By Joel McKay
Political disarray in Victoria and the creation of a new “super” ministry has left B.C.’s resource industries and First Nations in a fog of confusion.
According to NDP energy and mines critic John Horgan, the impending departure of Premier Gordon Campbell and ongoing cabinet shuffles have created an environment of uncertainty that could threaten investment in B.C.’s largest industries.
Meanwhile, at the legislature, the surprising creation of a huge new natural resources ministry has bureaucrats scrambling to figure out which ministry is responsible for what.
“The system is grinding to a halt,” said Horgan, MLA for Juan de Fuca. “On top of that, they have to figure out what the reporting relationships are, who do they talk to, and, on the counter side, investment has no idea where to go.”
It all started October 25.
Amid a cabinet shuffle that saw 17 ministers absorb new or changed portfolios, the Campbell government quietly created the Ministry of Natural Resource Operations.
That meant that forests Pat Bell and former energy minister Bill Bennett had their responsibilities essentially stripped down to policy.
In turn, Campbell’s new natural resource minister Steve Thomson, who formerly led agriculture and lands, would shoulder permitting and regulatory responsibilities for B.C.’s resource industries.
His responsibilities include:
- Crown land allocation and authorizations;
- forests and range authorizations;
- roads, bridges and engineering;
- independent power production;
- mines and minerals permits;
- aquaculture licensing;
- water use planning;
- aboriginal consultation for natural resource projects;
- resorts and alpine ski developments;
- fish, wildlife and habitat management;
- resource management compliance; and
- forest investment operations.
In an interview, Thomson said he was told he might become B.C.’s natural resource minister only days before the cabinet shuffle was announced.
He acknowledged that there has been some uncertainty within the ministry in recent days, and said a “tremendous” amount of work needs to be done to ensure a smooth transition.
“We’re going to do this in a very careful, measured way,” Thomson said. “It’s an evolving process.”
After the cabinet shuffle was announced, Bennett blasted Campbell for not consulting with cabinet members about the changes.
On November 3, Campbell announced his resignation.
Last week, Bennett was ousted from cabinet for making more comments about Campbell’s leadership.
Thomson was then handed the energy portfolio on top of natural resource operations.
Since then, the Green Party of BC has called on the Liberal government to suspend the ministerial changes until Campbell is replaced.
“He’s engaging in a fundamental reorganization of government,” commented Green Party leader Jane Sterk. “That is inappropriate because it prescribes on the next leader a particular view of what should happen.”
Campbell has already backtracked on a 15% tax cut he announced during an October 27 speech, saying it would unfairly tie the next premier’s hands.
“What happens to the economy while all this is going on?” Horgan wondered. “You need to have, at a minimum, some certainty within government that the people that were doing the job on Monday are still doing it at the end of the week.”
To add to the confusion, Business in Vancouver has learned that neither the Mining Association of BC nor Clean Energy BC nor the BC Salmon Farmers Association were notified about the new ministry ahead of the changes. All three believe the changes could streamline regulatory processes and create a better permitting environment for natural resource industries, but it’s too early to tell.
Mary Ellen Walling, executive director of the Salmon Farmers Association, said responsibility for the salmon farming industry is split across more ministries than before.
Pierre Gratton, president and CEO of the Mining Association, said the government is in turmoil at a time when the industry needs permits to build mines, create jobs and take advantage of record commodity prices.
Paul Kariya, executive director of Clean Energy BC, believes the ministry could be a step in the right direction for permitting but might have been created at the wrong time.
“Any kind of political upheaval, change or whatever is not good for business,” Kariya said. “People watching are concerned.”
He added that Thomson’s dual role as energy and natural resources minister might eventually pay off for the business community.
But First Nations aren’t happy with the changes.
Grand Chief Stewart Phillip, president of the Union of B.C. Indian Chiefs, said the government didn’t consult First Nations about the changes either.
Aboriginal consultation, which these days is a key component for all natural resource projects, falls to the new ministry.
In recent years, First Nations have organized councils to consult with the various ministries, Phillip said, but the changes question the viability of those councils.
He also said the lack of consultation is a setback for the government’s so-called “New Relationship” with aboriginals.
“We need to re-engage the province and they need to understand that they need to recommit to the principles of the ‘New Relationship,’” Phillip said. “Otherwise, we’re going to fight this mine by mine, pipeline by pipeline, dam by dam … there’s going to be absolute chaos.”