NDP leader wants to increase LNG tax

John Horgan says his party backed Premier Christy Clark's tax package to get a deal done, but it doesn't extract enough revenue for B.C. gas

B.C. NDP leader John Horgan

As negotiations for B.C.’s first large-scale liquefied natural gas export project reach their critical days, NDP leader John Horgan has a message for investors: expect to pay more tax under an NDP government.

Executives of Malaysian state energy company Petronas were in Vancouver Monday for what may be their final visit with B.C. officials before deciding whether to proceed with an $11 billion investment in a pipeline and LNG processing at the Prince Rupert port.

Pacific Northwest LNG is a cornerstone of B.C.’s bid to enter the Asian energy market. The fall legislature session was devoted almost entirely to the emerging industry, setting in place a tax structure, carbon emission rules and a series of agreements with the Nisga’a Nation to enable TransCanada Corp. to build a 900-km pipeline from northeast gas fields to the North Coast.

Horgan said he instructed NDP MLAs to vote in favour of the 3.5 per cent LNG tax that emerged from negotiations with investors, because they need “certainty” to make final investment decisions. The surprise support came after NDP MLAs denounced the tax arrangement as a sellout of provincial resources, leaving Green Party MLA Andrew Weaver and independent MLA Vicki Huntington alone in voting against it.

“If we’re going to get to final investment decisions, we need to have a tax framework,” Horgan told reporters after the LNG legislation was passed into law. “I believe the framework is inadequate, I’ve said that, I will say that to the companies when I meet with them, and they should know that when the government changes in 2017, I’m going to be wanting to look at those agreements.”

In debate, B.C. Liberal MLAs repeatedly questioned the NDP’s professed support for LNG, referring to the party’s call for an investigation of hydraulic fracturing that has been conducted in B.C. since the 1960s. And the NDP denounced and opposed the government’s move to regulate greenhouse gas “intensity” rather than cap emissions for LNG plants.

Petronas CEO Shamsul Azhar Abbas has been outspoken about the cost of LNG development in B.C. In October, Abbas warned that federal and provincial rules and taxes “threaten the global competitiveness of the Pacific Northwest LNG project.”

In his quarterly financial update last week, B.C. Finance Minister Mike de Jong said the low and fluctuating price for natural gas in a shale-gas-rich North American market still indicates the Asia export market is viable.

“The proof of that, of course, will be final investment decisions from proponents,” de Jong said.

Horgan sparked controversy on a recent trip to Prince Rupert, where he expressed doubts about Petronas and another LNG proposal for Prince Rupert that has been delayed by lead proponent British Gas Group.

Petronas is leading a consortium that includes Chinese, Japanese, Indian and Brunei investors. Petronas paid $5 billion last year to take over Progress Energy Canada, which has major shale gas holdings in northeast B.C. and Alberta.

 

Just Posted

Presenting the Graduates of 2018

BCSS celebrated the 2018 grads last weekend.

Unregulated private land logging continues near Nelson at Cottonwood Lake

Sunshine Logging of Kaslo is cutting on private land in the area of Giveout Creek Road

30 degrees and warmer forecasted with heat wave in B.C.

The weather could stay well into next week, according to Environment Canada

Rock Creek Community Medical celebrates 40 years

The society started with a donation of land.

‘Daddy bonus’ common in B.C. workplaces, study finds

UBC researchers say dads don’t have to be number one in the office to get a raise

Canada won’t ‘play politics’ on U.S. migrant children policy

The U.S. government is under fire over its ”zero tolerance” policy

Independent schools continue to top Fraser Institute secondary school list

Think tank says its ratings are fair to all schools, public and private

Nelson council passes laneway house zoning changes

Council hopes more laneway dwellings will encourage affordable housing

Former Somali child refugee fights to stay in Canada

Former child refugee Abdoul Abdi’s judicial review set for today in Halifax

U.S. border separations ripple through midterm campaigns

Several Republicans to break from President Donald Trump amid boarder separation issues

AFN chief accused of being too close to Trudeau

Perry Bellegarde insists he is not that close to the Liberals as elections looms

Three injured after industrial explosion in Newfoundland

The roof of the warehouse was blown off in the explosion near St. John’s

Ottawa Senators trade Mike Hoffman, less than a week after allegations involving partner

Following the trade Senators make no mention of allegations against Hoffman’s partner

Late goal gives England 2-1 win over Tunisia

At the last World Cup in 2014, England couldn’t even win a game

Most Read