HEADLINE PHILIPPINE ASIAN NEWS TODAY May 16 - 31 , 2018
Taxpayers will pay for Kinder Morgan project
The Canadian Parliament was in outrage after the federal Liberal cabinet approved a controversial plan to spend $ 4.5 billion to buy the entire Trans Mountain pipeline project , and take on potentially billions more in construction costs to expand it that will add up to a bill worth $ 7.4 billion .
Conservatives blamed Prime Minister Justin Trudeau for nationalizing an oil pipeline because he could not provide international energy investors the certainty they need . The pipeline has been a controversial issue , especially between BC and Alberta , as the NDP government of BC refuses to give way to the building of the potentially environmentally disastrous oil project .
Trudeau was asked about the risks of his plan to taxpayers or the environment , but he was tight-lipped , saying only that “ we ’ re going to get that pipeline built .” He was not in the House of Commons to face the opposition , leaving Finance Minister Bill Morneau to defend the move just hours after announcing it . Morneau was met with jeers and cheers from the Conservatives ,
Ottawa , ON – The Honourable Andrew Scheer , the Leader of Canada ’ s Conservatives , issued the following statement :
“ Sadly , Kinder Morgan has announced that it is pulling its investment out of the Canadian energy sector . Kinder Morgan never asked for one dollar of taxpayer money . All the company wanted was certainty .
“ The Prime Minister is forcing Canadian taxpayers to pay for his failure . He has still failed to create
NDP and the Greens for his pronouncements , especially after his initial quip against Conservative leader Andrew Scheer .
Morneau said in a news conference the federal government will create
a Crown corporation to handle Kinder Morgan ’ s pipeline , which will manage all the rights , assets and the Canadian management team associated with its planned expansion , starting in August . This also came with an “ assurance ” that , with Kinder Morgan ’ s help , Ottawa will look for a private sector to build it , but if no buyer is found , Canadian taxpayers
certainty in the Canadian energy sector . And what ’ s worse , the Prime Minister is nationalizing a pipeline and he can ’ t tell Canadians the total cost . He would have Canadians believe that the only way to build the Trans Mountain pipeline is to use billions of taxpayer dollars , but it ’ s not . Four pipelines were built under the previous Conservative government without a dime of taxpayer money .
“ The long-term , chronic problems stem from will pay the bill to build the pipeline .
Kinder Morgan has already spent about $ 1 billion on the pipeline expansion , and in December estimated the project expansion cost at $ 7.4 billion overall . It is seeking to discharge its costs to a willing Canadian government who took on the costs to pay for the building of the pipeline .
It is the largest federal government bail out since 2009 , when Ottawa joined the Ontario government to advance more than $ 13.3- billion to help keep Chrysler and General Motors in business , and to ensure the Canadian auto industry survives . It also saved Canadian aviation company
Finance Minister Bill Morneau
Bombardier last year , when it took $ 1 billion of the taxpayers money to keep the company afloat .
Trudeau said the hazards of building this pipeline drove away Kinder Morgan . He met with his cabinet members early Tuesday morning two days before the deadline of the decision on the Trans Mountain project .
The Hon . Andrew Scheer statement on the Trans Mountain pipeline
the policies Justin Trudeau put in place to , in his own words , ‘ phase out ’ Canada ’ s energy sector . Nothing announced today changes any of this . His carbon tax increases the cost of building pipelines and makes future projects less competitive . He has introduced a shipping and drilling ban for energy products , imposed regulations on Canadian oil that do not apply to foreign oil imports , and cancelled Northern Gateway and killed
“ Canada cannot afford this pipeline ”
Canadian Tax Federation Federal Director Aaron Wudrick warns the Kinder Morgan project price of $ 4.5 billion is not just the sale price , but taxpayers will now shoulder the cost of building the pipeline , which he says could be significant .
“ Well , it could be $ 15 billion of money we don ’ t have and never planned to spend . Which originally was going to be paid for by a private company who was willing to do it . Yet here we are now because of the failure of primarily the federal government to just enforce the law . We are now stuck in a situation where Canadian taxpayers are paying the price .”
Wudrick says in this transaction “ Kinder Morgan took them to the cleaners ,” and says taxpayers cannot afford this .
“ We have seen this movie before . We have seen it with Bombardier . We have seen it with the auto bail outs . All of these so called investments cause taxpayers billions of dollars . This is the mother of all corporate welfare bail outs and it was completely unnecessary . We support the pipeline . Most Canadian businesses support the pipeline . There was no need to have taxpayers come to the rescue if the Government of Canada had just stepped up and passed legislation
Energy East .
“ C a n a d a ’ s C o n s e r v a t i v e s understand that by setting the conditions for success , low taxes and less redundant regulations , projects like Trans Mountain can be built without a burden to the taxpayer . We will continue to stand up for Canada ’ s resource sector , and most importantly , the men and women whose livelihoods depend on it .
to enforce the law .”
Wudrick says by saying they want to be temporary owners , the Trudeau government has made a mistake by putting itself in an unstable negotiating position with any prospective buyer , since it will have to accept an offer it cannot refuse , just to get out of the situation .
Finance Minister Bill Morneau refused to reveal how much taxpayers will have to pay to complete the 980-kilometre expansion , which would triple the flow of crude and refined oil products to 890,000 barrels per day . Keeping it alive sustains 15,000 jobs , the Finance Department said , a small number of employment compared to the entire cost the building would incur .
“ The Trans
Mountain expansion project is of vital interest to Canada and Canadians ,” Morneau told reporters . “ Our government ’ s position is clear : It must be built and it will be built .”
Morneau said Indigenous groups , pension funds “ and others ” have already expressed interest in buying in , but these are merely speculations and unconfirmed investors , which makes the notion of the reselling of the pipeline unsure and risky .
They can count on us to give them a voice against a Prime Minister determined to phase out their jobs .”
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