January 29, 2016
NDP thankfully adopt restraint on royalties after review did severe damage to economy
Today’s royalty review announcement confirms Wildrose’s position on the need for stability in the energy sector, the damage the public nature of the review did to Alberta’s economy and the urgent need to increase Alberta’s global competitiveness, the Wildrose Official Opposition said today.
Several companies such as Encana, Canadian Natural Resources Ltd. and Pengrowth Energy either withheld or moved investment out of Alberta during the royalty review, leading to job loss across the province.
“l am grateful the panel agreed with Wildrose’s position to provide stability in royalty rates for our energy sector, and that Premier Rachel Notley accepted,” Wildrose Leader Brian Jean said. “Our heart goes out to the Albertans who suffered job losses because of the instability caused by calling the royalty review. The next step is to recover from the damage done by this review and the series of poorly thought out policies that are harming our energy sector. Alberta needs to start seriously evaluating how to restore our competitiveness on the world stage.”
Today’s report notes that Alberta is becoming increasingly less competitive with other jurisdictions such as British Columbia, Saskatchewan, Pennsylvania and Texas.
Lex Capital Management recently cited “the stability of the Saskatchewan government and its best-in-class royalty structure” as the reason why they’re investing close to $150 million there instead of Alberta.
Wildrose Shadow Energy Minister Leela Aheer said Albertans should be concerned about Alberta’s declining ability to remain competitive with neighbouring jurisdictions.
“Since the NDP came into power, they have brought in a series of aggressive policies, such as higher business taxes, a 50 per cent increase to the minimum wage, tripling the levy on emissions and introducing a new $3-billion carbon tax,” Aheer said. “With a lack of market access for our energy products, the NDP needs to start seriously considering the impact of their other misguided policies.”