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Alberta Premier Jason Kenney answers questions during a news conference at the Fairmont Empress in Victoria, B.C., on July 12.CHAD HIPOLITO/The Canadian Press

Jason Kenney, who is preparing to leave his role as leader of the United Conservative Party and Alberta’s Premier, said the signature policy of one of the candidates vying to replace him is a “de facto plan for separatism” that would snuff out the province’s economic momentum.

Mr. Kenney, who said he would step down as UCP leader after receiving just over 51 per cent of support from party members in a review in the spring, on Monday said Danielle Smith’s proposed sovereignty act is “nutty” and would jeopardize oil and gas pipelines to tidewater. The act, which is part of a broader plan called the Free Alberta Strategy, proposes giving the legislature the “authority to refuse enforcement” of federal laws and court rulings.

The proposal is widely viewed as unconstitutional, which one of its authors has said was intentional.

Ms. Smith has made the proposed law the centrepiece of her campaign to defend Alberta’s interests against Ottawa, and she’s promising to make it her first piece of legislation if she wins and becomes premier. The proposal has also become the focal point of the leadership race and some of Ms. Smith’s challengers have also condemned it.

“This would be a disaster for Alberta,” Mr. Kenney told reporters Monday, two days after slamming Ms. Smith’s policy on his radio show. “It would massively drive away investment, it would cause people to leave the province, businesses not to come here, just when our economy is experiencing such fantastic economic momentum.”

Outgoing leaders, generally, try to stay on the sidelines of leadership races to avoid accusations of putting their thumb on the scales. Mr. Kenney justified his comments by noting the act was proposed last September. He said he denounced it then, just as he does now.

“If the principle of the so-called sovereignty act were to be accepted by other Canadian governments, farewell pipelines,” Mr. Kenney said.

For example, Mr. Kenney said if B.C. adopted a similar law, that province could ignore federal decisions like the ones that gave the Trans Mountain pipeline expansion effort permission to proceed.

Mr. Kenney, while arguing Ms. Smith’s key policy would bring economic ruin, said he would not make an endorsement in the leadership campaign.

The party expects to announce a new leader Oct. 6. It is using a preferential ballot system, where members can rank candidates. If no candidate receives more than 50 per cent of support after a round of voting, the candidate with the fewest votes will be dropped and the ballots recalculated. The process repeats until a candidate secures more than 50 per cent of support. This system means candidates must be careful not to alienate their opponents’ supporters.

Ms. Smith has pushed back against Mr. Kenney’s critiques. She released a statement on Sunday that said if she wins, she would work with the UCP caucus to draft, pass and implement the act with “sound constitutional language and principles.” Mr. Kenney and other critics, she said, should refrain from commenting until the draft legislation is prepared. Ms. Smith did not explain how the principles championed by the sovereignty act’s outline can be framed in a way that is compatible with Canada’s constitution.

Brian Jean, one of the UCP’s leadership hopefuls, in a statement said Ms. Smith should release the text of her proposed legislation before party members elect a new leader.

Travis Toews, another contender, said it would be very difficult for any MLA to support an unconstitutional bill. Leela Aheer, one of the trailing candidates, said she would “never” support Ms. Smith’s act.

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