Wednesday, November 21, 2007

Re think the old NEP!

Where is the hurt?  It is in the  pack of lies handed down by Conservatives and financed by the US dominated oil companies!

The royalty on the tar sands is taken in US dollars. This has been the case since the conception as it was agreed oil would be priced at New York prices, the lowest of the price boards and, is in US$

When the Canadian dollar went up the royalty paid into Alberta was reduced by more than 20% because, our dollar was worth 20% more. The difference between our production costs (royalty) and our market costs shrunk, a straight loss to us.

This Government not being concerned about our losses of revenue instead lowered the royalty rate taken to 19% US$. The extra percentage was taken by the oil companies. This is one reason why the oil stocks were not affected by the high dollar syndrome that has bothered other stocks and dividends.

Syncrude upgraded their plant to include the Firestorm technology which increased output. They argued they should be able to get the 1% start up rates on this and have it listed as a “new” project. The rules as they stood showed this was not a new project but, was an enhanced operating cost of a fully producing project. Hence the 25% (Now 19%) was the rate that should be in place.

Klein went fishing with Syncrude and the “Firestorm” dropped off the media maps. What went down on that fishing trip we will never know for sure. Other projects are incorporating this production into their systems. At who’s expense?

The Conservatives true to their operating plans of destabilizing before privatizing (who would go along with privatizing something if it is working well?) have been deliberately curtailing growth of the Heritage Trust fund by pulling the profits made from investment out of the fund. What trust fund can exist if it is not allowed to reinvest the profits?

What we do know for sure is this Government continues to deal in secrecy and not for the benefit of Albertans. Following their mantra of “minimum taxation” they deliberately confuse royalty revenue with taxes. They have cost this province more money than the old and dated federal National Energy Program. Our enemies are not in Ottawa!

I have said before and I will say again it would be hard to distinguish this Governments actions from that of organized crime.

John Clark
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