1. The report is much more damning than I think anyone thought it would be.
The report begins with the opening statement: "Albertans do not receive their fair share from energy development." The report proves this to be an understatement.
2. The report revealed that a lack of government accountability has led to billions of dollars in reduced royalty income over the last 15 years - the royalty holidays and adjustments have reduced Alberta's income by nearly $8.6 billion over the past 15 years.
Alberta Liberal Leader Kevin Taft and Shadow Energy Minister Hugh MacDonald pointed out that:
the government failed to report a four year royalty holiday period, which began in 1997, under former Minister of Energy Steve West. In 2001, the Auditor General questioned why the royalty holiday and incentive programs were not reported. The Auditor General started to report these amounts in his annual report. Since then, the Department of Energy has buried the amount of the royalty adjustments in their financial footnotes.
3. Though some are rallying against the report, the same people don't seem to understand the difference between a royalty and a tax.
4. There is no doubt that the release of
5. In 2004, Federal Auditor General Sheila Fraser's report into the Sponsorship scandal revealed that up to $100 million of the $250 million sponsorship program was awarded to advertising firms and Crown corporations for little or no work.
In 2007, Alberta's Royalty Review Panel revealed that approximately $8.6 billion in natural resource royalties owed to Albertans were not collected. This failure occured while Ed Stelmach and Lyle Oberg were sitting at the table in Ralph Klein's Tory Cabinet.
Albertans have been cheated in a big way and should be furious.
As a Liberal supporter, how do you feel about the fact the Liberal position is for less royalties (25% vs 33%) to be collected than the report calls for?
ReplyDeleteIs this a case of the Liberals again caving in to big oil?
This is a scandal! How many hospital beds could have be funded with the $8.6 billion? how many schools could have been fixed? How many AISH recipients could have been properly supported? How many infrastructure projects could have been properly maintained?
ReplyDeleteStelmach was at the table the entire time. The buck stops at the top.
ED STELMACH IS NOT A LEADER!
ReplyDeleteThe Federal Liberal Party was destroyed in Quebec for about $8.5 Billion less.
ReplyDeleteIt's time Albertans start opening their eyes to what a screwjob the tories have been giving them.
This raises serious concerns about the credibility of Stelmach's leadership. Like Paul Martin in Jean Chretien's government, Stelmach was a key-player in Ralph Klein's government for 10 years. Stelmach was there while the Tories failed Albertans by not collecting what we were owed. These resources are OWNED by ALBERTANS. Not the other way around.
ReplyDeleteWhile the oil companies were racking up record profits, Albertans were cheated out of what we were owed because our Conservative Premier and his government were too lazy to collect the proper information to collect what Albertans were owed.
I have absolutely nothing against oil companies collecting a profit - whether people like it or not, these companies are helping create Alberta's boom - but they need to pay proper royalties to Albertans for the right to extract those resources which belong to Albertans.
This is a scandal and I agree, Albertans should be furious.
Ed Stelmach implementing the full report would kind of be like Paul Martin implementing the Gomery Report.
ReplyDeleteStelmach will probably live up to the monkeyer and 'dither.'
Were the Liberals even calling for a review of the royalty rates in 2004? I recall the NDP being the only ones to bring it up, but I could be wrong. Also the 25% number that Taft has produced is below what the report calls for, which is a little bizarre for an opposition party.
ReplyDeleteThe ND who?
ReplyDeleteOnly a pathetically desperate small third party would want to deflect the scandal that is the Tories not collecting $8.6 billion over the past 15 years to an attack on another more viable opposition party.
Daveberta, don't take your eye off the real target and the real issue. This is a larger than adscam size scandal, don't let small opportunists distract from the real issue.
Royalty Panel’s Report Flawed; Industry Committed to Working Constructively with Government
ReplyDeleteCalgary, Alberta (September 24, 2007) The Canadian Association of Petroleum Producers (CAPP) welcomes Premier Stelmach’s decision to consult with Albertans on the Royalty Review Panel’s final report.
“We are committed to staying focused on the facts and working constructively with government throughout this process,” said Pierre Alvarez, CAPP President. “Every Albertan wants their government to have all of the facts, the best possible analysis and all sides of the story in making this important decision.”
The panel’s report promises a future that the oil and gas industry sees as unrealistic. It calls for significantly higher royalties and taxes, but suggests there will be no overall impact on industry investment, activity and growth. “The basic assumption is that the size of the ‘pie’ will not change,” said Alvarez. “Past experience, in this country and around the world, just doesn’t support the panel’s view.”
