Ken Kobly, Alberta Chamber of Commerce President and CEO. — Photo courtesy Alberta Chamber of Commerce
The Alberta Chambers of Commerce issued the following statement from President and CEO Ken Kobly in response to the Federal Court of Appeal ruling yesterday regarding the Trans Mountain Pipeline expansion project and Premier Notley's announcement to cancel Climate Leadership Plan:
Yesterday was a really frustrating day for business, and probably a very frustrating day for a lot of First Nations who are along the route and were in support of the project. Development delayed is development denied, and the delayed construction of this project is a denied opportunity for all Canadians.
The court ruling was a hard blow but we must adjust. With the project's approval once again in question and indefinitely on hold, the ACC is extremely concerned about the future state of Alberta's economy and the fiscal position of the province. The Alberta Government's projections of a path to balance by 2023-24 were a wing-and-a-prayer gamble on an uncertain project with uncertain timelines.
That gamble failed yesterday. Thousands of jobs dependent on the expansion project evaporated as did billions in anticipated provincial royalties and revenue from the Alberta Climate Leadership Plan. Rosy assumptions of growing investor confidence must also be curtailed, as yesterday's court decision signaled a profoundly negative message to the world about our nation's ability to move projects forward in the national interest.
Alberta's debt servicing costs alone will amount to $2.7 Billion a year by 2020-21 while Alberta Budget 2018 projects operational spending increases of 16% over that time. The sale of the Trans Mountain pipeline to the Government of Canada following the release of the court ruling also has additional cost implications for Albertans of up to $1.7 Billion with our commitment to backstop the project.
In light of yesterday's developments we are calling on Finance Minister Joe Ceci to immediately revise provincial spending to appropriately reflect the fiscal and economic implications of yesterday's court decision and the Premier's cancellation of the Alberta Climate Leadership Plan. The Alberta Government made a commitment to achieve a balanced budget by 2023-24 and that commitment must be maintained without further burdening Albertans with additional debt.
We will continue to analyze yesterday's court ruling and its impacts, and will communicate further details to our network as they become available.
