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Abbotsford Chamber of Commerce Presentation On Kinder Morgan Expansion

Abbotsford – The Abbotsford Chamber of Commerce made their presentation to the Kinder Morgan Pipeline  conversation July 26. This is part of the ongoing discussion on whether or not the pipeline through the Fraser valley should be twinned.

Trans Mountain Pipeline Expansion – Ministerial Panel Abbotsford, BC July 26, 2016

Allan Asaph, Executive Director Abbotsford Chamber of Commerce

• Natural resources remain by far Canada’s largest export sector. Energy and energy-related products are a significant part of British Columbia and Canada’s annual exports.

• Oil pipeline infrastructure has national economic significance with a primary energy transmission pipeline system of approximately 115,000 km in length, and a total pipeline network of approximately 840,000 km, including regional gathering, feeder and distribution lines (by comparison, there are 38,000 km of primary highway transportation linkages across the country).

• The Chamber believes this infrastructure is critical to both the B.C. and Canadian economy, with the ability to transform Canadian oil producers from price takers to price makers in international markets.

• The public discussion about the Trans Mountain expansion, and other pipeline projects, overlooks both the foundational role that oil pipeline infrastructure plays in the B.C. and Canadian economy, not to mention the commitment of the National Energy Board to conduct a thorough and transparent review of the project.

• The capital cost of the TMEP alone is estimated at $6.8 billion and an additional $2.4 billion in operations spending will flow into the economy over the 20-year-life of the project.

• Tax revenue for the federal government through the construction and operational phases will total $1.2 billion from Project development and at least $3.3 billion from operations.

• In communities, along the proposed pipeline corridor, annual property tax payments to more than 20 local governments and more than 24 Aboriginal communities are expected to more than double to $52.4 million from $25.9 million per year, supporting community services such as police and fire protection, recreation and infrastructure or can also be used to reduce the size of property tax increases.

• Abbotsford is projected as the second-largest municipal beneficiary, forecast to receive $1.3 million in additional taxes for an annual total of $3.36 million. In addition it is estimated that, during construction, Abbotsford will see: o $193 million in construction spending;

$18.1 million in local spending by local and non-local workers; o Non local worker spending includes:

 $6.8 million on accommodation

 $3.4 million on food

 $946,000 on recreation

 $867,000 on personal items and services

 $617,000 on fuel

• Our regional districts stand to benefit with the Fraser Valley Regional District tax payments up $1.3 million to $2.3 million.

• The need for pipeline infrastructure is good for job creation with a project of this size and scope generating 58,000 person-years of employment across Canada during construction, including 36,000 in B.C.

• Over the life the project, total employment is expected to reach 108,000 person-years including 66,000 in B.C.

• The proposed expanded operations are anticipated to create 50 direct new full-time permanent positions in B.C., which, when added to existing Trans Mountain pipeline system jobs, create a total of 342 jobs per year or 6,841 employment years over the first 20 years of operation of the expanded pipeline.

• Indirect effects of the expansion include an estimated 1,492 spinoff jobs annually, or 29,845 person years of employment over the first 20 years of operations. These jobs include construction, financial services, professional services, manufacturing and transportation.

• Project development will generate $3.3 billion in labour income across Canada. Approximately 58% (or $1.9 billion of labour income) will be generated in B.C.

• The project will generate large demands for goods, services and workers, with an emphasis on local hiring, procurement, and sourcing, presenting opportunities for regional-based employment during construction, as well as, associated increases in labour income.

• Aboriginal residents stand to benefit from consideration for hiring and the initiation of an Aboriginal employment and training program to increase access to Aboriginal employment opportunities to meet the demands of the project.

• In should be recognized, project safety and integrity measures have received extensive study by the pipeline proponent, including marking and protection of sensitive environmental areas during construction, pipeline spill prevention, emergency preparedness and response to land-base and marine environments in the event of a spill.

• Often Trans Mountain and Kinder Morgan are portrayed as faceless, uncaring corporate entities. In May, as part of a national initiative through the Canadian Chamber we held a Resource Champions Day with one of the events being a tour for our members of the Trans Mountain Sumas Pump Station.

• We had an opportunity to meet with staff, see the facility and learn more about the programs in place to ensure pipeline safety and integrity as well as how the company works with the local community. We also saw a display of OSCAR – their new Oil Spill Containment and Recovery trailer unit, now stationed in Abbotsford. We were impressed that day by the competence and commitment of the staff to their critical role in ensuring the effectiveness of their Emergency Management Program through constant refinement and improvement.

• Through development of new pipeline infrastructure, this project will:

Create exceptional opportunities for B.C.’s small and medium sized enterprises,

Serve as an important source of near-term and long-term job creation, and o generate lasting benefit for the federal, provincial and municipal governments as well as the communities they represent.

• While nothing is zero risk, the work of the project proponent and the National Energy Board has been focused on ensuring that full efforts have been made to mitigate the risk. This along with the significant economic benefit make this project a net benefit to Canada and British Columbia.

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