Industry will be sharing its concerns with government during the consultation process. Some of CAPP’s concerns are:
The panel acknowledges increased royalties and taxes will slow oil sands investment and activity, but suggests this will be balanced by an upswing in conventional oil and natural gas activity. The panel claims that 82% of gas wells will actually pay lower royalties under their approach. This is only true at low and uneconomic prices. At prices expected over the next year, all gas wells will pay higher royalties (see Attachment 1) which will only make the current drilling downturn worse. Click here for attachments
The panel points to a single report to back its argument that Alberta’s share of revenues is low in comparison to other jurisdictions. This report was not raised for discussion during the public hearings. In fact, the report was only released after the close of public hearings. Reports prepared by other independent and qualified consultants are readily available. One report that was given to the panel shows Canada providing the lowest return on oil and gas investment (see Attachment 2). It appears this side of the story was not considered by the panel.
The panel ignores the real costs facing the industry. For example, the costs for a typical oil sands project are stated to be $5-6 billion by the panel, but the actual costs are $10-11 billion. These costs, such as the price of steel, are largely driven by global factors and are not within control of the industry.
“This debate is often painted as industry versus government or the public,” said Alvarez. “The truth is that we are all in this together. One in six Albertans work for or alongside the industry. Industry revenues are reinvested in the economy, generating further prosperity and growth. We all know this issue is too important not to get right.”
The Canadian Association of Petroleum Producers (CAPP) represents 150 companies that explore for, develop and produce natural gas, natural gas liquids, crude oil, oil sands, and elemental sulphur throughout Canada. CAPP member companies produce more than 95 per cent of Canada’s natural gas and crude oil. CAPP also has 130 associate members that provide a wide range of services that support the upstream crude oil and natural gas industry. Together, these members and associate members are an important part of a $100-billion-a-year national industry that affects the livelihoods of more than half a million Canadians.
- 30 -
For additional information:
Taryn Albizzati
Public Affairs Advisor
Canadian Association of Petroleum Producers
p: (403) 267-1151
e: albizzati@capp.ca
Looks like the spinwizards at CAPP found your blog, dave.
ReplyDeleteOnly a pathetically desperate small third party would want to deflect the scandal that is the Tories not collecting $8.6 billion over the past 15 years to an attack on another more viable opposition party.
ReplyDeleteAnd only a pathetically bankrupt opposition party selling out to big oil would want to oppose something while proposing a solution that would continue the problem.
Only a pathetically bankrupt opposition party would claim that they have an alternative, but spew names when anyone dared to question their policies or point out that they are more of the same.
I mean seriously, is the Liberal party in favour of more royalties or not? The Tories are guilty guilty guilty of letting big oil get the resources pratically for free. But it's not good enough to point to the past if what you propose is largely more of the same.
Alberta Royalty Review:
ReplyDeleteRelative Attractiveness of Alberta vs. US Gas Basins
--- 2 Very Contrasting Views
Calgary, September 14, 2007
The Alberta Royalty Review Panel will shortly be advising the Provincial Government on recommendations for a new
royalty structure for Alberta’s energy resources, including natural gas, following which the Alberta Government will make
its policy decisions.
New gas cost study information was recently added to the Alberta Royalty Review website by the Alberta Department of
Energy. In the interests of a sound outcome for the Canadian gas industry, from producers to transporters to end-use
consumers, Ziff Energy Group, Canada’s leading energy consulting firm, is sharing its own research analysis and findings,
which present a very different perspective on the relative attractiveness of Alberta vs. US gas basins. We consider this to
be a crucial time in the gas industry. The Ziff Energy results are based on actual cost and production data collected
continuously for several decades, and present a very different conclusion.
The analysis posted by the Alberta Department of Energy (Technical Royalty Report OG#2) presents analysis excerpted
from a study of US & Canadian gas basin economics entitled ‘Diminishing Returns’, 2007. The conclusions of this wellsbased
analysis summarized on page 7, are:
“IHS/CERA (2007) analyzed the costs for all new natural gas wells in 2005. Figure 5.1 below shows the
all-in long run costs by basin for wells added in 2005. IHS/CERA reports that the average total cost
including capital, operating, return on capital, severance tax and royalties for these new wells was [US]
$6.83/Mcf. In fact, much of Alberta’s resources are shown to be substantially below the average cost ...
