Canada

Massive Economic Benefits For Building The Trans Mountain Expansion

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Calgary, Alberta – Finance Minister Bill Morneau spoke to the Economic Club of Calgary about the progress being made on the Trans Mountain Expansion Project. To date, more than 2,900 workers have been hired and construction is underway in the Greater Edmonton Area, Yellowhead, and at Burnaby Terminal, Westridge Marine Terminal, Edmonton Terminal, and pumping stations along the route. At peak construction there are expected to be 5,500 people employed on sites in Alberta and British Columbia. The goal is to have the Project in service by the later half of 2022.

The Project is creating economic benefits for Indigenous communities through employment and training opportunities, contracting, and compensation. To date, the Trans Mountain Corporation (TMC) has signed 58 agreements with Indigenous communities worth over $500 million and, when complete, the Project will generate over $1 billion of Indigenous-based contract awards.

Last summer, the Minister of Finance launched the first step of a multistep engagement process regarding the possibility of Indigenous economic participation. Interested Indigenous groups stated that greater economic participation in the Project could create additional economic benefits for their communities. Today, Minister Morneau announced that the next step in the process, which will seek to build consensus on the form of economic participation, will be launched in the coming months.

“Once completed, the Trans Mountain Expansion Project will safely export Canadian resources to new markets, ensuring producers get a fair price. The revenues generated from these exports will create good, well-paying jobs in Western Canada, provide economic benefits for Indigenous communities, and crucial funding for the clean economy of tomorrow.” Bill Morneau, Minister of Finance

Over the course of the project’s construction and the first 20 years of operation, the ‘Conference Board of Canada estimates that the Project will add over $160 billion to the Canadian economy and add over $46 billion to government revenues.  This includes an estimated:

Provincially, TMC will make annual payments to the Government of British Columbia of $25 million and up to $50 million annually for a total contribution over a 20-year period of up to $1 billion.

Every dollar the federal government earns from this project will be used to fund Canada’s transition to a cleaner economy. The Department of Finance estimates additional corporate tax revenues of $500 million per year once the Project enters into operation. This money, as well as any profit from the sale of the pipeline, will be invested in clean energy projects that will power homes, businesses and communities for years to come.