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The House

Midweek podcast: Explaining Ottawa's Kinder Morgan decision

On The House midweek podcast, Chris Hall analyzes the federal government's decision to take over Kinder Morgan's controversial expansion of the Trans Mountain pipeline. Then, we hear from Chief Robert Chamberlin, the vice-president of the Union of British Columbia Indian Chiefs.
CBC Radio ·
Finance Minister Bill Morneau arrives at a press conference to speak about the Trans Mountain Expansion project in Ottawa on Wednesday. (Patrick Doyle/Canadian Press)

Bill Morneau handed out his version of a Kinder Morgan surprise on Tuesday, announcing the federal government will buy out the company's Trans Mountain pipeline in its entirety in order to ensure the proposed expansion of the line goes ahead.

Nationalizing an oil pipeline — even temporarily — was never the first option for the finance minister. But it became apparent during Morneau's negotiations with Kinder Morgan that it was the only one that would allow the Liberals to deliver on their promise to get the work done.

"The Trans-Mountain project is of vital interest to Canada and Canadians," Morneau said on Tuesday. "Getting [it] built will preserve thousands of good, well-paying jobs."

But getting it done, and keeping that promise, comes with a steep price tag.

Taxpayers will foot the $4.5-billion purchase price. The price tag doesn't include potentially billions of dollars in construction costs or the costs of cleaning up a spill, although Morneau said Alberta's government will share the cost of any unexpected or emergency cost overruns.

Read the rest of Chris Hall's analysis here

The vice-president of the Union of British Columbia Indian Chiefs says given the crying needs of so many Indigenous Canadians living on reserves, today's decision by the federal government is puzzling.

Chief Robert Chamberlin says Justin Trudeau and his government are simply not living up to the promises they made to Canada's First Nations.

"The actions simply don't match the words and this is incredibly troubling," Chamberlin told The House midweek podcast.

I do have some serious doubts about it being built.- Chief Robert Chamberlin, vice-president of the Union of British Columbia Indian Chiefs

As to whether Ottawa's move will discourage those opposed to the Trans Mountain expansion, Chamberlin has some serious doubts.

"I don't think that this is going to alter the protests or the occupations that have been occurring," he said. The Union of British Columbia Chiefs has been a vocal opponent of the project.