Don’t expect a Final Investment Decision on LNG until (or if) Brexit is resolved

Analysis

Monday’s decision by LNG Canada to postpone the all-important Final Investment Decision for the Kitimat liguified natural gas project came as a momentary shock—but no real surprise. After the Brexit vote, you could see the hold button blinking from across the Atlantic.

Andy Calitz CEO of LNG Canada and a long time, experienced, executive with the lead partner, Royal Dutch Shell blamed the current market conditions for natural gas in both a news release and an investors’ conference call. However, the turmoil in the world economy brought about by Britain’s (largely unexpected) vote to leave the European Union made the postponement inevitable.

Immediately after the vote on June 23, when the now not so United Kingdom voted by 52 per cent to 48 per cent, to leave the European Union, financial analysts predicted that given the uncertainty, companies based in the United Kingdom would immediately begin to adjust their long term planning.

The stock market has stabilized and reached new highs, at least for now, but the British pound remains weak.

Most important, according to reports in the business press around the world, many long term projects by companies not only in the UK but everywhere are being re-examined, postponed or cancelled. All due to the long term uncertainty in world markets.

Even without Brexit, the situation with long term planning for the natural gas market is complicated, as LNG Canada’s External Affairs Director Susannah Pierce explained in this interview on CKNW ‘s Jon McComb show.  ( It is an informative interview. Autoplays on opening the page)

“ Postpone investment decisions”

Royal Dutch Shell is one of the world’s largest corporations. It is based in the United Kingdom although its corporate headquarters are in the Netherlands (also a member of the European Union).

From June 24 to July 11 was just enough time for the bean counters and forecasters in London, Vancouver, Calgary, Tokyo and Beijing to crunch the numbers and decide that the prudent move would be to put the LNG Canada project on hold.

Rio Tinto is also a dual national company, listed on both the London and Australian stock exchanges and with its headquarters in London. (More about Rio Tinto later.)

Although both Shell and Rio Tinto are giant transnationals with operations worldwide, the turmoil in the United Kingdom, in the corridors and cubicles of the home offices, is having a psychological and personal, as well as professional, impact, meaning more of the work in those towers of London will be focused on Brexit.

brexitkitimat

The decision doesn’t mean that the LNG Canada Final Investment Decision will be on hold forever. Of all the world’s energy companies, Shell is one of the oldest and it has a solid reputation for better long term planning than some of its competitors.

In the news release, Calitz noted

I can’t say enough about how valuable this support has been and how important it will be as we look at a range of options to move the project forward towards a positive FID by the Joint Venture participants.

The news release goes on to say

However, in the context of global industry challenges, including capital constraints, the LNG Canada Joint Venture participants have determined they need more time prior to taking a final investment decision. decision.

How much time? Well, as Theresa May became the Prime Minister of Great Britain, the New York Times noted, like other media, that investment decisions are on hold:

Ms. May does not plan to depart the union quickly because it could put Britain’s negotiators under pressure, and at a disadvantage…

And the longer Britain drifts, the greater the uncertainty for businesses that could postpone investment decisions until things are clearer, potentially pushing the nation into a recession.

As Don Pittis, business columnist for CBC.ca wrote in the immediate aftermath:

The extrication of Britain from Europe will likely be more in the character of the Greek financial collapse, a seemingly endless process where each event and each piece of news has the power to set off a new round of financial fears.
And like the Greek crisis, each piece of bad news will compound fears in markets that were nervous for other reasons.

So once (and when) Theresa May invokes Article 50 that opens a two year window for Britain to leave the European Union, starting negotiations for Brexit.   Then it gets complicated, if Scotland votes to leave the United Kingdom or if Northern Ireland also demands a dual referendum in both the Republic and the North on a united Ireland (as permitted under the Good Friday Peace Agreement).

Although May says she will continue to the UK`s next fixed date election, what if May calls a snap general election, with an uncertain outcome, perhaps another minority government, with seats split among several parties, including those who advocate remaining in the EU?

The price of oil is still low compared to a few years ago. That price is expected to remain low with all that the Saudis are pumping to retain market share, the Iranians want to recover from sanctions, and according to Pittis in another column, that means everyone else is pumping as well

The main thrust for Canadian producers is to build more pipelines so they can expand capacity and push ever more of their relatively expensive oil into the world supply chain. If that’s the strategy for high-cost producers, how could anyone think the world’s lower-cost producers wouldn’t be doing the same thing?

There is the glut of natural gas currently in Asian markets and no one knows what Brexit will mean.  Unless there’s a drastic change in the marketplace, energy project investment will remain on hold for years to come. (So forget any dreams of a refinery anywhere on the coast. )

Rio Tinto

Brexit is also going to be a problem for London based Rio Tinto—and for the current negotiations with the Unifor local in Kitimat. Rio Tinto’s bottom line is weak because the price of iron ore, its main source of income, has been dropping. After completing the $4.8 billion Kitimat Modernization Project, Rio Tinto is spending huge amounts of money on its Oyu Tolgoi copper and gold and other minerals mine in Mongolia, a project that many analysts believe could provide up to 60 per cent of Rio Tinto profits as commodity markets recover.

Add to that US presidential election. Donald Trump has threatened to halt imports of both steel and aluminum into the United States if he actually gets to sit in the White House.

On June 29, outgoing President Barack Obama also looked at aluminum at the recent “Three Amigos” summit in Ottawa, noting in the news conference.

Given the flood of steel and aluminum on the global markets, however, it points to the fact that free trade also has to be fair trade.

That means if Hilary Clinton becomes president, she will also be looking at the state of aluminum imports to the United States market.

World conditions are a warning for the Unifor negotiating team in Kitimat. One reason for last year’s prolonged municipal strike was that Unifor spent a good deal of time planning for negotiations with the District but failed to adjust its contract demands when the price of oil unexpectedly collapsed, which meant the District had less money and a lot less flexibility.

In its negotiations with Rio Tinto, Unifor cannot make the same mistake again. There were a handful of unexpected layoffs down at Smeltersite on June 30; there could be more layoffs in the future. Mandatory overtime is a major sticking point—but that overtime demand is coming from the bean counters in Montreal and London, calculating that the overtime costs are, in the long term, less expensive than a lot of new hires.
Media reports show that Rio Tinto is in tough negotiations with its employees around the world. With LNG on hold, disgruntled employees can’t just turn off Haisla Boulevard to the old Methanex site before reaching Rio Tinto’s property line. That means Unifor should be tough but very realistic in its talks with Rio Tinto, knowing that the powers that be that hold the strings in London are more worried about what Brexit will do to the company bottom line than any temporary shutdown of the smelter by a strike.

What does this mean for Kitimat?

A We Want LNG Canada lawn sign in Kitimat. (Robin Rowland/Northwest Coast Energy News)
A We Want LNG Canada lawn sign in Kitimat. (Robin Rowland/Northwest Coast Energy News)

So the boom and bust cycle once again moves to bust.

Ellis Ross, chief councillor of the Haisla First Nation, speaking to CBC Radio said Ross said

the Haisla nation has been working to get its people jobs in the construction of the facility and related infrastructure, as well as full-time jobs once the plant opens…This was our first chance as Haisla to be a part of the economy, to be part of the wealth distribution in our area. To witness the wealth generation in our territory for the last six years but to not be a part of it, and now to continue to not be a part of it, is really distressing to us, because we had built up our entire future around this.

Mayor Phil Germuth in the same interview said

There’s no doubt that there’s going to be a little bit of hurt for a while, but we still fully believe that Kitimat is by far the absolute best location anywhere on the West Coast [for] a major LNG export facility… We are absolutely confident that it will come.

There’s time in this bust for everyone in town to recover from the hangover of the past few years of the fight over Northern Gateway and the heady hopes of the LNG rush. Demand for natural gas is not going to go away, especially as climate change raises the pressure to eliminate coal, so it is likely that LNG Canada will be revived.

It’s time to seriously consider how to diversify the Valley’s economy, making it less dependent on the commodity cycle. It’s time to stop chasing industrial pipe dreams that promise a few jobs that never appear.

Like it or not, the valley is tied to globalization and decisions made half way around the world impact the Kitimat Valley.

Who knows what will happen in 2020 or 2025 when the next equivalent of a Brexit shocks the world economy?

Suppose, as some here would wish, that all the opposition to tankers and pipelines suddenly disappeared overnight. Does that mean that the projects would then go ahead?

The corporate planners would decide based on their projections for the world economy and the viability of the project for their profit picture. Enbridge was never really able to secure customers for its bitumen. Chevron had no customers for Kitimat LNG. LNG Canada is a partnership, and the partner customers in Asia decided that at this time, the investment is too risky, even if LNG Canada’s longer term prospects are good.

Promoting tourism should now be the priority for Council, for Economic Development, for the Haisla Nation Council, for the local business.

Beyond tourism, it’s time for some innovative thinking to come up with other ideas that would free Kitimat from the commodity cycle. At the moment there are no ideas on the horizon, but unless everyone starts looking for new ideas, practical ideas,  the commodity cycle will rule.

Federal Court of Appeal overturns approval of Northern Gateway

In a two to one decision, the Federal Court of Appeal has overturned the Harper government’s approval of the Enbridge Northern Gateway Pipeline, finding that the federal government’s consultation process  with First Nations on the BC coast that occurred after the NEB decision and the Joint Review Panel Report was inadequate, saying:
federalcourtofappeal

We conclude that Canada offered only a brief, hurried and inadequate opportunity in Phase IV—a critical part of Canada’s consultation framework—to exchange and discuss information and to dialogue. The inadequacies—more than just a handful and more than mere imperfections—left entire subjects of central interest to the affected First Nations, sometimes subjects affecting their subsistence and well-being, entirely ignored.