4 of the 6 Alberta areas identified by IHS/CERA are in the lowest 7.” [emphasis added]
Another report recently posted, Technical Royalty Report OG#1 (page 16) also states:
“A recent study by IHS/CERA ranks… 76 areas …[and] CERA identifies 6 areas in Alberta (3
conventional natural gas areas and 3 unconventional natural gas areas) … All 6 of the Alberta areas are
shown to be below average for cost and above average for profitability.” [emphasis added
This is nothing short of gross incompetence on the part of the Alberta PC government.
ReplyDeleteHeads need to roll on this.
So let me see if I understand this. The energy company is saying that it's getting harder to get gas out of the ground and costing more, and for that reason, we should not require them to pay as much.
ReplyDeleteIt's an interesting theory. Here's an analogous one, it's costing more to pay for gas to drive your SUV, and for that reason, the energy companies should not charge as much.
Bottom line, Alberta is in a boom that is simply too big to sustain and leading to serious social consequences (housing, infrastructure deterioration etc). Gas is a limited non-renewable resource, once it's gone, it's gone. Therefore, if we can simultaneously cool down the economy some, conserve the non-renewable resource, and get more money to address the social ills that the boom has created, I'm not sure I see the downside.
Journal Columnist Graham Thomson put it perfectly:
ReplyDelete"There are plenty of Albertans who want royalties increased.
As an editorial in The Journal said: "In the matter of royalties, as with anything else, the first duty of the government and the legislature is to do the best for the people of Alberta."
The editorial was written in 1972 -- but could have just as easily been written today."
Nobody's saying leave royalties alone altogether, but the report's recommendations are draconian. They threaten to end the good times that we have been enjoying in Alberta.
ReplyDeleteThere has never never been an "tar sands" development that has been "on time and on budget" so lets get real. The oil companies have for too long ridden the gravy train and the time has come for them to pay their fair world average share.
ReplyDeleteWhy should we Albertans pay for all the ridiculous infracturse costs, when in a New York minute the oil companies would pack up.
The questions still remains: Who will pay for the $8.6 BILLION in royalties owed to Albertans that weren't collected.
ReplyDeleteWho will pay for the gross incompetence that has occurred in the Tory Government over the past 15 years that led to this?
The buck stops at the top.
ED STELMACH IS NOT A LEADER!
ED STELMACH IS NOT A LEADER!
ReplyDeleteED STELMACH IS NOT A LEADER!
ReplyDeleteED STELMACH IS NOT A LEADER!
ReplyDeleteOMG!! $8.6 Billion!! Wow!! That sure would build a whole heck of a lot of roads, schools and hospitals. We sure do need all of that infrastructure what with all these new folk moving in these past few years. Oh wait, you know what, nevermind, we won't need all of that junk come next year - the oil industry will tank and cause a recession. Don't worry, you can stay in my mum's basement back in Ontario with me!! We'll make s'mores and sing camp songs and talk about how much time we'll spend camping under the stars when the Athabaskan is finally clean and pollution free!! Hey, if we leave now maybe we can even get a job working at Wendy's....$100,000 engineering degrees must be worth at least a bus boy's position eh?
ReplyDeleteHi, i'm from ontario and i would just like to say thanks for funding our schools and infrastructure projects. your oil money has really helped. also, i have some friends in newfoundland that would also like to pass on their thanks. you see, they're fishermen and lately there hasn't been so much fish and your money helps them get by while they wait for the fish to return. they have assured me that the fish will come back, someday, and when they do, my friends will be waiting to catch them.
ReplyDeleteLooks like we had a good run Alberta.
ReplyDeleteIt was great while it lasted, but I guess it's time to move on to bigger and better things.
Maybe I can be a greeter at Wal-Mart in Flin Flon??? I think I'll check their website for a job position.
This Royalty Review has me stressed! A lot of regular ass people at oil companies like myself will lose their jobs. Then the regular ass people like me won't be able to spend money at restaurants. This in turn means that the Wait Staff and dish washers will lose their jobs. So on and So forth.
Listen I am a Liberal and even I know the "Our Fair Share" is only good for Toilet Paper.
Did you guys just make this bit about the missing $8.6 billion up? I've just read the report and it says nothing of the kind. It does say the royalties structure is no longer appropriate for current market conditions. Fair enough. But it also says that Alberta's take prior to 1997 was plenty aggressive and that there were good reasons ($27 a barrel oil) for putting the regime in place AT THAT TIME. Yeesh. Have a debate, by all means, but don't state opinion as fact.
