Escalation or climbdown looms in Prairie plate war

Fines, sanctions mooted in border skirmish

The ongoing border skirmish between Saskatchewan and Alberta over licence plates has so far mostly been a war of words, but a deadline next week could see it escalate, with the potential for hefty fines and possible trade sanctions.

That is, unless Saskatchewan backs down first.

Last month, Saskatchewan banned vehicles with Alberta plates from government construction sites, an attempt to make sure the province’s construction workers weren’t taking jobs that might otherwise have gone to Saskatchewanians. Per Transportation Minister Dave Marit’s decree, anybody with such a vehicle would either have to pony up for a local licence plate, or go home.

Saskatchewan has even been mailing out an addendum to earlier tenders with new terms banning “Albertaplated” vehicles from government job sites. The provincial border slices through the centre of Lloydminster — half the city is in each province — so residents on the Albertan side could find themselves banned from working on a Saskatchewan government project in their own city.

Construction workers there have been unsurprisingly vocal in their opposition to Saskatchewan’s policy. (The meeting was to have taken place on the Alberta side of town.)

There is a precedent here. Last year, Wall sent letters to Alberta companies offering them tax breaks and cheap rent to relocate to his province. The move was widely criticized in Alberta, partly because it seemed contrary to the trade deal between the provinces and partly because Wall himself was an investor in some of the companies. Wall was cleared of conflict-of-interest allegations but was criticized for only asking for advice from the province’s ethics commissioner after sending the letter.

As a New West-imposed deadline loomed in that dispute, Saskatchewan Energy Minister Dustin Duncan sent a subsequent letter clarifying that the government had no intention of offering perks “prohibited under trade agreements.”

In this case, a similar climbdown may be an option. If Saskatchewan drops the policy before the tribunal deadline, it’s no harm, no foul. But after that, there’s no backing down. After the formation of an independent panel is triggered, it will issue a binding ruling within 136 days.

Any contravention of the trade agreement could result in a fine up to $5 million, sanctions against Saskatchewan or equivalent restrictions being allowed in Alberta. If the tribunal levies a monetary penalty, it will be the first in the history of the trade deal.

Wall has long been a major booster of the New West Partnership and, in a Facebook message in December, said his government “took this action reluctantly” and is still a “strong supporter of free trade.”

Last year’s budget in Saskatchewan brought in a beefed-up provincial sales tax and proposed cuts to social services like libraries — a move hastily reversed after negative public reaction.

Notley rushed to the nearest podium to condemn that budget, attempting to convince Albertans they might expect similar moves were conservatives to return to power in her province.

Now, Alberta’s conservatives have to choose between the premier they loathe and the enemy. In that way, one of Wall’s final acts as premier before retiring could offer a major political gift to Notley.