Thursday, February 12, 2009

Alberta still holds option of payments in kind!

The last paragraph is very interesting. A play on words rather than a fact.

Alberta’s original deal on royalty was that it would be taken in US dollars based on NY prices for sweet crude. Collected in US dollars the royalty would be deposited with the exchange on the US dollars into income in the Alberta coffers.

Mel Knight would have us believe the original deal was in Canadian dollars and, it was not! He has changed it so our royalty is taken in Canadian dollars and the oil companies keep the exchange.

I would call that still another lie.

Alberta is looking at the option of “payment in kind” that is, taking crude oil in lieu of cash. The idea is that the crude oil is either going to be “given free and clear” to the upgraders when and if they come on line or “sold at a very reduced price” to the same upgraders.

No matter which way it is done, it means less and less money into Alberta Treasury coffers while this Government remains in power.

Considering the Canadian Dollar take on resources was put in for all our petro chemical products, the Conservatives have shifted upwards from20 billions of dollars into the petroleum pockets away from Alberta’s taxpayers in the past 2 years.

With that kind of slash and burn to the provinces revenues things are not going to be okay it is a shame however they choose to tax the unfortunate and seniors for their shortcomings in business management.

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