Mr. Speaker, on August 31, 2018, the Government of Canada purchased the entities that control the Trans Mountain pipeline and related assets.
The government acquired these entities when the political risks made it too difficult for the private sector to move forward. The facts and evidence demonstrated that the Trans Mountain expansion is in the national interest, and represents a sound investment for Canadians.
Prior to acquiring the project, Kinder Morgan was solely responsible for compensation decisions regarding members of the project team. The purchase agreement provided that Canada would honour the existing contracts in order to maintain continuity in Trans Mountain’s operations.
Compensation was set in employment contracts signed between key management personnel and Kinder Morgan prior to the government acquiring Trans Mountain. Employee salaries, including retention payments, should they be made in the future, are a business operating expense that is paid from business operating revenues.