Investment Archives - Page 2 of 3

Presentation to the Real Estate Council of Alberta 23 November 2022

26Nov

By Bob AscahNo Comments

Presentation to the Real Estate Council of Alberta 23 November 2022

This past Wednesday I was invited to speak to the directors and executive management at the Real Estate Council of Alberta, or RECA. RECA is the regulatory body for Alberta's real estate market. Alberta is unique as regulation of the real estate market is mainly in the hands of industry. For example the licensing and disciplining of real estate agents is conducted by RECA's board of directors and councils. This is termed "industry self-regulation." There is government oversight in the sense that the government appoints three of RECA's seven-person board. RECA's annual report a wealth of information for the various segments of the real estate market (real estate brokerage, mortgage brokerage, property management, and condominium management licensees). The website also hosts a great d...

1Nov

By Bob AscahNo Comments

Energy, Investment, Opinion/Research, Politics

Exxon money leaving Alberta’s oilpatch

Imperial was the first of Canada's Big Oil to issue a third quarter report. The shareholders of Imperial, or IMO to markets, are receiving a rather parsimonious dividend ($227-million) which is being raised 29 per cent (from still a relatively low, conservative level). In addition to about $170-million in clash dividends this quarter, Imperial will buy back $1.5-billion ins shares and repay debt owing to Exxon of $1.0-billion. It is evident that Exxon-Mobil wants more return in the form of cash from its oil sands "experiments." It will be up to Imperial's Canadian board and management to fight to prolong the life of the oilsands primarily through generous Canadian taxpayer handouts, not Exxon investment. For nine-months to 30 September 2022, Imperial paid $1.6-billion in royalties ...

29Sep

By Bob AscahNo Comments

Government Finances, Health, Intergovernmental, Investment, Opinion/Research

The UCP Front-runners- Policy Analysis

In this analysis I compare both the slogans and key phrases of the candidates. Slogans and phrases which are meant to attract members to vote for their preferred candidate and some of the detail of their top policy priorities. I also drill down to examine three policy areas in more detail. At the time of publication Danielle Smith is the presumed frontrunner with Travis Toews second and Brian Jean third. High level slogans compared According to Danielle Smith’s “Alberta First” campaign she will: Free Alberta from Ottawa’s control; Protect the rights and freedoms of Albertans; Unleash our economic potential and restore the Alberta Advantage, and Defeat Rachel Notley and the NDP in the next election Travis Toews promises responsible, stable leadership and promises to uni...

De Havilland exits Ontario: Destination Wheatland County, Alberta

25Sep

By Bob AscahNo Comments

Investment, Opinion/Research, Uncategorized

De Havilland exits Ontario: Destination Wheatland County, Alberta

As previewed in Abpolecon.ca last July and this April, Alberta continues to poach unionized jobs from Ontario. Protracted negotiations between disgraced Unifor former president Gerry Diaz and De Havilland failed to protect thousands of jobs at the company's Downsview facility. In October 2021, Unifor bowing to the inevitable reduction in jobs acceded to a three-year deal which would preserve 112 member jobs in production and 673 member jobs working in office, technical and professional positions at the plant. However it did achieve a payment to employees from the phase out of the Dash-8 commitment. Negotiations centered on the company's plans to leave its current production location at the Downsview plant, ending production of the Dash 8 aircraft. In the absence of a commitment to r...

4Jul

By Bob AscahNo Comments

Energy, Government Finances, Investment, Politics

Alberta’s Job Creation Tax Cut: Theory and Reality

In 2023, a book on the Kenney government edited by Ricardo Acuna and Trevor Harrison will be released. I contribute one chapter on Alberta’s Job Creation Tax Cut examining critically whether this one-third cut to corporate income tax has had any positive impact on Alberta’s economy in terms of investment, jobs and wages. In this post (which is not part of the book chapter), I explore the theory behind the corporate income tax cuts. The critical element in my view is in assessing the nature of capital and labour in Alberta and in particular the energy sector, most notably the oilsands. Background In the UCP’s 2019 election platform, a key policy plank was to cut the corporate income tax from 12 per cent to 8 per cent over four years. Two economists- Ja...

12Jun

By Bob AscahNo Comments

Capital Spending, Energy, Fiscal History, Investment

Hyndman Papers: public vs. private investment and rising interest rates

Private sector investment has been the main driver of the Alberta economy over the past half century. Private investment in Alberta is highly correlated to secular movements in oil prices. Interest rates too play a major factor in driving economies. Low interest rates make investing in capital assets such as energy projects and housing more viable than when interest rates rise dramatically as they did in the early 1980s. The global economy is facing rising interest rates and a current boom in commodity prices including oil, natural gas, potash and grain prices. The two documents below illustrate the nature of Alberta's capital investment stock relative to other provinces. Alberta in 1981 had double the per capita private sector investment of the next province Saskatchewan. As a cons...

19Apr

By Bob AscahNo Comments

Agencies, Investment

De Havilland -Update

Updated 28 April 2022/2 May 2022 In July 2021 Abpolecon.ca ran a story A coup for Invest Alberta? that suggested or predicted that the De Havilland Corporation would bring jobs to the Calgary area. On 31 March 2022, the Globe and Mail published a Canadian Press story providing some information about an announcement that 500 jobs would be created by the aircraft manufacturer in Calgary. According to the story, De Havilland has launched the De Havilland DHC-515 Firefighter program to build on its Canadair CL-215 and CL-415 aircraft. De Havilland Canada acquired the Canadair CL program in 2016. The company already has signed letters of intent purchase the first 22 aircraft, and expects to make its first deliveries by 2025. Final assembly of the aircraft will take place in Calgary, where ...

20Feb

By Bob AscahNo Comments

Budget, Fiscal History, Government Finances, Investment, Uncategorized

Hyndman Papers- Budget 1982-83

In the following remarkable document from former Provincial Treasurer Lou Hyndman, he succinctly summarizes the quintessential fiscal policy questions his predecessors and successors have grappled with. These questions relate to: the Alberta public's "rising expectations;" use of Heritage Fund savings and investment income for general operating purposes; the scope for tax increases; how to cope with resource revenue uncertainty; and the sustainability of government expenditures. All these questions are pertinent today. Undated from Lou Hyndman- presumably to caucus or to Treasury Board/Cabinet Key questions The following are some of the key questions to consider in setting the 1982-83 target expenditure level. How should rising public expectations be reconciled with limited financial ...

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 thou...

10Oct

By Bob Ascah2 Comments

Employment, Energy, Investment, Opinion/Research

Dow- a victory for Kenney (of sorts)

On Wednesday 6 October a joyful Premier Kenney announced the biggest hit of his economic recovery plan with Midland, Michigan-headquartered Dow Chemicals committing to a huge petrochemical investment beside its existing Fort Saskatchewan facility. The full text is worthy to cite as it highlights Kenney's possible rising from "political dead man walking" status. The message and excitement contained within was worthy of a crow's proud call. “Today Dow announced what could become the largest investment in the Alberta economy in more than a decade. This is a huge win for job creation, economic growth and Alberta’s Economic Recovery Plan. If this project receives regulatory approval and a positive final investment decision, it will lead to a multibillion-dollar investment in our economy ...