The provincial government will fulfill a promise it made in the 2013 election campaign in tomorrow’s budget.
Finance minister Mike de Jong says the promised LNG Prosperity Fund will be officially created with a $100 million initial deposit.
But without a final decision on a single LNG facility, never mind getting a shovel in the ground where does the money come from?
“It relates to the anticipated surplus for 2015/16. It is arbitrary to that extent but it is a function of what we believe we are in a position reasonably to transfer into a Prosperity Fund keeping in mind that our primary focus and priority is the paying down of the debt.”
It comes as the province admits it won’t meet its initial timeline of having three LNG plants up and running by 2020.
“This was a modest start to be sure. No one is being shy about the fact that the LNG final investment decisions we are looking for have not occurred.”
The money will be deposited into the fund intended for LNG revenue as a little something for a rainy day.
“Yes the repayment of debt but also some of the uncertainty that may occur in the future and you only have to look around you in the world to know that there is uncertainty out there.”
In 2013 the BC Liberals pledged the Prosperity Fund would wipe out debt for the province, BC Ferries, BC Hydro, and the Port Mann bridge.