The dissenting judge found that the federal government under Stephen Harper had adequately consulted the First Nations. The split decision means that one of the parties, either the federal government, Enbridge Northern Gateway or the Canadian Association of Petroleum Producers may seek leave to appeal to the Supreme Court of Canada.

Read the decision
Northern Gateway decision  (PDF)

Other Media
Globe and Mail
Appeal court overturns Ottawa’s approval of Northern Gateway pipeline

CBC
Northern Gateway pipeline approval overturned

Haisla celebrate incremental treaty pact with BC, see more traditional lands returned

The Haisla Nation celebrated the signing of an incremental treaty agreement with the British Columbia government Tuesday at the Haisla Recreation Centre in Kitamaat Village. The treaty will see the return of Haisla lands on the shore of Douglas Channel of Lots 305 and 306 south of the Kitamaat Village, designated Indian Reserve #2 and Indian Reserve #3, also known as the Walsh Reserve, thus connecting the two reserves.

In a news release, the BC Ministry of Aboriginal Relations and Reconciliation said that under the agreement, approximately 120 hectares of Crown land will be transferred to the Haisla Nation.

The land lies in the heart of the Haisla Nation territory and will support the community’s goal of expanding housing, commercial and public space for its members, and opening new business opportunities.

The release went on to say, “The agreement continues the productive relationship between the Haisla Nation and B.C., which is furthering economic development opportunities and improving social conditions.”

Map from the treaty agreement showing the lands transferred back to the Haisla Nation. (Ministry of Aboriginal Relations and Reconciliation)
Map from the treaty agreement showing the lands transferred back to the Haisla Nation. (Ministry of Aboriginal Relations and Reconciliation)

It took decades for the land to be returned to the Haisla.

At the ceremony, Allan Donovan, the Haisla’s lawyer said, “We are here to celebrate the achievement of something that should have happened when the Haisla reserves were set aside in 1889. At that point, the reseve commissioner noted the Haisla reserves were the smallest and least desirable in the whole nation.

Allan Donovan began working for the Haisla as a young lawyer and is still representing the Nation. (Robin Rowland/Northwest Coast Energy News)
Allan Donovan began working for the Haisla as a young lawyer and is still representing the Nation. (Robin Rowland/Northwest Coast Energy News)

“But he left it at that, but in the years and decades afterward, the Haisla sought to extend their reserve holdings and their lands and have done so with an increasing degree of success.

“The actual negotiations to see the lands returned actually started over 60 years ago with limited success. But the Haisla are always persistent when it comes to issues of land, when it comes to issues of justice.

“In the 25 years since then there have been a number of attempts over the years This time with Haisla leadership and cooperation from the government of British Columbia, that dream has become a reality. The land has been returned to the rightful owners, joining up these two reserves.

Building goodwill

The ministry said the British Columbia introduced incremental treaty agreements “to help speed up the treaty process by building goodwill among parties and bringing the benefits of treaty faster to First Nations. These agreements also provide increased certainty on the land base and with natural resource development.”

At the ceremony, John Rustad, the Minister of Aboriginal Relations and Reconciliation said that so far the province has signed 18 incremental treaty agreements with various BC First Nations.

“This is a relationship building step between the Haisla Nation and the province, to lay foundations for things we can continue to do in the future,” Rustad said, “Over the past number of years now the Haisla and the province have made great strides and have a very good relationship (at least I believe a very good relationship, … As we move forward in developing our relationship.”

BC Minister of Aboriginal Relations and Reconciliation John Rustad presented Chief Counsellor Ellis Ross with a certificate commemorating the incremental treaty agreement (Robin Rowland/Northwest Coast Energy News)
BC Minister of Aboriginal Relations and Reconciliation John Rustad presented Chief Counsellor Ellis Ross with a certificate commemorating the incremental treaty agreement (Robin Rowland/Northwest Coast Energy News)

Rustad noted that representatives of the Shell-led LNG Canada project, Chevron and AltaGas were at the Recreation Centre to witness the ceremony.

“It’s about embracing those opportunities and ways to find a balance between environment and economics. No one has been better than the Haisla in being able to do that, working with the companies working with the province, working with their neighbors to create opportunity.

“It is through hard work and through partnerships that is truly a path forward toward building a prosperous future.

“We are very proud as a province to be working with the Haisla as a partner,” Rustad said. “We have our difference, we have things we may not agree on but I also believe very strongly that as we work together the steps to ensure prosperity for all of British Columbia but also especially for the prosperity of the Haisla nation This agreement between the Haisla and the province is an example of some of the things we can do right and we can try to correct the situations that have existed for such a long period of time, to find a way to build a prosperous future.”

Stop dwelling on the past

Ellis Ross, the Haisla elected Chief Counsellor told the Haisla and their guests. “It’s time to stop dwelling on the past and start building the future. All the pieces are there Everybody wants to help us get to a better place. Our partners from LNG Canada are here.Chevron is here. It’s everyone working together for the future, to bring the pieces of the puzzle to ensure our future generations.

“We don’t have to beg to be part of the BC agenda. We should be equal particpants.in everything in our territory. That’s what we should be focused on Stop getting distracted with the minor little differences, where infighting stopped us from the promises that have been promsed us for the past forty or fifty years.”

He said the Haisla started working with the Christy Clark government in 2009.

“We both took different approaches to our relationship We both agreed there is a common goal to be achieved if we just put aside our differences. I am not sure how many people know this but the provincial government actually helped us acquire the hospital lands (the site of the old “pink lady” hospital across from the City Centre mall)

“In terms of the water lot that the Haisla own, we’re the only First Nation in Canada that owns water lots and that ‘s because of the provinical government support for us.”

Chief Counsellor Ellis Ross presented BC Minister of Aboriginal Relations and Reconciliation John Rustad with a painting of two paddles, representing how people have to work together to accomplish goals. (Robin Rowland/Northwest Coast Energy News)
Chief Counsellor Ellis Ross presented BC Minister of Aboriginal Relations and Reconciliation John Rustad with a painting of two paddles, representing how people have to work together to accomplish goals. (Robin Rowland/Northwest Coast Energy News)

He also thanked the province for helping the Haisla lease land with an option to purchase near Bish Cove (Beese in traditional Haisla terminology) and worked with the federal government so that the Minette Bay lands could also be added to the reserve lands. He said Haisla staff consult on a regular basis with provincial officials.

“Our staff are working on permits for the benefit of the Haisla as well as everybody else. I think the Haisla are a working definition of what reconciliation actually means and it matters to the average Haisla citizen…

“There are different definitions out there about what reconciliation means. Everyone has a different definition Right how BC and the Haisla are proving that reconciliation is possible without getting into politics.

“It’s agreements like this what we’re talking about today that truly set the stage for the future of the Haisla people.

“We’re not going to be around in a hundred years but in a hundred years the future if Haislas are still talking about the same issues they talked about 50 years ago, we as leaders failed today.

“This is only one of the many agreements that we sign with the provincial govt and with LNG Canada and with Chevron and everybody else that’s willing to sit down and work out some sort of agreement with us.

“In fifty, a hundred years I am sure our descendants won’t be talking about poverty, they won’t be talking about unemployment, they wont be talking about extra land so we can build more houses. they’ll be talking about issues we can’t even understand yet but they won’t be dealing with the issues we’re trying to deal with today.

“What is the next agreement? The only thing that makes this possible is two parties sitting down and saying ‘let’s get an agreement for the betterment of all.’”

The incremental treaty ceremony begins at the Haisla Recreation Centre (Robin Rowland/Northwest Coast Energy News)
The incremental treaty ceremony begins at the Haisla Recreation Centre (Robin Rowland/Northwest Coast Energy News)


Quick Facts:

    • Haisla Nation has approximately 1,840 members, with 700 people living in Kitamaat Village, at the head of Douglas Channel, about 10 kilometres south of Kitimat.
    • The incremental treaty agreement provides for the early transfer land to Haisla Nation, ahead of a final agreement with the Haisla.
    • The Province and Haisla Nation have collaborated on a number of initiatives, including facilitating negotiations for the Haisla to purchase former District of Kitimat hospital lands; the purchase of MK Bay Marina; and transfer of foreshore lots in the Douglas Channel
    • In 2012, Haisla Nation and the Province signed the Haisla Framework Agreement allowing for the purchase or lease of approximately 800 hectares of land adjacent to Indian Reserve No. 6, intended for LNG development. The framework agreement also commits the parties to land-use planning around the Douglas Channel, helping to create certainty and allowing other projects in the area to proceed.
    • Haisla is a member of the First Nations Limited Partnership, a group 16 First Nations with pipeline benefits agreements with the Province for the Pacific Trail Pipeline. Haisla and the Province also have a forestry revenue sharing agreement and a reconciliation agreement.
    • Haisla Nation is a member of Marine Planning Partnership for the North Pacific Coast, which provides recommendations on stewardship and sustainable economic development of the coastal marine environment.
    • Over the past decade, the Haisla Nation has engaged in 17 joint ventures with industries seeking to support economic activity for the region

(Source Ministry of Aboriginal Relations and Reconciliation)

Text of the incremental treaty agreement (Pdf)

Haisla chief counsellor Ellis Ross on the dilemma of climate change and development

Haisla Nation Chief Counsellor spoke at Mt. Elizabeth Theatre on June 9, 2015, introducing David Suzuki who was on a speaking tour. This is a lightly edited report on his remarks that outline some of the dilemmas facing the Haisla and the Kitimat valley in an age that needs development but faces climate change.

Good evening.

Among chiefs, I am elected, not hereditary, you are born into that position, I wasn’t born into it.

I am basically a regular commoner just like you guys with a high school education and one year of college and a lot of experience outside my community that I bring back.

These topics about climate change locally, provincially, nationally and worldwide, they’re complicated topics.

Haisla Chief Counsellor Ellis Ross speaks at Mt. Elizabeth Theatre,  June 9, 2015 (Robin Rowland/Northwest Coast Energy News)
Haisla Chief Counsellor Ellis Ross speaks at Mt. Elizabeth Theatre, June 9, 2015 (Robin Rowland/Northwest Coast Energy News)

There’s no one true fix for all of it. The problem is that the Haisla have been thrust into the middle of it and we have to answer it, which is very unfair.

So when we’re talking about what really is a Haisla value, a west coast, a British Columbia value. I must tell you I value the Haisla people, my people, that land, the territory, I think about the Haisla people because I don’t think anyone has given the Haisla people a priority in the last 40 to 50 years.

All the decisions that were made about Haisla territory, that affected out people, were made without us.

The result was that we ended up with 80 per cent unemployment, historically over the last 40 years we have ended up with cancer and we can’t get rid of it.

Poverty, people couldn’t get enough money to fix their bathrooms when the floor was rotting out.

The saying is that you can always tell when the reserve starts is when the pavement ends is true. Unless there’s a political agenda to actually pave the road to the village. The environmental questions that have been raised over the past ten years are not new to the Haisla.

In the 70s it was the Haisla alone who tried to battle emissions when nobody even knew what emissions meant. They tried to stop the effluent dumping into the river that killed off the river they tried to stop the diking of the river so parts of the land could be protected, parks.

When the Haisla knew that the oolichan that was estimated to be hundreds of thousands of tons, were dying off quickly in the span of five years. Nobody listened.
Now the DFO and Canada is realizing that the demise of the oolichan is a signal that something is wrong with the ecosystem.

I would love that someone would come around to the idea of thanking the Haisla people for all the work that they did and went and unheard even in meetings like this today.

And we’re not even talking about salmon.
In all this time, I’ve read all the documents, all the speeches and listened to all the promises of a better tomorrow for all the people but nobody delivered it.

Countless academic papers have been written about Indian poverty.

Nothing was done.

Non-profit organizations used the Haisla to further their cause and left town when they had achieved what they had achieved.

At the same time all the decisions continued to be made without us. And everybody benefited except us.

What happened in the end and the corporations made their billions and made enough money to pay off the mortgage and move down south, the Haisla were left with the mess to clean up. Today we’re still battling to get some of these sites cleaned up and we’re still not getting help.

I don’t blame anyone for this. Whether you’re am environmental organization, a government or a corporation or a non-profit organization, I don’t blame you for this because you have a mandate, you have a special interest. That’s what you’re trying to achieve.

I have a mandate. I do have an organization now that is fully equipped to look at every single permit that comes from the provincial government and the federal government and try to mitigate it given our capacity and our lack of funding.

But some of that benefit has to flow to the Haisla people. It’s our territory.

When you think about what has happened to us, the Haisla, we think about residential schools and I’ve been reading the debate on whether or not it’s genocide or not and I think people are missing the point.

Residential schools were only 10 per cent of a larger program to get rid of the Indian.

The ninety per cent was what was stolen from us as well. The land was taken away and we were put on a chunk of land across the Channel, that was described by the Indian Agent as worthless, it’s not even good for agriculture so give it to the Indians. We had to get permission from the federal government to leave that reserve. We had to get a piece of paper that said he’s allowed to leave the reserve and go pick berries.

We also have had no help other than some academic programs and some sort of study to deal with our suicides. I’m not just talking Haisla here. I really thought that one suicide every five years was really a bad thing. But finding out that my neighbors down the road from here to Prince George are dealing with ten suicides in the first quarter of this year.

It breaks my heart.

Who is responsible for that? If it’s not the government, if it’s not the non-profits, if it’s not corporations, who is it?

I stepped up and said I’ll take full responsibility for this but that means I have a hard message to deliver and I will deliver it on behalf of the Haisla people.

When it comes to climate change, we are living at a very unfortunate time, because finally we’re accepted at the provincial table, at the federal table, the corporate table.

We’re being included but unfortunately, we have to look at climate change as well. It’s a very tough position to be in when you’ve got a Grade 12 education from 1984 and one year of college education in 1985.

It’s a very tough topic, I can tell you. I’ve been to China, I’ve been to Korea and no matter what you say about the emissions there, Canada and BC have no problems with emissions here until you visit China.

They’re not going to get off crude oil, they’re not going to get off diesel fuel, they’re not going to give up coal because a billion people there want the same standard of living that you have in Canada. And I’m talking about India as well. They want the same standard. They want good houses; they want to own a car. They are not going to stop their thirst for energy.

I don’t have the answers.

I still believe that natural gas is a lot cleaner than coal and even if you put a small dent in it, it’s not enough to get these guys off nuclear power.

And the solar power you’re talking about, they do it for show but that’s not going to meet the energy needs of China. We’re not even talking about India; we’re not even talking about Korea.

You say can you help get China off dirty fuel, but all their pollution keeps getting dumped on South Korea.

I represent 1700 people, how am I going to do that?

We’re being asked to do a near impossible task while I’m trying to dig my people out of poverty. At the same time, when we get this opportunity we’re giving our members very mixed messages, including our young people which is heart breaking for me.

Because we’re telling them get an education, don’t be a burden on society, get a job, but by the way there are no jobs here, there’s no way to get into existing industries so you better go to the oil fields of Alberta to get a job. A lot of our people head over there or to Vancouver.

I’ve been following this debate on climate change for quite a while now, for over six years. I’ve been listening to everybody, I’ve been listening to corporations, being listening to governments, been listening to non-profits, but on behalf of the Haisla Nation Council, I’m here to tell you, that when it comes to the future of the Haisla I have very little patience with this. I don’t want to see another essay about what to do about Indian suicides.

I believe that our people are being sick and tired of being left out and left behind, while everyone else is moving on with their lives. I do want to what’s best for the region I do want to do what’s best for the province and Canada and the world. But I will not do it at the expense of the Haisla people. We’ve been at the dirty end of the tick for the last 40 years. It’s going to stop. Thank you very much and enjoy your evening.

Why the media coverage of the Tim Hortons boycott is a double double failure

The headline on Thursday’s CBC.ca coverage of the sudden controversy over a boycott  in British Columbia of Tim Horton’s over the Enbridge ads sums up everything that’s wrong about media coverage not only of the boycotts, but of northwest energy and environment issues overall.

“Tim Hortons yanks Enbridge ads, sparks Alberta backlash.” The anger at Tim Hortons across northwest British Columbia over those Enbridge ads, the calls for a boycott have been building for more than two weeks but no one in the media noticed despite widespread posts on Facebook and other social media.

CBC.ca

As usual, the concerns of the northwest didn’t really become a story until Alberta got involved and  the story has become the “Alberta backlash.”  Now, there’s a backlash on social media to the Alberta backlash, with northwestern British Columbians tweeting and posting their displeasure, angry at the usual blinkered views of Alberta-centric coverage of energy issues.

Let’s make one thing clear– despite the outraged cries of the usual suspects like Defence Minister Jason Kenney, Conservative MP Michelle Rempel, who represents Calgary Centre-North and Kyle Harrietha, the Liberal candidate for Fort McMurray-Cold Lake that the boycott was aimed  at Alberta’s entire energy industry and the province’s views of a manifest destiny as an energy super power, the doughnut boycott was really aimed specifically at Enbridge, and the company’s arrogance and incompetence.

This morning Wildrose party leader Brian Jean has joined the Alberta boycott and is demanding the Enbridge ads be reinstated. “I’ll pick up my Tim’s coffee again when they decide to apologize for taking jabs at our industry, which is so important to Albertans,” Jean is quoted on CBC.ca.

Of course Jean, like most Albertans, isn’t  looking at the bigger picture. The question that Jean should really be asking, is the continuing unquestioning support for Enbridge actually harming the rest of the Alberta energy industry by increasing the resistance in northwestern BC to other energy projects? When are Alberta politicians, whether federal or provincial, ever actually going to show even a Timbit of respect for the issues in northwestern British Columbia?

Look at what Enbridge is doing

There is strong support (with some reservations) for the liquified natural gas projects. There is a level of support for pipelines that would carry refined hydrocarbons to the coast, something that the new premier of Alberta, Rachel Notley is seriously considering.  But it is so typical of Alberta, the Alberta media and most of the Canadian media, to believe that the boycott was an attack on the entire energy industry.

Ask any executive of an energy company that wants to do business in northwestern British Columbia and they’ll come  up with the a joke that is now so old and so often repeated that it’s become a cliché, “We look at what Enbridge is doing and then do the exact opposite.”

timmysamos

The fact is that Enbridge has been dealing with northwestern British Columbia for more than ten years and they still can’t do anything right. Shell, Chevron, Petronas (and before them Apache) and even TransCanada make more efforts to listen to the people, First Nations and non-Aboriginal residents alike, than Enbridge ever has or ever will (despite their claims in their PR campaigns).

While these energy giants may not agree with what they hear, they are respectful and depending on their corporate culture are making genuine efforts to come up with ways to make their projects work. After a decade of blunders, however, Enbridge still hasn’t shown that much respect for anyone here. Those touchy feely ads that appear on television and at Tim Horton’s are just another example of how not to run a public relations campaign.

There are those who oppose any bitumen sands extraction who signed the online petition, but the core of opposition, as always, comes from northwestern BC and the issue is an ill-conceived pipeline.

Enbridge has been successful in one area of its public relations strategy. They’ve convinced Albertans that Enbridge and the Northern Gateway pipeline is an essential part of not only the Alberta economy but Alberta culture. Any attack on Enbridge becomes an attack on Alberta. Hence the unreasoned anger when after Tim Hortons pulled the ads.

