AB Pol Econ

Heritage Fund annual public meeting- Gaza, transparency, and many unanswered questions

13Jan

By Bob AscahNo Comments

Agencies, Investment, Opinion/Research, Politics

Heritage Fund annual public meeting- Gaza, transparency, and many unanswered questions

At the end of November, I attended the public meeting of the Standing Committee of the Alberta Heritage Savings Trust Fund. Go here to access the transcript of the meeting on 30 November 2023. The previous year I attended the public meeting on 27 October 2022- transcript here. In 2022, I was the only member of the public personally in attendance with others accessing the meeting via phone or social media. This year, there were nine citizens who spent two hours of their time watching the committee and asking Alberta Investment Management Corporation (AIMCo) and Treasury Board and Finance (TGF) officials questions. In previous years, there was greater public interest with venues as large as the Italian Community Centre booked for larger numbers. I sincerely hope that we will see more inte...

Spotlight on Year-end Orders -in-Council

1Jan

By Bob AscahNo Comments

Health, Opinion/Research, Politics

Spotlight on Year-end Orders -in-Council

Background Government is a complex business and assemblies of elected politicians can not make every decision a modern government must make. So besides passing legislation which sets out very general policies, prescriptions on behaviour, and offences for breaking the law, they delegate the details and decisions to the provincial cabinet. There is also a very practical reason for doing this since the legislative body is not continuously sitting. Examples of such details or decisions include the Alberta cabinet choosing who sits on the boards of governors of Alberta’s universities and colleges, appointments based on the recommendation and advice of the Minister of Advanced Education. In addition to Orders, legislative assemblies delegate to cabinets the fleshing out the details of ho...

Broken promises heap up & possible UCP frictions

29Dec

By Bob AscahNo Comments

Uncategorized

Broken promises heap up & possible UCP frictions

Danielle Smith actions since becoming duly elected Premier of the Province of Alberta back in May 2023, have not always conformed to what was presented during the last election. One broken promise, the tax cut was called by Bob Breakenridge of Post Media on 26 December. Breakenridge’s column was preceded by a remarkably prescient column in early June. The early call was about the insincerity of the law to prevent taxes going up subject to referendum legislation. As so many political pundits have said over the years, governments can go back against their promises by ignoring them after an election of a majority government or by bringing in legislation that can be revoked at any successive legislative session. Breakenridge observes the tax cut promise was rolled out with the endorsement o...

Northwest Upgrader- more surprises ahead for Alberta taxpayers?

18Dec

By Bob AscahNo Comments

Agencies, Credit Ratings, Energy, Government Finances, Politics

Northwest Upgrader- more surprises ahead for Alberta taxpayers?

Soon after the Legislative Assembly was recessed on 6 December, Alberta’ Executive Council (provincial cabinet) passed Order in Council 219/2023 to authorize the Alberta Petroleum Marketing Commission (APMC) to borrow money to finance the operations of the North West Redwater (Sturgeon) refinery. The maximum amount to be borrowed "shall not exceed $2.9-billion"- hardly a relief for Alberta taxpayers. The O.C. also authorizes the President of Treasury Board and Minister of Finance to “make advances to or purchase securities of the Alberta Petroleum Marketing Commission” not to exceed the same $2.9-billion limit. It will be the Crown in Right of Alberta who will be raising this money by issuing securities and the Crown will become the debtor. Under section 7, the terms and conditions ...

Alberta government could be on hook for $1.3-billion

17Dec

By Bob AscahNo Comments

Agencies, Government Finances, Opinion/Research, Politics

Alberta government could be on hook for $1.3-billion

Background In March 2020 the Alberta government’s investment manager the Alberta Investment Management Corporation (AIMCo) lost approximately $2-billion due to trading losses. AIMCo had established an investment strategy based on, in effect, insuring counter-parties against volatility trading losses. This strategy was called VOLTs for volatility trading strategy. The losses occur occurred suddenly due to dramatic financial market volatility caused by the declaration of the global COVID pandemic. The impact of these losses was felt most particularly by Alberta’s public sector plans including the Local Authorities Pension Plan (LAPP), the Public Service Pension Plan (PSPP) and the Special Forces Pension Plan (SPFF). Soon after the losses were revealed, AIMCo’s board commissioned a study ...

