Economic incentives pay dividends
There have been many assessments, mostly critical, of the federal government’s decision to purchase the Trans Mountain pipeline. And yet, a key aspect of the decision – this government’s dismissive view of the importance of incentives – has been almost entirely ignored.
The government doesn’t believe incentives matter all that much in the economic decision-making of individuals, families, entrepreneurs and businesses.
Finance Minister Bill Morneau announced the government’s decision on May 29, two days before Kinder Morgan’s self-imposed May 31 deadline. The minister revealed the government’s confidence in the public sector to undertake and complete activities as well, if not better, than the private sector.
While avoiding the specific question of how much the government expects to pay for the construction and ongoing operation of the pipeline, Morneau repeatedly assured Canadians that the value of the pipeline would be secured.