Alberta Surplus Ccould Reach $8.8b: Klein

By JUDY MONCHUK

Thursday, September 22, 2005 Posted at 7:16 PM EDT

Canadian Press

Banff — Alberta's prosperity cheques will keep coming in the mail as long as oil prices stay high, Premier Ralph Klein said Thursday.

Mr. Klein also said his energy-rich province could be looking at a surplus as high as $8.8-billion for this fiscal year if soaring prices for oil and gas don't drop.

That's $2-billion higher than the $6.8-billion upon which the government has based its dividend calculations.

Mr. Klein said there is a "much better than 50 per cent" chance of the program continuing as long as the price of oil stays where it is: above $60 a barrel.

That means the $400 tax-free cheques that will be sent to every man, woman and child in late December could keep coming for years.

Mr. Klein said the payout, which has been blasted as a wasted windfall by political opponents, business leaders and economists, is popular with the general public.

The premier's office at the Alberta legislature has been flooded with calls about the program. While some people are not happy with the $1.4-billion giveaway, Mr. Klein says calls are running about 9-1 in favour of the rebate.

"But what goes up usually goes down," Mr. Klein said before leaving on a business trip to South Africa.

Earlier, Mr. Klein told business leaders that if his government hadn't made massive cuts in the 1990s to control its finances, the province would probably still be running a budget deficit.

"Even today's high energy prices wouldn't have prevented a ballooning debt, that stood at nearly $23-billion in 1993, from growing to over $65-billion today," he said.

Mr. Klein plans to take that message across Canada this fall.

The premier is planning a speaking trip across Ontario, Quebec and the Atlantic provinces in November to remind people of what Alberta already contributes to the rest of the country.

"I'm reminding them to look at the big picture, at what we contribute to the Confederation," said Mr. Klein, adding that billions of Alberta tax dollars are already distributed across the country through equalization payments.

"It's important to travel the country, to understand that what's good for Alberta is good for the rest of Canada in terms of the taxes we pay and the contributions to the rest of Confederation."

Mr. Klein said the message will be conciliatory.

"I'll tell them it hasn't always been good in this province, that we went through some tough times and we had to say no and we knew there was going to be a time when things would turn around."

Mr. Klein also told business leaders his cabinet will look at the possibility of tax cuts in the coming months.

Both Liberal and NDP leaders panned the prosperity cheques.

"This is our lottery win and we have a choice. We can spend it all now or we can think through a plan and invest it and live off the interest forever," said Liberal Kevin Taft.

NDP Leader Brian Mason said Mr. Klein is being irresponsible with taxpayers' money.

"There's so money at stake and they have so little inkling as to what to do with that money and no plan in place."

Roger Gibbins, president of Canada West Foundation, said what the Mr. Klein government is doing is bad public policy.

"The Alberta government is not Santa Claus and we're not talking about a sack of toys," Mr. Gibbins said in a news release.

"We are talking about the responsible stewardship of public funds coming from non-renewable natural resources and in this context the prosperity dividend makes no sense."

Damn, I wish I was a 6 year old kid that never paid any taxes and still recieves $400 to buy candy from 7-11. The next best thing would be to pump out as many babies as I can with my fiancee.

Except you may have all those babies acoming but if there is no room in the hospital for your wife I suggest you wash up on your midwifery course.
These cheques are a complete fraud.
Alberta, of all places, knows that what goes up must come down. They should be investing this money in new technology, higher education, highways, transit.
Long term phsical and intellectual infastructure to secure Alberta's long term viability.

And yes, the poor, the arts, tourism, culture. They add to quality of life and also help the tourism industry.
Remember that jobs are a plenty all across western Canada and people will up and move if they don't feel they have a culture or quality of life they enjoy.
Alberta should know this. It is known as being a place of oil barrens and hillbillies. Unfair? Of course but that doesn't change the ROC view of it. It needs to alsomake its province a world leader in quality of life, the arts etc. Its things like that that will make people WANT to stay.
Remember for all the boom in population talk, Alberta is only growing by 1.5% per annum. By no means stellar.
Alberta should spend this money to make the province the best it can be in all aspects of live and then people will really come and not just for the money.

