Government Finances Archives - Page 5 of 12

3Apr

By Bob AscahNo Comments

Credit Ratings, Energy, Government Finances, Politics

Auditor General and orphaned wells

On 23 March the Auditor General issued his spring reports into four areas including the Liability Management program for oil and gas wells administered by the Alberta Energy Regulator. AER has a system to mitigate the risks for the closure of oil and gas infrastructure; however, parts of the system have not operated effectively…criteria were not fully met in the following areas: risk management practices goals, performance measurement and public accountability assessing information from OWA timely closure of inactive sites collecting sufficient financial security and minimizing risk of inappropriate licence transfers suspension, abandonment, remediation and reclamation regulatory processes Three main problems with the current liability management system are: lack of pr...

28Mar

By Bob AscahNo Comments

Budget, Energy, Environment, Government Finances, Health, Opinion/Research, Politics

Solutions-based policy development and Some Modest Recommendations

There are major issues confronting Alberta- a massive understatement if there ever was! As a student, practitioner, and teacher of public policy for over 40 years, the following ideas are in a germination phase and readers are encouraged to comment and add their suggestions on the central germ of this idea. A solutions-based approach to government policy-making offers a means of identifying a small number of “problems” which require immediate attention and on which there is a consensus on the need for action. This approach starts with Problem identification. The government’s prerogative, but our current government arguably sees things much differently than a majority of Albertans- (e.g. the visceral hate of the federal government as represented by Mr. Trudeau.) In this blogpost, I set o...

<em>A Better Future </em>– Recommended Reading

26Mar

By Bob AscahNo Comments

Budget, Capital Spending, Fiscal History, Government Finances, Opinion/Research

A Better Future – Recommended Reading

Updated 27 March 2023 A Better Future: Fiscal Recommendations to Position Alberta for Success, authored by Todd Hirsch for NDP leader Rachel Notley was released Friday 23 March. Hirsch, ATB’s Chief Economist (2007-2022) is deeply knowledgeable about Alberta’s economy and the financial system having worked earlier in his career at the Bank of Canada (full disclosure: I hired Todd while I was at ATB Financial). In short, he is a respected economist and a consummate communicator, A Better Future is a valuable contribution to a long overview discussion of Alberta’s public finances. In the Introduction, Rachel Notley observes the following. Albertans want and deserve excellent healthcare and a top-flight education The Government of Alberta relies on natural resources revenue. Natural resourc...

Budget Speech- Annotated and The Economic Consequences of Mr. Toews

9Mar

By Bob AscahNo Comments

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

Budget Speech- Annotated and The Economic Consequences of Mr. Toews

Budget Speech delivered on Tuesday 28 February 2023, Legislative Assembly of Alberta Mr. Speaker, I count it a tremendous honour to rise in the House today to present Budget 2023 – the fifth I have presented on behalf of Albertans. In the fall of 2019, I put forward a four-year plan to bring the province back to fiscal responsibility and a balanced budget. In some respects, these past four years have felt like a century – in part, due to the extraordinary global challenges we faced but also because of how far we’ve come. When, as a government, we took office in 2019, Alberta had an economy that was flat-lined, and we were spending $10 billion more than comparable provinces on services, without better outcomes. Our plan to strengthen Alberta’s economic foundation was two-fold: First, to bri...

Moody’s upgrades Alberta’s credit rating

11Feb

By Bob AscahNo Comments

Budget, Credit Ratings, Energy, Government Finances

Moody’s upgrades Alberta’s credit rating

After a decade of seeing its credit rating fall steadily from the coveted triple AAA rating to AA3, surging oil revenues have again lifted Alberta’s credit rating. Nature of credit ratings Credit ratings do matter to all governments which borrow on international and domestic capital markets. There is so much debt in the world that for large bond buying desks their analysts cannot focus on every credit in detail. These institutional investors count on rating agencies to undertake thorough, in some cases almost forensic work, to assure large institutional investors- think Vanguard, Swiss RE, J.P Morgan and the CPPIB- that the risks they are managing, including default risk, are fully understood and the debt/credit portfolios have risk limits understood by the bond buyers.. Credit ratings a...

