Trans Mountain received $320 million in government subsidies this year and more than half of that was not clearly disclosed to taxpayers, report says

VANCOUVER — The Trans Mountain pipeline received $320 million in subsidies from the Canadian and Alberta governments in the first half of 2019, says a new report by an economic institute that analyzes environmental issues.

Sanzillo and the report’s co-author, institute financial analyst Kathy Hipple, analyzed the second-quarter report of the Canada Development Investment Corp., a Crown corporation meant to further the country’s economic development that counts Trans Mountain Corp. among its subsidiaries. The cash was provided to Trans Mountain in two sections: a $2.8 billion loan and a $2.3 billion equity investment. The interest on the loan must be paid from the pipeline’s business activity, while the interest on the equity investment can be paid from a third-party subsidy, the report says.

Finally, the Alberta government reduced corporate taxes through a tax credit starting in January 2019. This policy action allowed Trans Mountain to save $54.1 million in taxes, yet another direct subsidy that the development corporation uses to turn the corporation’s pre-tax loss into a post-tax gain, according to the report.

Sanzillo used the lower figure, 12 per cent, to calculate that a private company would have charged Trans Mountain $302.1 million in interest in the first half of 2019. The Canadian government, meanwhile, charged it $118.3 million. “ is about transparency and not meant to be a legal challenge to the right of the Canadian government to subsidize the pipeline project. It is a matter of dollars at risk that the Canadian taxpayer might absorb,” it says.

It was stated that “ lowering the corporate tax rate is a direct subsidy that saved them 54.something million”. Lowering taxes is not a subsidy if it benefits all corporations... or is that how taxes work? I feel like they need to say “ subsidy “ again!

Trudeau trying to figure out how to pump sunshine through those pipes instead of oil.

A publically owned project requires public money. NEWS AT 11.

Were you going to mention this? The Institute’s mission is to accelerate the transition to a diverse, sustainable and profitable energy (green) economy. The Institute...receives its funding from the Rockefeller Family Fund...

Wonder what the real numbers are-sans all the assumptions that there is massive government subsidy

Aladdin Watch 2019 🤡 TrudeauJr PeterPanPM MagicKingdom

This would have been better off in private hands. Governments never tell the truth or know how to run a business Efficiently. This is going to cost the taxpayer billions before all is said and done. That’s Trudeau.

Just get the pipe built that's all we need to here

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Trans Mountain received $320M in government subsidies in first half 2019: reportThe Trans Mountain pipeline received $320 million in subsidies from the Canadian and Alberta governments in the first half of 2019, says a new report by an economic institute that analyzes environmental issues. $320M? Maybe Alberta should stop whining. almost $10 from every Canadian man woman child ..... so private corporations can profit and Alberta can whine about equalization payments cdnpoli pipeline Well of course the government has to subsidize it,they’re the ones who bought it. build the thing aready and start turning a profit.common sense. Not sure why Alberta has to subsidize when it’s the feds who bought it with Canadian tax payers money. Will tax payers see the profits
Source: CTVNews - 🏆 1. / 99 Read more »

Trans Mountain received $320M in government subsidies in first half 2019: reportThe Trans Mountain pipeline received $320 million in subsidies from the Canadian and Alberta governments in the first half of 2019, says a new report by an economic institute that analyzes environmental issues. $320M? Maybe Alberta should stop whining. almost $10 from every Canadian man woman child ..... so private corporations can profit and Alberta can whine about equalization payments cdnpoli pipeline Well of course the government has to subsidize it,they’re the ones who bought it. build the thing aready and start turning a profit.common sense. Not sure why Alberta has to subsidize when it’s the feds who bought it with Canadian tax payers money. Will tax payers see the profits
Source: CTVNews - 🏆 1. / 99 Read more »

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