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Your Govt at Work

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    Your Govt at Work

    Only the govt could take a winning project and destroy it. Now its a money loser until the expansion happens which will never happen. Wait until we have to buy it for the natives.

    ​------

    Trans Mountain posts $36 million loss to date

    The Trans Mountain pipeline posted a $36 million net loss for the federal government in the first seven months that it owned the pipeline, according to the Parliamentary Budget Officer.
    A big chunk of that loss is attributable to $87 million in financing – i.e. interest on the debt the government incurred to buy the pipeline from Kinder Morgan Canada.
    Were it not for the interest payments on the debt, the pipeline would have generated $36 million in profits over the seven-month period examined by the PBO.
    The federal government bought the existing Trans Mountain pipeline and the Trans Mountain Expansion Project in 2018 for $4.4 billion, of which $1.1 billion was for money already spent or committed to the expansion before it was halted by the courts.

    To make the acquisition, the federal government borrowed $5 billion, at an interest rate of 4.7%.
    In the first seven months that the government owned the pipeline, it generated $229 million in operating revenue, according to a PBO analysis of the financial reporting by the Canadian Investment Development Corp., the Crown corporation now responsible for the pipeline assets.
    The operating expenses for the pipeline totalled $132 million, and depletion and depreciation costs were $61 million. Financing costs (interest payments on debt) was $87 million.
    As a number of observers have pointed out, the only real value for the federal government in buying the pipeline lies in its expansion. In a 2018 financial statement, Kinder Morgan Canada estimated the expanded pipeline would generate $900 million in revenue annually.

    If, for some reason, the twinning project – estimated to cost between $7.4 billion to $9.4 billion – was never completed, the government would need to write off about $2 billion. That includes money already spent on the expansion and good will payments.

    #2
    No, no remember you were telling us it's Ok to lose money in a business when you were defending Trump? Feds only lost for one year here, Trump has lost every year since 2012 in the golf course deal we were discussing.

    Now go do some digging (pun intended) and come up with the data to back your claim that most rural areas in Canada have their hydro lines buried.

    Comment


      #3
      Absolutely nothing is as worthless and can mess up as much as Canada’s federal government! Doesn’t seem to matter who runs it. Just some are not as bad as the one we have now. That’s why they should be keep out of people’s lives as much as possible.

      Comment


        #4
        Grass, the question here is. Do you agree with ANY govts handling of this project. Should they buy ANY project of this nature.
        I say no.

        Comment


          #5
          I don't like it either but should have they just let it die with KM shutting it down? I really don't know. What would Harper or the CPC done I wonder? Catch 22!

          Comment


            #6
            Originally posted by walterm View Post
            I don't like it either but should have they just let it die with KM shutting it down? I really don't know. What would Harper or the CPC done I wonder? Catch 22!
            All they had to do was let KM pay for the entire project like would of eventually happened and enforce federal jurisdiction for pipeline approvals through NEB and appeal decisions when necessary.

            Don’t add new anti-pipeline laws Bill C-69.
            Don’t ban oil tankers from northern BC (Bill C-48).

            Trudeau, Morneau, McKenna and Butts have done their best to restrict the expansion of the energy sector.

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