Video instructions and help with filling out and completing Who Form 944 Pr Overpayment

Instructions and Help about Who Form 944 Pr Overpayment

A sobering report today from Canada's budget watchdog Eve guru crunched the numbers behind the federal government's 4.5 billion dollar purchase of the trans mountain pipeline expansion and he found Ottawa may have overpaid for the project by as much as a billion dollars not only that but his report shows the pipeline will lose value if construction doesn't go ahead on schedule according to the PB o trans Mountain is worth 700 million dollars left less after a one-year delay and if the project is never built the government's purchase is worth as little as 1.8 billion dollars which would mean a loss of more than two billion taxpayer dollars to talk about all of this I'm joined from the House of Commons FOIA by Joel light bound parliamentary secretary to the Minister of Finance Matt janroe is the conservative infrastructure critic and Murray Rankin is NDP deputy house leader hi to all three of you great to see you thanks for making time for us mr. light Ben I'll start with you I definitely wanna ask you about about the question of whether or not the government overpaid for this pipeline but first I want to ask you but something Minister Bill Morneau said today he started saying the cost of the pipeline was 4.1 billion dollars when your government has always said it was 4.5 billion dollars what changed well basically when you look at the PBS report first he said that he estimates the price or the value to be between 3.6 and 4.6 billion we paid 4.4 but considering the capital gains taxes that Kinder Morgan paid the net cost to canadians is 4.1 billion dollars so it's squarely in the middle of the estimates of the Parliamentary Budget officer's report and furthermore the PP o--'s report today fails to take into account certain assets that were purchased in that transaction for instance but Minister Minister Moreno said today was that he had never said it was 4.5 billion dollars where in the announcement the day the pipeline was bought your government said 4.5 billion dollars and the press released that day he always said 4.5 million yes but the net cost considering the capital gains taxes paid by the company comes to 4.1 billion dollars which is as I said squarely the language changing so that it looks like you didn't really overpay as much for it no it's just the the facts of the transaction that we're we're presenting it's uh it's the net cost comes to 4.1 billion no matter how you slice it did your government overpay for this pipeline I don't think so I think it's important to remember that this is fundamental to Canada's economy and the PBO has said it in its report in the sense that while 99 percent of our oil exports go to the United States we're missing out on value for Canadians which we estimate could be up to fifteen billion for the Canadian economy because of the difference between the price that we get from the Americans whereas if we sold more of our oil on the world market with the world prices we'd get a lot more for the Canadian economy for the sector and it would be I think it's a good commercial project for the Canadian economy mr. Jenner who does mr. light bound have a point I mean the PBO does say that 8,000 jobs at the height of construction will be created the PBO also says that if it is built and does help close the differential by about $5 per barrel that GDP would be boosted by six billion dollars over five years what alternative did the government have first of all to follow up in your previous point it doesn't give you much confidence in the finance minister if the numbers initially are now different under a PBO report so it's it leads to some some curiosity as to where that initial number comes from it and now we're struggling with a four point one number you know this is again of actually this is a pipeline that that was in private control until a number of initiatives that this government put in place it moved it out of private control then the government had to purchase it they've now according to PBO report have had to pay over 1 billion dollars for it they paid on the extreme high end of what it's valued at so no III don't agree that this this said what alternative did they have really like if you look through the filings you know the Kinder Morgan kept coming back and first they offered less money if you know the government was gonna pay less than a bit less then all of a sudden they're like okay we'll pay 4.5 billion dollars I mean what alternative did they had if they want to get the press to another market which which I know the Conservatives are supportive of right it's the PPO even made reference that this is the finance minister essentially went to a used car lot and sale I'll take that price and I'll even overpay for it so you know it's it's a McGann this is all put in place because of what there was in private hands if you remember back to 2021 this pipeline was in private hands it would the energy East pipeline was was going ahead Northern Gateway was going ahead but because of a number of initiatives that this government supports a nine c48 carbon tax all of these things have pushed it in push this pipeline now in the government had no choice but to buy it to pay for it unfortunately they paid according to PBO 1 billion dollars too much they could have paid mr. mr. Rankin as I mentioned the PPO estimates this would create 8,000 jobs and boost GDP by six billion dollars over five years.