Stelmach defends existing royalty regime

Way to go Ed!! He might be listening to the voices of common sense and ignoring the voices of envy and greed.

RED DEER — Premier Ed Stelmach says it’s simply wrong to say that Alberta’s current royalty regime has been a failure.

Thu, October 18, 2007; Canadian Press

Stelmach told a Tory fundraising dinner in Red Deer Thursday night that “the policy to encourage investment has drawn billions of dollars and generated economic activity and tax revenue that has benefited all Albertans.”

A government-appointed review panel and Alberta’s auditor general have recently concluded that the province’s energy royalties are too low and have been for several years.

The royalty panel sent shockwaves through the energy industry by recommending a 20% increase in total royalties worth about $2 billion per year.

Stelmach, who will give his formal reaction to the royalty report next week, told the crowd of 500 that Alberta’s current royalty structure “has created one of the most successful economies on earth.”

The premier also promised to bring in a royalty regime that’s fair to the companies investing billions of dollars to develop Alberta’s resources.

The highlighted quote is very similar to this familiar sounding line:

The impact of the current fiscal regime has been to turn Alberta into one of the world’s strongest economies.

I hope Ed reads his mail! I actually think he does, more here:

The premier also reiterated his promise to come up with a royalty regime that's fair to the companies investing billions of dollars to develop Alberta's resources.

"One that provides the stability and predictability business need," he said. "But these are not the government's resources or the industry's resources, they are the birthright of all Albertans ... and I must be guided by that."

The premier told reporters later that windfall energy revenues have allowed Alberta to pay off its debt and bring forward health and education programs "that are unmatched in other provinces."

"Perhaps some people were thinking that the money that might have not been collected in royalties evaporated from the province," he said. "It hasn't. It's in increased land sales, it's in huge increases in corporate tax revenue and also in personal income tax."

Stelmach also confirmed he met with several review panel members earlier Thursday for the first time since their report was released.

The meeting was to discuss some of their findings and the information they used to reach their conclusions, he said.

"They gave us further feedback on how they arrived at some of the recommendations."

Meeting the panel members now, asking them questions......... This is a very good sign. I presume he's calling them on the carpet to explain WTF they did to cook up their misnamed "Our Fair Share" report.