Government Finances Archives

Alberta Government finally decides to shake up AIMCo- is more politicization on the agenda?

11Nov

By Bob AscahNo Comments

Financial Institutions, Government Finances, Intergovernmental, Opinion/Research, Politics

Alberta Government finally decides to shake up AIMCo- is more politicization on the agenda?

Updated 11 November 2024 On Thursday 7 November, the President of Treasury Board and Minister of Finance Nate Horner finally said “enough is enough” for the status quo at the Alberta Investment Management Corporation (AIMCo). The Minister cited “significant increases in operating costs, management fees and staffing without a corresponding increase to return on investment” including rising staff salary and benefit costs. Horner properly asked the question” why are we paying remarkably high salaries when the organization was not delivering higher returns?” Also identified were rising staffing costs alongside rising external fees. The whole concept of AIMCo was to bring in house expertise and thereby drive down external fees. Horner also removed the 10-member board (this URL was s...

Why AIMCo needs more scrutiny and transparency Part 2

6Nov

By Bob AscahNo Comments

Agencies, Bankruptcies, Fiscal History, Government Finances, Investment, Politics

Why AIMCo needs more scrutiny and transparency Part 2

Updated 6 November 2024 Note to readers: On 6 November the Standing Committee on the Alberta Heritage Savings Trust Fund (AHSTF) will be holding its annual public meeting at 6:30 p.m. in the Rocky Mountain Room, 2nd Floor of the Queen Elizabeth II Building in Edmonton. The annual public meeting is open to members of the public either in person or via social media including Facebook. I attended the last two meetings in person and have been able to raise important questions of policy. In the 2022 meeting (transcript here), I was the only member of the public present in person. In 2023, I was pleased that there were nine members of the public raising uncomfortable questions which generally were deflected by officials of Alberta Treasury Board and Finance (TBF) and senior Al...

29Oct

By Bob AscahNo Comments

Agencies, Demographics, Government Finances, Investment

Presentation to AB Resistance on proposed Alberta Pension Plan

On Saturday 26 October I spoke to a policy conference put on by AB Resistance. I presented to the group on the proposed APP and, in particular, the dangers of politicization of investment. Below is a PDF of my presentation. Related Posts https://abpolecon.ca/2024/04/07/the-frustrations-of-a-foipp-applicant-the-case-of-the-app-part-2/ https://abpolecon.ca/2024/03/24/frustrations-of-a-foipp-applicant-the-case-of-the-alberta-pension-plan/ https://abpolecon.ca/2023/09/24/an-alberta-pension-plan-app-your-plan-their-choice/

20Oct

By Bob AscahNo Comments

Agencies, Government Finances, Opinion/Research, Politics

Why AIMCo needs more scrutiny and transparency- Part 1

Note to readers: Updated 21 October 2024 On 6 November the Standing Committee on the Alberta Heritage Savings Trust Fund (AHSTF) will be holding its annual public meeting at 6:30 p.m. in the Rocky Mountain Room, 2nd Floor of the Queen Elizabeth II Building in Edmonton. The annual public meeting is open to members of the public either in person or via social media including Facebook. I attended the last two meetings in person and have been able to raise important questions of policy. In the 2022 meeting (transcript here), I was the only member of the public present in person. In 2023, I was pleased that there were nine members of the public raising uncomfortable questions which generally were deflected by officials of Alberta Treasury Board and Finance (TBF) and senior Alberta Invest...

30May

By Bob AscahNo Comments

Agencies, Budget, Credit Ratings, Economic Data, Environment, Government Finances, Opinion/Research, Politics

Alberta’s Public Accounts Committee- Thoughts on Accountability and Public Service Neutrality

The purpose of this post is to the delve into the accountability aspects of the Public Accounts Committee (PAC) in Alberta through the lens of one meeting which took place on 7 May 2024. The transcript of the meeting can be found here and the video proceedings here. Readers may wish to skip over the detail about the meeting to read the conclusions at the foot of this essay. I attended this meeting because a colleague and I provided briefing material for Marlin Schmidt, NDP MLA for Edmonton Goldbar about the Auditor General’s report on Key Audit Matters. This post serves as a companion piece to my interview with Professor Jared Wesley on the state of democracy in Alberta. As discussed below, the Public Accounts Committee serves as one of the principal structures of holding governm...

