Wednesday, June 27, 2018

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.


  1. Bill "Job Churn" Morneau assures us it was a fair price and a sound investment for Canada.

    1. His rectitude on these issues, of course, speaks for itself, Mound.

  2. .. no no ..
    The purchase was an aged pipeline etc
    The constriction of a 'twin'
    is an entirely different and seperate cost

    1. Apparently a distinction too fine for many minds, Sal.