Thursday, February 25, 2010

Alberta least competitive energy hub: economist

A new report by prominent economist Jack Mintz concludes.

Jack Mintz  used to be Mr. CD Howe and Council of Business Executives stand up.  Like always he is a stand up spin doctor for the Conservative causes.  Hardly a study and even less educational.



The new oil regime this article refers to was a document produced to get the conservatives elected again. It served no other purpose other than reducing our take from US dollars down to Canadian dollars.

A year after it was published Alberta's Auditor General pointed out to the Government they were far below the 19% royalty they had targeted.

Take from this, the payment in kind for bitumen which returns to Alberta 48 cents per bbl.

Bottom line is Alberta is taking far less than 50% of what either BC or Saskatchewan is collecting at their 30% USD royalty.

On the tar sands, the full cost of the project is paid by a reduced royalty take.  Albertans in effect pay all the start up costs.  This is done by us receiving only 1% royalty paid until the project is totally cleared off the books! 

When you consider the items like inflation, Water and increased cost of our power lines you will quickly determine we are actually paying these companies to take to oil from the province.

The Conservatives are of a mind that wages and income tax is all the right we have to any revenue from the resources.   All other monies go back to the corporation, and then some.  Until Albertans decide they want more than wages from this industry there is little hope for difference.

Get rid of these suckers!

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