Home | About Us | Archive | Documents | Campaigns & Issues | Links | Contact Us


      No Pipeline! No Bailout!
      New Owners, Same Fight!


      By Thomas Davies

      The famous German poet and anti- Fascist activist Bertolt Brecht once wrote, “Bank robbery is an initiative of amateurs. True professionals establish a bank.” In the case of Kinder Morgan, they found that a pipeline company would do the trick just as well. The Texas oil giant looks set to walk away from its controversial Trans Mountain Pipeline Expansion project with all their expenses so far covered...by taxpayers. On top of that, we are also being forced to give them a cool extra few billion dollars in this $4.5 billion deal where they unload their ageing, leaking pipeline to the government of Canada.

      Privatize the Profits, Socialize the Loses

      Less than three weeks after Kinder Morgan announced it was suspending all “nonessential” spending on the project due to continual delays from the opposition, the government of Canada announced it would take it over. “The project became too risky for a commercial entity to go forward with it; that’s what Kinder Morgan told us,” Prime Minister Trudeau said during an interview with Bloomberg news after the announcement.

      So, it’s too risky for the billionaire oil executives who committed to the project in the first place, but somehow acceptable for taxpayers to be forced to assume the risk and loses they never agreed to?

      We also need to be clear; it’s not just $4.5 billion. Finance Minister Bill Morneau refused to provide more specifics on the deal and the costs for the project going forward, but well-known economist and specialist on the Trans Mountain pipeline Robyn Allan provided her own assessment: “By the time the expansion is built, the price tag for nationalizing the existing assets and building the expansion will cost Canadians upwards of $15 - $20 billion.

      That’s because the $7.4 billion capital cost for the project estimated in February 2017 will likely exceed $9 billion by the time an up to date budget is prepared. Then there is $2.1 billion in financial assurances required for the land-based spill risk and $1.5 billion Oceans Protection Plan for marine spill risk that Ottawa has already agreed to.”

      Morneau also conveniently failed to mention that two Kinder Morgan Canada Executives, Ian Anderson and David Safari, will earn $1.5 million each in bonuses from the sale.

      What Could it Have Been Spent On?

      Cindy Blackstock spent over a decade winning a case against the government of Canada at the Canadian Human Right Tribunal. The 2016 ruling found that the government discriminated against Indigenous children on reserves in its chronic underfunding of their child welfare services compared to other children. She wrote this on Twitter following the announcement, “Canada could have ended under-funding of First Nations education, water, early childhood programs, domestic violence shelters and ensured no sick child was air transported alone in Quebec and more. Instead... they bought a pipeline.”

      Mike Hudema of Greenpeace Canada summarized some other alternatives as well, “The full $4.5 billion could pay for the salaries of 60,000 nurses or 88,156 teachers. It could cover the average tuition costs of 684,827 students, put solar power systems on 180,000 homes, build 2045 wind turbines, or build the world’s largest solar power plant 16 times over.”

      The bottom line is this: it took the government a few weeks to come up with $15-20 billion (we would be more specific, but they aren’t giving us the complete numbers) when there are so many other urgent issues in Canada which we are always told there aren’t enough resources for. What’s more, there are many more renewable energy options like wind and solar which provide more jobs per dollar invested.

      Facts on the Ground Do Not Change

      The other bottom line is: the facts on the ground haven’t changed for the stalled pipeline project. The widespread opposition which brought it to a crisis has not disappeared because the government spent our money to buy it. In fact, there are many more outraged by this massive and unnecessary government bailout of Texas billionaires.

      Want proof? Over a thousand people rallied in Vancouver on 12 hours notice the day the announcement was made. This following almost daily actions in front of the Kinder Morgan tank farm in Burnaby, and the largest ever divestment action in Vancouver, where 1000 people marched to six of the banks funding the project. The day after the announcement, coordinated banner drops were held across Vancouver and Burnaby. Then almost 1000 more protested in Victoria. A national day of action at the offices of Members of Parliament will also see over 100 actions taking place across Canada on a few days notice on Monday, June 4.

