Maki told members of the natural resources committee that the pipeline’s financial picture has changed dramatically now that it is operational
Trans Mountain Corporation CEO Mark Maki said the Trans Mountain pipeline expansion was “worth the cost” in a Monday appearance in Ottawa, even with the inflated price tag of $34 billion.
“In my time in the pipeline sector, there’s one thing that’s really stuck with me,” Maki said in witness testimony. “And that is the importance of being both a disciplined buyer and a disciplined seller.”
“When the time is right, Canada can sell (the pipeline) and the outcome that they should expect is the recovery of the taxpayers’ capital.”
Not all committee members were sold on Maki’s sunny assessment of the pipeline’s eventual sale.
NDP MP Charlie Angus said he couldn’t square the pipeline’s high purported resale value with the fact that it’s currently selling product at a loss to attract customers.
“If (the pipeline) is supposed to be so profitable and we’re supposed to be getting our money back, why are we (losing money) on every barrel shipped?” Angus asked. “That just doesn’t add up.”
“You’ve got a company that’s set up that exists to hold debt with no employees, that looks to me like a shell company,” Angus told Maki in a tense exchange.
“A shell company’s not all that difficult to set up if you’re going to keep all the debt off your books so then you can come to us at a future meeting and say… we’re going to get all our money back,” said Angus.
Maki told the committee that the financial picture has changed dramatically now that the pipeline is operational, when asked about the PBO report. He added that multiple parties have said they’re interested in buying the pipeline but have also expressed concerns about the lack of certainty in Canada’s regulatory environment.
National Post
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