Damn, I wish I was a 6 year old kid that never paid any taxes and still recieves $400 to buy candy from 7-11. The next best thing would be to pump out as many babies as I can with my fiancee.

Yes. Fulfill your patriotic act for Canada.:)

As nice as this cheque is, i dont really agree with giving all this money back. I would rather has this money put into education, health and building transit and roads. But to me, Klein has no idea what to do, besides putting it all away in the heritage fund or giving it all back in one time cheques.

I don't fully agree with the rebates either but I guess if the surplus is still growing it's an acceptable move.

So much potential with that money I think they are wasting. You could secure your infrastructure for decades to come rather than give these cheques away. Now is the time for investment.

as an economist by trade, i disagree with these cheques in terms of efficient use of surplus. However i think it will be a nice break given that the we seem to pay more and more everyday for goods, gas, etc. etc....$400 will allow people to get that little extra toy they have wanted or a weekend in jasper or an oiler game. We work hard in this province and i think this is a nice "treat" for us all to go out and enjoy for once.

...with that said...i hope this is a one time thing.

Also, even if one agrees with these cheques they are incredibly regressive.
An oil barren in Calgary whos income is $100,000/mth getting the same size cheque as someone making minimum wage is obsene.

^why...it is a gift not a tax structure.

Okay, first off I totally disagree with this cash payout to the citizens – I do not believe that it is the best use of the surplus, however for those who do not live in Alberta, you really cannot comprehend the problems we've got here.

Right now Alberta can't start anymore infrastructure spending, The province of Alberta already spends more on infrastructure than the entire province of Ontario in absolute terms (3.3B vs 3.1B) such that that the system can't take any more. We're unable to bring in workers fast enough, and when they do get here, they head straight to Fort McMurray, the home of the world's largest construction site (the Oil Sands are comparable in scale to building 15 new Terminal 1’s all at once!)

Both the cities of Calgary and Edmonton are doing major LRT upgrades, there’s tonnes of residential and business construction going on (for those in the GTA, the amount of construction in Calgary is almost twice Toronto's per capita – and the GTA is growing like crazy!), there are major cultural expenditures in both cities, both the U of A and U of C are building/planning major expansions, etc, etc. It is something that is hard to imagine unless you’re living through it.

That said, the money should be socked away into endowment funds and the Heritage fund. Funny thing is that from 79 to 83, Alberta directed ~ 1.4 B per year into the Heritage fund, the same amount as this giveaway. Anyway, with so much money being already directed to these funds, it’s hard for politicians not to “buy” some votes. (I still don't excuse them though!)

Finally, as much as I disagree with this bonus, the two homeless shelters I volunteer with are actually happy, since most of their users will be getting the $400 as they list the shelters as their home address and will therefore get the money. So at least some good with come from this boondoggle.

Oil BARON, not "barren." Alberta is not barren of oil!!

I'm donating my cheque to the Alberta Liberal Party.

It is funny how people in other places of Canada are paying for those bonuses.

Right now Alberta can't start anymore infrastructure spending, The province of Alberta already spends more on infrastructure than the entire province of Ontario in absolute terms (3.3B vs 3.1B) such that that the system can't take any more. We're unable to bring in workers fast enough, and when they do get here, they head straight to Fort McMurray, the home of the world's largest construction site (the Oil Sands are comparable in scale to building 15 new Terminal 1’s all at once!)

Both the cities of Calgary and Edmonton are doing major LRT upgrades, there’s tonnes of residential and business construction going on (for those in the GTA, the amount of construction in Calgary is almost twice Toronto's per capita – and the GTA is growing like crazy!), there are major cultural expenditures in both cities, both the U of A and U of C are building/planning major expansions, etc, etc. It is something that is hard to imagine unless you’re living through it.

Personally, I think some of the money should go on to a program in encourage interprovincial migration into Alberta. Possibly tax breaks for individuals who relocate to Alberta, and other financial incentives to ease their transition into a new province. That way, more people in Canada can share in Alberta's wealth (without it leaking to the feds).

It is funny how people in other places of Canada are paying for those bonuses.
Actually most of the Oil refined in Eastern Canada is imported from the Middle East. The two biggest refineries in Canada - Montreal and Saint John - use imported oil only. The bulk of Alberta's oil is exported ot the US who is more than willing to pay world price.

