Thursday, November 06, 2008

Alberta announces no funds to complete projects!

Tonight on TV Iris Evans, Minster tells the media Alberta does not have enough money to continue with all the projects marked to go! She sites the world recession as being the reason.

1. Mel Knight and company reduce the royalty from 25% down to 19% a loss of 6%
2.When the two currencies were at par, they changed the contractual funds in regards to royalty from US = 100% to Canadian = 84% a further loss of 16%
Alberta production effected: 1.5 million barrels per day.
The result is more than 10 billions of dollars lost to the Alberta Treasury.
Why?
Mr. Knight is reported to have explained it was done to give the oil companies a break with a view to helping them to adjust to the new royalty framework.

The new royalty framework is designed so it will not come into effect until some time in the next century.

Mr. Knight also explained Alberta is getting enough money from income tax to offset this figure.
Consider a 60 dollar barrel of oil is paying the oil companies the same amount of cash as a 74.00 barrel of oil did last year.

This is still another example of the irresponsible lack of management this Government continues to show.
And, the Liberals slept through the whole thing the last election. Think about it the next election!
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