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...

7Apr

By Bob AscahNo Comments

Demographics, Economic Data, Government Finances, Intergovernmental, Investment, Opinion/Research, Politics

The Frustrations of a FOIPP applicant- the case of the APP (Part 2)

Updated 8 April 2023 Key Takeaways By January 2023 all the technical work had been completed for a launch of the APP plan four months before the UCP campaign made no mention of reviving this policy recommendation of the "Fair Deal" Panel. The public service relied on the expertise of outside parties due to lack of in house actuarial expertise. This FOIPP disclosure did not reveal how much the government ultimately paid even though Smith provided the $1.8-million figure to her 630 CHED Saturday call-in radio show. Existing administrative structures aren't conducive for sharing information as the onus is on the deputy head to decide what to disclose making it very difficult for senior officials to offer advice contrary to the preference of their political masters. The "Fa...

Frustrations of a FOIPP applicant- the case of the Alberta Pension Plan (Part 1)

24Mar

By Bob AscahNo Comments

Government Finances, Intergovernmental, Opinion/Research, Politics

Frustrations of a FOIPP applicant- the case of the Alberta Pension Plan (Part 1)

Updated 25 March 2024 Last summer the Globe and Mail ran a series of important articles about the failure of Canada’s freedom of information legislation to provide meaningful information to the public. While this issue is endemic across provincial and federal governments, the series singled out Alberta’s FOIPP (Freedom of Information and Protection of Privacy) system as being especially vexatious. Specifically, The Globe initially sought basic information about the tracking system requests for “data fields from each ministry’s FOI tracking system, such as when requests were received and completed and whether any information was provided.” The Alberta government, unlike every other jurisdiction in Canada, denied The Globe’s requests, claiming “no records” existed – even thoug...

17Mar

By Bob AscahNo Comments

Budget, Capital Spending, Credit Ratings, Education, Government Finances, Politics

Budget 2024- 13th Post-mortem- Panelists’ presentations

On Monday, 11 March I moderated a panel of experts who provided different perspectives on Alberta's 2024 budget tabled by the Honourable Nate Horner on Thursday, 29 February 2024. Our panelists included: Shauna Feth, the CEO of the Alberta Chambers of Commerce gave her Association's views on the Budget. See PDF of slides below. The ACA's perspective (slides 10-15) is generally approving of the budget which supports business competitiveness, growing trade, building healthy communities, and improving government accountability. Two areas of concern regarding competitiveness were Land Titles Office fees increasing which will effect commercial real estate, and the insurance premium tax. The Chamber was pleased with increased investment in the First Nations Development Fund and Alberta...

AIMCO and the Heritage Fund- What is investment income? Part 3

26Feb

By Bob AscahNo Comments

Agencies, Government Finances, Investment, Opinion/Research

AIMCO and the Heritage Fund- What is investment income? Part 3

In the first part of this series, I investigated information the Alberta Investment Management Corporation (AIMCo) supplies to the Securities and Exchange Commission on their quarterly Form 13F filing. Some unusual findings were cited about AIMCo's U.S. holdings, that to my knowledge, have not been publicized before. In Part 2, I looked at AIMCo's total portfolio and performance metrics which are disclosed in its 2022 annual report, the latest available. I concluded that Alberta taxpayers and citizens deserve much better financial reporting on the significant assets managed by the Government of Alberta and its agencies. Indeed, given AIMCo's performance on its fixed income portfolio, I argued that it would be prudent for Treasury Board and Finance to consider repatriating managing short t...