Canada’s $60 billion ‘fiscal cliff’ deal will hurt Alberta’s oil patch

Posted November 12, 2014 11:25:56The fiscal cliff deal announced by Prime Minister Justin Trudeau and the provinces of British Columbia, Alberta and Newfoundland and Labrador on Tuesday is expected to have a major impact on Canada’s oil and gas industry.

The deal has not been made public and will not be until the provinces meet their targets in coming weeks to spend $60.8 billion in order to bring down the national debt and balance the budget.

In a statement, the provinces said they will also use the funds to ensure Alberta’s carbon emissions stay below 20 per cent by 2025.

They will also provide funding for infrastructure, education and research to improve transportation and communications.

The agreement also provides funding for a new Canadian Border Services Agency.

In his speech Tuesday, Trudeau also promised to provide the provinces with $1.4 billion a year in support over four years to help create new jobs and invest in education, healthcare and social services.

The federal government said the money would be used to fund infrastructure, social assistance, education, health care, and environmental protection.

The provinces also said they would provide the funds for a CBSA task force to help them manage border security.

The agreement is expected at the G20 Summit in China next week.

The G7 summit is expected next week in Germany.

The Prime Minister’s Office had no immediate comment on the deal.