The big blame America lie

The other Big Lie we keep hearing from the Harper Government, is that this all orchestrated by American NGOs and activists. Again this shows Alberta-centric contempt for British Columbia. It’s very easy and convenient to keep believing that everyone in northern British Columbia are dumb and stupid and are being led by the ear by those nasty green Americans who have it in for the efforts to make Canada an energy superpower. That idea, promoted by the more conservative Canadian media has always been animal waste. The battle to protect the environment of northwestern British Columbia while at the same time attracting resource projects that have recognized and obtained social licence to operate has always and will always in BC on a case by case, community by community basis.

Macleans

The only media that so far has managed to get it half right is Jason Kirby writing in MacLean’s who notes that the trouble began on May 18 when Enbridge put up the Tim Hortons ad on their own website. (Did I mention that Enbridge is both incompetent and arrogant?) and it was immediately noticed by those individuals and activists that monitor the Enbridge website.

A morning shock with your morning coffee and Timbits

Social media across northwestern British Columbia, mostly Facebook, began spreading the news within hours of the ads appearing in the local Timmys. There were angry posts from individuals who had walked in Tim Hortons and saw the ads.

Post in the Kitimat Politics Facebook group.
Post in the Kitimat Politics Facebook group.

Why didn’t the media get the story?

So why wasn’t the story covered by the media at least ten days ago?

That’s because in this age of tight budgets, it’s considered easy and economical to try to all of northern BC cover from either Vancouver or Calgary; that means covering from far away both the coast where the pipelines and tankers may or may not operate to the east near the Rockies where the natural gas extraction is on going

If you look at map of northern BC, and the two federal ridings Skeena Bulkley Valley and Prince George–Peace River–Northern Rockies, the population is about 200,000 spread over an area about half the size of Europe. Both ridings in this region are supposedly vital to the future of the Canadian economy, but you wouldn’t know it from most of the media. (The Globe and Mail is an exception, with more ongoing coverage of northern BC than you will find in either The Vancouver Sun or The Province).

Elections Canada map showing just how big the two northern BC ridings are.  (Elections Canada)
Elections Canada map showing just how big the two northern BC ridings are. (Elections Canada)

As for CBC, there are just eight radio staff, two in Prince Rupert and six in Prince George to cover all the apparently vital issues across half the province. ( Almost all the staff work mostly for the Daybreak North morning show which dominates the regional rates but it looks like with the latest CBC cutbacks that at least one of those positions will be eliminated). CBC TV and Global cover the region from Vancouver.

At least the Vancouver based media make efforts to cover the north from time to time. The Alberta media, however, especially the Calgary Herald, is hopeless, and so biased against British Columbia and so dismissive of the issues here, that the coverage across Alberta is completely unreliable about 90 per cent of the time—it’s no wonder that the majority of Albertans have no understanding of British Columbia culture and issues.

Then there are the punditi, pontificating from their cubicles in Ottawa and Toronto without a clue, without doing the basic journalism of picking up the phone (or writing an e-mail) to actually find out what’s going on.

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coyne2

Andrew Coyne, for example, made these rather silly two tongue-in-cheek tweets Thursday night. While Coyne’s tweets do often exhibit a sense of humour, his excellent coverage of the decline of our democratic parliament has to be compared with his blind, unchecked ideological assumptions about the issues of the northwest, which are simplistic, cubicle bound and far off the mark. The same can be said for Jeffrey Simpson in his occasional writing about this region. Neither the view from the Hill, where you can see as far as the Queensway, nor from Bloor Street, where you can see part of the Don Valley, are vantage points to understand what is going in northern British Columbia.


Update: Rex Murphy, writing in the National Post,  has now joined the fray, no longer making a secret of his absolute disbelief in climate change and support for Enbridge. However, if you read his column, it is scathing in its contempt for the working men and women of British Columbia who want sustainable environmentally safe resource projects. It appears that to Murphy the only people in this country who actually work for a living in Canada are in Alberta and Newfoundland and no where else.   Kitimat has been an industrial town since it was founded in the 1950s, Kitimat rejoiced when former Mayor Joanne Monaghan succeeded in bringing a Timmys to Kitimat and the majority of Kitimat residents voted in the plebiscite against Enbridge.  But, of course, all those facts are irrelevant to Murphy and the other conservative pundits who never come within a thousand kilometres of northwestern BC, who believe we can’t think for ourselves and are easily misled by American environmentalists.  No wonder journalism is in a death spiral.


Error checks

So let’s look at the specific errors in the media coverage of the Tim Horton’s story.

globetimmys

Both Shawn McCarthy in the Globe and Mail and Kyle Bakyx on CBC.ca seem to accept without question that SumofUs, was the instigator of the petition. Like many issues in northwestern BC, the Lower Mainland or US based activist groups follow the lead of northwestern BC and jump on the bandwagon, not the other way around. Jason Kirby in MacLean’s says the boycott movement began a week ago. Here in Kitimat, it began within hours of the ads appearing in the local Timmys and was picked up on activist social media groups before the SumofUs petition site.

McCarthy repeats the conventional wisdom: “The Conservatives and oil industry supporters have been waging a public relations war with the environmental groups that oppose expansion of the oil sands and construction of new pipelines.”

When is the media ever going to learn that opposition to Enbridge is widespread across most of northern British Columbia, from First Nations to city and regional councils to a plurality of residents? When is the media going to drop the stock phrase “First Nations and environmentalists”? Does anyone remember the vote in Kitimat last April against the Northern Gateway project?

CBC.ca quotes Alan Middleton of York University “Enbridge, of course, is not just pipelines and oilsands; they are a whole range of products including heating people’s homes. Tims should have thought about that.” Again a mistake. I lived in Toronto for many years. A company called Consumers Gas supplied natural gas to homes until it was taken over by Enbridge, so Enbridge does heat the homes in Toronto. But what has that got to do with northwestern British Columbia? Why didn’t CBC.ca call the University of Northern British Columbia? Easier to call York (which by the way is where I got both my BA and MA)

McCarthy quotes Rempel as saying, “One has to wonder whether head office talked to their franchise owners in Alberta before making the decision. I imagine those calls are being made this afternoon – certainly there are a lot of people voicing their displeasure.”

The question that should have been asked whether or not Tim Hortons consulted their franchise owners in British Columbia before ordering them to play the ads. People here were “voicing their displeasure” from the moment the first Kitimatian walked into the local Timmys for an early morning coffee and had to stand in line while being told how wonderful Enbridge is.

Of course, if Albertans force Tim Hortons into reinstating the ads, that will only trigger a bigger boycott in British Columbia.  As Maclean’s asks, “what were they thinking?”

Jason Kenney, flying in, flying out

As for Jason Kenney, who is quoted by the CBC as tweeting:  “I’m proud to represent thousands of constituents who work for Enbridge & other CDN energy companies,” if Kenney aspires to be Prime Minister one day, he had better start thinking about representing more Canadians than just those employed by the energy industry—a mistake that his boss Stephen Harper keeps making.

Jason Kenney did visit Kitimat for a just a few hours in February 2014  for a tour of the Rio Tinto modernization project and an obligatory and brief meeting with the Haisla First Nation council. If Kenney had actually bothered to stick around a few more hours and talk to the community, everyone from the environmentalists to the industrial development advocates, he might not have been so quick on the trigger in the Twitter wars.

Not one of the major media who covered this story, not The Globe and Mail, not CBC.ca, not MacLean’s, no one else, once bothered to actually call or e-mail someone who lives along the Northern Gateway pipeline route in British Columbia, the area where the boycott movement actually began to ask about Enbridge’s track record in this region. The media still doesn’t get it. This morning’s stories are all about Alberta. As usual, my dear, the media doesn’t give a damn about northwestern British Columbia.

That is why the coverage of the Tim Hortons boycott is a double double failure of the Canadian media.

timmyskpoljune4




Where else the media is failing northwestern BC

Full disclosure. Since I took early retirement from CBC in 2010 and returned to Kitimat, I have worked as a freelancer for CBC radio and television, Global News, Canadian Press, The National Post, The Globe and Mail and other media.

However, largely due to budget cuts, freelance opportunities, not only for myself, but others across the region have dried up. The media seems to be concentrating more on the major urban areas where there is larger population base and at least more of the ever shrinking advertising dollar. I am now told more often than I was a couple of years ago that “we don’t have the budget.”

Now this isn’t just a freelancer who would like some more work (although it would be nice). If the media these days actually had environmental beats for reporters the boycott of Tim Hortons in northwest BC would have been flagged within a couple of days, not almost two and half weeks and later only when Alberta got hot under its oily collar.

So as well as the Tim Horton’s boycott here are two major ongoing stories from Kitimat that the media haven’t been covering.

100 day municipal strike

-Kitimat’s municipal workers, Unifor 2300, have been on strike since February 28. Three rounds of mediation have failed, the union has refused binding arbitration, the pool, gym and community meeting halls have been closed since February, the municipal parks and byways are now returning to the wilderness. Only essential services are being maintained (but residents still have to pay their property taxes by July 2, taxes that are skyrocketing due to increased assessments for home values based on LNG projects that haven’t started) By the time most people read this the strike will have been on for 100 days. There is no settlement in sight and both sides, despite a mediator ordered blackout, are fighting a press release war on social media. Can you imagine any other place that had a 100 day municipal workers strike with no coverage in the province’s main media outlets, whether newspaper or television? Local CBC radio has covered the strike, as has the local TV station CFTK.  (Update: District of Kitimat says in a news release that the mediator has now approved the DoK news releases.)

Of course, in the bigger picture the media concentrates on business reporting. There haven’t been labour reporters for a generation.

Kitimat air shed hearings

-The environmental hearings on the Rio Tinto Alcan proposal to increase sulphur dioxide emissions in the Kitimat Terrace air shed, after two weeks in Victoria, where there was no media coverage, are now continuing in Kitimat, where again there is little media coverage. CFTK is covering the hearings; otherwise the main coverage comes from the activist group DeSmog, hardly a credible or unbiased source. I made the decision not to cover the hearings either. I can’t afford any longer to sit around for two weeks, unpaid, no matter how vital the hearings are to the community.

