Published: Thu, May 31, 2018
Money | By Wilma Wheeler

Gladu Critical Of Trans Mountain Pipeline Purchase

Gladu Critical Of Trans Mountain Pipeline Purchase

He said any deal to sell the Kinder Morgan assets must also be fair to Canadian taxpayers.

Crey wasn't completely surprised either by the bailout decision announced by Liberal government Ministers Bill Morneau and Jim Carr.

"We are absolutely shocked and appalled that Canada is willingly investing taxpayers" money in such a highly controversial fossil fuel expansion project, ' said Grand Chief Stewart Philip, president of the Union of B.C. Indian Chiefs, in an emailed statement.

What all this shows is the abject failure of Trudeau's and Notley's superficial and absurd belief that imposing a national carbon price on Canadians would give them the "social licence" to build the Trans Mountain pipeline, with the blessings of B.C.'s anti-oil government, Indigenous objectors and radical environmentalists.

Morneau's announcement comes two days before a May 31 deadline for a resolution set by Kinder Morgan, the Texas-based company behind the proposed Trans Mountain pipeline expansion.

The plan - similar to how Canada financed and managed shares in General Motors and Chrysler in 2009 during the financial crisis - will include a new Crown corporation to manage the project. They said more oil-by-rail shipments would be necessary.

CIBC slashed its 12-month price target to $17 from $22 because of its lower expectations of future growth in revenue and dividends for Kinder Morgan shareholders.

But besides the parliamentary outrage, the decision to pay Kinder Morgan US$3.46 billion (C$4.5 billion) has now caused Saint John's leaders to question this special treatment of Trans Mountain.

Morneau's speech was briefly interrupted by environmental protesters who shouted "this pipeline will never be built", before they were led out by security.

"Any climate change plan that ignores the needs of working people is doomed to fail", Alberta Premier Rachel Notley said after the deal was announced.

Along with multiple legal challenges involving the pipeline, the Squamish Nation and five other First Nations are involved in a Federal Court of Appeal case that targets Ottawa's approval of the project. It continues with "The vintage pipeline is a handyman's dream project". Its expansion is a key part of Canada's effort to boost oil exports to Asian markets - but the plan has been protested by indigenous groups and environmental activists, who warn of the risks of a spill and the hazards of increased petroleum tanker traffic.

"While today's decision by the federal government to purchase the existing Trans Mountain pipeline and the assets of the Trans Mountain Expansion Project is a departure from the normal process for pipeline development in Canada, it is not without precedent".

Morneau says the federal government does not plan to be a long-term owner and is in negotiations with interested investors, including Indigenous communities, pension funds and the Alberta government.

"Weaker economic growth is forecast across the country, with only British Columbia, Prince Edward Island, Ontario and Quebec expected to see growth above 2 per cent this year", said Marie-Christine Bernard, director of provincial forecast for the Conference Board of Canada in a news release Tuesday.

While he isn't happy about the federal government's decision to buy the pipeline project, Milobar said "it's understandable why government wants it to proceed and it will be good if the government gets it across the finish line". He promised that this project could not go through unless it was done through a vigorous review, which he broke'.

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