Government Finances Archives - Page 7 of 11

17Dec

By Bob Ascah3 Comments

Agencies, Credit Ratings, Government Finances

Can AIMCo be Fixed? (2)- Kenney redefines the pension bargain

Updated 23 December 2021 Hear interview between Bob Ascah and Shaye Ganam here. Read the 21 December 2021 Edmonton Journal opinion piece by Bob Ascah. Premier Kenney made some new policy pronouncements about the Alberta government's liability with respect to public sector pensions at yesterday's Omicron press conference. His response to a Globe and Mail reporter's question (minute 47) must be a shock to Finance Minister Toews' and belies over 20-years of government policy to disengage Alberta taxpayers' liability from the unfunded liabilities for public sector pensions. If not walked back, it may have some influence over the province's credit rating. James Keller The Globe and Mail. This is going way, way off topic. The Parkland Institute put out a report today on AIMCo with a lo...

16Dec

By Bob AscahNo Comments

Agencies, Government Finances, Investment

Can AIMCo be Fixed?

On Wednesday, the Parkland Institute at the University of Alberta released my study Can AIMCo be Fixed? Key findings and recommendations of the study were: AIMCo is one of the most significant provincial agencies in Alberta- its importance is central to the financial security of nearly 500,000 people Since a pension is intended to provide financial security in retirement- any behavior by government, the asset manager or pension boards which undermines security or creates uncertainty erodes trust which is foundational to the pension bargain. AIMCo’s investment performance has, since its inception, been mediocre and recent poor returns contributes to the erosion of the trust. The ownership structure of AIMCo must be changed- AIMCo’s sole owner today is the Government of Alberta even thoug...

15Nov

By Bob AscahNo Comments

Employment, Environment, Government Finances, Intergovernmental, Opinion/Research

Alberta’s Economic Recovery Plan appears to be taking off

The past ten-days has seen a flurry of announcements from Premier Kenney, his Jobs, Economy and Innovation minister Doug Schweitzer, Associate Minister of Natural Gas and Electricity- Dale Nally, and Finance Minister Travis Toews. Kenney, in all these announcements, was centre stage and answering inquiries from the media. Hydrogen Roadmap The first announcement on 6 November was the unveiling of a hydrogen strategy. Hydrogen, especially “blue hydrogen,” is now seen as having the potential of an oilsands-like boom. According to Kenney: “With a global market estimated to be worth $2.5 trillion a year by 2050, hydrogen could be Alberta’s next great energy opportunity. Alberta has been a global leader in responsible energy production for decades, and now we’re ready to apply that leadership t...

29Sep

By Bob Ascah4 Comments

Demographics, Government Finances, Intergovernmental

What would Withdrawing from the Canada Pension Plan Mean to Albertans?

By Ellen Nygaard and Virendra Gupta, Edmonton, AB, October 2021 The United Conservative Party (UCP) government, shortly after taking office in 2019, created a panel to consider whether Albertans are getting a “fair deal” as part of Canada. One of its assignments was whether Alberta should withdraw from Canada Pension Plan (CPP) and create its own pension plan, taking our portion of assets and liabilities from the Canada Pension Plan and running a pension plan for Alberta workers. The Panel recommended that the Government: “Develop a comprehensive plan to create an Alberta Pension Plan and withdraw from the Canada Pension Plan. Subsequently, provide Albertans the opportunity, via a referendum, to vote for or against withdrawing from the Canada Pension Plan and creating the Alberta Pens...

4Sep

By Bob AscahNo Comments

Budget, Government Finances, Opinion/Research

Fiscal Outlook brightens

Fiscal Outlook Brightens The first quarter fiscal and economic update was released on 31 August. Alberta's projected deficit for fiscal 2021-22 has brightened considerably due to bitumen revenue (+$5.6 billion) and stronger investment revenue (+$1.1 billion). The government's message was "Alberta's Recovery Plan is working." The main drivers for the improved performance were revenue although spending is now expected to increase by $567-million driven by health care (+$400-million), drought relief (+$400 million) and agriculture support (+$340-million) some offset by the confusing practice of using contingency and unallocated numbers. Lower debt servicing costs were assisted by low interest rates and the significant decrease in projected borrowing as a result of the improved deficit numbe...