So if most Canadians were surprised that there was a boycott of the unofficial national symbol, Tim Hortons, it’s because of that double double media fail and as the media continues to decline, as budgets are cut, as “commodity news” disappears, expect more surprises in the future. Oh by the way Kitimat is vital to the national economy but we can cover it from a cubicle in Toronto.

Final disclosure: I am not a coffee drinker. When I go to Timmy’s I prefer a large steeped tea and an apple fritter.

Photo op or engagement? How the Harper government failed in the northwest

Bear totem at UNBC
The bear totem at the University of Northern British Columbia, one of the backdrops considered by Natural Resources for an announcement by Joe Oliver. (UNBC)

If anyone wanted a snapshot (or for younger folks a selfie) of why the Harper government grounded out at home, never even getting to first base  with northwestern British Columbia on Northern Gateway and other resource projects, it can be found in about sixty pages of  documents, obtained by Northwest Coast Energy News under the Access to Information Act, documents that outline the planning for former Natural Resources Minister Joe Oliver’s first visit to Terrace in March 2013

  • The documents reveal the priority for Natural Resources communications staff was mainly finding an appropriate First Nations visual backdrop for Oliver’s speech announcing the appointment of Douglas Eyford as special representative to First Nations, the Harper government’s attempt to smooth relations as it dawned on the government that opposition to Northern Gateway wasn’t just going to disappear.
  • Despite years of media coverage from both those opposed to and even those who support the Northern Gateway project that highest priority issue was preventing oil spills whether from tankers or pipelines, the Ottawa-based communications planners in Natural Resources Canada were talking about how aboriginal and non-aboriginal communities could respond to oil spills.
  • For an event that was supposed to engage the First Nations of coastal British Columbia and gain their support for resource projects, all the economic examples are about Alberta First Nations who are working the extraction of bitumen in Alberta, there are no example of how BC First Nations might profit from Northern Gateway (that is if any BC First Nations actually wanted to do so)
  • A visit to Kitimat, the centre of the debate, wasn’t even on the radar in March, 2013, as Joe Oliver, then Minister of Natural Resources, even though Kitimat is just a 40 minute drive from the site of the announcement at the Terrace campus of Northwest Community College.

When Natural Resources Canada started planning Joe Oliver’s announcement they created what was called a “Message Event Proposal” which even in its title shows how the government and the communications staff think. The message is more important than the event.

Northwest Coast Energy News
Finding a background with a First Nations focus was a high priority for Natural Resources Canada in choosing Northwest Community College in Terrace for an announcement by Minister Joe Oliver on March 19, 2013. (Robin Rowland/Northwest Coast Energy News)

The planning documents from Natural Resources, starting on March 5, 2013, indicate that from the beginning the announcement was being treated as a photo op. Invitations to or participation by “stakeholders” are listed as N/A “not applicable,” which meant that meetings, even private meetings, with representatives of northwestern First Nations and other communities either weren’t considered or the communications staff weren’t informed. (If there were such plans they were not part of the access documents released and as far as Northwest Coast Energy News can find out no meetings took place since Oliver left for Ottawa immediately after the announcement)

The documents show that there were no plans to involve "stakeholders" in Joe Oliver's announcement.
The documents show that there were no plans to involve “stakeholders” in Joe Oliver’s announcement.

The Natural Resources communications staff were working on multiple angles in March, as part of what the planning documents call “a suite of events in Vancouver on marine and pipeline safety.”

The first set of those events would eventually take place on March 18, 2013, in Vancouver, and included the announcement, without consulting either Rio Tinto Alcan or the District, that Kitimat’s private port run by Alcan since it was first built would be turned in a federal public port.

The announcement of Eyford’s appointment  would eventually take place at the Waap Galts’ap community long house at Northwest Community College in Terrace on the morning of March 19.

That location certainly wasn’t clear at first. The first documents suggested the announcement take place in Vancouver, and then a day later on March 6, the proposed venue, according to the staff, was in either Prince Rupert or Prince George.

According to the internal e-mails, sometime that week what Ottawa bureaucrats call MINO — the minister’s office– decided that the venue should be Terrace. On March 11, e-mails among Natural Resources staff show that the choice had changed to either Terrace or Prince George.

Since the “special representative” whom we now know would be Douglas Eyford, would report directly to Prime Minister Stephen Harper, the political level was involved.  MINO took over writing Oliver’s speech and the arrangements were copied to the Privy Council Office, the civil service branch that has overall supervision of the federal bureaucrats and works directly with the Prime Minister. So the speech that the communications branch had drafted for Oliver became “can please turn the one we had done for him into the remarks for the new guy?”

Plan B in Prince George

The choice of Terrace left the Natural Resources Ottawa staff hedging their bets, looking for a “potential plan B” in Prince George. The e-mails indicate that Ottawa asked  Natural Resources west coast communications officer for a list of suitable locations in Prince George.

The communications officer replied with three locations at the University of Northern British Columbia “a moving bear totem on campus” the main administration building which the e-mail said “ has a strong First Nations focus,” adding  “Environment Canada has done…events there. Strong FN visuals.” The third choice was “a new bio energy facility that looks industrial.”

Backups were The College of New Caledonia trade centre and the Prince George industrial park.

UNBC adminstration building
Natural Resources Canada also considered the “strong First Nations visuals” at the University of Northern British Columbia administration building. (UNBC)

NRCan email

 

UNBC bioenergy lab
The University of Northern British Columbia’s bioenergy facility. (UNBC)

E-mails from the staff on Wednesday, March 14 and Thursday, March 15, showed while they were now aware the event would be in Terrace, and probably at Northwest Community College, there was still a lot of uncertainty. “We haven’t been able to contact them to confirm, but as soon as we do, we will let you know the exact details as well as what is required in terms of logistics.”

Remembering that Natural Resources and Transport Canada were also planning the Vancouver event on Monday, March 18, it appears that even as Oliver arrived on the morning of March 19, the minister’s staff both political and bureaucratic were still scrambling.

On March 19, the NWCC staff on site were complaining that as soon as the Ottawa delegation saw the standard arrangements for an event at the Waap Galts’ap community long house they ordered the NWCC staff to immediately rearrange the room, so that the podium was in front of one wall with what Oliver’s staff thought was a better First Nations painting. That rearranging was still going on when I arrived to cover the announcement.

Joe Oliver
Joe Oliver tries out a heavy equipment simulator at Northwest Community College on March 19, 2013, prior to his speech. (Robin Rowland/Northwest Coast Energy News)

Even after the furniture was rearranged, the start was delayed as Oliver and his staff disappeared into an upstairs room for a meeting before the news conference began, and Oliver announced Eyford’s appointment.

During the question and answer session with the media during the news conference, the students that had essentially been brought in as props for the photo op and to help promote Northwest Community College’s industrial training program, began to ask questions.

news conference
Joe Oliver listens to a question from a student at the Northwest Community College news conference. (Robin Rowland/Northwest Coast Energy News)

One student asked Oliver if Eyford’s appointment was going to replace “all talks” with First Nations about resource projects. The Natural Resources public relations staff tried to cut off one student, since the national media were waiting on a telephone conference call. To his credit, Oliver did answer the student’s question, saying Eyford’s appointment was not intended to “replace the independent, regulatory review.” He went on to explain the Northern Gateway Joint Review would continue its work and report at the end of 2013.

What was Ottawa thinking? You too, can respond to an oil spill.

If the aim was to engage the First Nations and other residents of northwestern BC, it is clear that the concerns of this region hadn’t reached out Ottawa.

It appears from the planning documents for Joe Oliver’s trip to Terrace, that a main concern of everyone in the northwest, aboriginal and non-aboriginal, opponents and supporters of the Northern Gateway pipeline, preventing oil spills also wasn’t on the government radar, rather it was preparing and responding to oil spills.

Guess who would respond?

As part of the measures to strengthen Canada’s Marine Oil Spill Preparedness and Response Regime, the Government of Canada will strengthen the engagement and involvement of Aboriginal and non-aboriginal communities in preparing for and responding to oil spills.

oilspill

When it comes to a key section on benefits from the Northern Gateway and other resource projects, there is no mention of benefits to British Columbia; rather it appears all the examples of benefits for aboriginal communities come from Alberta, including $1.3 billion in contract work for oil sands companies not including construction, for the year 2010, and $5 billion since 2001. The Message Event Proposal also cites a joint venture between the Bigstone Cree and Bronco Energy, “the biggest oil sands project every undertaken on First Nations reserve lands.”

economicbenefit

Overall the plan was to “Promote Canada’s commitment to achieving its goals under its plan for Responsible Resource Development, including increased consultations with Aboriginal peoples.”

The “media lines’ issued by Natural Resources also outlined the Harper government’s attitude to the Northern Gateway, noting that Eyford’s appointment was independent of the Northern Gateway Joint Review, and went to indicate that the JRP was “conducting a rigorous, extensive, open, science-based assessment.” It adds that “we will continue to rely on the integrity of this process,” again showing how out of touch Natural Resources was (at least in talking points) since by March 2013, there was growing consensus in the northwest that the JRP had lost its credibility.gateway1
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The media lines also show that the Harper government believed that “Aboriginal consultations are fully integrated into the review process to ensure meaningful consultation occurs,” a position that most First Nations in British Columbia reject, insisting on meaningful consultations between the Crown and the First Nation.

consultation1

When Eyford presented his report to the Prime Minister in December, 2013, Eyford called for stronger action to engage First Nations opposed to new oil and gas pipelines.

