Business
Trans Mountain pipeline’s soaring cost provides more proof of government failure
From the Fraser Institute
By Julio Mejía and Elmira Aliakbari
To recap, since the Trudeau government purchased the project from Kinder Morgan for $4.5 billion in 2018, the cost of the Trans Mountain expansion has ballooned (in nominal terms) to $34 billion.
According to the latest calculations, the Trans Mountain pipeline expansion project, which the Trudeau government purchased from Kinder Morgan in 2018, will cost $3.1 billion more than the $30.9 billion projected last May, bringing the total cost to about $34 billion—more than six times the original estimate.
This is yet another setback for a project facing rising costs and delays. To understand how we arrived at this point, let’s trace the project’s history.
In 2013, Kinder Morgan applied to the National Energy Board (NEB) to essentially twin the existing pipeline built in 1953, which runs for 1,150 kilometres between Strathcona County, Alberta and Burnaby, British Columbia, with the goal to have oil flow through the expansion by December 2019.
In 2016, after three years of deliberations, the NEB approved the pipeline, subject to 157 conditions. By that time, according to Kinder Morgan, costs had risen by $2 billion, bringing the total cost to $7.4 billion.
And yet, despite Kinder Morgan following the legal and regulatory process to get the necessary approvals, the B.C. NDP and Green Party vowed to “immediately employ every tool available” to stop the project. At the same time, the Trudeau government was planning regulations that would increase the cost and uncertainty of infrastructure projects across the country.
Faced with mounting uncertainty and potential setbacks, Kinder Morgan planned to withdraw from the project in 2018. In response, the Trudeau government intervened, nationalizing the project by purchasing it from Kinder Morgan with taxpayer dollars for $4.5 billion. Once under government control, costs skyrocketed to $12.6 billion by 2020 and $21.4 billion by 2022 reportedly due to project safety requirements, financing costs, permitting costs, and crucially, more agreements with Indigenous communities. One year later, in 2023, the Trudeau government said the cost has risen to $30.9 billion.
To recap, since the Trudeau government purchased the project from Kinder Morgan for $4.5 billion in 2018, the cost of the Trans Mountain expansion has ballooned (in nominal terms) to $34 billion.
Surprised? You shouldn’t be.
When government attempts to build infrastructure projects, it often incurs cost overruns and delays due to a lack of incentives to build in an efficient and resourceful way. According to a study by Bent Flyvbjerg, an expert in this field, a staggering 90 per cent of 258 public transportation projects (in 20 countries) exceeded their budgets. The reason behind this phenomenon is clear—unlike private enterprises, government officials can shift cost overruns onto the public without bearing any personal financial consequences.
And the Trudeau government continues to make a bad situation even worse by introducing uncertainty and erecting barriers to private-sector investment in vital infrastructure projects including pipelines. Federal Bill C-69, for instance, overhauled the entire environmental assessment process and imposed complex and subjective review requirements on major energy projects, casting doubt on the viability of future endeavours.
What’s the solution to this mess?
Clearly, if policymakers want to help develop Canada’s natural resource potential—and the jobs, economic opportunity and government revenue that comes with it—they must enact regulatory reform and incentivize private investment. Rather than assuming the role of construction companies, governments should create an environment conducive to private-sector participation, thereby mitigating risk to taxpayers.
By implementing reasonable and competitive regulations that enhance investment incentives, policymakers—including in the Trudeau government—can encourage the private sector to build large-scale infrastructure projects that benefit the Canadian economy.
Authors:
Business
Premiers fight to lower gas taxes as Trudeau hikes pump costs
From the Canadian Taxpayers Federation
By Jay Goldberg
Thirty-nine hundred dollars – that’s how much the typical two-car Ontario family is spending on gas taxes at the pump this year.
You read that right. That’s not the overall fuel bill. That’s just taxes.
Prime Minister Justin Trudeau keeps increasing your gas bill, while Premier Doug Ford is lowering it.
Ford’s latest gas tax cut extension is music to taxpayers’ ears. Ford’s 6.4 cent per litre gas tax cut, temporarily introduced in July 2022, is here to stay until at least next June.
Because of the cut, a two-car family has saved more than $1,000 so far. And that’s welcome news for Ontario taxpayers, because Trudeau is planning yet another carbon tax hike next April.
Trudeau has raised the overall tax burden at the pumps every April for the past five years. Next spring, he plans to raise gas taxes by another three cents per litre, bringing the overall gas tax burden for Ontarians to almost 60 cents per litre.
While Trudeau keeps hiking costs for taxpayers at the pumps, premiers of all stripes have been stepping up to the plate to blunt the impact of his punitive carbon tax.
Obviously, Ford has stepped up to the plate and has lowered gas taxes. But he’s not alone.
In Manitoba, NDP Premier Wab Kinew fully suspended the province’s 14 cent per litre gas tax for a year. And in Newfoundland, Liberal Premier Andrew Furey cut the gas tax by 8.05 cents per litre for nearly two-and-a-half years.
It’s a tale of two approaches: the Trudeau government keeps making life more expensive at the pumps, while premiers of all stripes are fighting to get costs down.
Families still have to get to work, get the kids to school and make it to hockey practice. And they can’t afford increasingly high gas taxes. Common sense premiers seem to get it, while Ottawa has its head in the clouds.
