As The Mask Slips Away

My late father-in-law, a man of deep conviction and integrity, was fond of this saying: "Socialism for the rich, capitalism for the poor."

Although he did not originate the adage, he felt it firmly described the thinking of those who control the levers of power, our governments. And now that his mask is slipping away, it seems an apt description of Justin Trudeau's true sentiments and the policy decisions he is making.

As preliminary evidence, sauce as it were to the great corporate feast, consider his Canadian Infrastructure Bank scheme, about which I wrote last year. While its ostensible purpose is to raise private capital to fund various projects to rebuild our steadily decaying roads, bridges, etc., it can also serve as a neat little package of corporate welfare:

Federal investments doled out through the government’s new infrastructure financing agency may be used to ensure a financial return to private investors if a project fails to generate enough revenues, documents show.

What investors have recently been told — and what the finance minister was told late last year — is that if revenues fall short of estimates, federal investments through the bank would act as a revenue floor to help make a project commercially viable.
Experts say the wording in the documents suggests taxpayers will be asked to take on a bigger slice of the financial risk in a project to help private investors, a charge the government rejects.

All of that perhaps palls, however, now that Kinder Morgan has issued a May 31 ultimatum to the feds, threatening to suspend construction on the Trans Mountain Pipeline twinning project unless the impasse between the B.C. and federal government ends. As a remedy, a strong dose of socialism is now being considered to protect Trans Morgan's nervous shareholders:

Finance Minister Bill Morneau says the federal government will act on the Trans Mountain pipeline project in “short order,” sending the strongest signal yet that it will move to financially backstop the project to reduce the risks for its American-based backer.

[Rachel] Notley has already said her government is open to buying the Trans Mountain pipeline — meant to move Alberta oil to port near Vancouver for shipment overseas — to ensure the expansion goes ahead.

Morneau, who has been in touch with Kinder Morgan officials, said earlier in the day that Ottawa is “considering financial options” to ease those concerns. Speaking later, he wouldn’t provide specifics but said there was a need to “derisk” the project so it can proceed.

Significantly, but not surprisingly, the Finance Minister

framed the issue as an economic one, talking about the need to enhance opportunities and good jobs while saying nothing about the concerns around the environment or rights of Indigenous Peoples raised by the project.

As usual, his boss, Justin Trudeau, continues to speak out of both sides of his mouth, claiming his environmental vision is bound up with an economic one, insisting there is no contradiction between the two.

Mr. Trudeau likes to talk about what Canadians know and understand. I suspect he is speaking of those Canadians who go through life blithely and willfully unaware of the immense peril our world now faces thanks to climate change, not those of us who understand that a drastic reordering of our priorities is crucial if we are to survive what lies ahead.