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

Deboon retires from conservation service

After nearly 30 years of service as a conservation officer in the… Continue reading

VIDEO: Highway 3A reopened after mudslide cleared

A mudslide closed Highway 3A between Castlegar and Nelson just north of the Brilliant Dam on Wednesday.

Gallery: Fernie Alpine Resort closing weekend

Our best photos from the Powder, Pedal, Paddle relay race, Fernival and Slope Soaker.

Focus on emergency preparedness

Fernie to host 2018 Association of Kootenay Boundary Local Governments Convention from April 18-20.

VIDEO: Gerry Pang – the heart of hockey

After coaching hockey goaltenders since 1997, Gerry Pang has finally decided to hang up the skates.

Could facial scans and fingerprints make you unhackable?

New biometrics capabilities could be a game-changer for those trying to get on your accounts

Countdown is on to the 2018 B.C. Summer Games

Cowichan Valley hosts on July 19-22

Driving Change: A B.C. man’s charitable trip across Canada

A Kelowna man, his bus, and his mission for positive change across our country

Case of teacher secretly filming teens reaches top court

Acquittal of teacher, Ryan Jarvis, who secretly videoed teens ‘dangerous,’ top court told

Why a 14-year-old will lead the charge at annual marijuana protest on the Hill

Marijuana enthusiasts have long been circling April 20 on their calendars as annual day of cannabis

B.C. communities await marine spill compensation years after incidents

The government maintains a Ship Source Oil Pollution Fund to compensate Canadians

RCMP say too early to know what happened in Broncos crash

RCMP Assistant Commissioner Curtis Zablocki said collission very complex

Conservative MP wants feds to close loophole for illegal border crossers

Immigration advocates call on government to suspend Canada-U.S. Safe Third Country Agreement

Alberta university criticized for honouring David Suzuki

University of Alberta plans to bestow environmentalist with honourary degree

Most Read