Federal government wades into controversy, making to threats to withhold funding but no assurances about previous deal
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The Green Line LRT starts to look like a phantom project with no assured ownership, plan or money.
Premier Danielle Smith’s government says it won’t pay into the city’s project. Rather, it will design and build its own version.
It’s all yours, city council says for openers. Not our deal anymore (and, maybe, not our money, either).
At the start of all this, the city, province and Ottawa agreed to pay $1.53 billion each for a line budgeted at just over $4.5 billion.
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What does the provincial takeover mean for the federal funding?
Enter Sean Fraser, the Trudeau government’s infrastructure minister.
He’s not happy with the UCP’s sudden move. Claims he knew nothing about it. I’ve heard that one before but, this time, it’s probably true.
“We were surprised and disappointed by the decision by the Government of Alberta to withdraw their funding from the Green Line, which will impact thousands of jobs,” Fraser said in a statement.
“This was especially surprising considering the positive discussions that took place with provincial officials at regular meetings where these apparent issues were not raised, up until the province’s decision to delay construction, risking cost escalations and ultimately leading to council’s decision to wind down the project.”
He also said: “We are here to support projects that help Calgarians get where they need to go, and we want to work collaboratively with the Government of Alberta on what next steps look like.”
There’s no overt threat to withhold funding. But neither does Fraser say the deal’s still on.
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The federal Liberals will surely have a hard look at their part of the original promise.
Backing out might anger many Calgarians, but why would Prime Minister Justin Trudeau and his crew even care? They have little to win or lose in Calgary. They could pass the blame to the UCP and leave the whole thing hanging.
Then there’s the city’s share.
UCP Transportation Minister Devin Dreeshen says he’ll seek the city’s “thumbs up” for the provincial project, when it’s designed.
It’s unclear, though, whether the city has any obligation to approve or fund a provincial project.
The UCP would certainly expect the money. In a pinch, the province could even order (or extort) payment, being the senior government with muscle Smith has shown no reluctance to flex.
Still, some councillors in the anti-UCP majority might call for a smaller city contribution.
Whatever happens, the province is honour-bound to build the Green Line. And it’s leaving a lot of leverage in the hands of political opponents.
Calgary will be incredibly important to Smith in the next election. But rural Alberta is even more crucial.
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Many of those bedrock UCP supporters are no fans of the big cities. If the project lands in expensive trouble, those people will be very upset.
There’s a way around almost anything when you’re an Alberta majority government. Smith’s people might have suggested it already.
They’re thinking about forming a provincial agency to oversee all megaprojects, especially in transit.
Municipal participation and dealings with Ottawa could be set in law. The structure would be nominally apolitical.
The Green Line sure needs help on that front. It’s now ruinously political.
Don Braid’s column appears regularly in the Herald
X: @DonBraid
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