AB Pol Econ

27Mar

By Bob AscahNo Comments

Politics

Election 2019- Week One Recap

It was a challenging week for UCP leader Jason Kenney. Kenney has battled questions about his knowledge of alleged arrangements made between members of his staff and those staffers supporting the run of Jeff Callaway. This has been especially trying for Kenney who continued to roll out major platform pledges. In addition, two UCP candidates have resigned due to past social media posts. jason KenneySource: Facebook Meanwhile, Premier Rachel Notley used the fraught UCP leadership fight as a cudgel to attack Kenney's credibility and trust-worthiness to hold office. Ms. Notley is the NDP's greatest asset and election literature relegates the NDP's logo and font to miniscule dimensions compared to her name or the constituency candidate's name. The incumbent is running against the chall...

25Mar

By Bob AscahNo Comments

Budget, Politics

Alberta’s Fiscal Dilemma

Excerpt from forthcoming book of essays about an Alberta sales tax. Legislature Building Alberta’s fiscal dilemma, which has vexed provincial politicians since 1905, is the public’s expectation that governments will provide a high level of services and maintain low taxes. Services in the early years were basic education, roads, railways, telephones, relief, public buildings, and irrigation canals. Today government services include health care and a variety of programs for corporations such as small business, farmers, oil and gas investment incentives, and special-needs Albertans. Other functions critical to the modern state involve regulation of marketplace behaviour, electricity markets, food, the environment, financial services, labour relations, and building public infrastructur...

22Mar

By Bob AscahNo Comments

Budget, Government Finances

An Alberta Sales Tax?Really!

The presentation below from my presentation on 20 March 2019 to the Gyro Club of Edmonton. The presentation summarizes many of the arguments in a book I am editing which hopefully will be available this summer. The PowerPoint presentation and speaking notes examine the problem of the provincial government's fiscal dependence on non-renewable resource revenue and economic dominance of the energy sector. The presentation also highlights difficulties which started in the early 1980s when the provincial government decided to take a short-term view and suspend payments of resource revenue into the Heritage Fund. At this time, all investment income accruing to the Fund went to government program spending. The words "sales tax" will not be uttered voluntarily by the two main political lead...

28Feb

By Bob AscahNo Comments

Budget

Third Quarter Fiscal Update

Originally posted 28 February 2019 Highlights Deficit falls as bitumen royalties strengthenSpending remains on trackInvestment income drops somewhatATB projected profit falls by 35 per centFinancing requirements grow for pre-borrowing Buzz that inclusion of “Path to Balance” means no budgetEconomic growth expected to weaken in 2019 Context This Update is the final update before the provincial election is called. In the Press Conference accompanying the release, the Finance Minister was pressed on whether there "would be a budget." He admitted that decision rested with the Premier but there would be a 2019 budget. In an unusual departure from normal updates, the 17-page insert could be construed as a mini-budget. Source: CBC.ca (more…)

Further Reflections on Orphan Well Association v. Grant Thornton (Redwater)

27Feb

By Bob AscahNo Comments

Bankruptcies, Banks

Further Reflections on Orphan Well Association v. Grant Thornton (Redwater)

Originally posted 28 February 2019 At the Supreme Court Hearing on 15 February 2018, there were two significant interventions which, in hindsight, revealed where the Court was to land. These interventions were by Madame Justice Suzanne Côté and Madame Justice Rosalie Silberman Abella. (more…)

Supreme Court of Canada: AER 5, ATB 2 – Redwater Decision

3Feb

By Bob AscahNo Comments

Bankruptcies, Environment

Supreme Court of Canada: AER 5, ATB 2 – Redwater Decision

Originally posted 4 February 2019 On 31 January 2019, the Supreme Court of Canada handed down its decision in the Redwater Resources (Redwater Energy Corporation) case. SCC Decision The decision, by a 5-2 majority, was written by Chief Justice Richard Wagner (concurring Abella, Brown, Gascon, Karakatsanis). The 183 page judgment included a 70- page dissent by Madame Justice Suzanne Côté (concurred in by Justice Michael Moldaver). The majority opinion relied heavily upon the earlier dissent from former Alberta Court of Appeal Justice, Madame Sheilah Martin (who joined the High Court last year). ACA Decision Madame Justice Suzanne Côté The decision affirmed the right (and strategy) of the Alberta Energy Regulator (AER) to deny a Receiver, acting for a creditor, the ability to "dis...

30Jan

By Bob AscahNo Comments

ATB, Bankruptcies

Redwater Supreme Court Hearing-Part 3

Practicalities The effect upon Alberta's energy industry will be profound whichever way the Supreme Court decides. As the following exchanges illustrate, the role of the Receiver or Trustee in Bankruptcy is crucial in enabling creditors to be paid back. Justice Côté: Mr. Lenz, you are describing to us the consequences of a judgment of our Court dismissing appeal you say. In their factums the respondents are making an argument about the practical consequences of a judgment allowing the appeal….. (more…)

30Jan

By Bob AscahNo Comments

Bankruptcies

Redwater Supreme Court Hearing Part 2

Principles of Interpretation Cooperative Federalism A key objective of counsel was persuading the Court how to interpret the relationship between federal and provincial law. How do jurists address laws that appear to contradict one another? Should judges take a "narrow," textual reading of the laws or a broader view about the intent of legislatures, or the spirit of the "fathers of Confederation"? Should the Court weigh the practical effects of their judgment on the industries as a deciding factor? The OWA and its fellow appellants urged the Court to interpret the federal and provincial laws in the context of "cooperative federalism." (more…)

Environmental Liabilities-Part 2 AER Bombshell

6Nov

By Bob AscahNo Comments

Energy, Environment, Opinion/Research

Environmental Liabilities-Part 2 AER Bombshell

Originally posted on 5 November 2018 On Thursday, 2 November 2018 a startling Power Point presentation made by the Vice-President, Liabilities of the Alberta Energy Regulator [Go to National Observer] was released under Alberta's Freedom of Information and Protection of Privacy Act. The path-breaking investigation was undertaken by staff at the National Observer, Toronto Star, StarMetro Calgary, and Global News. Find the full Powerpoint presentation here. AER-FEB 28-wadsworth-liability-260 BILLION (1) Mr. Wadworth (pictured) worked at the Bruce Nuclear power plant in Ontario prior to his taking the VP's job at the AER. Mr. Wadsworth is a graduate of Royal Military College. In 2017, according to AER's disclosure under the Public Sector Compensation Transparency A...

6Nov

By Bob AscahNo Comments

Energy, Environment

Environmental Liabilities Part 1- Exxon-Mobil

Originally posted 5 November 2018 Two major stories hit the wire this past week spotlighting the emerging realization that financial markets do care about the scale of environmental liabilities of energy companies. In this post the lawsuit filed by New York State's Attorney General is examined. In Part 2, the story about estimated environmental liabilities reported by the Alberta Energy Regulator to industry in a private meeting in February 2018 is explored. On 24 October the Attorney General of the State of New York, Barbara Underwood, brought a lawsuit against Exxon-Mobil. The lawsuit alleges ExxonMobil "fraudulently, systematically and repeatedly has deceived investors about the impact that future climate change regulations could have on the company's assets and value."New York...