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Home / canada / Corbella: Premier Kenney actually cancels the oil-by-rail contract.

Corbella: Premier Kenney actually cancels the oil-by-rail contract.

The rail car is waiting for pickup from Winnipeg. In February, the NDP signed a $ 3.7 billion contract with CN and the Canadian Pacific Railway to lease up to 4,200 rail vehicles to transport crude oil.

Canadian Press / John Woods

Prime Minister Jason Kenney's new government took the $ 3.7 billion oil-award awarded by former NDP government Rachel Notley a week before the elections with CNRIL, CPRail and other railway partners. Of the staff confirmed on Friday evening.

Sources say the government has received comments from outside lawyers and lawyers, arguing that the Alberta government can break recent contracts through legislation. In particular, Secretary of State Kenny publicly warned two CEOs of Canada's largest railways in writing. The government is bound by the NDP contract to rescue the election opportunity.

Kenny's media secretary, Christine Myatt, filed a statement last Friday night in an e-mail confirming the news of a senior coworker.

"We were clear from the start," said Myatt, "this contract, which was sold quickly by a desperate government just before the election, should never be concluded by the government or the railway."

"There is no reason for private companies to be able to carry more oil on rail, which is still our position." If the contract can not be transferred to the private sector on condition that the contract is acceptable, our government will protect Alberta taxpayers We will take the necessary measures. "

Kenney announced that Notley was legally pleased to confirm that he will do his best to review all the contracts and run for the election on the first day, which is the first day that he could lawfully request an election held on April 16. He called it a "value-for-money review" for the benefit of local people and citizens.

On February 19, Northlake announced that it has signed a contract with the Canadian Pacific and the Canadian National to lease 4,400 rail vehicles to move oil sands to North American markets. On that same day, Kenny was confident that if he had been elected, he would have been a good deal for the Alberto residents if he had been on the polls in the election ahead of the 20th.

The next day, Feb. 20, Kenney warned the two CEOs that he would cancel the contract if it turns out that it is not in the public interest.

"When elected, the United States Conservative government will exercise all the authority to revoke the NDP's indiscriminate $ 4 billion in taxpayer spending that interferes with the market," said Kennedy spokesman.

He pointed out that oil companies would ship more oil if they were profitable, and Alberta could not afford the deal because the NDP is undergoing a huge billions of dollars of annual deficits expected to cost $ 96 billion by 2024. .

A senior official said he could not tell the contract but could say what was not there. The government, which is now defeated, is rushing to "try the hail Mary Pass for electoral victory," said Noctel, "and entered into a very negotiated negotiation." A senior employee said the agreement would "leave someone with a bill-of-dollar contract through a kind of warranty exclusion clause out of the contract." The deal is really possible if the government wants to take out nuclear options without choosing options.

"A thorough analysis shows that the government has paid a hefty price for services, but the conditions are confidential," the source said. Nonetheless, it turns out that CN and CP have entered $ 2.2 billion in the $ 3.7 billion plan.

"Political parties, especially the CN and the CN, have signed cynical and exploitative terms, using the outgoing government that is willing to negotiate for political reasons and conditions." If the railroad companies were cautious, I would have withdrawn because I know. He did not reveal the secret and announced on the day the deal was concluded and the day he took action before closing the deal. "

It is never great to get investor confidence when a government stops trading by the previous government. Tim McMillan, president and CEO of Canadian Petroleum Producers, said that the cancellation of the northern gateway pipeline by Justin Trudeau was "the most damaging to our economy" said.

Trudo unilaterally murdered Enbridge's Northern Gateway pipeline in July 2017, and investors who had never recovered after passing through strict and expensive regulatory processes and passing through the House of Commons. The Impact Assessment Act, which says critics say unamended will make large energy projects and pipeline construction impossible.

However, this cancellation is significantly different. The contract holders received a fair warning and almost time has passed.

According to a statement from CN spokesman Jonathan Abecassis, the chief of this railroad does not seem to have any plans to fight Kenny's new government.

"CN strongly supports our willingness to bring Alberta oil to the market and we want to be part of that solution," he said.

CP did not return Postmedia's message or call.

The hope of the Kenny government to hold a speech on the throne Wednesday is that if the oil by rail is meaningful then the private industry will step back and realize it.

Licia Corbella is a Postmedia columnist.

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