Energy Archives - AB Pol Econ

21Apr

By Bob AscahNo Comments

Energy, Environment, Financial Institutions, Intergovernmental, Opinion/Research, Politics

Smith and the Free Alberta Strategy- An assessment

Overview and Context Premier Danielle Smith has been in office for 19 months and provides an opportunity to evaluate how Smith is proceeding in implementing the Free Alberta Strategy (FAS). I found that many boxes have been checked by the premier but her biggest test is ahead- how to prevent the federal from weakening Alberta's largest industry in its bid to lower CO2 and other emissions. Smith is closely associated with one of the FAS authors, Rob Anderson. Rob Anderson is now the Executive Director of the Office of the Premier which places him at the apex of policy-making in Alberta. His acquaintance with Smith goes back to at least 2010 when, as a former Progressive Conservative (Airdrie -Chestermere), he crossed over to join the Wildrose Alliance party becoming deputy leader. In...

A Sales Tax for Alberta- Presentation to the Probus Club of Central Edmonton

14Apr

By Bob AscahNo Comments

Budget, Credit Ratings, Energy, Fiscal History, Government Finances, Opinion/Research, Politics

A Sales Tax for Alberta- Presentation to the Probus Club of Central Edmonton

My presentation to Probus members on 20 February 2024 reiterated the main themes in A Sales Tax for Alberta- Why and How published by Athabasca University Press in 2022. The presentation is found below. Much of the discussion acknowledged the why for a retail sales tax but most of the questions and comments focused on the how, The major difficulty is political culture which is very hostile to taxes than in the rest of the country. Several members who had worked within the Alberta public sector argued that waste in governments should discourage taxpayers from further "feeding the beast." It is a Catch 22- to make the political culture less fearful of paying taxes, government needs to become more efficient. To become more efficient typically means to hire private sector managemen...

26Feb

By Bob AscahNo Comments

Budget, Capital Spending, Credit Ratings, Energy, Environment, Fiscal History, Government Finances, Opinion/Research

Kaplan-Ten major reasons why Alberta’s new fiscal framework won’t bring a long-term sustainability focus to fiscal planning.

In this critical and timely essay- a few days before the province's 2024 Budget is tabled, fiscal planning expert Lennie Kaplan provides an in-depth analysis of problems embedded in the Smith government's Sustainable Fiscal Planning and Reporting Act (SFPRA). Kaplan argues the SFPRA must be fully re-opened to meet Premier Smith’s commitment to long-term fiscal planning. This analysis reveals there is a great deal of flexibility in the government's framework in spite of the impression that the government has little fiscal flexibility to spend. In her televised address on February 21, 2024, Premier Smith promised to bring a long-term fiscal sustainability focus to Alberta fiscal planning, including building up the assets of the Alberta Heritage Savings Trust Fund (AHSTF) and paying d...

Auditor General ‘qualifies’ his unqualified opinion

5Feb

By Bob AscahNo Comments

Agencies, Credit Ratings, Energy, Environment, Government Finances, Opinion/Research

Auditor General ‘qualifies’ his unqualified opinion

In December 2023 Alberta’s Auditor General, Doug Wylie produced a report on his opinion on the Government of Alberta’s Consolidated Financial Statements, The report identifies in the matters which, in the professional judgment of the Auditor General and his staff (OAG), were the most significant matters raised during their audit work. These matters were the Accounting for environmental liabilities Implementation of the new public sector accounting standards related to asset retirement obligations, financial instruments, and foreign currency. (OAG, December 2023, p. 15). This post focusses on environmental liabilities. Background Alberta’s financial statements are released by the end of June each year by the Finance Minister and the OAG’s audit objective is “to provi...

23Jan

By Bob AscahNo Comments

Energy, Environment, Politics

Alberta needs an Alberta Climate Change Accountability Act contributor Lennie Kaplan argues

I have known our new contributor Lennie Kaplan since a meeting with then Treasurer Jim Dinning, Alberta Liberal party finance critic Mike Percy and other Treasury officials about 1994. Lennie was then Percy's legislative assistant and I was part of a briefing crew on amendments to the Financial Administration Act. Dinning, in a somewhat unorthodox procedure, shared legislative briefings with the like-minded opposition critic before tabling in the Assembly. Lennie and my paths crossed episodically over the years. I was therefore very pleased when he contacted me about writing some pieces based on his budgetary experience as a practitioner and a researcher. I might not always agree with Mr. Kaplan but I deeply believe, like Lennie, that accountability, transparency, and better f...

