Behind the Scenes of a Controversial Loan

In a stunning political double play, while Transport Minister Chrystia Freeland publicly distanced the federal government from BC Ferries’ controversial $1 billion purchase of new ships from a Chinese state-owned shipyard, internal Liberal emails reveal a frantic strategy session among senior advisers to manage the impending fallout.

A $1 Billion Connection

Fresh revelations show that the Canada Infrastructure Bank, a federal Crown corporation, provided the funding for this contentious deal. As Conservative MPs hammered away in the House of Commons, demanding that the federal government take a stand against the B.C. government’s decision, Freeland downplayed any federal involvement, asserting that the matter was purely provincial.

Caught Off Guard?

On June 18, just before the daily Question Period, an email from Mohammad Hussain, a senior aide, hinted at the orchestrated approach to the looming announcement of the Infrastructure Bank's substantial loan. Hussain suggested treating the news as a simple press release and dodging responsibility for the procurement decisions, noting that the B.C. government’s reluctance to engage would provide them necessary cover.

Political Fallout Ahead?

Hussain cautioned that the Conservatives were likely to capitalize on the situation, as the project’s viability hinged significantly on the federal loan. He even indicated a potential diplomatic fallout, questioning whether canceling a significant contract with China might send the wrong message as Canada sought to mend economic ties.

Parliamentary Reactions

Following the revelation of the loan, opposition parties called for special hearings, prompting Freeland and other officials to testify. During these hearings, Freeland expressed her dismay over the procurement but refrained from clarifying when she first became aware of the financial backing.

Secrets and Accountability

Despite the sensitive nature of the emails, the parliamentary committee mandated the government to release the documents. The maneuver is seen as a litmus test for the government's responsiveness to transparency.

A National Security Concerns

Freeland also voiced her concerns regarding national security in correspondence with Public Safety Minister Gary Anandasangaree, criticizing BC Ferries for not requiring Canadian content in the ship contracts and urging B.C. to ensure no federal resources would aid the purchase.

Conclusion

As the situation unfolds, this political drama underscores the delicate balance the government must strike amidst international relations and local policy decisions. The decision to finance the purchase promises further scrutiny and could muddy the waters for Liberal officials as they navigate public reaction.