Read.....B.C. Opposition urges gas company takeover halted as softwood retaliation
8/29/2005 5:05:00 PM
VICTORIA (CP) - British Columbia should send the United States a message about softwood by shutting down hearings into the sale of Terasen Gas to Texas-based Kinder Morgan, says B.C. NDP Leader Carole James.
Premier Gordon Campbell could help put pressure on one of the most important business allies of U.S. President George Bush while protecting the province's exports, James said on Monday. The $6.9 billion Terasen takeover was announced earlier this month. But the deal must go before the B.C. Utilities Commission for approval this fall.
"Say to the Americans, when they live up to their end of the bargain in free trade, (then) we'll continue on with the hearings into the sale," James suggested. "Given repeated refusals by the U.S. to abide by NAFTA, British Columbia has a responsibility to send President Bush a clear message."
B.C. Forests Minister Rich Coleman, however, rejected James' suggestion that B.C. hold up the sale.
However, he didn't didn't rule out the possibility that holding up the takeover might be one sanction that could be included in a package of retaliatory measures in the ongoing softwood dispute.
"We're not going to mix the apples and oranges yet," Coleman said. "We've talked to the feds about sanctions . . . but our first step is going to be try and get to the table and negotiate a deal.
"You don't do that by going off half-cocked and saying let's try this thing or that thing," he said.
Coleman said he's been told that the prime minister will be discussing the softwood dispute with Bush later this week.
Earlier on Monday, the B.C. Chamber of Commerce asked its U.S. counterparts to lobby Bush and urge resolution to the softwood lumber dispute before it wrecks the North American Free Trade Agreement.
In a letter, chamber president John Winter said NAFTA is in trouble because of the longstanding trade war over lumber.
"NAFTA has brought a wave of economic progress unprecedented in our times, but increasing trade protectionism is putting those benefits at risk," Winter said in a news release.
He called on chambers in all 50 states to urge Bush to respect its obligations under NAFTA and move quickly to a negotiated settlement on softwood.
The federal government is still considering the wisdom of retaliatory action for duties the U.S. continues to impose on Canadian lumber despite a host of rulings against such measures. Canada is also demanding the return of $5 billion that was unfairly charged Canadian lumber producers.
James said putting the Terasen deal on hold is the kind of pressure Bush might understand.
"Kinder Morgan, we understand, is very close to President Bush. Certainly, President Bush seems to pay attention when energy is involved," said James.
She said despite repeated promises of a response to the Bush Administration's intransigence on softwood lumber negotiations, Campbell has taken no action.
"My proposal offers the Premier an opportunity to take a tough, measured and strategic response that says very clearly to the Americans that if they don't play by the rules they don't get a chance to buy B.C. assets."
Houston-based Kinder Morgan announced its Terasen takeover earlier this month. The combined company will worth $19 billion US, have approximately 64,000 kilometres of natural gas and petroleum transportation pipelines, more than 1.1 million natural gas distribution customers, and about 150 terminals.
© The Canadian Press, 2005