QUESTION PERIOD — Finance
Trans Mountain Pipeline
June 10, 2019
Honourable senators, my question is for the Government Leader in the Senate.
Just over a year ago in May 2018, when the Minister of Finance announced that his government would buy the Trans Mountain Pipeline from Kinder Morgan with $4.5 billion in taxpayer money, there was no plan announced to get the expansion project built. At the time, Minister Morneau told Canadians that work on this project was ensured for the 2018 construction period.
As we all know, there were no shovels in the ground right away and about three months later the Federal Court of Appeal overturned the approval of the expansion.
Senator Harder, it has been announced that Minister Morneau will speak in Calgary the day after the government reveals its decision on Trans Mountain. After this project is given approval next week, will Minister Morneau also present a viable, credible plan to get work started immediately?
I thank the honourable senator for his question and for the assistance from the Acting Leader of the Senate Liberals for my answer.
The senator will know that the government has made a commitment at the time the extension was made to June 18 to announce a decision as quickly as possible within that time frame. I anticipate that will be exactly what happens.
That was a little bit longer than “yes.” I appreciate your answer.
Earlier this year, the Parliamentary Budget Officer issued a report on this government’s purchase of the Trans Mountain pipeline. The PBO report stated:
. . . a delay in completing construction by one year would reduce the value of the TMEP by $693 million. Similarly, a 10 per cent increase in construction costs would lower its value by $453 million.
Senator Harder, we know that this project is already behind schedule. When the approval is given next week, will the government provide a date for when the pipeline is expected to be in service?
I thank the honourable senator for his question. I can’t predict what the government might announce next week. Let me remind the honourable senator of the commitment this government has made with respect to ensuring that this pipeline moves forward. Not only has the government, on behalf of the people of Canada, purchased the pipeline, but they have taken all of the steps necessary to move forward as quickly as possible. It is true, as the honourable senator referenced in his question, that the Federal Court of Appeal has given direction. The government has taken that direction, but this government is committed to the construction and completion of this important piece of infrastructure.