Personally, I think some of the money should go on to a program in encourage interprovincial migration into Alberta. Possibly tax breaks for individuals who relocate to Alberta, and other financial incentives to ease their transition into a new province. That way, more people in Canada can share in Alberta's wealth (without it leaking to the feds).
Well Alberta does have the biggest influx of interprovincial migration right now - with the low tax and employment rates already acting as an incentive.

Though it would be nice to see even more internal and external migration to Alberta.

I'm donating my cheque to the Alberta Liberal Party.


:rofl:

Except you may have all those babies acoming but if there is no room in the hospital for your wife I suggest you wash up on your midwifery course.
These cheques are a complete fraud.
Alberta, of all places, knows that what goes up must come down. They should be investing this money in new technology, higher education, highways, transit.
Long term phsical and intellectual infastructure to secure Alberta's long term viability.

And yes, the poor, the arts, tourism, culture. They add to quality of life and also help the tourism industry.
Remember that jobs are a plenty all across western Canada and people will up and move if they don't feel they have a culture or quality of life they enjoy.
Alberta should know this. It is known as being a place of oil barrens and hillbillies. Unfair? Of course but that doesn't change the ROC view of it. It needs to alsomake its province a world leader in quality of life, the arts etc. Its things like that that will make people WANT to stay.
Remember for all the boom in population talk, Alberta is only growing by 1.5% per annum. By no means stellar.
Alberta should spend this money to make the province the best it can be in all aspects of live and then people will really come and not just for the money.
ssiguy, there have been many times where I have disagreed with you, but I am totally on your side here.

I understand the logic in 'Let's give it back to the taxpayers', but the money roller coaster ride will not, and I repeat will not, last forever. Be smart with it, invest it wisely.

The Province is not very kind to our arts and culture.....which is unfortunate really.

The Province is not very kind to our arts and culture.....which is unfortunate really.

It seems to be a big slap on the face to Edmonton's thriving and burgeoning arts scene.

It seems to be a big slap on the face to Edmonton's thriving and burgeoning arts scene.
Not only to Edmonton, but to every arts community in the province.

Well Alberta does have the biggest influx of interprovincial migration right now - with the low tax and employment rates already acting as an incentive.

Though it would be nice to see even more internal and external migration to Alberta.

Alberta would be a great anecdote to the unemployment problems plaging rural Ontario, Manitoba, Quebec, and the Maritimes.

It might especially be a smart move to attract Quebecers (especially Franophones) to Alberta. It could have the effect of weaking the separatist movement and spreading bilingualism across the country.

It is funny how people in other places of Canada are paying for those bonuses.

Funny thing how you are wrong!
A little knowledge can go a long way, and the fact of the matter is; Alberta has been paying for all the sorry-ass provinces out east in the form of equalization payments, all the while eliminating our own provincial debt. So no, we pay for you, you! This money is OUR provincial money this time, and Ralphy knows he better come up with a way to get rid of it quick before the greedy Fed. Libs figure out an angle to piss it all away on themselves. Alberta did work very hard to become debt free, so as far as I'm concerned, the rest of the provinces should screw off and take notice of what a GOOD leader actually is. I don't see any other provincial government comming up with economic plans such as Ralphs to bring their own provinces out of debt.... What I do see is many provinces relying on Albertas wealth, and monitoring very closely to see if they can possibly benefit more from it. :bash:

I FULLY agree with these rebate cheques. It's not like by giving everyone $400 they are spending the entire surplus. They are distributing monies to many different organizations, schools, etc... The $400 was just so everybody could recognize a job well done by themselves and their premier>>> and maybe to just rub it in the Lib. and NDP faces a little; haven't you seen the smerk on Ralphs face when he talks about the surplus? :)

^ Hey a new Calgary forumer! Welcome to SSC.

My opinion of Ralph is he's a leader for a different time. He came, he conquered, and now he's on his way out. He did a spectacular job of killing the debt and getting the budget back in order, but now he's run out of ideas. We need a fresh party with ideas, and that means neither Conservative, Liberal, or NDP *shudder*.

