CALGARY, AB: The Canadian Taxpayers Federation is slamming the Alberta government for awarding Inter Pipeline $408 million through the Alberta Petrochemicals Incentive Program, which significantly increases the cost of subsidies the government has awarded the company.
“At some point our politicians need to stop letting Inter Pipeline shove its snout further into the taxpayer trough,” said Franco Terrazzano, the CTF’s Alberta Director. “The fact that the government continues to announce bigger subsidies for this company should be a huge red flag for taxpayers.”
Today the Alberta government announced that it will be giving Inter Pipeline a $408-million grant through the APIP.
In 2019, Inter Pipeline was awarded up to $70 million through the government’s Petrochemical Diversification Program. This followed another $200 million that the government announced for the company in 2016. The new $408-million grant will replace the previous $200-million subsidy.
The CTF obtained a leaked briefing note written by the finance department in 2015 warning the government that petrochemical subsidies “could benefit projects that would have gone ahead regardless of the incentives” and could encourage companies “to demand tailored support programs from Government in the future.”
“Premier Jason Kenney deserves credit for making Alberta business taxes one of the most competitive in North America, but this petrochemical corporate welfare program is a big step backwards,” said Terrazzano. “It’s time for Kenney to go back to lowering taxes and cutting red tape and stop playing investment banker with our tax dollars.”