Premier David Eby took a victory lap Thursday as he and Prime Minister Mark Carney unveiled a multi-billion-dollar agreement to develop resources and infrastructure in British Columbia. The Canada-B.C. Cooperative Prosperity Agreement, announced in Vancouver, secures key concessions for the province while giving Ottawa little in return.
Tanker Ban Secured
Eby highlighted the 11-page memorandum's unequivocal extension of the moratorium on oil tanker traffic on the north coast. The document states, "Canada will maintain the federal north coast tanker ban without alteration, suspension or narrowing of scope," effectively negating any chance of a northern route for a new oil pipeline through B.C.
In exchange, Eby conceded that the province would not—because it could not—stop a southerly routing for a new or expanded pipeline. "Pipelines are federal jurisdiction," said Eby. "We do not have the authority to stop a new pipeline. We will not be going to court to fight a pipeline project." He noted this was a lesson learned "the hard way last time," referring to the failed legal battle by his predecessor John Horgan against the Trans Mountain Pipeline expansion.
Financial Commitments
Ottawa is providing $3.5 billion in direct and indirect support for the first two phases of the estimated $6 billion North Coast Transmission line. The two governments will negotiate financing for the third phase, estimated to cost a further $4 billion based on per-kilometre costs of earlier phases. Prime Minister Carney also pledged $10 billion to support expansion of the Roberts Bank "superport," though he described it as a placeholder with details to come later.
In a significant move, Carney committed up to $3 billion for the NDP government's replacement of the Massey Tunnel, a project that has seen costs balloon. The bailout equals the estimated cost of the project inherited from the previous B.C. Liberal government, which the NDP later scaled from a 10-lane bridge to an eight-lane tunnel. The NDP's last fully costed estimate in 2021 was $4.15 billion, predicated on a start of construction this year.
Revenue Sharing Renegotiated
Eby gained a renegotiation of the existing revenue-sharing agreement on the Trans Mountain Expansion (TMX) project, plus a further agreement on any new pipeline. This comes after the province spent a small fortune on legal fees fighting the TMX expansion, losing every round.
"This is a big day for B.C.," declared Eby, who cut short a trade mission to China to share the platform with Carney. The agreement sets B.C. on a path to unlock jobs, support vital public services and infrastructure, and protect the tanker ban, according to the premier.
