Saturday, November 17, 2007

Alberta Auditor General invited to investigate royalty

John Clark
14815 – 123 Ave
Edmonton, AB
T5L 2Y7

November 17, 2007
Fred J. Dunn, FCA, ICD.D. - Auditor General
Office of the Auditor General
8th floor, 9925 - 109 Street
Edmonton, Alberta T5K 2J8

Dear Sir:

As was reported extensively by the media (Edmonton Journal) this Government has reduced the contacted 25% royalty on mature tar sands projects down to 19%. This happened at a time when the Canadian Dollar was rising in value.

As with many companies dealing across the border, manufacturing, lumber, agriculture and newsprint, oil producers a crisis of sorts was created more so for some, than others.

Higher Canadian dollars meant higher costs in manufacture or production being paid for by a reduced value based on the lowered value of the agreed tender, the US dollar.

It appears this Government, ever sensitive to the wishes of the Petroleum consortium decided to reduce the royalty to allow more revenue to stay on the corporate side of the books at the sacrifice of taxpayer revenues.

Because the costs of start up are born by the taxpayer by agreement and the costs of production are by large paid for by the taxpayer this move in royalty adjustment could only improve the stock position of these corporations. I have never before heard of a Government cutting taxpayer’s revenue income to enhance the stock market of specific companies. This must surly be illegal!

Considering most if not all of the Government members have shares in the various petroleum companies either held directly or known to exist in their “blind” trusts it must also be a conflict in interest.

I beg you to use the power and influence of your office to investigate further this crass situation.

Yours very truly

John Clark
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