Ottawa, New Brunswick, Nova Scotia strike deal on Chignecto funding
N.S. minister says he’s putting Canada first with $650-million cost-sharing agreement
The federal, New Brunswick and Nova Scotia governments have reached a deal on a major infrastructure project to protect the low-lying Chignecto Isthmus from the effects of climate change.
Ottawa and the two provinces will spend $650 million over the next 10 years to reinforce centuries-old dikes to reduce the risk of flooding in the vital land link between New Brunswick and Nova Scotia.
"My conversations with the premiers were, 'Let's lock in this contribution, let's make sure that the project can begin … and we'll continue to work together as a multi-year project evolves," said federal Intergovernmental Affairs Minister Dominic LeBlanc.
He said the massive price tag was worthwhile given the potentially catastrophic environmental consequences of doing nothing.
"There's a series of rather concerning risks that can be mitigated the faster we go, and I was very happy that the three governments came together to lock in and begin the project."
The isthmus is the only path for national railway, highway, and power and communication lines that connect Nova Scotia to the rest of Canada.
The two provinces had opposed the federal government's proposed funding formula for the project, which would see Ottawa pay 50 per cent of the cost and the provinces 25 per cent each.
"We agreed to this to avoid delays in the important work needed on the isthmus," Nova Scotia Premier Tim Houston wrote in a letter to federal party leaders Thursday, laying out the province's issues ahead of an expected election campaign.
Nova Scotia Public Works Minister Fred Tilley said in a joint news release that the province was getting on board with the plan because of the threat of U.S. tariffs and the need to reinforce interprovincial commerce.
"Protecting Nova Scotia's main connection to the rest of Canada has never been more important as we take action to increase trade between provinces," Tilley said.
"That's why we are taking a Team Canada approach. We're putting the interests of our country first and showing leadership as we unlock our potential."
Ottawa estimates $100 million of goods and services pass through the isthmus corridor daily.
Nova Scotia MLA Elizabeth Smith-McCrossin, whose Cumberland North riding includes her province's part of the isthmus, welcomed the news.
"We need to start the work and get it done before we have a catastrophic event," she said.
On the other side of the border, Tantramar Green MLA Megan Mitton said her constituents would likely feel "some hope and a bit of relief" over the news.
The announcement comes just days before an expected federal election call by new Liberal Prime Minister Mark Carney.
"The key thing is all federal party leaders need to commit to providing this funding if they win the next election," Mitton said.
In the same news release, New Brunswick Premier Susan Holt welcomed the agreement but called the dike project "only the first step in implementing a long-term climate mitigation solution for the Chignecto Isthmus."
The two provincial governments have been negotiating with Ottawa for years about upgrading the aging dike system, which dates back to the arrival of Acadian settlers in 1671.
Experts have warned that sea-level rise and increasingly extreme weather could lead to flooding that overwhelms the existing 35 kilometres of dikes, severing Nova Scotia's links to the rest of Canada.
The two provinces had argued that Ottawa should pay the full cost of the project because interprovincial links fall under the federal government's constitutional responsibilities.
They reluctantly agreed in 2023 to apply for the 50-per-cent federal funding under Ottawa's Disaster Mitigation and Adaptation Fund — while continuing to argue Ottawa should pay the full amount.
Last fall, Nova Scotia Premier Tim Houston wouldn't commit to accepting the funding, saying the 2023 application was "a placeholder" and Ottawa should "do what's right."
Nova Scotia launched a reference case in 2023 before the province's Court of Appeal, asking justices to weigh in with a non-binding opinion on that issue.
Earlier this month, federal lawyers asked the court to exercise its ability to not answer the question, arguing that Nova Scotia was seeking a legal opinion on what was essentially a political disagreement.
If the court rejects that request, the province's case can go ahead.
The Appeal Court said in an order issued Thursday that it would rule on that at a later date, after hearing main arguments in the case in a two-day hearing May 20 and 21.
Houston said in his letter that despite the funding agreement, his government would continue with the reference case to determine if "paying for the isthmus is a federal responsibility."
Lawyers for Nova Scotia said in court they're not asking the court to rule on who should pay but to provide clarity on who has legal authority to protect the CN railway, Trans-Canada Highway, electric transmission lines and fibre-optic cables on the isthmus.
The Société de l'Acadie du Nouveau-Brunswick has proposed the creation of a national park in the isthmus because of its historical significance to Indigenous people and Acadians.
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With files from Taryn Grant and Michael Gorman