While municipalities have many powers, they are constitutionally creatures of the province. In B.C., they're governed via the Community Charter — which the government amended months ago to prevent cities from putting in a veto around ride-hailing. 

Leonard recalled plenty of disputes during his time in government where a city tried to press a dispute with the province, including debates over the proposed Canada Line. 

But they usually ended the same way.  

"The first thing a local government says is 'well, we are independent within our jurisdiction. This is our jurisdiction. Go away,'" said Leonard.

"But the rulebook is owned by the provincial government." 

A person holds up a phone with 'Uber' on it, with a car in the background having an 'Uber' label on the dash.
Uber has been operating in Surrey, B.C., since receiving approval last week from B.C.'s independent Passenger Transportation Board. McCallum says the company is operating illegally without a city business licence. (Ben Nelms/CBC)

Politics matter as much as policy

However, these sorts of disputes are about more than just what's in the rules.

"We can talk legal logistics and legislation, but at the same time can't ignore the politics of the situation," said Leonard.

While one can question how people in Surrey feel about ride-hailing, all six NDP MLAs from Surrey did not respond to requests for comment from CBC News on Tuesday.

Perhaps another reason why Trevena suggested Uber consider legal action instead of waiting for direct action from her government. 

"If one of the companies ... [with] a license for operating ride hailing feels they are being blocked, there is a law in place which says that no municipality can block ride-hailing, and the aggrieved party can test that law," she said. 

Two hours after she said that, Uber announced they had filed to apply for an injunction in the B.C. Supreme Court. 

Of course, lawsuits can take time to manifest and be ruled on by judges. In the meantime, McCallum can tell people against ride-hailing that he's fought for them, and Uber drivers could choose to wait until the situation is resolved before risking a $500 fine.   

A frustrating situation for some. But likely not for McCallum. 

"He may not lose if he loses," said Leonard.

"If ... his position is overriden, he doesn't lose politically because he still fought for his base. That's sometimes the sorry side of politics. You look to blame somebody else for an outcome." 

ABOUT THE AUTHOR

Justin McElroy

@j_mcelroy

Justin is the Municipal Affairs Reporter for CBC Vancouver, covering local political stories throughout British Columbia.