FacebookTwitterLinkedInEmailPrint分享National Observer:The Trans Mountain oil pipeline is costing a Canadian Crown corporation some staggering interest expenses that cast doubt on strong revenues from the infrastructure touted in the federal government’s recent economic update.The interest expenses were $20 million over a single month in September, right after Prime Minister Justin Trudeau’s government purchased the pipeline and related assets from Texas energy company Kinder Morgan for $4.5 billion. As part of the purchase, the government also had to set aside an additional $500 million as a security deposit in case of environmental damage, and this appears to be part of the interest expenses.If the interest expenses continue to pile up at that rate over the year, they will come to represent a larger sum than the amount of money that the government has said the pipeline is on track to raise this year primarily from toll charges.Oil pipelines earn revenues by charging tolls to companies that are shipping fuels on the infrastructure. The Trudeau government has said that the proposed Trans Mountain expansion project, if completed, would generate more revenues and could be sold back to the private sector, along with existing assets, as a profitable venture.In a new quarterly report, the Canada Development Investment Corporation (CDEV), the Crown corporation that now owns and operates the pipeline through a network of subsidiaries, said it incurred $21.27 million in interest expenses related to Trans Mountain during the third quarter ending Sept. 30.The pipeline from the oil patch to the west coast and its related expansion project was acquired by Ottawa in a deal that cleared Aug. 31. These two dates represent approximately a month’s worth of expenses, or $255.24 million over the year. That is well above the “over $200 million” that Finance Minister Bill Morneau’s fall fiscal update said the pipeline was on track to make in “earnings before interest, taxes, depreciation and amortization,” or EBITDA, a type of metric used in finance to show a performance snapshot. EBITDA doesn’t include things like capital investment costs or expenses linked to debt.Tom Sanzillo, director of finance at the Institute for Energy Economics and Financial Analysis, co-authored a report in June with Kathy Hipple, a financial analyst at the institute and corporate finance lecturer at Bard College, stating that the Canadian government was facing at least $11.6 billion in costs to complete the pipeline. “This transaction and the cost of further planning and construction could add a $6.5 billion unplanned expenditure to Canada’s budget during FY 2019,” the report states, boosting Canada’s projected deficit by 36 per cent.Sanzillo told National Observer that while it is not uncommon for a government economic development transaction to keep revenues, capital costs and operational expenses separate, the interest expenses and fiscal update numbers represent an incomplete picture. “For a project of this size and importance,” said Sanzillo, “the executive has a responsibility to also produce an all-in-one, true and accurate inclusive project accounting that answers the question: ‘How much is this costing the Canadian taxpayer?’ These financial disclosures are partial, and absent a full accounting, are irrelevant. Because it is only a partial explanation, it says nothing about the financial viability of the project.”More: The Trudeau government’s Trans Mountain purchase has triggered staggering interest expenses Trans Mountain pipeline costs are adding up for Canadian government
When I was a little kid, one of my favorite weekly events was story time at my local library. I would pester my mother all morning long as I impatiently waited for the time we could all jump in the car and head to the library. Upon arriving at the library, I would pace around the children’s section until the librarian opened the doors to the story room. I was always eager to hear about the next mystery Nancy Drew or the Hardy Boys would inevitably solve and the hilarious antics Beezus and Ramona would engage in. My fondness for stories has stayed with me as I continue to be an avid reader. ShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblr continue reading » Turns out, NCUA likes stories too. In the most recent volume of the field of membership (FOM) series, NCUA amended its community chartering rules to provide additional guidance on using the narrative approach. As you may recall, the narrative approach allows federal credit unions to provide evidence of interaction within a particular area to demonstrate that area is a well-defined local community and can be added to a community charter. The narrative approach was available for federal credit unions prior to the 2010 final FOM rule when it was abandoned for a more objective approach. The narrative approach was reintroduced to NCUA’s Chartering and Field of Membership Manual (FOM Manual) in the 2016 final FOM rule.
2SHARESShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblr,Bryn C. Conway Bryn C. Conway, offers more than 15 years of experience as a former credit union executive with extensive background in strategic planning, brand development, member experience, retail delivery and public … Web: https://www.bccstrategies.com Details Our work, our lives, our celebrations, and our connections to the world have all been altered in unimagined ways over the past several weeks. It’s up to us, as our members’ financial stewards, to reimagine the member experience.Offering even a small bit of certainty is the best thing your credit union can do to help your members during these uncertain times. Here are three ways to reimagine your member experience with certainty as the focus:Be ThereA few days after the radical downturn of the stock market, I got a call from my financial advisor. This was not very surprising given what was going on in the markets, but what was interesting about this call, is that I didn’t have an individual financial advisor. Before the pandemic, I did everything online and had never talked to a representative from this company before. The advisor started the call by saying, “I know you weren’t expecting my call, but I wanted to introduce myself and just let you know I am here for you, if you need anything.” He continued, “I won’t keep you, but will follow up with an email to give you my contact information.” I got off the phone and had the promised email five minutes later.This was not the normal operating procedure for this company, nor was it the experience I had signed up for, but that interaction made me feel that the company was looking out for me and wanted to ensure that I knew I had a partner during these uncertain times. What little alteration to the member experience can you implement to make sure your members feel you are there for them? That personal touch, added as a reconstruction of an experience that had been designed to be impersonal, let me know that this company understood that this was not the time for business as usual.Be CreativeA friend of mine got a call from her local Chevrolet dealer a few weeks ago. It was time for service maintenance on her car. Obviously, with stay-at-home orders in place, this would not be the usual experience of making an appointment and driving to the dealership for the service. The dealer had a plan for its customers. It would come pick up the vehicle, take it to the dealership to perform the service, bring the car back, and sanitize it in the driveway. My friend thought this sounded like a pretty good solution and agreed. However, the dealer went one step further and asked if while they had the car, would she like them to shop for groceries?My friend was taken aback. What a great idea! But, did she really want the service technician shopping for her groceries? The dealer had already thought of this objection and had partnered with local grocery stores to link to their apps. She made her grocery list in the local store of her choice’s app and had it ready the morning her car was picked up for service. She made a point of telling me this story and emphasized how impressed she was about the creative nature of the solution. Because of this, she would not even consider using anyone else for something as simple as an oil change. She was going to be a loyal customer of this dealership. Her reaction proves that a little creativity and a desire to reimagine an experience to help goes a long way in maintaining trust and confidence in a company.Be the ConnectionThe last example I’ll share is from my credit union. What they did to provide certainty was pretty simple, but the result demonstrated a level of understanding of the need to feel connected. A few weeks ago, I called into the contact center for help opening a certificate. My experience was good, the representative was friendly and helpful. I was pleased. A week later, I needed to call again for a different reason. The representative came on the phone and it was the same one I had spoken to a week before. I noted that and she said that yes, the credit union had started to track the phone numbers to the representatives and was making sure, when possible, to connect members with representatives they had spoken to recently.In branches, members interact with the same employees time and time again, which allows for familiarity and connection. In the contact center, this is usually not the case and the experience feels more distanced than one offered in-person at a branch. By making a simple change to the phone system, the credit union reimagined the member experience and created a connection in a usually impersonal channel. Talking to the same representative meant she already knew me and what was going on in my financial life, which better positioned her to help, offer solutions, and even cross-sell, as the offer was now relevant to me. I am a loyal member, but this experience solidified the feeling of connection for me and, perhaps more importantly, I felt like the credit union really got what it meant to provide certainty during uncertain times.SUMMARYBe the certainty for your members during these uncertain times. They will return the favor and give their loyalty and trust to your credit union. As financial cooperatives, we, in partnership with our members, employees, and community, truly are all in this together.