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For Trudeau, Alberta's oil emissions deserve scrutiny and restriction, but not Bombardier's

Author: Colin Craig 2017/12/15

Recently the Canadian Taxpayers Federation asked the Trudeau government for “upstream and downstream” emissions analyses it had conducted before handing over large cheques to Bombardier and Ford.

The government’s response to our inquiry was as nonsensical as the decision to fund those two companies in the first place.

Recall that TransCanada had an application before the National Energy Board earlier this year that sought to expand one of its existing pipelines. The “Energy East” pipeline project would have transported oil from western Canada to eastern Canada, reducing eastern Canada’s reliance on foreign oil while allowing Canadian companies to sell oil around the world.

TransCanada’s pipeline project would have created 14,000 jobs and best of all it would have paid $10 billion in taxes to the government – money that could have been used to pay for government services across Canada, easing the tax burden on everyday Canadians at the same time.

Importantly, TransCanada wasn’t asking for a cent from the federal government.

Of course we all know what happened. After TransCanada had already spent a fortune in time and money to participate in the Trudeau government’s pipeline approval process, the government decided to change the rules of the game after the process began.

Suddenly the Trudeau government wanted the National Energy Board to also look at TransCanada’s “upstream and downstream” emissions. Not surprisingly, TransCanada then pulled the plug on the project. Erratic government approval processes and multi-billion dollar projects don’t exactly go hand in hand.

We then decided to ask the federal government for the “upstream and downstream” analyses it conducted before handing over large cheques to Bombardier and Ford – two companies that manufacture vehicles that burn oil and gas products.

Back in February of this year the Trudeau government proudly cut a cheque to Bombardier for $373 million. The Quebec-based company would use the funds to build jet fuel-burning airplanes. In March, Prime Minister Trudeau flew down to Windsor and gleefully announced the federal government would give Ford $102 million.

The federal government responded to our inquiry by telling us that they didn’t do any emissions analysis before handing over $102 million to Ford. Apparently Ottawa isn’t worried about emissions that come from trucks with a Ford logo on them.

The federal government told us the emissions analysis it conducted related to Bombardier is confidential as it was part of materials that went to cabinet. Isn’t it interesting that while TransCanada would have to go through a lengthy public review, Bombardier was provided with cabinet confidentiality? That being said, we’re doubtful there’s anything of substance in the materials that went to cabinet.

The bottom line is that Ottawa’s approach is completely backwards. Prime Minister Trudeau can’t seem to cut a cheque fast enough for companies like Bombardier that routinely ask for money to build vehicles that burn oil and gas products. But at the same time, his government puts roadblocks in front of companies like TransCanada and other resource projects that don’t ask for taxpayer money and pay billions in taxes.

The more Ottawa obstructs resource projects, the more Ottawa and other levels of government in Canada miss out on the billions in taxes they would pay – money that will instead have to come from everyday Canadians.

 

Colin Craig is the Interim Alberta Director for the Canadian Taxpayers Federation
This column was published by the Financial Post on December 15, 2017


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