Pipeline purchase will up the federal deficit

OTTAWA — The purchase of the Trans Mountain pipeline will add a significant amount to the federal deficit.

A new study from the Institute for Energy Economics and Financial Analysis says the purchase puts $6.5 billion in unplanned spending onto the 2018 fiscal year — adding nearly 40 percent to an already projected $18 billion dollar deficit.

But federal finance department officials say the estimate is completely incorrect.

Ottawa says it has no plans to be a long term owner of the pipeline and is looking for prospective buyers in the indigenous community and western provinces.