Northwest Upgrader- more surprises ahead for Alberta taxpayers?

18Dec

By Bob AscahNo Comments

Agencies, Credit Ratings, Energy, Government Finances, Politics

Northwest Upgrader- more surprises ahead for Alberta taxpayers?

Soon after the Legislative Assembly was recessed on 6 December, Alberta’ Executive Council (provincial cabinet) passed Order in Council 219/2023 to authorize the Alberta Petroleum Marketing Commission (APMC) to borrow money to finance the operations of the North West Redwater (Sturgeon) refinery. The maximum amount to be borrowed "shall not exceed $2.9-billion"- hardly a relief for Alberta taxpayers. The O.C. also authorizes the President of Treasury Board and Minister of Finance to “make advances to or purchase securities of the Alberta Petroleum Marketing Commission” not to exceed the same $2.9-billion limit. It will be the Crown in Right of Alberta who will be raising this money by issuing securities and the Crown will become the debtor. Under section 7, the terms and conditions ...

Draft federal methane regulations- Hostile response from Alberta

7Dec

By Bob AscahNo Comments

Energy, Environment, Health, Politics

Draft federal methane regulations- Hostile response from Alberta

Albertans and Canadian are getting used to conflict between the Alberta and federal governments over the future of fossil fuels and emissions regulations. However, in the latest exchange from Premier Smith and her lieutenant, Environment minister Rebecca Schulz is a nasty personal attack on the integrity on the personal integrity of Environment minister Stephen Guilbeault.In a particularly nasty statement, Smith and Schulz seem to project their own ideas about post office careers, but not necessarily in the same line of work as Guilbeault. The federal government has unilaterally established new methane emissions rules and targets to help win international headlines. Instead of building on Alberta’s award-winning approach, Ottawa wants to replace it with costly, dangerous and unconsti...

5Dec

By Bob AscahNo Comments

Economic Data, Employment, Energy, Government Finances, Investment, Politics

Prosper Free Enterprise! More handouts to multinationals

Updated 20 December 2023 If low taxes was the supreme good of libertarian governments and eliminated the need for additional company specific grants, why is the UCP government doling out up to $5-billion in additional handouts mainly to foreign=owned corporations for capturing carbon. The announcement by Premier Smith and the heretofore missing in action Brian Jean- Alberta's energy minister paved the way for another major announcement, this time Premier Smith alongside Deputy Minister Chrystia Freeland (see below). Alberta Carbon Capture Program Another successfully orchestrated communications announcement by Smith came this past Tuesday 28 November. With the wind in her sails, Smith has come off two federal high court victories (impact assessment and toxic plastics...

22Nov

By Bob AscahNo Comments

Energy, Environment, Intergovernmental, Politics

Where is Brian Jean? Alberta Energy and Mines Minister Missing in Action

Updated 2 December 2023 I receive about two to three dozen emails from the Government of Alberta news service (Alberta.ca/News) each week. These emails keep me up to speed with what is going on with the Government of Alberta. Perhaps half of these releases are not significant recognizing special holidays or special days or weeks that government ministers or departments wish to acknowledge. Some are for junkets of MLAs travelling to various conferences. Perhaps 10 per cent are substantive and feature the premier and the relevant minister issuing statements which are picked up by the media. Many coincide with major news conferences such as the recent one on health care reforms. Most unusual these past six months has been the virtual non-presence of the Minister of Energy and Mi...

16Nov

By Bob AscahNo Comments

Economic Data, Energy, Environment, Intergovernmental, Opinion/Research, Politics

Alberta 5, Ottawa 2- Re. Impact Assessment Act (Part 2)

Before turning to the dissenting opinion, it may be instructive to note some of the key points made by the Alberta Court of Appeal (ABCA) in their 10 May 2022 reference decision. The reference opinion may be found at CanLit. ABCA Majority In the majority ABCA opinion, considerable space was devoted to the history, purpose and scope, of the section 92A resource amendment (paras 74-83). The majority contended Provincial governments should not be faulted for focussing their attention on matters important to their citizens. That includes not only the environment but also the economy. It is a false dichotomy to suggest that the two are mutually exclusive. Without a strong economy, a province’s ability to respond to the needs of its citizens, including meeting the challenges of climate chang...