When Ford announced his gas tax cut extension, he took aim at the Liberal carbon tax mandated by the Trudeau government in Ottawa.
Ford noted the carbon tax is set to rise to 20.9 cents per litre next April, “bumping up the cost of everything once again and it’s absolutely ridiculous.”
“Our government will always fight against it,” Ford said.
But there’s some good news for taxpayers: reprieve may be on the horizon.
Federal Conservative leader Pierre Poilievre’s promises to axe the carbon tax as soon as he takes office.
With a federal election scheduled for next fall, the federal carbon tax’s days may very well be numbered.
Scrapping the carbon tax would make a huge difference in the lives of everyday Canadians.
Right now, the carbon tax costs 17.6 cents per litre. For a family filling up two cars once a week, that’s nearly $24 a week in carbon taxes at the pump.
Scrapping the carbon tax could save families more than $1,200 a year at the pumps. Plus, there would be savings on the cost of home heating, food, and virtually everything else.
While the Trudeau government likes to argue that the carbon tax rebates make up for all these additional costs, the Parliamentary Budget Officer says it’s not so.
The PBO has shown that the typical Ontario family will lose nearly $400 this year due to the carbon tax, even after the rebates.
That’s why premiers like Ford, Kinew and Furey have stepped up to the plate.
Canadians pay far too much at the pumps in taxes. While Trudeau hikes the carbon tax year after year, provincial leaders like Ford are keeping costs down and delivering meaningful relief for struggling families.
Agriculture
Sweeping ‘pandemic prevention’ bill would give Trudeau government ability to regulate meat production
From LifeSiteNews
Bill C-293, ‘An Act respecting pandemic prevention and preparedness,’ gives sweeping powers to the federal government in the event of a crisis, including the ability to regulate meat production.
The Trudeau Liberals’ “pandemic prevention and preparedness” bill is set to become law despite concerns raised by Conservative senators that the sweeping powers it gives government, particularly over agriculture, have many concerned.
Bill C-293, or “An Act respecting pandemic prevention and preparedness,” is soon to pass its second reading in the Senate, which all but guarantees it will become law. Last Tuesday in the Senate, Conservative senators’ calls for caution on the bill seemed to fall on deaf ears.
“Being from Saskatchewan I have heard from many farmers who are very concerned about this bill. Now we hear quite a short second reading speech that doesn’t really address some of those major concerns they have about the promotion of alternative proteins and about the phase-out, as Senator Plett was saying, of some of their very livelihoods,” said Conservative Senator Denise Batters during debate of the bill.
Batters asked one of the bill’s proponents, Senator Marie-Françoise Mégie, how they will “alleviate those concerns for them other than telling them that they can come to committee, perhaps — if the committee invites them — and have their say there so that they don’t have to worry about their livelihoods being threatened?”
In response, Mégie replied, “We have to invite the right witnesses and those who will speak about their industry, what they are doing and their concerns. Then we can find solutions with them, and we will do a thorough analysis of the issue. This was done intentionally, and I can provide all these details later. If I shared these details now, I would have to propose solutions myself and I do not have those solutions. I purposely did not present them.”
Bill C-293 was introduced to the House of Commons in the summer of 2022 by Liberal MP Nathaniel Erskine-Smith. The House later passed the bill in June of 2024 with support from the Liberals and NDP (New Democratic Party), with the Conservatives and Bloc Quebecois opposing it.
Bill C-293 would amend the Department of Health Act to allow the minister of health to appoint a “National pandemic prevention and preparedness coordinator from among the officials of the Public Health Agency of Canada to coordinate the activities under the Pandemic Prevention and Preparedness Act.”
It would also, as reported by LifeSiteNews, allow the government to mandate industry help it in procuring products relevant to “pandemic preparedness, including vaccines, testing equipment and personal protective equipment, and the measures that the Minister of Industry intends to take to address any supply chain gaps identified.”
A close look at this bill shows that, if it becomes law, it would allow the government via officials of the Public Health Agency of Canada, after consulting the Minister of Agriculture and Agri-Food and of Industry and provincial governments, to “regulate commercial activities that can contribute to pandemic risk, including industrial animal agriculture.”
Text from the bill also states that the government would be able to “promote commercial activities that can help reduce pandemic risk,” which includes the “production of alternative proteins, and phase out commercial activities that disproportionately contribute to pandemic risk, including activities that involve high-risk species.”
The bill has been blasted by the Alberta government, who warned that it could “mandate the consumption of vegetable proteins by Canadians” as well as allow the “the federal government to tell Canadians what they can eat.”
As reported by LifeSiteNews, the Trudeau government has funded companies that produce food made from bugs. The World Economic Forum, a globalist group with links to the Trudeau government, has as part of its Great Reset agenda the promotion of “alternative” proteins such as insects to replace or minimize the consumption of beef, pork, and other meats that they say have high “carbon” footprints.
Trudeau’s current environmental goals are in lockstep with the United Nations’ “2030 Agenda for Sustainable Development” and include phasing out coal-fired power plants, reducing fertilizer usage, and curbing natural gas use over the coming decades, as well as curbing red meat and dairy consumption.
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