Saturday, January 03, 2009

Alberta to release the SHOCK DOCTRINE!

This is the perfect financial climate for the Conservatives who want to push their right wing privatization agenda more than they want anything else. Cut Services, Destabilize, under fund. This has been the legacy of this Government. When the programs are ruined the answer is clear; privatize it!

Changing the royalty regime on all of Alberta’s petrochemical resource to Canadian Dollars from US dollars, the standards all other in the petroleum trade business follow has ensured them this province will be short 6 to 8 billion dollars a year in revenue and, they have no intention of pulling that money back.

Taking hugely deficient royalty percentages ensured another shortage of revenue. For years now we have only been collecting 19% royalty on the tar sands. The “new deal, good for everyone” moves that percentage back to 25%, where it was to start with. The 1% taken on product until the plant is paid for by Albertans is an icon in itself!

For comparison the US, BC and Saskatchewan all take funds in US dollars This is an immediate loss of 20% Their start up percentage is 2%, not 1 as is Alberta. Another 1% loss.

BC and Saskatchewan both take 34% royalty on Tier 3 oil (producing). This is a long way from the 19% and 25% Alberta is taking. A further loss of 9%

In total we are loosing a minimum of 30% of the revenue that rightly belongs to this province!

There is no guarantee the new rates will come into effect. Mel Knights ongoing lies are tantamount in considering his recent comments that “nothing is written in stone” and “we may put off the increases”
So, the stage is set!

In a few short months (perhaps, weeks) Stelmach-Liepert-Knight-Evans-Snelgrove will begin the process of telling (think – warning and leaky press releases) Albertans the following:
Dear Albertans, because of lower than expected revenues...
Less of X
Less of Y
Less of Z
Pay as you go A
Pay as you go B
Pay as you go C
And, we're holding off on the previously announced initiatives... long list but, a peek did come in Stelmach’s New Year’s speech on CFRN. When asked about the pharmacare package for seniors he said “that will take place probably in 2010 (think here after the next election) and we will be telling you who pays and, who doesn’t.

The attitude and direction of Stelmach will be, I / we have no choice.
Behind the veil of the GLOBAL ECONOMIC CRISIS, the Stelmach government will take the opportunity to implement M-O-R-E privatization, including the sell-off of more public works and the rural hospitals.
By definition the basis for the Shock Doctrine is to take Full Private Sector Advantage of public disaster (s) be they mother nature (Tsunami - Hurricane) OR mismanaged economic as is about to happen.
Nobody in Alberta can tell me that should oil slip to $25 a drum (until April) the government won't fire-sale everything to their buddies!

38 years of Tory rule, including billions and billions of non-renewable dollars passing through this province and we have NOTHING MORE THAN ANY OTHER CANADIAN PROVINCE TO SHOW FOR IT.

The Tories have run our province into the ground. Unfortunately, too many idiots got their rocks off because a handful of guys got rich in the process. Yes, a handful of folks did get rich, but that didn't translate into a flourishing prosperous society.

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