Tuesday, October 9, 2007

Pedro van Meurs and the NEP?

Pedro van Meurs was the consultant the Royalty Review Panel went to for engineering a form of justificiation for the royalty grab it is proposing. From Pedro van Meurs resume:

1974 - to date, President of Van Meurs & Associates Limited and History: subsequently Van Meurs Corporation.

1970 - 1973, Chief, International Petroleum Developments Division, Department of Energy, Mines and Resources Federal Government of Canada
The original van Meurs company was run from Canada. The subsequent company is run from the tax haven of the Bahamas. Apparently Pedro doesn't like to pay his "Fair Share".

What did van Meurs do while with the Federal Government? Apparently quite a bit, he simply wasn't a low level employee. Pedro van Meurs "Was main author of the first comprehensive Canadian energy policy document "An Energy Policy for Canada", 1974 "

This document is considered one of the highlight accomplishments of the history of the Federal energy bureaucracy. Pedro was a big wheel in the Federal Department of Energy in the 1970's.

An obvious question must be asked. What was van Meurs role in consulting to the Federal Government in the National Energy Program? The NEP needs no introduction to Albertans. Is van Meurs taking Albertan's there again?

What Albertans forget though is that the bun fight over natural resource revenues started well before the NEP. Here's a bit more history of the fight.

Beginning on May 6, 1974, the income tax act denied the deduction of Crown royalties and mineral taxes paid to a provincial government for the purpose of determining the taxes payable to the federal government.

This was altered on January 1, 1976 to become the Resource Allowance. Although it is not stated in the tax act, it is generally understood that the resource allowance is a substitute for the non-deductible provincial Crown royalties.

As the unfairness of the Federal income tax treatment of oil and gas became recognized in Ottawa, it was determined to remove the unfair treatment.

To their credit, the federal Liberals announced the Resource Allowance phase out in 2002. The phase out was graduated and completed in 2007.

Sigh. Just in time for van Meurs to show up again so he can "get the best possible deal for them". Not that there is no mention of fairness, ethics, a deal is a deal, what's best for the provincial economy etc. Nope; it is "best possible deal".

In all seriousness, I see NOTHING to reassure me that the Federal government won't simply claw away any royalty increases from "the people of Alberta" via its Equalization Payment program. Surprisingly little talk about that coming from the Royalty Review panel, the fawning media, or the "Stelmachistas" on the effects the royalty grab will have on Equilization Payments. How can Albertans make an informed choice in such a non-transparent environment?

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