The Prime Minister is about to ask taxpayers to bail him out of a self-inflicted calamity — the inability to ship our oil to overseas markets.
Trudeau promised the $7.4 billion Trans Mountain Pipeline Expansion (TMX) would be built because it’s the last opportunity to prevent our vast reserves from being permanently landlocked. Letting the project die would cause so much economic, constitutional and reputational damage that no amount of spinning could save his government from grievous political damage.
B.C. Premier John Horgan declared he will do everything to kill the pipeline. Trudeau cannot tolerate a province thwarting the federal government on a critical matter within an exclusive federal jurisdiction. He has to defend the constitution and rule of law or the very viability of our confederation will be undermined. Moreover, Canada’s credibility with foreign investors would be tarnished when capital is already heading south because of a dramatic reduction in U.S. corporate tax rates.
Trudeau’s face-saving plan mirrors Ronald Reagan’s observation: “If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidize it.”