Politics Archives - Page 10 of 12

Peter Lougheed- Address to Calgary Chamber of Commerce- 13 March 1981

16Nov

By Bob AscahNo Comments

Energy, Fiscal History, Intergovernmental, Politics

Peter Lougheed- Address to Calgary Chamber of Commerce- 13 March 1981

Background From Lou Hyndman's papers, this speech is given to a friendly business audience at the height of the energy fight between Ottawa and ALberta. The parallels between 1980-81 and today are many, but there are considerable differences. In 1980-81, inflation was rampant over 10 per cent and interest rates had soared. Oil was trading at historic highs due to the 1979 Iranian revolution. The Alberta economy had enjoyed six straight years of boom conditions. Unemployment was very low and cranes dotted Edmonton and Calgary's skylines. Joe Clark's administration had been dethroned and Pierre Trudeau was back in office. Jimmy Carter had lost the presidency to Ronald Reagan and the rest of the world outside Alberta was spiralling into recession. The National Energy Program was an attack o...

18Oct

By Bob AscahNo Comments

Government Finances, Opinion/Research, Politics

Harmonized Sales Tax not a Panacea- Opinion

But neither will ignoring the revenue side cure the deficit problem Franco Terrazzano's Opinion piece in the 9 October Edmonton Journal is quite right when he observes that a “provincial sales tax won’t erase Alberta’s red ink.” No single mechanism can do that. Alberta’s massive deficit and future deficits will not go away merely by blaming Alberta politicians (past and present) who have spent resource wealth on maintaining a high level of public services and infrastructure. However to suggest that sales tax advocates believe a sales tax will eliminate the deficit by itself is disingenuous. The economic argument for a sales tax is compelling for a number of reasons. First, it is a far more efficient tax than personal or corporate income taxes. A commonly used metric of the economic cost...

8Sep

By Bob AscahNo Comments

Agencies, Budget, Energy, Government Finances, Politics, Uncategorized

After waiting an extra 2 months 2019-20- some major surprises missed in February forecast

Updated 10 November 2020 In an earlier report on the crucial role played by the Alberta Petroleum Marketing Commission (APMC) in government finances, we highlighted the Commission's role in overseeing the North West Redwater Upgrader investment, commenced in the latter years of the Stelmach regime. We raised some doubts, given APMC's record with the North West Redwater Partnership (NWRP), about its competence in negotiating with TC Energy on the Keystone XL project. APMC is also the agency tasked with negotiating the Energy East commitment and the controversial oil-by rail contracts. With the two-month delay in the publication of the Government of Alberta's Annual Report and audited consolidated financial statements, the public finally has been apprised that Alberta's budget shortfal...

26Aug

By Bob AscahNo Comments

Budget, Credit Ratings, Government Finances, Politics

Fiscal Update- August 2020

It appears our UCP friends have left it to the last moment to drop the fiscal update and financial accounts on the Opposition NDP who will debate the documents tomorrow.. It could be cynicism or it could be the UCP Cabinet and Caucus still have not agreed among themselves how to position the past year's financial accounts- blaming the NDP- or how do we preach fiscal austerity in a sea of red ink, and how do you budget credibly to a balanced budget in 22-23 or 23-24? How can you make the numbers add up, even with glowing expectations of energy and other investment pouring into the province? The latter point may not be seen as credible by the rating agencies. In reality for the next two years, Alberta, will be a net taker from Confederation, not leading the country in economic growth and dr...

4Jul

By Bob AscahNo Comments

Budget, Credit Ratings, Energy, Investment, Opinion/Research, Politics, Uncategorized

Alberta’s Economic Recovery Plan

Analysis and Opinion Correction made 8 July 2020 re. $1.906 trillion, not billion Premier Jason Kenney has doubled down on his bet to rescue Alberta's beleaguered economy with more corporate tax cuts and higher infrastructure spending. Alberta' Economic Recovery Plan or ERP is a curious blend of spin, self-praise, capitalism at public expense, and a few interesting policy ideas. But overall the plan reads as an unimaginative, traditional blend of slogans, new organizations, and promises about jobs. According to the Premier, "jobs and the economy come first." Most importantly though, the Report confirms Alberta leaders are essentially hostage to international and domestic finance capital. The Premier even observed in his Press Conference that he had met that morning with Unit...