“It’s never too late to engage and do so in a process of good faith negotiations… “This won’t be an easy process. I hope my report is perceived as providing objective and blunt advice to all the parties engaged in this process.’’

The 53 page report contained dozens of recommendations mainly concerned with a more open and principled dialogue with First Nations.

“The development of West Coast energy infrastructure provides an opportunity to forge partnerships and build relationships. There is a strong interest and real opportunity for Canada and aboriginal Canadians to more effectively collaborate to address their respective interests.’’

Editor’s note:  On the port issue, an RTA spokesperson noted that talks with the federal government are continuing. He noted that all the Kitimat port facilities are privately owned, by Rio Tinto Alcan or by LNG Canada and there are “multiple stakeholders” involved.

Documents

Natural Resources Media Lines  (pdf)

Natural Resources Message Event Proposal  (pdf)

Forging Trust Douglas Eyford’s final report  (pdf)

Related Links

Joe Oliver makes flying visit, meets Haisla, snubs Kitimat (almost)

Harper government to District of Kitmat Drop Dead

Phil Germuth, Enbridge’s “What the….” moment and what it means for British Columbia

Phil Germuth
Councillor Phil Germuth questions Northern Gateway officials about their plans for leak detection, Feb. 17, 2014 (Robin Rowland/Northwest Coast Energy News)

Enbridge Northern Gateway officials are loath (to put it mildly) to speak to the media but sometimes they let things slip. Earlier this summer, at a social event, I heard an Enbridge official (probably inadvertently) reveal that when the company’s engineers came before District of Kitimat Council earlier this year they were surprised and somewhat unprepared to fully answer the detailed technical questions from Councillor Phil Germuth on pipeline leak detection.

In January, 2015, Phil Germuth will take the centre chair as mayor at the Kitimat Council Chambers.

The results of the municipal election in Kitimat, and elsewhere across BC show one clear message; voters do want industrial development in their communities, but not at any price. Communities are no longer prepared to be drive by casualties for giant corporations on their road to shareholder value.

The federal Conservatives and the BC provincial Liberals have, up until now, successfully used the “all or nothing thinking” argument. That argument is: You either accept everything a project proponent wants, whether in the mining or energy sectors,  or you are against all development. Psychologists will tell you that “all or nothing thinking” only leads to personal defeat and depression. In politics, especially in an age of attack ads and polarization, the all or nothing thinking strategy often works. Saturday’s results, however, show that at least at the municipal level,  the all or nothing argument is a political loser. Where “all politics is local” the majority of people are aware of the details of the issues and reject black and white thinking.

Ray Philpenko
Northern Gateway’s Ray Philpenko gives a presentation on pipeline leak detection to Kitimat Council, Feb. 17. 2014. (Robin Rowland/Northwest Coast Energy News)

The Enbridge official went on to say that for their company observers, Germuth’s questions were a “what the…..” moment.  As in “what the …..” is this small town councillor doing challenging our expertise?

But then Enbridge (and the other pipeline companies) have always tended to under estimate the intelligence of people who live along the route of proposed projects whether in British Columbia or elsewhere in North America, preferring to either ignore or demonize opponents and to lump skeptics into the opponent camp. The Northern Gateway Joint Review Panel also lost credibility when it accepted most of Northern Gateway’s arguments at face value while saying “what the ……” do these amateurs living along the pipeline route know?

Pro Development

“I am pro-development,” Germuth proclaimed to reporters in Kitimat on Saturday night after his landslide victory in his campaign for mayor.

On the issue of leak detection, over a period of two years, Germuth did his homework, checked his facts and looked for the best technology on leak detection for pipelines. That’s a crucial issue here where pipelines cross hundreds of kilometres of wilderness and there just aren’t the people around to notice something is amiss (as the people of Marshall, Michigan wondered at the time of the Line 6B breach back in 2010). Enbridge should have been prepared; Germuth first raised public questions about leak detection at a public forum in August 2012. In February 2014, after another eighteen months of research, he was ready to cross-examine, as much as possible under council rules of procedure. Enbridge fumbled the answers.

So that’s the kind of politician that will be mayor of Kitimat for the next four years, technically astute, pro-development but skeptical of corporate promises and determined to protect the environment.

Across the province, despite obstacles to opposition set up by the federal and provincial governments, proponents are now in for a tougher time (something that some companies will actually welcome since it raises the standards for development).

We see similar results in key votes in British Columbia. In Vancouver, Gregor Roberston, despite some problems with policies in some neighborhoods, won re-election on his green and anti-tankers platform. In Burnaby, Derek Corrigan handily won re-election and has already repeated his determination to stop the twinning of the Kinder Morgan pipeline through his town. In Prince Rupert, Lee Brain defeated incumbent Jack Musselman. Brain, who has on the ground experience working at an oil refinery in India, supports LNG development but has also been vocal in his opposition to Northern Gateway.

The new mayor in Terrace Carol Leclerc is an unknown factor, a former candidate for the BC Liberal party, who campaigned mainly on local issues. In the Terrace debate she refused to be pinned down on whether or not she supported Northern Gateway, saying,  “Do I see Enbridge going ahead? Not a hope,” but later adding, “I’d go with a pipeline before I’d go with a rail car.”

 

election signs
Kitimat election signs. (Robin Rowland/Northwest Coast Energy News)

Plebiscite confirmed

Kitimat’s mayor and council elections also confirm that Northern Gateway plebiscite vote last April. Kitimat wants industrial development but not at the price of the community and the environment. The unofficial pro-development slate lost. A last minute attempt to smear Germuth on social media was quickly shot down by people from all sides of the Kitimat debate. Smears don’t usually work in small towns where everyone knows everyone.

Larry Walker, an environmentalist with a track record in municipal politics as an alderman in Spruce Grove, Alberta, won a seat. Together with Rob Goffinet and Germuth, that is three solid votes for the environment. The other new councillor is Claire Rattee who will be one to watch. Will the rookie be the swing vote as Corinne Scott was?

Mario Feldhoff who came to third to Goffinet in the overall vote (Edwin Empinado was second) is a solid councillor with a strong reputation for doing his homework and attention to detail and the unofficial leader of the side more inclined to support development. Feldhoff got votes from all sides in the community.

During the debates, Feldhoff repeated his position that he supports David Black’s Kitimat Clean refinery. But as an accountant, Feldhoff will have to realize that Black’s plan, which many commentators say was economically doubtful with oil at $110 a barrel, is impractical with oil at $78 a barrel for Brent Crude and expected to fall farther. Any idea of a refinery bringing jobs to Kitimat will have to be put on hold for now.

LNG projects are also dependent on the volatility and uncertainty in the marketplace. The companies involved keep postponing the all important Final Investment Decisions.

There are also Kitimat specific issues to deal with. What happens to the airshed, now and in the future? Access to the ocean remains a big issue. RTA’s gift of land on Minette Bay is a step in the right direction, but while estuary land is great for camping, canoeing and nature lovers, it is not a beach. There is still the need for a well-managed marina and boat launch that will be open and available to everyone in the valley.

Germuth will have to unite a sometimes contentious council to ensure Kitimat’s future prosperity without giving up the skepticism necessary when corporations sit on a table facing council on a Monday night, trying to sell their latest projects. That all means that Germuth has his job cut out for him over the next four years.

Joanne Monaghan, a model mayor for a small town

Joanne Monaghan’s 35 year political career came to halt (at least for now) Saturday when she came third in Saturday’s municipal mayoralty election, behind Phil Germuth and Trish Parsons.

Why?

The best analogy is that of the sports star or coach who stays one season too many. Monaghan had set her sights on 40 years in local politics. But in the 2014 mayor’s race she ran up against a strong sentiment that it was time for a change. She probably allowed that career goal to override any political instincts she may have built up over those years where a small town politician has to keep track of the pulse of events.

Joanne Monaghan
Joanne Monaghan’s poor performance in the all candidates debate hurt her campaign (Robin Rowland/Northwest Coast Energy News)

Monaghan has an impressive track record: municipal councillor since 1980, mayor since 2009. That means Monaghan was mayor during some of the toughest times that Kitimat has faced after the Eurocan pull out.

She served two terms as the head of the Union of BC Municipalities (the first woman) the third woman to be president of the Federation of Canadian Municipalities. She was Chair of the Regional District Kitimat Stikine for eight years and Vice Chair for nine. She has served on the British Columbia Heritage Trust, the Northwest Community College Board, the Provincial Tourism Council, and the Provincial Transportation Committee. Monaghan is also a member of the Northern Development Initiative, and is chair of the University of Northern B.C. Advisory Committee.

The Canadian International Development Agency sent her to Ecuador on a “Municipal Government Technology Transfer between a community in Ecuador and Kitimat. She also facilitated workshops in “Women in Politics” in South Africa and Ghana.

Monaghan served on many local committees, both community bodies mandated by council as well as volunteer groups.

Her 35 years in local politics mean that she knows everyone in town. Her 35 years in municipal politics allowed her to build up valuable contacts in other municipalities, provincial and federal politics as well as the media.

Joanne Monaghan was a model mayor for a small town, for 35 years she was always available to members of the Kitimat community, always ready to respond to a phone call or an e-mail from a Kitimat resident, working hard on issues from restoring old sidewalks to bringing new industry to the valley. She was always available to show up at a local event, even if it was just for a few minutes.

So want went wrong with her campaign?

Monaghan was successful in bringing Tim Horton’s to Kitimat, an asset to any community. She worked hard to bring other business small and large to Kitimat.

If nothing much ever happened in Kitimat, if it was a small one industry town expanding into tourism, Monaghan would probably have been re-elected on Saturday.

If Kitimat was a town facing one major issue, Monaghan might still be mayor.

What made Joanne Monaghan a great small town mayor was also her weakness, trying to do too much and thus while trying to handle a growing number of cascading important issues, becoming overwhelmed by them.

