| Say Sorry Ed! |
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Say Sorry Ed! The University of Calgary recently released a study concluding that Alberta ranks dead last in terms of competitiveness for oil and gas exploration and development. The study cited the PC Government's New Royalty Framework (NRF) as the biggest reason for this ugly ranking. The NRF has been among the most harmful and misguided public policy debacles in Alberta's history. Not since Pierre Trudeau's National Energy Program has a government decision done so much economic harm to our province. It has severely damaged our international reputation as a stable and business-friendly jurisdiction to invest in. It has put thousands of Albertans out of work. It has bankrupted hundreds of small businesses. Ironically, this initiative, which was intended to increase revenues to the Provincial Treasury, has resulted in the exact opposite. Many of us have neighbours, family and friends who are struggling to find a good job again, and every time I talk with one of them they simply ask "Why would they do this? Shouldn't they have known better?" The answer is simple – yes, they should have. They should have known that the answer to increasing provincial revenues is not to raise taxes on business. All this does is drive out investment and jobs and the income earners that pay taxes. They should have known the importance of investment certainty, the rule of law and respect for contracts in creating the stability necessary to attract and retain industry, businesses and the jobs and tax revenue they provide. They should have known that you can't overhaul the entire regulatory framework governing a complex industry without first consulting with that industry to make sure there are no unintended consequences. For example, the emergence of shale gas and the commodity bust were known prior to the NRF going into effect – yet the Premier stubbornly refused to rethink his initial decision. Now the Government, realizing its mistake (though still unwilling to publicly admit it), has released a first draft of its Competitiveness Review. Its call for a reduction in royalties to essentially the levels they were at before is welcomed and needed and I hope, for the sake of our province, they get it right this time. But the Government also says they want to move on – to not dwell on the past. Well, Albertans will move on (we always do), but as the federal Liberals found out, Albertans have very, very long memories. |