Kent Hehr

Your member of parliament for


Calgary Centre

Kent Hehr

Your member of parliament for


Calgary Centre

Menu

TMX – Trans Mountain

June 18, 2019 update

Today, our federal Liberal government approved the Trans Mountain Expansion pipeline project, creating tens of thousands of jobs. Construction will restart this season.

 

Every dollar made by the federal government from the TMX will be invested in clean energy projects.

 

We also announced that our government will launch an engagement process to seek input from Indigenous groups on ways that they could directly benefit financially from the expansion – including through ownership, equity, and royalties.

TMX solves a core economic challenge facing our country. Currently, 99% of our conventional energy resources are sold to one market – the United States – at a large discount. We need to diversify our markets in order to get a fair price for the products we sell.

It does not make environmental or economic sense to sell any resource at a discount. Instead, we will use the extra earnings to fund clean energy, such as electrification projects, investments in renewable resources, and efforts to transition Indigenous communities off diesel-power.

Additional corporate tax revenue alone could be around $500 million per year once the project is up and running.

In the 21st century, you need to have a plan for the environment, and a plan for the economy. For ten years, the federal Conservatives ignored Indigenous, environmental, and legal concerns, and because of that, did not get a single inch of pipeline built to new markets.

We have spent the last four years doing more for our environment than any other government in Canadian history.

By moving forward with TMX, we are creating jobs, diversifying markets, accelerating clean energy, and opening up new avenues for Indigenous economic prosperity.

What Other Parties say

View my June 2019 article on the topic and what it takes to build pipelines in the 21st century.

In short:

  • The federal NDP are in vehement opposition to TMX.
  • The Conservatives claim they would somehow have jammed the pipeline through sooner, Federal Court of Appeal be damned. Spoiler alert: When the court tells you that better Indigenous consultations and environmental reviews are needed, there is no government mechanism for just ignoring them and going ahead anyway. Nor should there be.

Timeline

  • June 2019: We approved the TMX to move ahead, the right way. Construction will begin this season.
  • August 2018: the Federal Court of Appeal said the government needed to improve its Indigenous consultation and environmental review. That’s what we did.
  • May 2018: We purchased TMX for $4.5 billion to ensure the project gets built. We intend to sell it when the time is right.
  • November 2016: Our federal Liberal government provided initial approval of TMX.

Better Indigenous Consultations

Ensuring the project got built the right way included better consultations with more meaningful two-way dialogue. Following the court’s August 2018 ruling, our government appointed former Supreme Court Justice Frank Iacobucci to lead the renewed Indigenous consultations for the TMX and ensure that we accommodate the reasonable needs of those people directly affected.

He noted: “The Crown has remedied the defects in consultation identified by the Federal Court of Appeal and has meaningfully consulted with potentially-affected Indigenous groups.”

Protecting the Environment

From pricing pollution, to doubling the amount of protected nature, to investing in public transit and clean technology, our government has done more for the environment than any in Canadian history.

We created the historic Oceans Protection Plan to protect the safety and well-being of our coasts. This $1.5 billion plan will create a world-leading marine safety system, restore and protect Canada’s marine ecosystems, and strengthen partnerships with Indigenous communities.

In the National Interest

The National Energy Board has said not once, but twice, that the TMX pipeline is in the national interest. It’s clear why. Our national economy stands to gain billions of dollars a year by gaining access to new markets for our oil products. The TMX opens up this opportunity, helping us build a stronger, more prosperous Canada.

Including Four Additional Pipelines

Our federal Liberal government has also approved the now-completed NGTL and Towerbirch expansion pipelines, as well as the TransCanada Keystone XL and Enbridge Line 3 pipelines. Once the Keystone XL, Line 3, and TMX are completed, they will more than address Alberta’s need for pipeline capacity, generating tens of thousands of jobs and contributing billions to Canada’s economy.

Accessing New Markets

When the previous Conservative government came into power, 99% of our oil exports went to the US. When their 10 year mandate ended, 99% of our oil still went to the US. This was a failure on their part. Our Liberal government is changing that and making sure we get our products to tidewater through the TMX. This will give us access to new markets, such as Asia.

Better Value for our Resources

Currently, 99% of our oil exports go to the United States. Any economist could tell you that when you only have one customer, you’re forced to accept a below-market price for your product. Today, we see the consequences of the Conservatives’ decade of inaction on this. That’s why our federal Liberal government supports the TMX, to get our products to new markets.

$4.5 Billion Invested for our Oil Industry

In May 2018, the TMX was facing more judicial uncertainty than a private company could take on. Clearly, our federal Liberal government bought the TMX pipeline so it would get built — and built responsibly. When the time comes, we will look for new buyers, with particular consideration for interested Indigenous groups. This will be a win-win.

Energy & the Environment: Two sides of the same coin

We have a serious plan to protect the environment that involves phasing out coal, investing billions of dollars in clean energy technology and jobs, and investing in energy efficiency. To protect the environment, we need to have an economy that works. The financial benefits of the TMX mean we can protect the environment and grow the economy at the same time.

Creating Jobs

The TMX project will create 15,000 construction jobs. Once in operation, there will be another 37,000 direct and indirect jobs. The expansion will generate $46.7 billion in revenue in its first 20 years of operations — revenues that can be used for public services such as healthcare and  education. Alberta will receive $19.4 billion. These are dollars that can be put towards building stronger and more resilient cities.

More info

Visit the website for the Trans Mountain Expansion project.

Like updates like the above? Sign up for email updates from Kent below: