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Taxpayers Federation shows cost to taxpayers due to a lack of pipelines at Queen's Park

May 28, 2019
Taxpayers Federation shows cost to taxpayers due to a lack of pipelines at Queen's Park

TORONTO, ON: The Canadian Taxpayers Federation is on a cross-country 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. The tour includes a large digital clock displaying losses going up in real time. The CTF’s analysis shows the federal government has lost $6.2 billion between 2013 and 2018 and that number is growing by $3.6 millionper day.

Energy Minister Greg Rickford spoke at the event to support pipeline development.

“Ontario understands the importance of what pipelines mean to our economy and our energy industry, and we will not stand in the way of a pipeline project,” said Rickford. “We’re doing everything we can to eliminate restrictions on pipeline development and to let the world know that Ontario is open for business.”

Canada isn’t getting full value for oil due to a lack of pipeline capacity to reach foreign customers.

“Canadian taxpayers are losing out on billions of dollars because we can’t get pipelines built and we aren’t receiving full value for our oil,” said Franco Terrazzano, Alberta Director for the CTF. “That means Canadians have less money for everything from hospitals to teachers and taxpayers are stuck with a higher tax bill. It’s great to see Minister Rickford and the Ontario government taking a strong stand to build pipelines and deliver benefits for taxpayers across Canada.”

Based on data released by the Office of the Parliamentary Budget Officer, the CTF calculated how much additional revenue the federal government would collect if Canadian oil sales received full value compared to the American price. 

The lack of pipelines cost the federal government:

  • $6.2 billion between 2013 and 2018; and,
  • Another $3.6 million per day (based on projected loses of $6.6 billion between 2019 and 2023).

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:

“Taxpayers and consumers in Ontario will benefit from the stronger Canadian economy that will result from the development of our country’s natural resources,” said Christine Van Geyn, CTF’s Ontario Director. “The Ontario government is doing the right thing by working with other provinces to eliminate restrictions on pipeline development.”

The Canadian Taxpayers Federation’s tour is visiting every province to show how much money taxpayers are losing because governments haven’t encouraged pipeline construction. You can find the analysis here.

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