AB Pol Econ

16Dec

By Bob AscahNo Comments

Uncategorized

Hyndman Papers: Excerpts from Old Budget Speeches (Part 3)

Updated 16 December 2020 The final instalment in the Jim Dinning- Lou Hyndman memo prepared as background for a forthcoming budget- presumably 1980-81. The first part of these excerpts compare spending of the 50th anniversary celebration of Alberta's entry into confederation as a province with spending proposed for the 1980 - 75th celebrations. in addition, these excerpts from budgets in the 1950s, 1960s, and 1970 reflect perennial concerns of provincial treasurers: the constant spending pressures and the use of non-renewable resource revenues to fund the appetite for education, municipal, highways, and health services. These budgets including the final budget of the Social Credit government are full of admonishments towards spending beyond our means and the perils of debt and Canada's ...

11Dec

By Bob AscahNo Comments

ATB, Government Finances, Opinion/Research

ATB Financial silently announces a surprising profit

As has now become the customary, on 19 November ATB quietly released its second quarter financial statement. Postmedia and The Globe and Mail did not report the rather surprising profit turnaround at the publicly-owned financial institution. The provincial agency's news release entitled "Helping Albertans move forward" speaks of the assistance ATB has given many of its borrowers, courtesy of a mandate of the Kenney government. According to the release ATB has "reached out" to an unspecified "thousands of consumer and business customers who participated in our relief program to draw up personalized plans supporting their financial future." Consistent with government efforts to attract investment and diversify the Alberta economy, the release states: ATB is helping...

10Dec

By Bob AscahNo Comments

Budget, Energy, Fiscal History

Hyndman Papers: Excerpts from Old Budget Speeches (Part 2)

Updated 16 December 2020 In this remarkable and lengthy undated memorandum from Jim Dinning, a future Treasurer and candidate for the premiership of Alberta, to Lou Hyndman, Dinning highlights some historical issues which still confound Alberta finances to this day. (The italics are Dinning classification of issues for Treasurer Hyndman.) Central to preparing a budget in the 1980s was the reliability of non-renewable resource revenue. Back in the 1930s, 1940s, and 1950s natural resource revenue was also front of mind. The growing dependence on resource revenue was underlined in Ernest Manning's 1950 budget. A dilemma for provincial treasurers then, in 1980, and today is the balancing of pressures for spending, the proper stewardship of resource revenue, and the need to contain "insatiabl...

9Dec

By Bob Ascah1 Comment

Budget, Fiscal History, Politics

A presentation to the Board of the Edmonton Chamber of Commerce – A Sales Tax for Alberta-Why and How

This morning I made a presentation to the Board of Directors of the Edmonton Chamber and senior management of the Edmonton Chamber. Below is the PowerPoint/PDF. Although the business community is still generally negative to a provincial sales tax, possibly harmonized with the federal GST, there appears to be a growing realization that non-renewable resource revenue will not be sufficient alone to balance Alberta's structural deficits. In late October, the Chamber released Forging our Future which includes the following: While government spending and support programs are critical right now,we must not lose sight of the fiscal challenges on the horizon.We recommend a review of the Canadian tax system and a review ofAlberta’s revenue sources, including consideration for a consumption t...

7Dec

By Bob AscahNo Comments

Uncategorized

Hyndman Papers: Excerpts from Old Budget Speeches (Part 1)

Updated 16 January 2020 From the Provincial Archives of Alberta and the Hyndman papers comes an undated memorandum from Jim Dinning to Lou Hyndman giving a history of previous budgets. The tone seems archaic in this elite white male system, These excerpts underline the great optimism which has been incorporated into the psyche of most Albertans. An unbounded future- ever expansionary- no room for pessimists and little time for opposition members. The tone is also conversational in these first segments indicating that few in the population knew about or cared about this arcane art of provincial budgeting. FROM: Jim Dinning Executive Assistant TO: Hon. Lou Hyndman Provincial Treasurer REVIEW OF PREVIOUS BUDGETS...

28Nov

By Bob AscahNo Comments

Budget, Credit Ratings, Government Finances, Intergovernmental, Opinion/Research

Mid-year Fiscal and Economic Update- Analysis & Opinion

Slight improvement in deficit forecast for 2020-21 Recalibration of 3-year budget plan Balanced budget pushed further into future Fiscal anchors Ottawa's growing indebtedness and other grievances Job Creation Tax Cut and cutting red tape expected to spur investment and employment Government stays with present course to resize spending Small hint about need to examine revenue structure On Tuesday 24 November, Finance Minister Travis Toews released the 2020-21 Mid-year Fiscal Update and Economic Statement. (Watch the Press Conference here.) There was a slight improvement in the deficit numbers in the First Quarter Fiscal Forecast - then the deficit was estimated to be $24.8 billion- now the Government expects a $21.3 billion deficit. Improvements came mainly on the revenue side with $1.4 b...

25Nov

By Bob Ascah1 Comment

Capital Spending, Economic Data, Energy, Environment, Fiscal History, Government Finances, Politics

Presentation to EQUS directors- 23 November

EQUS is a small, co-operative distributor of electricity to 12,000, mostly rural, customers. The organization is the product of a series of mergers of rural electrification co-operatives over the past two decades. EQUS employs about 100 staff with its head office in Innisfail. The presentation, provocatively entitled "Alberta's Crumbling Economic and Fiscal Foundation" builds on concerns about the future health of Alberta's economy in a world where international financial capital places more emphasis on renewable energy solutions. The presentation highlights the pivotal role of capital expenditures of the oil and gas sector which have driven the Alberta economy since 1947. Alberta's gross fixed capital formation (oil and gas, institutional, industrial, residential and non-residential bui...

18Nov

By Bob Ascah2 Comments

Agencies, Government Finances

AIMCo CEO Compensation 2008-2020

This article follows a similar format as the analysis of ATB’s CEO compensation. We begin with some background on the creation of the corporation in 2007 from published and unpublished research. Then follows a series of charts illustrating the evolution of AIMCo CEO pay over the period. The concluding section investigates the question of pay equity by comparing the AIMCo chief’s compensation against the average compensation of AIMCo employees, peers- the Caisse de Depot et Placement du Quebec (Caisse), the British Columbia Investment Management Corporation (BCMIC), and senior elected and appointed provincial officials. A slide deck is included at the bottom of this article. Background In 2007, the Alberta Investment Management Corporation Act was passed creating a board-governe...

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...

Moment of Truth- Book Review and Opinion

9Nov

By Bob Ascah3 Comments

Uncategorized

Moment of Truth- Book Review and Opinion

Preamble It would be unfair to dismiss the authors of Moment of Truth as grumpy, mostly white old men. This hastily edited textbook for Wexiters and Fair Dealers is a compelling read making a plausible case for a colony separating from its metropolitan or imperial power. The book is published by Sutherland House and edited by Jack Mintz, Ted Morton and Tom Flanagan. The list of grievances are long and familiar: equalization; Bill C-69; the NEP; official bilingualism; special treatment of Quebec; under-representation in Parliament; supply management; the federal carbon tax; and judicial decision-making. Jack Mintz Source: UCalgary.ca Although not intended, the book makes a persuasive case against the imperial-style capitalism which western Canada has been subject to since before Confed...