22Jan

By Bob AscahNo Comments

Budget, Energy, Fiscal History, Government Finances

Lougheed letter publicizes the Alberta Oil and Gas Activity Plan- Summer 1982

This remarkable letter demonstrates how falling oil prices rang alarm bells in the Alberta government and was very much the result the effect of very high interest rates in North America driven by the U.S. Federal Reserve board and not the National Energy Program.. https://fred.stlouisfed.org/series/FEDFUNDS The above graph shows what governments and corporations were watching with alarm as the Fed would move rates up and down with rates nearing 20 per cent followed by a harsh recession which crippled America's auto business, At that time the auto business, like it still is today, is really a financing business based on lending on the security of these American cars. Crippling interest rates discouraged buyers and therefore oil prices. In addition, discerning American drivers were turn...

15Jan

By Bob AscahNo Comments

Budget, Capital Spending, Government Finances, Uncategorized

Hyndman Papers- Speech to Alberta Municipalities- 1982

Excerpt from Speech to Alberta Municipal Districts & Counties (pp. 12-16) (Undated- likely late November 1982 after 2 November 1982 provincial election) The following speech given by Peter Lougheed in November 1982 set the stage for the Alberta government's post election Alberta Economic Resurgence Program. (The PDF of the excerpt of the speech in below) The speech is notable as signaling the government's intention to restrain government spending and holding public sector wage costs to below the private speech. His language was unusually blunt to this gathering of Alberta's municipal councilors, reeves, and mayors. Crucial to the financing of the resurgence program was a return to direct borrowing of the province- a rare event in the post-war period- and tapping all investment incom...

Issues to follow in 2023- Analysis and Opinion- Part 2

9Jan

By Bob AscahNo Comments

Economic Data, Employment, Energy, Government Finances, Opinion/Research

Issues to follow in 2023- Analysis and Opinion- Part 2

Corrected 9 January 2023 Sovereignty Act applications- before the election? The application of the Sovereignty Act before the May provincial general election has a lot of moving parts. The Act came into force on 15 December, the date of royal assent. At present Premier Smith is constructing the case along with her finance minister Travis Toews and jobs and economic development minister Brian Jean of a competent government managing finances prudently and attracting investment. In a “Special Economic Report” sent out to UCP supporters on 7 January the Premier highlights that under her leadership 41,500 full time jobs were added in December, most from the private sector. The communication reminds Albertans that they enjoy the highest wages in Canada and the lowest taxes. On the fi...

Mid-year Financial Update- more spending, less revenue

5Dec

By Bob AscahNo Comments

Budget, Government Finances, Opinion/Research

Mid-year Financial Update- more spending, less revenue

Between the first quarter update at the end of August and the mid-year update of November 25th? a new premier took charge. In the tbf-2022-23-first-quarter (as its PDF is known) the province expected to collect $75.9 billion in revenue. In tbf-2022-23-mid-year total revenue is $76.9 billion. The Mid-term Update was called “Strong economy, strong Alberta” equating Alberta to economy. The press conference video is here. Spending Spending has increased from $62.1-billion in the 2022 Budget, including COVID-19 recovery spending, to $64.7-billion in the fiscal update or by $2.6-billion. Increased spending comes from $300-million in electricity rebates, “affordability initiatives” of $1.2-billion, $308 million for higher costs of selling oil, $340 million for Health including $174 million for th...

Despite soaring profits, oil companies are not paying enough for their environmental damage

4Dec

By Bob AscahNo Comments

Energy, Environment, Government Finances, Investment

Despite soaring profits, oil companies are not paying enough for their environmental damage

Published: December 1, 2022 1.55pm EST from the Conversation with permission. Re-published in newspaper edition of The Globe and Mail, Alberta section, on 17 December 2022 and online at Winnipeg Free Press on 2 December 2022. Re-published in The Tyee on 11 January 2023 At the end of the third quarter reporting season in October, the Big Four oilsands producers continued to report record profit levels. Collectively, Cenovus, CNRL, Imperial Oil and Suncor earned $5.8 billion in the third quarter and $23.1 billion in the first nine months of 2022. The average return on capital during the period was almost 25 per cent. The only minor hiccup was Suncor’s reported loss — primarily due to a non-cash impairment charge of $3.4 billion against its Fort Hills assets. Despite the write-down, Suncor s...