QUESTION PERIOD — Natural Resources
Trans Mountain Pipeline
June 19, 2019
Honourable senators, my question is for the Leader of the Government in the Senate. Yesterday, as expected, the federal government once again gave its final approval to the Trans Mountain Expansion Project, the pipeline it bought in 2018 with $4.5 billion of taxpayers’ money.
As feared, the announcement contained no timelines for when construction will begin, when the pipeline will be in service or even when the permits will be sought and obtained. As the government acknowledged yesterday, it will have to obtain additional regulatory approvals before construction can begin, including approval from the National Energy Board, approval under the Indian Act and the Fisheries Act, and permits under the Species at Risk Act, just to name a few.
Senator Harder, how can the Prime Minister say that shovels will be in the ground this construction season when the government has not even established timelines for obtaining all these permits and regulatory approvals?
I thank the honourable senator for his question. I think the first thing I would say is that the announcement yesterday is very welcome for the Canadian energy sector and very important for Canada. The initiative is one that obviously has been complex and taken a period of time to review. I was pleased to see that former Supreme Court Justice Iacobucci issued the statement he made with respect to the consultations that had been ordered by the courts.
The Government of Canada, together, of course, with the corporation, is committed to having shovels in the ground in this construction season. The appropriate approvals for that construction are already being sought, and the commitment of the government has been clear and forthright.
Thank you, Mr. Leader.
In May 2018 when the government announced the purchase of Trans Mountain from Kinder Morgan, Minister Morneau said that the agreement guaranteed the resumption of work for the summer construction season. It didn’t.
Last July it was reported that about 1,100 permits would be needed for the construction phase of this project. Before the federal government purchased the pipeline, just over 700 permits had been sought. After this government bought Trans Mountain, only one permit had been applied for.
Senator Harder, Canadians have good reason to be skeptical of the government’s ability and desire to actually get this pipeline built. Can the government at least provide taxpayers with a date for when construction will begin in Burnaby?
Again, honourable senators, the Trans Mountain Corporation, which is the corporate entity responsible, has obviously responded positively to the announcement, has work in place and is laying out a compliance regime that will allow construction to be initiated in this construction season.
My question is for the Leader of the Government in the Senate. Inconsistent ideas and broken promises seem to have become your Prime Minister’s trademark. In the span of just a few days, he adopted a motion declaring a national climate emergency while also allocating $9 billion to develop the Trans Mountain pipeline. Furthermore, he made that announcement without having kept his promise to consult First Nations and come to an agreement with them, while also encroaching on British Columbia’s provincial jurisdictions.
This looks like a giant political football that could lead to other conflicts and costs that will have to be borne by Canadians. What really stood out for me is that he said the Trans Mountain pipeline would be developed without any increase in oil production. This needs to be taken more seriously.
Can you explain for us by what sleight of hand the Prime Minister will ensure that our export capacity increases while production stays the same in Alberta? Has he reached some kind of secret agreement with oil producers or the Alberta government to make such a statement?
I thank the honourable senator for his question. He’ll know that the objective of this project is to ensure that not only are Canadian exports of our natural resources — in this case, oil — destined to grow, I’m informed that, as a result of this initiative, it is estimated to generate $73 billion in increased revenues for producers over 20 years.
Government revenues, meanwhile, are expected to increase by $46 billion over the project’s construction and first 20 years of operation. As the Prime Minister noted, the additional corporate tax revenue alone could be around $500 million per year once the project is fully operational. I would also draw attention of the house to the commitment made to utilize such funds for clean energy transition to a less carbon-intense economy.
We are in a period of transition in a global economy to a less carbon-intense environment. We must be cognizant of climate change and our desire to move appropriately to meet our global commitments. That does not mean we cannot, at the same time, utilize the resources we have to ensure that the world is able to move off of more carbon-intense sources of energy as we contribute what we have to that global transition.
