Yet another fine example of someone caring, acting and motivating others.
March 27, 2009
Fellow Albertans,
With the state of the economy and the massive job losses, I think it is prudent to speak up and voice my concern.
In 2007 Stelmach’s Conservative Government came up with a brainstorm and came to the conclusion that they could get their “Fair Share” for Albertan’s from the Energy Sector. An ‘expert’ panel was formed with the mandate to review the economics of the royalty structure. The ‘expert’ panel conducting the review did not consult nor have any experience in the industry which did not help the outcome. The panel published their findings and the Stelmach Regime acted quickly to make small changes creating the New Royalty Framework (NRF). More recently we have been told that a review will be done to review the competitiveness of our royalties. Why would the government of Alberta have not done this before implementing the NRF and convincing Albertans that ‘he got it right’?
Industry was outraged at the idea of raising taxes on a depleting reserve making it uneconomical, vowing to take their money elsewhere. The asinine comments our Government made were that “Big Oil” was greedy and “where else could they go”, this pitted industry and Albertans against each other. Almost immediately after the decision was made to implement the new royalty framework the investment money moved east and west. For the first time ever land sales plummeted in Alberta, while flourishing in B.C. and Saskatchewan. To date this trend has continued, with B.C. posting a new record in land sales as of late. Stelmach’s’ Government was warned of the repercussions of his decision that would take the form of thousands of job losses, these concerns fell on deaf ears. This leaves me wondering if the government of Alberta run by Premier Stelmach is that inept, these job losses are the unintended consequences of their decision? Is this an intentional repercussion?
Since the NRF was unveiled the PC Govt. has made changes to it multiple times, while the most recent incentives may seem well enough, the confidence in our province is gone. When the government of Alberta made the announcement on March 4th, 2009 that they would offer a new one year three pronged approach to royalty incentives they again demonstrated how inept they truly are. By making the date effectiveness April 1st, 2009 they shut down any activity for the month of March which is the end of the drilling season, causing unnecessary early layoffs. It is hypocritical and irresponsible to enjoy the lifestyle that the free enterprise of the Oil and Gas industry has provided for every Albertan only to take it away with greed. I call on the Stelmach regime to carry on with the announced incentives, but also to cut the red tape, and come up with a trustworthy, flat rate royalty plan which our economy can build on and give confidence back to the investors. If this cannot be done I call on fellow Albertan’s to vote wisely at the next election time.
At a time when we as Albertans are losing our jobs, our homes, and our investments the Government has rewarded themselves with ridiculous wage increases last May of 34%. If it is any consolation to the unemployed, they mentioned they will not take one this year due to the economy. Unfortunately we will pay out 40 Million this year in performance bonus to senior government bureaucrats. We will also be losing our natural gas rebate. It sure doesn’t feel that we have received our ‘Fair Share’, but maybe it was to be interpreted as the Government official’s fair share.
I have personally had many meetings with this government's Ministers as well as MLA’s in which I believe they cannot speak their mind without fear of repercussions. The only way to get change is to get political and hold them accountable at the next election, which I for one will do, and would urge you to do the same!!
Regards,
Derrick Jacobson
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