CHAMBER AND CANADIAN TAXPAYERS FEDERATION SOUND ALARM ON THE RISING COST OF PIPELINE DEFICIT
Publications & Media
Pipeline deficit costing taxpayers and the business community
(Medicine Hat, AB) - The Canadian Taxpayers Federations is making a stop in Medicine Hat, as part of its cross-country pipeline tour, to show how much money taxpayers are losing because Canadian oil is sold for less than its full value due to a lack of pipeline capacity. To illustrate losses to the taxpayer, in real time, a large digital clock keeps a tally of the deficit. The CTF’s analysis shows the federal government lost $6.2 billion between 2013 and 2018 and that number is rising by $3.6 million per day. These figures only account for direct losses to the federal government and don’t include the cost of lost job opportunities, reduced household incomes, foregone revenue to energy companies and other costs to the Canadian economy.
“Workers in Alberta’s energy industry are made worse off when governments block pipeline development, but so are the rest of Canadian taxpayers,” said Franco Terrazzano, Alberta Director for the CTF. “This is the important message the Canadian Taxpayers Federation has taken to every province: all Canadians benefit when pipelines get built so that we have more money for hospitals, teachers and lower taxes.”
Based on data released by the Parliamentary Budget Officer, the CTF calculated how much additional revenue the federal government would receive if Canadian oil sales received full value compared to the American price. Here are a few examples of the potential benefits for taxpayers if increased pipeline capacity captured full value for Canadian oil from 2013 to 2023:
- Nearly 50 new health care facilities could be built based on the cost of Medicine Hat Regional Hospital’s redevelopment;
- Over 21,000 new teaching positions in Alberta could be fully funded for 10 years;
- All residents of Medicine Hat could be exempt from paying federal taxes for more than 17 years.
The Canadian Taxpayers Federation’s tour is visiting every province to show how much money taxpayers are losing because governments have created uncertainty through regulatory and legislative delays which have delayed pipeline construction and business investment. You can find the analysis here.
Please direct all media inquiries to:
Sarah MacKenzie, 2018-2019 President
Medicine Hat & District Chamber of Commerce
(403) 527-5214 ext.221