      “The Trudeau authorization of a publicly funded corporate bailout of the Kinder Morgan pipeline and tanker project will lead to yet another victory by the Indigenous-led movement that has already stopped the Northern Gateway and Energy East tar sands pipeline projects. There is certainty that Indigenous people hold Title and Rights. Trudeau’s false assurances are not fooling anyone, and Canadians are well aware that he has placed liability onto everyone in this country. Kinder Morgan got our message that without the consent of the many Nations along its path, the pipeline would not be built - now it’s time for the Trudeau government to get the message,” said Chief Judy Wilson, Neskonlith, Secwepemc Nation, and Secretary-Treasurer of the Union of BC Indian Chiefs (UBCIC).

      “Approximately 100 First Nations in BC are affected by the proposed new pipeline and enormous increase in tanker traffic, but only 30 have signed agreements with Kinder Morgan, leaving more than two thirds who have not provided any form of consent,” reminded the Treaty Alliance Against Tar Sands Expansion, a coalition of 150 indigenous nations in Canada the U.S.

      In the Meantime?

      What the government and pipeline supporters keep repeating is that they support the transition to renewable resources, but in the meantime, we need to keep people working, and in the meantime, we need to keep the economy going. None of these selfappointed experts have provided any meaningful proposal for how long this “meantime” is supposed to last, and how committing to 50 more years of Tar Sands development helps shorten it. In reality, it’s clear their “meantime” will last as long as they can profit from oil consumption, regardless of the consequences.

      In a detailed new article in the Globe and Mail titled, “The Great Canadian Climate Delusion” Thomas Homer-Dixon and Yonatan Strauch argue: “Continued investment in the oil sands generally, and in the Trans Mountain pipeline specifically, means Canada is doubling down on a nowin bet. We’re betting that the world will fail to meet the reduction targets in the Paris Climate Agreement, thus needing more and more oil, including our expensive and polluting bitumen. We’re betting, in other words, on climate disaster. If, however, the world finally gets its act together and significantly cuts emissions, then Canada will lose much of its investment in the oil sands and the Trans Mountain pipeline expansion because the first oil to be cut will be a higher-cost oil such as ours.

      Heads or tails, we lose. That’s the idiocy of it. We can’t have our lucrative oil sands profits and a safe climate, too.”

      They continue: “This isn’t just rhetoric. Canada has no plan to meet its 2030 Paris Agreement emission targets because it’s virtually impossible to do so if the oil sands’ output rises to Alberta’s cap of 100 million tonnes of carbon dioxide emissions a year. Under the agreement, the global oil market won’t have room for our oil, either. Scenarios to limit warming to 2 degrees, the Paris Agreement’s bottom-line target, clearly show that oil demand must decline.”

      They Attack Us Because They’re Worried

      Kinder Morgan and the government of Canada are doubling down trying to squeeze out the opposition. After the sale was announced, they also won a BC Supreme Court Case to expand the scope of the 5-metre injunction zone around Kinder Morgan’s Burnaby properties to all other locations and equipment facilities in the province. They also removed the 10-minute warning period given to protesters before police start making arrests. Over 200 people have already been arrested violating the previous injunction and blocking Kinder Morgan facilities.

      While these announcements could be seen as disappointing, we need to understand that they couldn’t be trying to continue to limit our freedoms if they weren’t threatened by them. They more attack us, the more we can understand they feel threatened by us.

      We Are Here on Behalf of the Future “Those who take the most from the table, teach contentment. Those for whom the taxes are destined, demand sacrifice. Those who eat their fill, speak to the hungry, of wonderful times to come. Those who lead the country into the abyss, call ruling difficult, for ordinary folk.” - Bertolt Brecht

      Our so-called leaders are leading us into catastrophe. Our real leaders are the Indigenous nations, the young people, the tens of thousands who keep showing up against this pipeline and proving there is a real will to stop it. This has been a successful formula, and we need to expand it to defeat this dirty Tar Sands pipeline project once and for all. They want to build a pipeline; we want to build a better world.

      No Bailout! No Pipeline!

      People and Planet Before Pipelines and Profit!


      Follow Thomas Davies on Twitter: @thomasdavies59



      Back to Article Listing