AB Pol Econ

5Sep

By Bob AscahNo Comments

Environment

Kudos to Environmental Law Centre!

On Wednesday 1 September Jason Nixon, Minister of Environment and Parks made an intriguing announcement. Sharing the stage with Tanya Fir, the Associate Minister of Red Tape Reduction, the duo announced the opening of a new website that allows citizens access to the records of Alberta's environmental enforcement actions. This website does not include Alberta Energy Regulator's enforcement actions which can be found at AER's compliance dashboard. According to the news release, the free access to these records "demonstrates this government’s commitment to transparency, reducing red tape, improving efficiencies and eliminating the cost to Albertans." While seeming to claim credit, the real credit must go to the Environmental Law Centre which has offered this service since 1996 for a fee. Ac...

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...

2Aug

By Bob AscahNo Comments

ATB, Politics

Hyndman Papers: Treasury Branches (Part 2)

The 1980s brought what some considered to be unconscionably high interest rates to Canadians and Albertans. in 1979 Albertans went to the polls. A key policy measure was interest shielding program which assisted Treasury Branches' borrowers. The below memo written on behalf of the de facto inner cabinet succinctly terminated the program. ALBERTA EXECUTIVE COUNCIL FROM: Harry Hobbs Deputy Minister TO: Honourable Lou Hyndman Provincial Treasurer DATE: May 28, 1980 SUBJECT: TREASURY BRANCHE INTEREST RATES At its meeting of May 26, 1980, the Finance, Priorities and Co-ordination Cabinet Committee agreed that Treasury Branches would discontinue shielding of interest rates in view of the curren...

26Jul

By Bob AscahNo Comments

Employment, Investment

A coup for Invest Alberta?

Updated 27 July 2021 The Globe and Mail reported on Saturday that labour negotiations at De Havilland had broken down over the issue of preserving union jobs in the Greater Toronto Area (GTA). Bombardier, the owner of the storied Dash-8 turbo-prop plane used by many regional carriers, sold the production facility in June 2019 to Longview Aviation Capital Corp. for $300-million. The issue The owner announced earlier this year that it was not committed to the GTA (Downsview) facility after the current order book expires. According to Gerry Diaz, the president of the powerful Unifor union, the new owner may move future production to Alberta. A future scenario could pit Ontario Premier Ford squaring off against Alberta Premier Jason Kenney over the questions of 1) 2,200 highly skilled ...

12Jul

By Bob Ascah2 Comments

Uncategorized

The Strange Case of NPV and the Sturgeon Refinery

Following shortly after Finance Minister Toews’ release of the 2020-21 financial provincial accounts, on 5 July Energy Minister Sonya Savage seemed delighted to announce “a better deal on the Sturgeon Refinery… reducing risk and saving an estimated $2 billion.” While the long-suffering Finance Minister had to offer a positive spin on a falling $17-billion deficit, Savage described the $2 billion “optimization” of the contract. Background As Abpolecon.ca reported last November, the Alberta Petroleum Marketing Commission (APMC) was the government agent tasked with achieving the best deal for taxpayers when the saga of the Northwest or Sturgeon Refinery. In last year’s financial accounts, a provision against the government’s economic interest in the refinery was taken of approximately $2-bi...

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...

4Jul

By Bob Ascah2 Comments

Agencies, Energy, Environment, Opinion/Research

Alberta’s environmental bills coming due. Who will Pay?

The release of The Big Cleanup: How enforcing the Polluter Pay principle can unlock Alberta’s next great jobs boom on Tuesday 29 June by the Alberta Liabilities Disclosure Project is an important next step in the Province coming to terms with its oil and gas legacy. The easy-to-read 40-page report comes complete with nuggets of information to jar government and industry policy-makers along with a dozen recommendations to minimize the costs to Canadian and Albertan taxpayers. Preliminary There is little doubt that Albertans have enjoyed the fruits of the periodic capital investment booms of the energy industry since the 1950s. These fruits included low unemployment rates, highest incomes in Canada, generous government services, low taxes, and Canada’s highest “standard of living.” Standard...

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...

22Jun

By Bob AscahNo Comments

Agencies, Energy, Environment, Health, Politics

The times they are a’changin

Come senators, congressmenPlease heed the callDon't stand in the doorwayDon't block up the hallFor he that gets hurtWill be he who has stalledThe battle outside ragin'Will soon shake your windowsAnd rattle your walls… Bob Dylan On Thursday 18 June a remarkable event took place. The near simultaneous release of an Alberta Energy Regulator (AER)/Canadian Environment Impact Assessment Agency (CEIAA) joint panel rejection of the controversial Grassy Meadows coal project and a news release from Alberta's Environment and Energy ministers "respecting" the Joint Panel’s recommendations. The Thursday announcements followed declarations by federal Environment Minister Jonathan Wilkinson that all coal projects which produced selenium would be subject to federal review due to the environmental impa...