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

Editorial: Princeton needs a homeless shelter

Sometimes things happen in a community. You just observe them. And they… Continue reading

Drunk driver gets hammered by judge

Hedley man under virtual house arrest for three months

Gingras is turning in her leash with animal control

After 28 years, the ACO is leaving her position with Penticton/Summerland Animal Control

Thieves escape after man claims his wife is giving birth

Police are looking for a crafty thief and his pregnant companion, after… Continue reading

Environment Canada confirms Ottawa area hit by two tornadoes Friday

At one point more than 200,000 hydro customers were blacked out

Whitecaps see playoff dreams fade after 2-1 loss to FC Dallas

Goal in 87th minute seals Vancouver’s fate

B.C. students send books to displaced students of Hornby Island school fire

Maple Ridge elementary school teacher says students learned about acts of kindness

Trans Canada now open west of Chase, ‘heavy delays’

Few details available about crash that closed Trans Canada Highway west of Chase Sunday, Sept. 23

Trump drains oxygen from Trudeau foreign policy with PM, Freeland bound for UN

A lot has changed since the Liberals came to power in Canada in 2015

B.C. man fined $15,000, barred from trading securities for fraud

Larry Keith Davis used money from an investor to pay personal bills

Emergency crews investigate small sulphuric acid spill in Kootenays

IRM states a small volume of less than one cup and three dime-sized drips were leaked from carrier

Family, friends of B.C murder victim want killer sent back to max security facility

Group wants convicted murderer Walter Ramsay sent back to a maximum security facility

Most Read