ReplyDeleteWhat most people do not realize, is that the returns in Alberta and Western Canada can not compete with other places in the world. I ask you the question, if you could make 12-15% rate of return on an investment or 25% which would you take?? The fact of the matter is that the royalties in Alberta are low for a reason. If you increase royalties you will further reduce the amount of spending in the industry in 2008. After allready losing 10,000 jobs in the Oil and Gas industry from 2006 til 2007, what do you think an increase in royalties is going to do to that numbere by 2008?? I am pretty sure if most people had an idea of how the numbers in that report were flawed, and if they realized that it is harder to come by oil and gas in Alberta then most places, that the government shouldn't increase royalties. As for everyone saying that we had a huge scandal and deserve another 8.6 billion, that is if the industry had maintained the levels with a higher royalty scheme. The fact of the matter is, spending would not have been as high, and the Alberta government would have taken in less money over the past 15 years. People see a couple numbers and start saying things without having any knowledge of the oil and gas industry. If the alberta government does increase royalties, alberta will be lucky to maintain the current amount coming into the government from royalties next year as this year. Then where is the money for the new hospitals and infrastructure going to come from?? Atleast look at things from the other point of view before you jump to conclusions.
ReplyDeleteI'm surprised that most people here don't realize the huge economic benefit that 'big oil' generates for our province. Everyone is irate over the additional 2 billion/year that they feel we are entitled to. Why do people forget that we don't pay sales tax, we have the lowest income tax and by most standards, have the highest quality of life in Canada. Albertans get their fair share of oil and gas revenue through a simple concept known as 'trickle down' economics. Prosperity and wealth generated in the oilpatch is distributed throughout all communities in Alberta. It is distributed by honest hardworking folks who are employed by oil companies. It manifests itself as tips in restaurants, purchases at clothing stores, donations to charity, etc. 'Big oil' is not threatening Albertans, 'big oil' is not out to get us. 'Big oil' is promising to invest money where it can get the best return on a dollar. 'Big oil' has a responsibility to it's investors (also hard working Canadians). If 'Big oil' finds that it can't make a suitable rate of return in Alberta, workers here will be laid off and the benefits of 'trickle down' economics will disappear. Without continued capital investment into the oil and gas sector, our provincial oil and gas production will decrease. With decreased production will come decreased royalties paid to the people of Alberta. Say hello to sales tax!!
ReplyDeletePut in terms everyone can understand.
ReplyDeleteSuppose that every day, ten men go out for beer and the bill for all ten comes to $100.
If they paid their bill the way we pay our taxes, it would go something like this:
The first four men (the poorest) would pay nothing.
The fifth would pay $1.
The sixth would pay $3.
The seventh would pay $7.
The eighth would pay $12.
The ninth would pay $18.
The tenth man (the richest) would pay $59.
So, that's what they decided to do.
The ten men drank in the bar every day and seemed quite happy with the arrangement, until one day, the owner threw them a curve. "Since you are all such good customers," he said, "I'm going to reduce the cost of your daily beer by $20."Drinks for the ten now cost just $80.
The group still wanted to pay their bill the way we pay our taxes so the first four men were unaffected. They would still drink for free. But what about the other six men - the paying customers? How could they divide the $20 windfall so that everyone would get his 'fair share?' They realized that $20 divided by six is $3.33. But if they subtracted that from everybody's share, then the fifth man and the sixth man would each end up being paid to drink his beer.
So, the bar owner suggested that it would be fair to reduce each man's bill by roughly the same amount, and he proceeded to work out the amounts each should pay.
And so:
The fifth man, like the first four, now paid nothing (100% savings).
The sixth now paid $2 instead of $3 (33%savings).
The seventh now pay $5 instead of $7 (28%savings).
The eighth now paid $9 instead of $12 (25% savings).
The ninth now paid $14 instead of $18 (22% savings).
The tenth now paid $49 instead of $59 (16% savings).
Each of the six was better off than before. And the first four continued to drink for free. But once outside the restaurant, the men began to compare their savings.
"I only got a dollar out of the $20,"declared the sixth man. He pointed to the tenth man," but he got $10!"
"Yeah, that's right," exclaimed the fifth man. "I only saved a dollar, too. It's unfair that he got ten times more than I!"
"That's true!!" shouted the seventh man. "Why should he get $10 back when I got only two? The wealthy get all the breaks!"
"Wait a minute," yelled the first four men in unison. "We didn't get anything at all. The system exploits the poor!"
