CALGARY, AB: The Canadian Taxpayers Federation is highlighting the need to fix Canada’s regulatory system so job creators can build pipelines without relying on taxpayers.
“Politicians needs to get their act together so we can get big projects built and taxpayers aren’t put on the hook for pipelines,” said Franco Terrazzano, Alberta Director for the CTF. “That means in Canada we need to repeal damaging legislation such as Bill C-69 and Bill C-48.
“Taxpayers are always concerned about higher debt, but if businesses could actually build pipelines in Canada there would be no need for Premier Jason Kenney to spend tax dollars on Keystone XL.”
Premier Jason Kenney announced that the Alberta government will be spending $1.5 billion in an equity investment in Keystone XL this year, followed by a $6-billion loan guarantee in 2021. This announcement follows significant pipeline delays, set-backs and cancellations, such as the federal purchase of the Trans Mountain pipeline, the rejection of Northern Gateway and the cancellation of Energy East. SecondStreet.Org has estimated that stalled or cancelled natural resource projects since 2014 has cost Canadians more than $213 billion.
There is concern about whether future pipelines will be able to get built due to damaging legislation, such as Bill C-69 and Bill C-48, along with a challenging regulatory and legal system in Canada. The Canadian Energy Pipelines Association has raised serious concerns about completing major projects.
“It is difficult to imagine that a new major pipeline could be built in Canada under the Impact Assessment Act [Bill C-69],” said Chris Bloomer head of CEPA.
The Canadian Taxpayers Federation calculated that the pipeline deficit and higher price differential could reduce the federal government’s revenue by $13 billion between 2013 and 2023. If key pipelines aren’t built, the lower oil prices and lost investment could cost the Alberta government $5 billion by 2023, according to Budget 2019.
“Taxpayers are being dragged further into debt because politicians are holding up pipelines in Canada and that needs to stop,” said Terrazzano. “In the meantime, Premier Kenney needs to consistently report back to Albertans on the progress of Keystone XL and provide clear transparency to show taxpayers what’s happening with their money. And Kenney needs get taxpayers money back as quickly as possible.”