29Jun

By Bob Ascah1 Comment

Intergovernmental, Opinion/Research, Politics

Alberta’s “Fair Deal” Report

Preston ManningSource: Government of Alberta Whether you like Premier Jason Kenney or not, one must agree he has been a busy Premier. A Premier who sets out a playbook and is following this platform. Whether you like his policy platform or not, he is a man on a mission to transform Alberta seemingly from the ground up. Reading daily news releases from the Government of Alberta, this government likes to claim “Promise Kept!” The Fair Deal page is a trove of information about the Government’s responses to the report (finalized before the Pandemic took hold) including recommendations underway, recommendations agreed to in principle, recommendations with support for further analysis, and recommendations that require modification. If anything, Premier Kenney is well organized and marchin...

Hyndman Papers- Wilson, Percy and Norrie

13Jun

By Bob AscahNo Comments

Budget, Economic Data, Fiscal History, Intergovernmental, Politics

Hyndman Papers- Wilson, Percy and Norrie

Oil prices, Interregional Adjustment and the Canadian Economic Union In the summer of 1980, federal-Alberta relations were going through a period of conflict and mutual suspicion. Around the same time as the Mellon memo and the Treasury review of Alberta's contribution to Confederation, three respected economists from the University of Alberta produced a paper for the Treasury on the oil, interregional adjustment, and the Canadian economic union. The 4-page Executive Summary (presented below) examines the question of how might an adjustment to the terms of trade within a federal state (i.e. higher oil prices) ideally be carried out. Key issues examined include: the structure of ownership of natural resources (public versus private); redistribution or recycling of oil wealth in a fed...

Federal Energy Program Finally Announced- Analysis/Opinion

20Apr

By Bob AscahNo Comments

Bankruptcies, Banks, Energy, Energy, Environment, Opinion/Research, Politics

Federal Energy Program Finally Announced- Analysis/Opinion

Belated Announcement On Friday, 17 April, the anxiously awaited federal program to support the oil and gas industry was announced by Natural Resources Minister Seamus O’Regan (pictured). Details were minimal despite weeks of waiting. As anticipated, much of the money was directed at orphan well clean up in Alberta, Saskatchewan and British Columbia. The amount- $1.75 billion was substantial and included $75 million for the offshore sector. In addition, $750 million was allocated to “create a new Emissions Reduction Fund to support workers and reduce emissions in Canada's oil and gas sector, with a focus on methane.” The announcement noted that the measure will maintain about 5,200 jobs in Alberta alone. In addition, loans would be provided through the Business Development Bank to qualifyin...

3Apr

By Bob AscahNo Comments

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

Politics of Alberta Growth Mandate (AGM)

Politics of the Alberta Growth Mandate In past articles, the Alberta Growth Mandate was explained as a significant policy initiative in the first NDP budget of October 2015. It should be noted that, in the fall of 2015, Alberta was reeling from significant declines in investment and job losses, and a rookie NDP government was looking for quick wins to support jobs in the Alberta economy. The policy objective was to support Alberta companies (as defined by the Alberta Investment Management Corporation (AIMCo)) and based on meeting one of the following criteria. a. Creates jobs in Alberta b. Builds new infrastructure in Alberta c. Diversifies Alberta’s economy d. Supports Alberta’s growth e. Connects Alberta’s companies to export markets f. Develops subject matter expert...

Alberta ‘Growth’ Mandate- Analysis and Opinion

22Mar

By Bob AscahNo Comments

Agencies, Budget, Government Finances, Opinion/Research, Politics

Alberta ‘Growth’ Mandate- Analysis and Opinion

While now is not necessarily the best time to be taking stock of one's investment portfolio, government and provincial agency officials, who face a March 31 fiscal year end deadline, are concerned about the impact of accounting rules that require "fair market accounting" for their investments. The performance of both bond and equity markets over the next ten days will determine whether forecasts for investment income in the provincial budget ($1.96 billion for the Heritage Fund) will actually pan out. Investment income for investment portfolios are typically composed of two types of income: (1) dividends and interest payments or cash distributions from private equity, and (2) increases or decreases of the "fair value" of the investment at year -end compared to the initial cost of buy...