Justin Trudeau plans to spend $4.5B to buy Kinder Morgan’s Trans Mountain pipeline, but that isn’t the end of the spending.
After the initial buy-out of the existing Trans Mountain line, the federal government says it will take over the $7.4B pipeline expansion this summer while the sale is being finalized.
And that still isn't the end of it. Alberta premier, Rachel Notley, is offering to backstop the federal government from cost overruns with a $2B indemnity that will be converted to an equity stake in the project after construction is finished.
The federal government is also creating another Crown Corporation and another government bureaucracy to oversee Trans Mountain construction and operations.
Today, I’ll tell you why nationalizing the pipeline is the worst possible outcome for Canada.
This outcome is a damning indictment of Trudeau’s handling of the economy and Canada’s natural resources. And it gives Notley and Trudeau the tool by which to blackmail us in the future.
Conservatives should always be against the nationalization of private-sector industry. The end never justifies the means.
Taxpayers are making a $4.5B initial donation to Trudeau’s next election campaign, and at the end of it all, we may never see a pipeline.