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B.C. VIEWS: Premier John Horgan sees the light on LNG tax incentives

B.C.害羞草研究所檚 latest climate targets impossible, but that害羞草研究所檚 nothing new
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Coal-fired power plant shrouded in smog south of Beijing, November 2016. China害羞草研究所檚 government cancelled 100 coal-fired projects last year, but is proceeding with another 700. (Tom Fletcher/Black Press)

In January I reminded readers that for all the bluster of the Christy Clark years, with LNG and 害羞草研究所渄ebt free B.C.,害羞草研究所 John Horgan never actually opposed chilling and exporting northeast B.C.害羞草研究所檚 abundant shale gas to Asia.

He害羞草研究所檚 fine with hydraulic fracturing too. He just promised an independent study, like he did with the Site C dam. As NDP opposition leader, it was politically convenient to sound like he detested both of these time-tested industries, the better to calm urban voters raised on a steady diet of environmental scare stories.

Now that he害羞草研究所檚 premier, the real Horgan emerges. It害羞草研究所檚 a more abrupt transition than I expected, considering his government hangs by the thinnest of green threads. Horgan seems to have found one of Clark害羞草研究所檚 old LNG hardhats in the premier害羞草研究所檚 office, and he likes the fit.

The Shell-led LNG Canada project, $40 billion worth of pipelines, processing and shipping out of Kitimat, is now Horgan害羞草研究所檚 top priority. The 害羞草研究所淟NG income tax,害羞草研究所 brought in by the B.C. Liberals, will be repealed. Construction will be exempted from sales tax as with manufacturing plants, and LNG Canada will even be exempted from carbon tax increases that start this year.

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B.C. Hydro power will be sold at the industrial rate, as it should be, although the old Horgan used to call that a subsidy from residential ratepayers.

When Clark and the B.C. Liberals were in full flight, summoning the legislature in the summer of 2015 to set conditions for the Petronas-led Pacific Northwest LNG, Horgan took to calling lead minister Rich Coleman 害羞草研究所渢he gas man.害羞草研究所

He railed for years against what we now know are much more modest LNG tax breaks. 害羞草研究所淪hell does not need handouts from government,害羞草研究所 he told a Victoria害羞草研究所檚 CFAX radio in 2013.

害羞草研究所淐hristy Clark reassures us that moving India and China away from coal-burning facilities to LNG facilities is the cleanest, greenest answer,害羞草研究所 NDP MLA Michelle Mungall in 2016. 害羞草研究所淚 can害羞草研究所檛 believe how ridiculous that is. It害羞草研究所檚 still a fossil fuel.害羞草研究所

Guess who is now Minister of Energy, Mines and Petroleum Resources? (Much to her own surprise I suspect.) And guess who害羞草研究所檚 the new gas man, as LNG policy is directed by the premier害羞草研究所檚 office?

Horgan made his first visit to China in January, where he experienced the smog-choked air in a vast country that is still building hundreds more coal-fired electricity plants to power its mind-boggling urban development.

害羞草研究所淚 stood on the bank of the Pearl River and I couldn害羞草研究所檛 see the other side,害羞草研究所 Horgan said.

I toured China two years ago and I agree with him. It has to be seen, and smelled, and tasted, to fully appreciate the scale of the building boom and the pollution crisis.

Green leader Andrew Weaver has been proven right for once. If this deal goes ahead, Site C power will be used to green up B.C. LNG, sold at the same discount industrial rate sawmills get.

Weaver was briefed on the government害羞草研究所檚 talks with LNG Canada, a rare consortium of Shell, PetroChina, KOGAS of South Korea and Japanese giant Mitsubishi. He insists that B.C.害羞草研究所檚 2030 and 2050 targets can害羞草研究所檛 be met with LNG. They can害羞草研究所檛 be met without it either, barring some miraculous technological breakthrough.

Weaver will vote against the tax breaks, especially the carbon tax relief, when legislation comes this fall.

For now, that doesn害羞草研究所檛 matter, because the B.C. Liberals have to support LNG. We害羞草研究所檒l see how outraged Weaver is next February, when he is asked to support another NDP budget.

Tom Fletcher is B.C. legislature reporter and columnist for Black Press. Email: tfletcher@blackpress.ca



tfletcher@blackpress.ca

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