AB Pol Econ

3Feb

By Bob AscahNo Comments

Energy, Energy, Fiscal History

Syncrude Royalties- Hyndman’s papers

In the mid-1970s, major efforts were made by the Alberta government to support the expansion of oilsands production. Up until this time, Great Canadian Oil Sands (GCOS), operated by Sunoco, was the only source of commercial bitumen. With the rapid increase of oil prices in 1973, the provincial government encouraged the development of a consortium involving private and public funds. Construction began in 1973 and production commenced in 1978. Between February 1975 to March 1980, the Alberta government had cumulatively advanced $281.8 million to the project of a total cost of $2.875 billion. Prior to 10 March 1980, the Province sold some of its interest to Alberta Energy Company for $54.9 million and had received cash receipts of $48.1 million from the sale of its entitlement of syntheti...

Bill 22 – Important changes to ATB, AIMCo and ACFA- Updated

28Nov

By Bob AscahNo Comments

Uncategorized

Bill 22 – Important changes to ATB, AIMCo and ACFA- Updated

Immediate outrage from Alberta's official opposition greeted the introduction of the Reform of Agencies, Boards, and Commissions and Government Enterprises Act on Monday, 18 November. While the opposition NDP focused on the political aspects of the firing of Lorne Gibson- his position was abolished by the Act- careful study shows the legislation will have significant implications beyond the political party sphere. The 172 page omnibus bill, introduced by Treasury Board President and Finance Minister Travis Toews, is part of the legislation necessary to give effect to some of the 24 October budget announcements. This analysis and opinion piece is devoted to three of the most important financial institutions owned by the Alberta Crown. Before commenting on the details in Bill 22, it is im...

Energy Wars in the 1970s- Hyndman’s files

26Nov

By Bob AscahNo Comments

Energy, Government Finances, Intergovernmental, Uncategorized

Energy Wars in the 1970s- Hyndman’s files

Two more excerpts from the files of the late Lou Hyndman come from the mid 1970s. The disputes being addressed by senior political leaders followed soon after the OPEC oil embargo. The conflict which emerged between Ottawa and the consuming provinces (e.g. Ontario) and Alberta involved a bitter fight over which order of government would collect the lion's share of the rapid increase in the world price of oil. The first excerpt is from a speech given by the then Treasurer, Gordon Miniely at a finance ministers' conference. The second extract is from a speech, presumably authored, by J.Peter Meekison, a special intergovernmental affairs advisor and then deputy minister of Alberta's Federal and Intergovernmental Affairs department dated in December 1974. The speech is significant as i...

A “fair deal” for Alberta? Historical Perspectives

11Nov

By Bob AscahNo Comments

Energy, Politics

A “fair deal” for Alberta? Historical Perspectives

On Saturday, 10 November, Premier Jason Kenney spoke to the Manning Centre “What’s Next?” Conference in Red Deer. His one-hour, five-minute speech was a spirited lament for the manifest unfairness directed towards Alberta in confederation. His speech recounted the long litany of indifference from the federal government and grievances dating back to Alberta and Saskatchewan's entry into the federation. In his speech, he stressed the immediate need for his administration to exercise leverage on the federal government. At the end of the speech, he identified a number of "demands" to the federal government including an "equalization" (sic) payment of $1.6 billion and tax credits to help Alberta companies to address orphan wells. Numerous grievancs were cited: senate reform, equalization, A...

9Nov

By Bob AscahNo Comments

Opinion/Research, Uncategorized

Budget 2019- Analysis and Opinion

Genesis, analysis, investment imperative, rating agencies Treasury Board President and Finance Minister Trevor Toews was provided considerable advice as he prepared his October 2019 budget. The precursors included the NDP's "path to balance"- a Recovery built to Last, the UCP platform, Alberta Strong & Free, the report of the Blue Ribbon Panel (MacKinnon Report) and the Shadow Budget produced by the C.D. Howe Institute. In this report, we look at how the Alberta budget compares with these other "suggestions" or "guideposts." Then we examine the "big gamble" that underlines the UCP budget- if they create the environment for investment, will it come? Finally, we ask how the rating agencies will evaluate the UCP's initial stewardship of Alberta's public finances. Genesis Unlike...