Draft federal methane regulations- Hostile response from Alberta

7Dec

By Bob AscahNo Comments

Energy, Environment, Health, Politics

Draft federal methane regulations- Hostile response from Alberta

Albertans and Canadian are getting used to conflict between the Alberta and federal governments over the future of fossil fuels and emissions regulations. However, in the latest exchange from Premier Smith and her lieutenant, Environment minister Rebecca Schulz is a nasty personal attack on the integrity on the personal integrity of Environment minister Stephen Guilbeault.In a particularly nasty statement, Smith and Schulz seem to project their own ideas about post office careers, but not necessarily in the same line of work as Guilbeault. The federal government has unilaterally established new methane emissions rules and targets to help win international headlines. Instead of building on Alberta’s award-winning approach, Ottawa wants to replace it with costly, dangerous and unconsti...

5Dec

By Bob AscahNo Comments

Economic Data, Employment, Energy, Government Finances, Investment, Politics

Prosper Free Enterprise! More handouts to multinationals

Updated 20 December 2023 If low taxes was the supreme good of libertarian governments and eliminated the need for additional company specific grants, why is the UCP government doling out up to $5-billion in additional handouts mainly to foreign=owned corporations for capturing carbon. The announcement by Premier Smith and the heretofore missing in action Brian Jean- Alberta's energy minister paved the way for another major announcement, this time Premier Smith alongside Deputy Minister Chrystia Freeland (see below). Alberta Carbon Capture Program Another successfully orchestrated communications announcement by Smith came this past Tuesday 28 November. With the wind in her sails, Smith has come off two federal high court victories (impact assessment and toxic plastics...

22Nov

By Bob AscahNo Comments

Energy, Environment, Intergovernmental, Politics

Where is Brian Jean? Alberta Energy and Mines Minister Missing in Action

Updated 2 December 2023 I receive about two to three dozen emails from the Government of Alberta news service (Alberta.ca/News) each week. These emails keep me up to speed with what is going on with the Government of Alberta. Perhaps half of these releases are not significant recognizing special holidays or special days or weeks that government ministers or departments wish to acknowledge. Some are for junkets of MLAs travelling to various conferences. Perhaps 10 per cent are substantive and feature the premier and the relevant minister issuing statements which are picked up by the media. Many coincide with major news conferences such as the recent one on health care reforms. Most unusual these past six months has been the virtual non-presence of the Minister of Energy and Mi...

16Nov

By Bob AscahNo Comments

Economic Data, Energy, Environment, Intergovernmental, Opinion/Research, Politics

Alberta 5, Ottawa 2- Re. Impact Assessment Act (Part 2)

Before turning to the dissenting opinion, it may be instructive to note some of the key points made by the Alberta Court of Appeal (ABCA) in their 10 May 2022 reference decision. The reference opinion may be found at CanLit. ABCA Majority In the majority ABCA opinion, considerable space was devoted to the history, purpose and scope, of the section 92A resource amendment (paras 74-83). The majority contended Provincial governments should not be faulted for focussing their attention on matters important to their citizens. That includes not only the environment but also the economy. It is a false dichotomy to suggest that the two are mutually exclusive. Without a strong economy, a province’s ability to respond to the needs of its citizens, including meeting the challenges of climate chang...

Alberta 5, Ottawa 2- still many thorny questions remain -Part 1(Revised)

13Nov

By Bob AscahNo Comments

Uncategorized

Alberta 5, Ottawa 2- still many thorny questions remain -Part 1(Revised)

Updated 15 November 2023 Overview In the dissent, Justices Karakatsanis and Jamal pose a certain fact situation eerily akin to what happened with a leaking tailings pond and potential for justice for indigenous groups living downstream. If this is eerily similar to the case of First Nations living downstream from the Kearl Lake tailings ponds owned by Imperial Oil, it is. Boiled down into its most essential is the value of people vs.the value of things. Do we value a life more than say $20-billion in bitumen royalties and billions more in personal and corporate income tax ? Justice Andromache Karakatsanis Source: The Canadian Encyclopedia To give a concrete example, on the majority’s view, there is (properly) no constitutional objection to federal authorities prohibit...