Future grain export facilities could be jeopardized by Bill C-69, says the head of Viterra.
While many think of the bill as mostly affecting the energy industry, the grain industry could also find future environmental approvals too onerous and costly.
“It is flying in the face of being nimble and responsive,” Jeworski said to reporters March 6 in Montreal about the impact on the regulatory system of the legislation designed to improve environmental approvals for major projects.
“When we look at the potential delays and added costs associated with that, it changes your financial modelling, and I have talked to other industries that have expressed concern … that once you change the financials, suddenly it can affect the decision on whether or not you proceed with some project,” said Jeworski.
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As an example, he said C-69 as it is today would have made constructing Viterra’s new ship-loading facility at one of its Vancouver terminals more daunting. That facility has radically increased the speed at which ships can be filled with prairie crops.
Bill C-69 is the federal government’s legislative response to legal roadblocks, delays and frustrations with getting pipelines and other major infrastructure projects approved.
Attempts by both Conservative and Liberal governments to push forward pipeline construction and expansion plans have been scotched or delayed by environmental and indigenous groups, who have claimed proper consultation and adequate hearings have not been held.
Many other legal challenges to various projects, such as the Trans Mountain Pipeline, have been launched.
After trying to push through the Trans Mountain project and hitting an unfavourable court ruling, Justin Trudeau’s Liberal government decided to overhaul the National Energy Board and the Canadian Environmental Assessment Agency to address concerns highlighted in court.
Many activists have said the legislation does not go far enough and does not allay their concerns.
Resource producers and provinces relying upon resource exports have said the legislation goes too far and will further exacerbate Canada’s crises with pipelines and other major developments.
While the agriculture industry does not rely upon pipelines, it is overwhelmingly dependent on railroads and ports.
C-69 has “implications for our industry, for sure,” said Jeworski.
“Anything that significantly delays projects and adds costs and adds risk to projects will affect capital investment.”
