Alberta budget plans for Trans Mountain expansion

Finance Minister Joe Ceci says expected revenues will be factored into budget forecasts

Finance Minister Joe Ceci says Alberta is banking on anticipated revenue from an expansion of the Trans Mountain oil pipeline to balance the budget within five years.

Ceci says revenue from the yet-to-be built expansion, along with expected revenue from a replacement Enbridge pipeline to Wisconsin, will be factored into forecasts in the budget he is to table on Thursday.

He says it makes financial sense to include the pipelines now —given the expectation they will get completed — and the figures can be adjusted as the situation develops.

“That is definitely the hopes of the companies that are involved,” Ceci said Tuesday. “We’ve built (the revenue) into budget because that’s what everybody believes will happen.”

In 2016, the federal government approved the Enbridge Line 3 replacement to Wisconsin, as well as Kinder Morgan’s Trans Mountain expansion, which would triple the amount of crude shipped from Edmonton to the port at Burnaby, B.C.

But the Trans Mountain expansion is facing delays and challenges.

B.C. Premier John Horgan is asking for a legal ruling on whether his province can restrict higher levels of oil from coming into B.C. while his government reviews oil-spill safety measures.

Alberta Premier Rachel Notley has said Trans Mountain is critical to Canada’s energy future and she plans to introduce legislation in the coming weeks to give her the power to curtail oil shipments to B.C. in retaliation.

She has said that pipeline bottlenecks and limited access to overseas markets are forcing Alberta’s crude to sell at a discount, costing thousands of jobs and leaving billions of dollars of profit on the table.

Opposition United Conservative Leader Jason Kenney said it’s risky for Ceci to count on future revenue from Trans Mountain.

“We obviously hope that Trans Mountain gets built quickly, but what we’ve seen is a year of delays already and the very strong potential of yet further delays,” Kenney said.

“This is putting a lot of eggs in one uncertain basket, and that’s not how you budget.”

Ceci made the pre-budget announcement at a downtown tech startup company that creates virtual simulations for proposed homes and work sites.

Finance ministers traditionally get new shoes prior to budget day. This year, Ceci stood next to a screen displaying a computer-generated avatar of himself in loafers that toggled from shimmering electric green to dark purple to traditional black and grey.

He said the budget will continue with key NDP themes, but will include a detailed plan to balance the books.

“The budget is going to be balanced in 2023,” said Ceci. “We are focused on constraining expenditures (and) costs down the road, eliminating … waste where we find it, and diversifying our economy.”

The government won’t make deep cuts to balance the budget earlier, he said. This year’s deficit is pegged at $9.1 billion.

Kenney said a plan tied to the mercurial ups and downs of oil prices is not a plan.

“He (Ceci) has put on those virtual reality goggles and he can’t see clearly,” said Kenney. “He seems to be counting on good luck to get the budget balanced.”

Notley took over in 2015 as oil prices, the wellspring of Alberta’s economy, were falling by half from previous highs of more than US$100 a barrel. Oil prices have inched up since then, but Notley’s government has avoided deep cuts to programs and services, saying that would worsen the economy.

Dean Bennett, The Canadian Press

Just Posted

Councillor Gambell raises motion to fit busses with seat belts

The motion was passed on Tuesday’s council meeting

FormaShape snuffs small electrical fire

Fire department responds to fire in Lake Country for precautionary measures

Melcor Developments supports YMCA Strong Kids with generous $9,000 donation

Local business raises funds to enrich community through YMCA services

Boil water notice extended into Kelowna’s northern boundary

City of Kelowna extends boil water notice to over 100 residences in northern boundary of Kelowna

Kelowna Memorial Cup committee visits 2019 tournament in Halifax

The committee wants to get a first-hand look at how the tournament is organzied

600 new campsites coming to provincial parks and recreation sites across B.C.

Tourism Minister announced half of the new spots to 13 most popular provincial parks

Raptors beat Bucks 105-99 to move within 1 game of NBA Finals

Leonard scores 35 as Toronto takes 3-2 series lead over Milwaukee

Okanagan housing builds hope for 52 homeless individuals

The 52 unit supported housing apartment officially opens in Vernon

Gardens plant hope for Okanagan residents who were once homeless

Turning Points, in collaberation with Briteland, bring square foot gardening to Blair Apartments

Bear spray culprit released from Penticton RCMP custody

The individual who sprayed the bear spray at Compass House on May 22 has been released

Municipalities protest after B.C. declares marijuana crops ‘farm use’

UBCM president seeks answers in letter to John Horgan government

RCMP set to patrol Okanagan lakes

Vernon-North Okanagan members will be on area waters helping keep boaters safe

Summerland students to raise voices in public speech competition

Public speaking component is included in high school English program

CMHC defends mortgage stress test changes amid calls for loosening rules

Uninsured borrowers must now show they could service their mortgage if rates rose two per cent

Most Read