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December 6th, 2018

Trans Mountain Expansion Risk Outweighs Potential Benefit

OTTAWA – On Wednesday, NDP Finance Critic Peter Julian presented the Federal NDP’s submission to the NEB on the plans for the expansion of the Trans Mountain pipeline. New Democrats believe that this review process must be overhauled in order to restore public trust in the ability of our regulatory system to protect our environment and Canadians’ public safety.

“It is clear that the cost-benefit analysis of the Trans Mountain expansion does not add up in favour of the project,” said Julian. “The substantial risks posed to our environment, marine life and coastal communities; the violation of Indigenous rights; and the billions of dollars for which taxpayers will be on the hook – all vastly outweigh any potential economic benefits.”

The Liberal government has falsely taken the position that Trans Mountain entities have earned the government $70 million. What Trudeau’s government has not made clear to Canadians is that any earnings presented quickly erode when we account for the interest charged to Trans Mountain for the debt incurred in funding the transaction. In September alone, Trans Mountain incurred $21 million in interest expenses.

“Without using the dishonest reporting done by the Minister of Finance, the annualized earnings stated by the Liberal government actually become an annualized cost, representing a loss of tens of millions of dollars,” added Julian. “The government purporting to report a surplus prior to the interest payment is fundamentally irresponsible. Canadians are already on the hook for tens of millions of additional costs on an annual basis. This is misleading and wrong.”