Kitimat is facing Northern Gateway, three liquified natural gas projects, Rio Tinto Alcan Kitimat Modernization, the airshed problems from all those projects, the housing crisis, bettering relations with the Haisla, just to name a few, as well as sorting out normal municipal priorities like maintaining sidewalks.

As early as a year ago, a feeling began to grow in Kitimat that Monaghan wasn’t skeptical enough about some of the companies coming to town bearing gifts. Monaghan tended to avoid the tough questions on Northern Gateway, punting issues (to continue the sports analogy) until the Joint Review Panel reported. Monaghan was not alone among council in burying its head in the sand over the Joint Review Panel but as the leader of a group that is supposed to operate with collegial consensus, Monaghan blocked any real involvement by the District in the JRP.

While Monaghan had helped bring Kitimat from gloom after Eurocan to current fragile boom with the KMP and LNG, there was a feeling that hungry for good news, she was too often willing to accept the assurances from the big corporations dealing with council.

At council, other members began to outshine Monaghan. On different sides of most issues, Phil Germuth and Mario Feldhoff, despite both working full time, always came prepared, files full of documents, facts and figures. Rob Goffinet was always ready to ask a skeptical question. Rookie Edwin Empinado wore his idealism on his sleeve, although he sometimes struggled expressing his focus on issues. Monaghan, on the other hand, often seemed unprepared and inflexible on major issues.

Throughout the summer, there was speculation and conversations around Kitimat, about whether Joanne Monaghan would stand for another term as mayor. In a metropolitan city, polling would have confirmed that there was a growing feeling that it was time for a change. If Monaghan noted the warning signs, and they were noticeable in a small town, she chose to ignore them.

When Monaghan said in her campaign literature that she would “stand up to outside influences and special interest groups” who did she mean by “special interest groups?” If she meant Douglas Channel Watch the most prominent “special interest group” in town or the no vote in the plebiscite in general, she narrowed her options, since Trish Parsons was the “pro-development” candidate.

all candidates debate
Both Trish Parsons and Phil Germuth put forward strong arguments in the all candidates debate while Monaghan appeared to be upnprepared. (Robin Rowland/Northwest Coast Energy News)

If there was a moment where Monaghan really lost the election, it was her performance in the all candidates debate at Mt. Elizabeth Theatre. Phil Germuth shone in the debate and Trish Parsons was a close second. They were clearly prepared and rehearsed, ready with their statements and with their answers to the questions, winging the questions that were totally out of left field. The generational difference between Monaghan and her rivals was clear on stage. It appeared she hadn’t properly prepared, her answers rambled and she was frequently cut off by the moderator for going over the time limit. A solid debate performance might have brought some of Monaghan’s former supporters back into her camp but that never happened.

Although Parsons performed well in debate, the feeling in the community was that, despite her work with the Chamber of Commerce and community groups, she should have “paid her dues” by at least one term on council before trying for the mayor’s chair. So Parsons was unable to build support beyond her pro-development base.

With Monaghan’s support slipping away and Parsons stalled, the community vote went strongly to Phil to Germuth.

So what is Joanne Monaghan’s legacy? That legacy is that she is the model small town mayor who answered everyone’s phone calls and e-mails, who listened to everyone’s points of view, even those she clearly disagreed with, while also being the model small town mayor who worked hard to tackle district wide issues.

As far as the national media is concerned, Toronto’s notorious Rob Ford created his Ford Nation supporters through a personal touch, by always returning phone calls, making sure Toronto responded to even the most minor complaints. But even before Ford’s personal problems became worldwide media fodder, it was clear that Ford was too often neglecting handling the big picture, the Toronto wide issues, for a constituent’s crack in a sidewalk.

Monaghan was working on that personal touch when Ford was still in high school. Monaghan was smarter than Ford (if Monaghan was a A, Ford was an F), for 35 years she balanced the personal touch with active concern and dogged work for the entire District.

Between 2011 and 2014, Kitimat jumped from the minor leagues to the Premier League, and there was a clear demand for fresh blood to strengthen the political team. The voters decided that the veteran team coach should retire. But Coach Monaghan still does have a shelf full of trophies from those 35 years. If this really was the sporting world, her number should be retired as well and lifted to the rafters.

 

Phil Germuth wins as Kitimat mayor, emphasizes “relationship building”

Phil Germuth won a decisive victory Saturday November, 15, 2014 to become  the new mayor Kitimat for the next four years.  Incumbent mayor Joanne Monaghan came a distant third with Chamber of Commerce director Trish Parsons in second place.

Germuth outpaced his rivals with 1828 votes, Parsons received 530 and Monaghan 447.

Speaking to reporters at the District offices after the results were tabulated, Germuth said,  “Relationship building has to be our number one thing. We really need to build a relationship with the Haisla on all the issues here for industry, in recreation and all the other things.”

Phil Germuth
Kitimat mayor -elect Phil Germuth speaks to reporters at the District of Kitimat offices after winning the mayor’s chair, Nov. 15, 2014. (Robin Rowland/Northwest Coast Energy News)

Germuth said, “We have to deal with affordable housing, we only just got the land from RTA, so we’re going to start trying to work on that and… do everything we can to support industry who wants to come here.”

“I would definitely want to give a thanks to Joanne Monaghan for her 30 plus years of dedicated service, so many good things have come to this community because of her time on council and her time as mayor. Joanne really deserves a big thank you from the community of Kitimat,” Germuth said.

monaghancouncilReached at her home late Saturday, Joanne Monaghan said, “I’m disappointed that I can’t finish some of the things I started doing. It’s going to be very different for me because I’ve given half my life working for the people of Kitimat, it’s going to be different. so I’m going to have to do something else but what will it be I have no idea, I guess when God takes one thing away He gives you another, so we will have to see what it is.

At first Monaghan said she had no specific comment on Germuth’s win but then she added,  “He had the support of the union behind him and usually when you have the union behind you, you usually come out on top.”

Four incumbents are returning to Council,  Rob Goffinet, Mario Feldhoff, Edward Empinado and Mary Murphy, Two newcomers took the seats vacated when Germuth stood for mayor and Corinne Scott  stepped down.  Larry Walker who came to Kitimat to retire and  22 year old art enthusiast Claire Rattee owner  of the DivineInk Tattoos & Piercing  studio.

Unofficial results were Rob Goffinet: 1997; Edwin Empinado: 1966; Mario Feldhoff: 1918; Mary Murphy: 1577; Claire Rattee: 1381 and Larry Walker: 1129

Editorial: On the Simushir, Oceans Minister Gail Shea takes ministerial responsibility to a new low—the bottom of the sea

On Monday, October 20, 2014, the Minister of Fisheries and Oceans, Gail Shea, stood in the House of Commons during Question Period and proved she is not up for the job.

Answering questions from  Opposition MPs about the incident of the Russian container ship, Simushir, which drifted dangerously close to the coast of Haida Gwaii, Shea got up and read a prepared script, a script with answers which ignored centuries of the laws and custom of the sea, as well as Canada’s own laws and treaty obligations, answers probably written by what are now known as “the kids in short pants” in the Prime Minister’s Office.

There was a time in this country when some ministers of the Crown took their responsibilities seriously. That idea that has decayed over the years and now has been gutted by the adminstration of Stephen Harper. As Ottawa pundits have noted recently, only a small handful of cabinet ministers in the Harper government have any real responsibility and only those  are permitted to answer questions by themselves in the Commons. According to most Ottawa insiders, the less important ministers, like Shea, are basically told what to do by the prime minister’s office.

Gail Shea, Minister of Fisheries and Oceans, visited the Canadian Coast Guard Ship Leonard J. Cowley on Friday, December 6,  2013, to examine the fast rescue craft launching mechanism for offshore fishery patrols with Regional Director, Fleet, Stephen Decker and Captain Kerry Evely, Commanding Officer. The Cowley conducts fisheries patrols and monitors fishing activities under Canada's commitment to the Northwest Atlantic Fisheries Organization. (DFO)
Gail Shea, Minister of Fisheries and Oceans, visited the Canadian Coast Guard Ship Leonard J. Cowley on Friday, December 6, 2013, to examine the fast rescue craft launching mechanism for offshore fishery patrols with Regional Director, Fleet, Stephen Decker and Captain Kerry Evely, Commanding Officer. The Cowley conducts fisheries patrols and monitors fishing activities under Canada’s commitment to the Northwest Atlantic Fisheries Organization. (DFO)

If the House of Commons under Harper could fall any lower, Shea’s attitude (or more likely the PMO’s attitude)  on ship and coastal safety takes the Commons and ministerial responsibility to a new low—the bottom of the sea.

Nathan Cullen, NDP MP for Skeena Bulkley Valley, who represents Haida Gwaii first asked. “Mr. Speaker, on Friday, a Russian ship carrying more than 500 million litres of bunker fuel lost all power just off the coast of Haida Gwaii.The Canadian Coast Guard vessel, the Gordon Reid, was hundreds of kilometres away, and it took almost 20 hours for it to reach the drifting ship. Thankfully, favourable winds helped keep the ship from running aground, and a private American tugboat eventually towed it to shore. Is the minister comfortable with a marine safety plan that is based on a U.S. tugboat and blind luck in order to keep B.C.’s coast safe?”

Shea responded.

“Mr. Speaker, luck had nothing to do with the situation.  The Russian ship lost power outside Canadian waters in very rough weather. The private sector provides towing service to the marine industry. We are grateful that the Canadian Coast Guard was able to keep the situation under control in very difficult conditions until the tug arrived from Prince Rupert.”

