The government is trying to claim otherwise.
The Trudeau government’s nationalization of the Trans Mountain pipeline could cost Canadian taxpayers $6.5 billion in addition deficit spending in the 2018-2019 fiscal year, according to the Institute for Energy Economics and Financial Analysis.
As reported by the CP, “Until Ottawa clarifies how it plans to account for the spending, there’s a risk the purchase could add 36 per cent to the projected $18.1-billion deficit, according to the study written by Tom Sanzillo and Kathy Hipple. “The principal budgetary action here looks to me like an unplanned expenditure for 2019,” said Sanzillo, director of finance for the institute, in an interview.”
The government claims otherwise, saying they will have an ‘asset,’ and that it wouldn’t be counted towards the deficit or debt.
However, Sanzillo noted that “A speculation on a pipeline is far outside what would be a reasonable and responsible investment by a public sector entity. The absorption by a public sector entity of something that the private sector has rejected is a risk, a substantial risk.”
Here we see the cost of the Trudeau government’s failure to create a good environment for investment in Canada. A pipeline that should easily have been handled by the private sector is now a big financial risk to Canadian taxpayers, and could add significantly to the deficit – when it should have been a huge source of wealth creation for Canada.
This also represents two further broken promises by Justin Trudeau. The first was his claim that the carbon tax would create the magical ‘social license’ to get projects approved, and the second was that he would only run three small deficits. The nationalization of the Trans Mountain pipeline is just the latest evidence that both those promises were outright lies.