A fight between Saskatchewan and Alberta over licence plates in construction sites is over.
The Saskatchewan government issued a letter Monday that said the province is suspending a policy it imposed in December that banned vehicles with Alberta licence plates on government construction projects.
READ MORE: Saskatchewan, Alberta tussle over job site licence plates
Alberta Economic Development Minister Deron Bilous said Saskatchewan had little choice, because it was facing millions of dollars in fines for contravening free-trade rules under the New West Partnership trade agreement.
“Saskatchewan was offside on this,” Bilous said in a conference call from Whitecourt, Alta.
“(They knew) they were going to lose when it came to the (free-trade) tribunal, so they’ve done the right thing in the 11th hour.”
Monday was the deadline to lift the ban. The move came just hours before a free-trade panel with the power to levy fines up to $5 million was to begin investigating.
WATCH: Alberta Economic Development Minister Deron Bilous joined Global Edmonton’s Shaye Ganam Tuesday morning to explain why the ban was dropped and what penalties Saskatchewan would have faced had it not done so.
“I think Brad Wall realized that he would have to — or his predecessor — explain to the people of Saskatchewan why they wasted $5 million for a policy that he knew full well was offside. They waited until today to walk this back and step back from it,” Bilous said.
Bilous said Alberta did not make any agreements or concessions that led to the decision.
READ MORE: Alberta challenges Saskatchewan licence plate ban under free trade rules
Saskatchewan Trade Minister Steven Bonk said in the letter that his province was heartened when Bilous said last week that Alberta would abide by a panel decision on a separate trade dispute over funding for Alberta craft brewers.
“Thank you for your commitment to honour the upcoming appeal panel’s findings,” wrote Bonk. “In good faith we will suspend the licence plate policy … immediately.”
Alberta officials have never said they would not abide by the pending ruling on whether tax changes and subsidies for Alberta craft brewers violate interprovincial free-trade rules.
“These two issues are separate and have been separate from the get-go,” Bilous said Monday afternoon. “The ruling on the beer is going through its process already. Saskatchewan, frankly, backed down because they know they’re wrong and they waited until today. After 11:59 p.m. tonight, this would have gone to binding arbitration, which means there would be monetary penalties.”
READ MORE: Saskatchewan disappointed in Alberta’s beer tax appeal
Carla Beck, the Saskatchewan opposition NDP deputy house leader, said it’s been clear from the beginning that the governing Saskatchewan Party had no justification.
“Now, even after backing down, they’re still playing games. We should be able to expect better from our government,” Beck said.
Scroll down to read the full letter to Bilous.
Saskatchewan initially argued it was imposing the licence ban in response to similar restrictions facing Saskatchewan workers on Alberta job sites. Alberta said that was not true and Bonk never provided evidence to back up the claim.
As the war of words escalated, Saskatchewan Premier Brad Wall stepped in and said the plate ban was in response to anti-free-trade initiatives by Alberta.
“This had an impact on Alberta workers and Alberta businesses,” Bilous said Monday. “We’ve heard directly from Alberta companies that have not been bidding on Saskatchewan tenders. Although this is good news that Saskatchewan has walked this back, this could have been avoided right from the get-go.”
LISTEN: Minister Deron Bilous on 630 CHED’s Ryan Jespersen Show
Alberta filed a legal challenge under the New West deal, but both sides still agreed to meet in Lloydminster — on the boundary between the two provinces — to hash out trade concerns.
The two sides still want to meet and have set a date of Jan. 31. But Saskatchewan wants to hold it in Medicine Hat, Alta., which is closer to Regina, while Alberta insists on Lloydminster.
READ MORE: Alberta, Saskatchewan to meet on licence-plate dispute
It’s the second time in 10 months that Wall’s government has walked back on free-trade incursions into Alberta.
Last March, Wall sent letters to oil companies in Calgary. He offered incentives such as relocation costs and help finding office space if firms would move to Saskatchewan.
After Alberta Premier Rachel Notley threatened to take the issue to arbitration as a violation of free-trade rules — and hinted at retaliatory measures — Wall’s government sent followup letters to the oil companies stressing the province couldn’t violate trade agreements.
The ongoing spat underscores the bad blood between Notley and Wall, particularly as it relates to rehabilitating their non-renewable, resource-based economies.
READ MORE: Alberta Premier Rachel Notley offers advice to next Saskatchewan premier
As late as last week, Wall and Notley were publicly sniping at each other. Wall has criticized Notley’s decision to rack up debt and deficits to help revive Alberta’s finances, while Notley says Wall’s austerity budgets have made a bad situation worse in his province.
Wall is leaving politics, however, and Saskatchewan Party members are to pick a new leader — and premier — on Saturday.
— With files from Global’s Emily Mertz
Letter to Minister Bilous January 22 2018 by Anonymous TdomnV9OD4 on Scribd
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