9Nov

By Bob AscahNo Comments

Uncategorized

Populism and its Discontents-

2019 Parkland Institute Conference Between November 15 and 17, the annual Parkland Conference is taking place at the University of Alberta. The conference examines the currents of populism evident in Canada and abroad. Keynote speakers include Professor of Philosophy (University of Toronto) Mark Kingwell and Erika Shaker of the Canadian Centre for Policy Alternatives. For for more information on sessions and other speakers including registration choices go to Parkland Institute.

30Oct

By Bob AscahNo Comments

Budget, Government Finances, Politics

Sales Tax for Alberta?

Recently there has been a renewed interest in a sales tax for Alberta. Grant Bishop of the C.D. Howe Institute writing a "Shadow Budget" for Alberta, has suggested the introduction of a sales tax after the budget is balanced through spending cuts. In a recent report from the Parkland Institute, Cutting Through the Blue Ribbon, authors Bob Ascah, Trevor Harrison, and Richard Mueller conclude that a provincial sales tax, harmonized with the federal Goods and Services Tax, is an appropriate fiscal measure to achieve fiscal sustainability. SUch a revenue measure would directly address Alberta's chronic vulnerability to fluctuating commodity prices. Then in an October 25th piece in The Globe and Mail, Max Fawcett argues that Jason Kenney, like Richard Nixon going to China, is uniquely placed ...

30Oct

By Bob AscahNo Comments

Opinion/Research, Politics

Let’s Just Take a Deep Breath- Opinion

Our political leaders, both provincial and federal, need to take a deep breath. Premiers Kenny and Moe specifically need to reset their expectations after the rather surprising election victory by Trudeau built on the wings of Canada’s unfair “first-past-the-post” system. Yes Alberta, and to a lesser extent, Saskatchewan, have endured over four years of lousy economic performance. However, unemployment increases and declining investment are due mainly to our economy’s being hostage to internationally determined oil and gas prices, not Ottawa’s policies. Political leaders in this province have talked for decades about “getting off the energy roller coaster.” Common lore – “give us another oil boom and we promise not to piss it away again” has not seemed to penetrate our political leaders’...

Critical Review of the Blue Ribbon Panel on Alberta’s Finances (MacKinnon Report)

30Oct

By Bob AscahNo Comments

Budget, Government Finances

Critical Review of the Blue Ribbon Panel on Alberta’s Finances (MacKinnon Report)

This analysis of the Blue-Ribbon Panel on Alberta’s Finances: Report and Recommendations (McKinnon report) includes a description of the construction of the panel- its membership, its mandate, process, and its members’ experience and predispositions. In the second part of the paper, I describe how the construction of the panel predetermined its recommendations. And finally, using textual analysis, I examine the basic assumptions used by the Report’s authors to construct their interpretation of how to improve the provincial government’s fiscal standing. Composition of Panel On 7 May, three weeks after the election of the UCP, Premier Kenney and Travis Toews, Treasury Board President and Minister of Finance announced the formation of the Blue-Ribbon panel. As most commentators quickly reali...

Environmental liabilities… will not go away

26Apr

By Bob AscahNo Comments

Environment, Financial Institutions, Politics

Environmental liabilities… will not go away

Alberta Liabilities Disclosure Project (ALDP) On 5 April, the ALDP held a news conference to raise awareness about the scope and scale of the orphan well issue in the Province of Alberta. According to its website, the ALDP "is an independent and non-partisan initiative pushing for accurate and transparent government level data pertaining to Alberta's oil and gas liabilities." This initiative, of which I am a participant, is aimed at making oil and gas environmental liabilities an issue during the recent provincial election. While media outlets such as The Globe and Mail, National Observer and Postmedia shared information about the initiative, political parties -other than the Alberta party's David Khan and Dr. David Swann, did not click on the bait. Regan BoychukSource: National...