The nine men surrounded the tenth and beat him up.
The next night the tenth man didn't show up for drinks, so the nine sat down and had beers without him. But when it came time to pay the bill, they discovered something important. They didn't have enough money between all of them for even half of the bill!
And that, boys and girls, journalists and college professors, is how our tax system works. The people who pay the highest taxes get the most benefit from a tax reduction. Tax them too much, attack them for being wealthy, and they just may not show up anymore. In fact, they might start drinking overseas where the atmosphere is somewhat friendlier.
David R. Kamerschen, Ph.D.
Professor of Economics
University of Georgia
For those who understand, no explanation is needed. For those who do not understand, no explanation is possible
"In fact, they might start drinking overseas where the atmosphere is somewhat friendlier."
ReplyDeleteLike friendly Saudi Arabia. Or even friendlier Venezuala.
The whole concept of oil companies leaving Alberta if royalties are raised is a bunk scare tactic.
Also, it's more like a cup of coffee.
You obviously have no idea what you are talking about as some of these companies are not threatening as Crescent Point has completly pulled out their 150 mill. Alberta budget. Also if you do some homework these public companies are required by law to follow through with news releases
ReplyDeleteWhile everyone is complaining that they are not getting their "fair share" from oil and gas revenues, it is an irony that so many of us will buy a bottle of Dasani water or Aquifina water, paying many time the price per litre for our own tap water than we do for the gas that we purchase at the pumps for our vehicles. Even though the Coca Cola company and Pepsi Cola company are simply filtering and bottling our native municipal tap water, I don't hear anyone demanding that they should be paying royalties or production taxes to you and I ("the people" who own the water resource that they are bottling). After all we the tax payers paid for the municipal water systems and treatment plants that these soft drink companies are benefiting from in producing their product (unlike the oil companies who pay for, build and operate all of the infrastructure required to find and produce their product).
ReplyDeleteWonder how many billions of dollars we are losing out on because we are not getting our "fair share" from the sale of bottled tap water?
RE: "you have no idea"....to the literary giant responding to my blog, perhaps you should have someone read a financial newspaper or two to you. The responses and press releases from the companies that have responded thus far indicate that Alberta will lose approx $20Billion in investment if the government goes ahead with the Panel's recommendations. The views of the companies are backed by a number of key analysts and financial institutions.
ReplyDeleteWhen the NEP was announced similar statements were made by the companies. Canadians thought that they were bluffing and ignored them. The companies weren’t bluffing then and they aren’t this time.
Just to add a little color here, when the NEP was announced, the day after, my employer laid off a large chunk of its staff putting over a thousand people out of work. The rest of us had to endure a large salary cut to stay on. A couple of years later my father was laid off by the major oil company that he worked for in Calgary for 33 years. A few years after that I was laid off, along with all the people in the department that I worked for (we were working for a major oil and gas company in Calgary at the time).
Just out of curiosity have you ever actually worked in the oil and gas industry in this province? Are you old enough to even remember the 1980’s and early 1990’s?
DON'T try to pull the NEP BS on this one. The NEP was not just about royalty increases, nor was that the reason for the economic collapse.
ReplyDeleteThe NEP was designed to promote oil self-sufficiency for Canada, maintain the oil supply, particularly for the industrial base in eastern Canada, promote Canadian ownership of the energy industry, promote lower prices, promote exploration for oil in Canada, promote alternative energy sources, and increase government revenues from oil sales through a variety of taxes and agreements.
The royalty issue is more similar to 1972 with Peter Lougheed standing up against the same BS calls of bankruptcy and withdrawal if royalties were raised. It was BS in 1972 and it's BS now.
From "the literary giant"
ReplyDeleteThe message was meant for Michael from Calgary who seems to think this is all scare tactic. I have been around the patch my whole life and for those who don't get the message they are beyond help.
C'mon all you so-called experienced oil and gas industry professionals, don't you realize you work in a cyclical industry. Hearing comments about people with 33yrs of experience being laid off...go cry a river somewhere else. She's a boom and bust industry, whether dictated by geopolitical, local political or natural selection...the good times can't last forever. The real problem lies with the Alberta government back peddling for an apparent mismanagement and misunderstood industry. The industry operates within the laws and regulations put forth by our political representation, if they collect money, they better know how to manage it. The oil and gas industry is no different than any other entrepeneur endeveour, they are here to make profits...plain and simple. Governments are nothing more than a welfare instituion, collect money from hard working people and have no foresight in making money. If the exisiting Alberta government is so concerned about my well being, let them become a business and generate some income to benefit us. Fact is, politicians are of below average IQ and if forced to run the government like a business...they would all be out of work.
