Mel Knight and the Conservatives have spun a big story to cover their further reduction of royalty rates all this time claiming they were on the increase. Blatant!
The Auditor General bounced them on leaving billions on the table by reducing their royalties to 19%. Alberta has been speaking general numbers, not percentages. By BS slight of hand they are pulling new production revenue in and claiming it is royalty increases.
The biggest invisible hit came when the US and Canadian dollars moved to par. They switched our royalty rates to Canadian Dollars! Because of the parity of funds there was no noticeable change in revenues.
However, Economists are telling us the ideal exchange rate between Canada and the US occurs when the Canadian Dollar is at 85%. This we are told is representative of our economies. The Canadian dollar is expected to be back at 85 cents or close to it in 2011 as the US economy regains strength.
The Conservatives say their new royalty program will not come into play until 2011.
It is their intention to further reduce royalty as production increases. They work on a figure based on "How much does Alberta need?" rather than "What is Alberta entitled to?"
When you consider the huge increase in cost of goods and services in Alberta, it is apparent we are paying the oil companies to take the resources. We, as a province are not even breaking even!
The oil companies complaints are simply orchestrated for public consumption. PR; Spin Doctors at their best.
The whole deal mapped out in a letter to Knight. (No honor in this crew)
There is no increases in oil royalty! In fact there is only further reductions.
John Clark
The Auditor General bounced them on leaving billions on the table by reducing their royalties to 19%. Alberta has been speaking general numbers, not percentages. By BS slight of hand they are pulling new production revenue in and claiming it is royalty increases.
The biggest invisible hit came when the US and Canadian dollars moved to par. They switched our royalty rates to Canadian Dollars! Because of the parity of funds there was no noticeable change in revenues.
However, Economists are telling us the ideal exchange rate between Canada and the US occurs when the Canadian Dollar is at 85%. This we are told is representative of our economies. The Canadian dollar is expected to be back at 85 cents or close to it in 2011 as the US economy regains strength.
The Conservatives say their new royalty program will not come into play until 2011.
It is their intention to further reduce royalty as production increases. They work on a figure based on "How much does Alberta need?" rather than "What is Alberta entitled to?"
When you consider the huge increase in cost of goods and services in Alberta, it is apparent we are paying the oil companies to take the resources. We, as a province are not even breaking even!
The oil companies complaints are simply orchestrated for public consumption. PR; Spin Doctors at their best.
The whole deal mapped out in a letter to Knight. (No honor in this crew)
There is no increases in oil royalty! In fact there is only further reductions.
John Clark
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