11Jul

By Bob AscahNo Comments

Government Finances, Health, Opinion/Research, Politics

Alberta Nurses- Poised to Strike?

Soon after Finance Minister Travis Toews announced a $17-billion deficit, on 6 July he fired a warning shot at the United Nurses of Alberta. While acknowledging nurses’ contributions to responding to the COVID-19 health crisis (“working diligently throughout”), the News release stressed “the important work of getting the province’s finances back on track.” The terse release reiterated the gist of the MacKinnon Report’s recommendations that for Alberta to rebalance its finances it must cut both the size of the public service as well as bring salaries and benefits in line with other provinces. According to Toews, nurses in Alberta get paid 5.6 per cent more than other comparator provinces (presumably B.C., Quebec and Ontario). This differential costs the Alberta taxpayers an extra $141-mill...

10Jul

By Bob AscahNo Comments

Budget, Energy, Government Finances

Budget Deficit “falls” to $17 billion

Highlights Deficit up significantly from Budget 2020 due to COVID-19 and oil price drop but lower that first quarter forecast due to rising oil prices in final fiscal quarter (January-March 2021). Government takes a $1.3-billion write-down of its investment in TC Energy’s Keystone XL pipeline. Education spending significantly lower than budget (4 %) and from last year (4.9 %). Total revenues were $6.8-billion lower than budget while federal transfers $1.5-billion higher than last year. Dark spots- government investments- Keystone XL, oil-by-rail contracts, and the Sturgeon refinery. Finance Minister Toews released the Province’s annual financial report on Wednesday 30 June. In his press release he emphasized the “notable fiscal gains made in (the) final months of 2020-21.” It was an upb...

27Jun

By Bob AscahNo Comments

ATB, Banks, Financial Institutions, Government Finances, Opinion/Research

Hyndman Papers- ATB and the chartered banks

In the following correspondence between the Provincial Treasurer and TD-Bank's vice-president of the Alberta South Division, a longstanding complaint by the chartered banks about unfair competition from Alberta Treasury Branches (ATB) is revealed. Backdrop In the late 1970s, the North American economy faced surging inflation rates in the low teens and Federal Reserve Board Chairman, Paul Volcker was determined to drive the economy into recession by imposing high interest rates. The Bank of Canada, led by Gerald Bouey followed suit and Canada's bank rate approached 20 per cent. Inevitably, heavily indebted famers, home buyers, and businesses appealed to various orders of government to shield them from the effects of high interest rates. As the correspondence reveals, Alberta's Treasurer ha...

13Jun

By Bob Ascah2 Comments

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

Exploring the Regulatory Maze (3): The Auditor General Reports…

The bizarre story of the Mine Financial Security program (MFSP) continues to unfold. In May, the Minister of the Environment and Parks, Jason Nixon announced a review of the program noting depressed profits in 2020 motivated the government to reset the rules in calculating security requirements. This meant that increased security requirements under the existing requirement would be reduced. Then on 10 June, Auditor General Doug Wylie released a report which focused on processes to provide information about government's environmental liabilities. The report unfortunately raises serious questions about the competencies of provincial officials at all levels as well as the failure of senior officials and ministers to accept responsibility for environmental cleanups. Wylie’s report addres...

30May

By Bob Ascah3 Comments

Energy, Environment, Government Finances

International Energy Agency- Bombshell Report

Until about five years ago the International Energy Agency was beholden to Big Oil. It is no more. Its blockbuster report dropped on an unsuspecting world on 18 May raises deep questions about Big Oil’s survival much past the next decade. The report of 223 pages entitled Net Zero by 2050- A Roadmap for the Global Energy Sector, contains four main chapters, four appendices, and six pages of references. With ESG investing in ascendance, Alberta’s regulatory system of setting security requirements broken, now there is considerable doubt that long-term bitumen reserves have the value they once had.. The IEA volume is organized in four parts: implications of country’s net-zero pledges; global pathway to net-zero CO2 emissions in in 2050; sectoral pathways to net-zero CO2 emissions by 2050; and...