Federal cabinet ministers chastise Houston, Higgs over Chignecto Isthmus funding

A disagreement over who should foot the bill for the work necessary to protect the Chignecto Isthmus has devolved into a war of words between Ottawa, Nova Scotia and New Brunswick.

On Tuesday, the federal government made public letters from two federal ministers, Dominic LeBlanc and Sean Fraser, blaming premiers Blaine Higgs and Tim Houston for jeopardizing that work by not agreeing to share in the cost to repair or replace the aging dike system. 

Those structures help protect the stretch of land between Nova Scotia and New Brunswick from flooding that could sever that link. With millions of dollars of trade passing through the corridor each day, along with a rail connection and transmission lines between the two provinces, the concern is that a major storm could cut Nova Scotia off from the rest of the country.

"We must act now to protect the Chignecto Isthmus against the increasing threat of severe weather events and flooding," Fraser noted in a letter to Houston dated Sept. 16.

"Officials from all three governments continue to work collaboratively, and are awaiting the political signal to begin next steps — a signal which does not seem to be forthcoming from either Nova Scotia or New Brunswick."

LeBlanc's letter to Higgs is less pointed, but also noted Ottawa was prepared to cover what it saw as half the cost of the project, $325 million.

"A commitment from New Brunswick and Nova Scotia to jointly fund the remaining 50 per cent of the project costs would allow this project to move forward under the Disaster Mitigation and Adaptation Fund," wrote LeBlanc. "Without such a commitment, the project will be ineligible for support through the program."

The letter went on to say that if Nova Scotia and New Brunswick don't cover half of the cost, Fraser "will be required to reallocate the funding to other communities who are willing and ready to comply with the program's requirements."

Both LeBlanc and Fraser implored the provinces to agree to chip in "before it is too late."

It's not clear how long the federal money remains on the table. A spokesperson for Fraser's office sent a quote from the minister via email saying he has not set a specific date.

"I'd like to give the provinces time to respond before we put them on a clock," Fraser said.

'Stand up for Nova Scotians'

New Brunswick's premier responded to Ottawa in a letter saying he is accepting the offer, even though he considers it to be unfair.

Houston would not say whether he'll accept the money.

At Province House on Tuesday, he said Liberal Nova Scotia MPs should "do what's right and stand up for Nova Scotians" by advocating for Ottawa to pay the full cost of upgrades to the isthmus.

"Why are the Liberals threatening us? Why don't they just do what's right?" the premier told reporters.

Houston said the application for funding through the Disaster Mitigation and Adaptation Fund was made "as a placeholder" in the hopes that the federal government would change its position in due course.

"Why would anyone suggest that when the federal government is responsible for $650 million, could be $800 million, that Nova Scotians accept half?"

The two provincial governments have signed an agreement for how they will work together on the early planning stages required in the lead up to the upgrade of the isthmus. They are expected to announce a project manager soon who will oversee work that includes data collection, regulatory measures, stakeholder meetings and archaeological reports. 

Houston said work will continue to move forward, even as funding questions remain.

Court action started in 2023

The Houston government has asked the Nova Scotia Court of Appeal to rule on whether this work is entirely a federal responsibility. It initiated court action in July 2023 but submitted the reasoning for its claim last Friday.

Houston then sent a copy of the province's factum to Nova Scotia's Liberal members of Parliament imploring them to lobby their own government on the province's behalf.

"I ask that you use your position to urge your government to reconsider its position and take full responsibility for the costs of the Isthmus," wrote Houston. "The province will be there to support with design and in any practical capacity."

The alternative would mean a lengthy court case, said Houston, who added he was "confident the province will be successful."

Houston said Tuesday the court case will proceed.

'A dollar that is taken away from health care'

On Sunday, Houston went a step further, issuing a news release accusing the federal government of "inaction."

"While project priorities continue to be met and tenders issued, every dollar that the province spends on this is a dollar that is taken away from health care, other provincial priorities and Nova Scotians," said Houston.

He said that is why the province has gone to court to determine what level of government is responsible for paying for the work. 

Fraser referenced Houston's claims that the project could impact plans for a new seawall in Halifax, upgrades to the Lunenburg waterfront as well as health-care spending. 

"I would remind you that the current federal government has provided some of the largest Canada Health Transfers to Nova Scotia in our history," said Fraser.

"There is no good justification to threaten a reduction in health-care spending, particularly when so many Nova Scotian households live with real anxiety over health needs that continue to go unmet."

A July 2023 letter from Higgs to LeBlanc called the possibility of no federal funding if the offer wasn't accepted by a specific date "clearly unacceptable."

"If the federal government refuses to accept its constitutional responsibility in this manner, it will be up to the governments of New Brunswick and Nova Scotia to ask the courts to enforce our nation's supreme law," said the letter.

'Take the money'

Opposition politicians at Province House called for the premier to take the money that Ottawa has offered.

Liberal Leader Zach Churchill said the dispute has devolved into political posturing.

"We need both levels of government to put their big person pants on, act like adults because there's too much at stake here," he told reporters Tuesday.

NDP Leader Claudia Chender said condemning actions from Ottawa is a "tactic" Houston is using because of the federal Liberals' lagging popularity.

"If there is money on the table, take the money, because the idea that the work can go ahead indefinitely without funding is not true," Chender said.

Independent MLA Elizabeth Smith-McCrossin, who represents the riding that abuts the isthmus, said the dispute between the province and Ottawa risks delaying the project, which is already expected to take 10 years to complete.

She said people who live in her area are tired of waiting.

"It contributes to people being disillusioned and discouraged with our political leaders and it further creates apathy among the people," she said.