I for one wonder how the Alberta Greens would spend the money. Having seen their mandate we would probably get a beefed-up transit system for Calgary and Edmonton, more money into the Heritage fund, public works projects and investement into diversification. Plus I believe they are a fiscally responsible party, quite unlike the NDP.

I believe that it's a good thing to send some money back to the taxpayers, as long as the surplus is distributed evenly among other projects as well, and the surplus still grows a bit like they are predicting. The rebates will relieve a little tension between the people and the government and at the end of the day everyone is happy.

Oil sands worth $1.4-trillion, study finds

By DAVE EBNER

Thursday, September 29, 2005 Posted at 9:37 PM EDT

From Friday's Globe and Mail

The oil sands are a $1.4-trillion bonanza, according to a study that forecasts the economic impact generated by the world's second-largest deposit of crude in the 2000-2020 period.

And that conclusion is based on prices of just $40 (U.S.) a barrel of synthetic crude, the type pumped out of northern Alberta, roughly the same quality as West Texas intermediate, which traded at almost $67 Thursday.

Some of the benefits will be spread outside of Alberta, especially in the areas of government revenue and employment. the study says.

But based solely on gross domestic product generated by oil sands activity and expansion, Canada's richest province is the jurisdiction that will grab most of the riches springing from the gooey black mud surrounding Fort McMurray, it says.

The study, released Thursday, is the result of work conducted by the Calgary-based Canadian Energy Research Institute, a 30-year-old group that was formed to analyze energy economics and that describes itself as independent and non-profit.

While the figure of $1.4-trillion (Canadian) is a higher-end estimate of GDP resulting from the oil sands, the institute focused its report on an $885-billion GDP figure, based on a synthetic crude oil price of $32 (U.S.) a barrel.

Of the $885-billion (Canadian), about 70 per cent would stay in Alberta, the study says. About 10 per cent of that would benefit Ontario and about 10 per cent would trickle out to other countries.

In sum, the oil sands could represent about 3 per cent of Canada's GDP in 2020, up from about 1.5 per cent in 2000.

All of this money stems from an estimated investment of $100-billion over 20 years in building oil sands projects, such as the $11-billion that Canadian Natural Resources Ltd. is putting into the construction of what it calls Horizon.

On other measures, Canadians in general will see some dollars in their pockets, contrary to the prevailing view in the country that the oil sands boom helps only three million or so Albertans and hurts the other 27 million people outside the western province who must cope with high oil prices.

In terms of jobs, Alberta could have 3.6 million person years or 56 per cent of the work that is predicted, compared with one million person years or 16 per cent for Ontario. Outside Canada, there could be another 1.1 million person years of labour.

“The dollars are spent here in Alberta but the employment benefits are spread across the country, primarily in Ontario,” said Greg Stringham, a vice-president at the Canadian Association of Petroleum Producers, an energy industry lobbyist. “The benefits and expenditures are spread all the way across the country.”

In terms of government revenue, it is in fact Ottawa and not Edmonton that looks to rake in the most. Alberta's main cash flow will be from royalties, as the underlying resource is owned by the province, but looking at taxes, the federal government's coffers is the place that could be pelted with a gusher of petrodollars.

The report suggests that of $123-billion in expected government revenue, Ottawa is set to reap the biggest share, $51-billion or 41 per cent

“The federal government is doing very well out of this,” Mr. Stringham said.

However, Ottawa is followed closely by Alberta, at $44-billion or 36 per cent, meaning a single province essentially stands side-by-side with the federal government.

The other nine provinces and three territories look to pick up $12-billion from various taxes, or 9 per cent of the total revenue, the study says. That's less what cities, mostly in Alberta, could expect — a take estimated at $17-billion or 14 per cent of the total, generated solely by property taxes.

Most of the oil sands activity outside Alberta is represented by manufacturing in Ontario. Suncor Energy Inc., for instance, has more than 500 contractors in Eastern Canada, including General Motors of Canada Ltd., which provides fleets of pickup trucks. GM Canada does the same for Syncrude Canada Ltd.

^^ Holy......! :shocked:

Alberta may be getting a tax cut
Last Updated Sat, 01 Oct 2005 16:33:51 EDT
CBC News

An internal Alberta government review will recommend a raft of potential tax reforms, including trimming a 10 per cent flat tax in Alberta, according to a published report.

