Neoliberal Friends With Benefits

Kinder Morgan couldn't have a better friend than Justin Trudeau:

Texas-based Kinder Morgan made a seven-fold return on the sale of its Trans Mountain pipeline system to Canada's federal government, according to a new report that also warns the federal budget deficit could jump by 36 per cent because of the purchase.

The project has an estimated $7.4 billion price tag, of which Kinder Morgan says it has already spent about $1 billion. But the IEEFA report estimates that the company has only put about $600 million into the project so far. It estimates the company will make a 637-per-cent gain on the $4.5-billion sale.

The federal government is on the hook for about $11.5 billion in costs, including both the purchase and the remaining cost of construction, the report estimates.

"This transaction and the cost of further planning and construction could add a $6.5 billion unplanned expenditure to Canada's budget during (fiscal year) 2019," the report stated. "This would increase Canada's projected deficit of $18.1 billion by 36 per cent. to $24.6 billion."

The magnitude of Liberal ineptitude is stunning:

"There is every indication that the Canadian government has bought the pipeline at a high price and is likely to resell it for far less than it will pay to build it," Tom Sanzillo, the institute's [Institute for Energy Economics and Financial Analysis] director of finance, said in a statement.

"Canada is weakening its finances by taking on unlimited costs to buy an unneeded pipeline with an uncertain future and giving an unusual profit to a U.S. company," he added.

But hey. That's what happens when you elect a neoliberal government. But Justin still has nice hair.