Cullen tried again:

“Mr. Speaker, if the government really wanted to show its gratitude to the Canadian Coast Guard maybe it would not have cut $20 million and 300 personnel from its budget. Even after the Gordon Reid arrived, its tow cable snapped three times. The Russian ship was only about a third as big as the huge supertankers that northern gateway would bring to the very same waters off the west coast. How can Conservatives, especially B.C. Conservatives, back their government’s plan to put hundreds of oil supertankers off the B.C. coast when we do not even have the capacity to protect ourselves right now?”

Shea replied: “Mr. Speaker, this Russian ship lost power outside of Canadian waters. The Canadian Coast Guard responded and kept the situation under control, under very difficult conditions, until the tug arrived from Prince Rupert.

We as a government have committed $6.8 billion through the renewal of the Coast Guard fleet, which demonstrates our support for the safety and security of our marine industries and for our environment.”

Related Link: Canadian Coast Guard Mid-Shore Patrol Vessel program

Next to try was Liberal MP Lawrence MacAulay from Cardigan.

“Mr. Speaker, the Russian container ship that drifted off the west coast raises serious concerns about the response capability of the Canadian Coast Guard. This serious situation was only under control when a U.S. tugboat arrived.”

Again Shea read her script: “This Russian ship lost power outside Canadian waters.  On the west coast, the private sector provides towing services to the marine industry.’

The final attempt by Liberal Joyce Murray, from Vancouver Quadra, also led to a scripted answer. “ this was a private towing vessel that came to tow the vessel that was in trouble.”

Shea’s answers, especially her repeated reference to “territorial waters” set off a series of “What the…?” posts on Twitter from west coast mariners and sailors, wondering if Shea knew anything about maritime law.

The first question one must ask was Shea actually not telling the whole truth to the House of Commons (which is forbidden by House rules) when she said the Simushir was outside Canadian waters? The Haida Nation, in a news release, (pdf) says the Simushir was “drifting about 12 Nautical Miles North West of Gowgaia Bay located off Moresby Island off Haida Gwaii.”

International law defines territorial waters  as a belt of coastal waters extending at most 12 nautical miles (22.2 km; 13.8 mi) from the baseline (usually the mean low-water mark) of a coastal state.

As Shea’s own DFO website says Canada has exercised jurisdiction over the territorial sea on its east and west coasts out to 12 nautical miles since 1970, first under the Territorial Sea and Fishing Zones Act and now under the Oceans Act. The baselines for measuring the territorial sea were originally set in 1967. While the exact position can and should be confirmed by the ship’s navigation logs and GPS track, it is clear that the container vessel could have been at one point after it lost power within Canada’s territorial waters.

Even if the Simushir wasn’t exactly within territorial waters, the ship was in what again Shea’s own DFO website calls the “contiguous zone “an area of the sea adjacent to and beyond the territorial sea. Its outer limit measures 24 nautical miles from the normal baseline zone.” In any case, the Simushir was well within what Canada says is its “exclusive economic zone” which extends 200 nautical miles from the coastal baseline.

Law of the Sea

So here is the first question about Shea’s competence.

How could she not know that the Simushir was well within Canadian jurisdiction, as defined by her own department’s website? Even if the minister hadn’t read the departmental website, wasn’t she properly briefed by DFO officials?

The second point, is that whether or not the Simushir was in  actually in Canada’s territorial waters is irrelevant. Custom going back centuries, and now the United Nations Convention on the Law of the Sea  and even the Canada Shipping Act all require the master of a capable vessel to render assistance once that vessel receives a distress call or sees that another vessel is in distress.

The Safety of Life at Sea Convention

… the master of a ship at sea which is in a position to be able to provide assistance, on receiving a signal from any source that persons are in distress at sea, is bound to proceed with all speed to their assistance, if possible informing them or the search and rescue service that the ship is doing so.

And the Canada Shipping Act requires

Every qualified person who is the master of a vessel in any waters, on receiving a signal from any source that a person, a vessel or an aircraft is in distress, shall proceed with all speed to render assistance and shall, if possible, inform the persons in distress or the sender of the signal.

The master of a vessel in Canadian waters and every qualified person who is the master of avessel in any waters shall render assistance to every person who is found at sea and in danger of being lost.

Note the phrase any waters. Not just in Canadian territorial waters as the Shea, the minister responsible for the ocean seemed to imply in her Commons answers.

That once again calls into question Shea’s fitness to be a minister of the Crown.

If she did not know about the UN conventions on the law of the sea, of which Canada is signatory, or the Canada Shipping Act, she is not up for the job as Minister of Fisheries and Oceans.

If, as the minister responsible for oceans, she knew the law and was told by the PMO to mislead the House of Commons, she is is irresponsible and MPs should ask the Speaker if she actually broke the rules of the House.

 UN training document on the Law of the Sea Convention, including rescue at sea.  (pdf)

Regulation Seven of the Annex on Search and Rescue Services states

 Each Contracting Government undertakes to ensure that necessary arrangements are made for distress communication and co-ordination in their area of responsibility and for the rescue of persons in distress at sea around its coasts. These arrangements shall include the establishment, operation and maintenance of such search and rescue facilities as are deemed practicable and necessary, having regard to the density of the seagoing traffic and the navigational dangers, and shall, so far as possible, provide adequate means of locating and rescuing such persons.

Note that the regulation does not say within territorial waters, but “around its coasts.”

Rendering assistance

Canada has always rendered assistance to distressed vessels not just up and down the coast but around the world. Take the case of HMCS Chartlottetown. On February 3, 2008, HMCS Chartlottetown on anti-piracy and anti-terrorist patrol in the North Arabian Sea, spotted a rusty barge with some men stranded on the deck. It turned out the men were from Pakistan and that the vessel towing the barge had sunk with all hands, leaving only the men on the barge alive. The North Arabian Sea is far out side Canadian territorial waters.

In February, 2008. the crew of HMS Charlottown rescued the crew of a Pakistani barge that was drifting in the North Arabian sea after the tug that was hauling the barge sank. (MCS CHARLOTTETOWN’s approach team speaks to Pakistani crewmembers who were stranded on a barge after the vessel towing it sunk with their fellow crewmembers on board in the Northern Arabian Sea. MCS CHARLOTTETOWN’s approach team speaks to Pakistani crew members who were stranded on a barge after the vessel towing it sunk with their fellow crewmembers on board in the Northern Arabian Sea. (Cpl Robert LeBlanc,/Canadian Forces Combat Camera)
In February, 2008. the crew of HMCS Charlottetown rescued the crew of a Pakistani barge that was drifting in the North Arabian sea after the tug that was hauling the barge sank. (Cpl Robert LeBlanc,/Canadian Forces Combat Camera)

On must wonder then if the Harper Government, or at least Minister Shea is suggesting that this country ignore centuries of maritime law and custom and, in the future, pass that barge by because it was not in Canadian waters?

Perhaps buried in the next omnibus bill we will see the Harper Government restrict rescue at sea to Canadian territorial waters. Farfetched? Well that is what Minister Shea’s answer in the Commons seems to suggest.

Given the cutbacks to the Coast Guard services over the past few years, and if there are going to be large tankers, whether LNG or bitumen, on the west coast, it is an open question whether or not the Harper government has actually made  those “arrangements shall include the establishment, operation and maintenance of such search and rescue facilities as are deemed practicable and necessary, having regard to the density of the seagoing traffic and the navigational dangers, and shall, so far as possible, provide adequate means of locating and rescuing such persons.”

Now comes the question of the use of the tug Barbara Foss and the two Smit tugs that later joined to tow the Simushir into Prince Rupert harbour.

It is the responibility of the owner or manager of a disabled vessel, large or small, to contract with a tug or towing service to safely take it back to port. But, and it’s a big but, the tow begins only when it is safe to do so, if there is a danger of the ship foundering, sinking or running aground, it is the obligation of all the responding vessels to render assistance, not just the tug contracted to do the job.

(There are reports that the Simushir owners chose to hire the Barbara Foss rather than the heavy duty Smit tugs available at Prince Rupert. Jonathan Whitworth, CEO of Seaspan told Gary Mason of The Globe and Mail that there are about 80 boats on the west coast, capable of  heavy-duty towing, but noted that as in the case of the Simushir, those vessels may not be available when needed)

While around the Lower Mainland of BC, even a small boat that has run out of gas or has engine trouble can get commercial assistance from many service providers, the same is not true of the north coast, or at Haida Gwaii, where are no such regular services. Seapan’s Whitworth told The Globe and Mail there is often a 6,000 horsepower log hauling tug that works off Haida Gwaii. but he also noted that it would be too expensive to have a tug permanently moored on the archipelago.

That means mariners who run out of gas or have engine trouble, say on Douglas Channel, have to call Prince Rupert Coast Guard radio and request assistance either from nearby vessels or from the volunteer Royal Canadian Marine Search and Rescue  service. RCMSAR policy says that a the rescue boat will not tow a vessel if “commercial assistance is reguarly available.” If commercial assistance is not available RCMSAR is only obligated to tow the boat as far as a “safe haven,” where the boat can tie up safely or contract for that “commercial assistance.”

Here on Douglas Channel the safe haven is usually Kitimat harbour and thus during the summer frequently either a good  Samaritan vessel or RCMSAR take the disabled vessel all the way to MK Bay.

Shea’s pat answer to the Opposition questions only betrayed the fact that the east coast minister is woefully ignorant of conditions on the northern coast of British Columbia.

In the old days, a minister who screwed up so badly would be asked to resign. That never happens any more. Ministerial responsibility has sunk to the bottom of the sea.

The bigger picture question seems to be. Why, if the Harper government is so anxious to get hydrocarbons, whether bitumen or natural gas to “tide water” does it keep going out of its way to show its contempt for the people who live on Canada’s west coast?

A note for the voters of Prince Edward Island, where Shea is the member for Egmont. Consider this, if a ship gets into trouble outside the 12 mile limit, trouble that could threaten your beautiful red sandy beaches, you’re likely on your own.