New Westminster-Burnaby MP Peter Julian has outlined at length the environmental concerns he has about the expansion of the Trans Mountain Pipeline, but what really bothers him is the escalating costs of the project and its weak business case.
In a submission to the National Energy Board, Julian criticized the government for claiming that the pipeline is making money pointing out interest on the $4.5 billion debt strips away any profit.
“For anybody to pretend that you’re turning a profit without taking into consideration mass payments on loans is simply false,” Julian told the Now. “It’s like saying Canada is running a surplus because the interest we’re paying on debt we’re not going to take into consideration.”
Julian said he was “stunned” when he saw the third-quarter report of the Canadian Development Investment Corporation, which now owns the Trans Mountain Pipeline, that showed interest payments in September of $21 million.
Julian called the Trans Mountain pipeline a “money-losing pipeline” and said it was disrespectful to Canadians to say it was making money, referring to the government’s recent “mini-budget” where the finance minister spoke about the pipeline, which is why he included the financial arguments in his NEB submissions.
Julian not only thinks too much was paid for the pipeline, but he points out the projected costs of expanding it are going up, and he estimates the purchase and constructions costs will come in at at least $15 billion.
“Canadian taxpayers, people who are struggling with huge family debt loads - we’re seeing an erosion of pensions, huge debt for students trying to get to university – and we’re splurging now, according to estimates on construction and estimates on the purchase price, $15 billion on a pipeline that is no longer financially viable,” Julian said.
The NEB is holding hearings into the pipeline expansion, which runs from Calgary to Burnaby and into Washington State.
The hearings are set to wrap up on Feb. 22.