ReplyDelete-The cyclicity of this industry is not caused by a royalty review.
ReplyDelete-If you even work at Tim Horton's right now in Calgary, you'd better be worried. So many people bitch and complain about hospitals roads...well I drive by Foothills, Rockyview and Peter Lougheed a lot and all three have big cranes up and are expanding.
-Just because the government gets the money is no guarantee your going to see any of it.
-So Taft is saying that we missed out on billions...then ten seconds later, tens of billions...so in his arguement, he would liked to have seen this money go to an "inept" government? Doesn't really make sense does it? Do you really think Alberta would be debt free if the Liberals were at the helm? And Klein did it without all this royalty money...go figure.
-I wonder, is the Alberta government going to subsidize the Oil Industry if oil prices drop to $10 a barrel? I doubt it.
-If the full review goes through, that means 20 000 jobs in the blink of an eye...instantly, those people are not buying lunch or their coffee at Timmy's all of the sudden. New houses are not being built. Big Oil companies are no longer around to be sponsors of large projects and charities (and they donate a lot of money, with not enough recognition) This is greed at its finest, it's finally come to biting the hand that feeds you, until your blindsided and lose your job without even realizing that if you live in Calgary, there's a pretty damn good chance your job is affected by the Oil and Gas Industry.
Pretty scary how fast people jump on the "me too" band wagon.....I continue to be amazed by the prevalent Canadian attitude that the best holder of wealth is "Government"......I continue to be more fearful of powerful government than powerful corporations.....at least corporations offer wealth creation....the best government can do is take from peter and give to Paul.
ReplyDeleteThe Royalty report is flawed because the panelist only looked at the single question.....are Albertans getting their fair share of the royalty money.....
By their measure, the answer is no....but lets see how much there is to go around once the investments, jobs and wealth of the companies developing the resource are gone.....what has followed every boom in Alberta's history....can you spell BUST!!!
I mean, better companies spend money than an already rich government hoard it!!!
Thank you. JKW in Calgary....
Time in increase royalties and give Albertans what they deserve!
ReplyDeleteCan you believe that out of the 100% of tax revenue that could have been collected from Alberta businesses last year that only 100-x% was collected? That is outrageous! I want those businesses to pay more for me! More for you! Because I am in need. I need, therefore, those who have, should give to me!
ReplyDeleteWhy?
uh...because I am in need and I have a gun, after all, I am the people, I am the government. And you oil companies work for me...
...hey, where are you going?! ...you work for me...
(This may seem a bit extreme, but isn't this the same logic that is being used? Maybe a bit more moderate answer is to stay competitive and not go right to the maximum amount in the Royalty Review, but implementing the review over a longer period of time to see what will happen with the economy? Small steps of economic reform?)
The playing out by all sides, "right" or "wrong" to "change or not to change" your perspective is only secondary to what is at the heart of this whole debate. Albertan's are simply not into planning things. Anyone can get mad, it is not a set of skills. Your bigger issue is that your province and those in it have essentially fumbled this one and had done so quite a long time ago. The rest as they say "is life", better luck next time.
ReplyDeleteHey, in light of the $2B "free money" by raising royalt rates, I have an even better idea. Let's raise corporate income taxes by 20%. It's not like tax rates and profitability affect companies doing business here, right? Heck, profitability is not an issue when it comes to companies deciding to how many people to employ, or whether to expand, right?
ReplyDeleteProvincial income is the product of the government's percentage (including taxes, both personal and corporate) times the amount of work done. If the work is cut by 50% but the royalties go up by 20%, you do the math.
Look around the province. Work has steeply declined in the last 2 years because the price of doing business is too high. What do you think will happen projects that are just barely economic today, then gross revenues are whacked by 20%?
Is no one seeing that the net revenue to the province will go DOWN?
I'm glad to see the Liberals take the position they did on the royalties situation. I suspect, in light of what the Premier hinted at last night, that Taft has positioned the Liberals between the Tories and the NDs, arguably not a bad place to be.
ReplyDeleteIf your going to get rid of the PCs then vote liberal don't split the vote with the NDP, this is not about idealism-it's about taking out the trash- the 6 0r 8 billion the tories failed to collect would have easily covered a lot of social shortcomings in this province, such as elimination of health care premiums.
ReplyDelete