Quoting government sources, the Calgary Herald has reported that, later this month, an internal review will recommend that the province's flat tax be reduced, and the income level at which provincial income tax kicks in, be raised. The review was prepared for the province's treasury board and its caucus.

Alberta Premier Ralph Klein recently announced that because the province is doing so well financially, the government would give back $400 dollars to every man, woman and child.

The Herald also quoted government sources as saying the proposal is also expected to recommend that corporate tax cuts be speeded up -- with the rate going from 11.5 per cent to somewhere near eight per cent.

Alberta may also stop collecting education taxes on municipal tax bills, which has long been a contentious issue for the province's biggest cities. And, it may eliminate healthcare premiums.

Klein was out of the country and could not be reached for comment, but he recently gave a strong hint that tax cuts were on the way.

But not everyone is in favour.

Ray Prins, MLA from Lacombe-Stettler, said he's telling his constituents not to expect a cut -- and when people start talking about it, he pulls out a list of oil prices. "In 1999 it was $19.24; 2000 it was $30.20; 2001 it was $25.90. Two years ago the average price was $30.90, so I don't think we should be basing our future on what's happening this year."

Ron Kneebone, an economist at the University of Calgary, says the government has a responsibility to think of the long term, before bringing in anything that would reduce its revenues.

"Oil and gas will run out, and the province is about a decade away from the healthcare peak when boomers are [going to start] demanding new hips and reconstructed hearts," said Kneebone.

"You don't want to cut taxes unless you can be sure you won't have to raise them in the future. Nothing browns people off more than raised taxes."

I think there two things that are imperitive. One get ride of the "education tax" which cripple Calgary/Edmonton.
That could go a long way to helping those growing cities with the pressures on their growth.
Second, get rid of the health care premiums. It is one of only 3 provinces that have as Ontario just brought theirs back. Its just a tax and a very regressive one at that. It hurts individuals and businesses. Thats one of the few things that the business sector and individuals themselves, get rid of them.

Yes and I don't have a problem with increasing the exemption to over $20,000 so that the poor in Alberta do not pay provincial income taxes. Its also intresting the corporate tax rate be reduced at a quicker rate.

Alberta Needs Workers

Tuesday, October 4, 2005 Posted at 4:55 PM EDT

Canadian Press

EDMONTON — Alberta will increase immigration and bolster apprentice training to deal with a projected shortfall of more than 100,000 workers over the next decade.

With $107-billion in capital projects on the drawing board, political and industry leaders said Tuesday they want to ensure that the province's red-hot economy continues to roar.

The government plan includes a policy to seek immigrants and help them make the transition to live and work in the province, Economic Development Minister Clint Dunford said.

“Expanding our provincial nominee program will help Alberta employers attract and recruit skilled foreign workers to fill positions that could not be filled across Canada after extensive searching,” Dunford said.

The goal is to increase the number of permanent immigrants to at least 24,000 a year from about 16,000.

The plan includes marketing Alberta abroad as a place to live, encouraging foreign students to stay after they graduate, improving settlement services and expanding access to English as a second language training.

The province also wants to speed up the rate at which the professional skills of immigrants are recognized to ensure newcomers who are welders or carpenters don't end up driving cabs.

In a separate announcement, Alberta's largest technical college laid out a $50-million plan to boost the training of skilled apprentices and business students.

“Alberta's economy continues to lead the country in growth and consequently there is an ever-increasing demand for skilled workers,” said Sam Shaw, president of the Northern Alberta Institute of Technology.

Companies such as Suncor Energy, Spartan Controls and Wiaward Steel have donated $13.5-million to the program, which will see 11 centres built around the province to train millwrights, machinists, electricians and other skilled tradesworkers.

Part of Suncor's contribution is for scholarships aimed at aboriginal and immigrant students.

While the labour shortage is most acute in Alberta because of its booming energy sector, including oilsands projects in the Fort McMurray area, other provinces are feeling the pinch for skilled and unskilled workers.

Business groups such as the Canadian Chamber of Commerce have been calling on the federal government to devise a national plan to deal with the problem.

Federal Immigration Minister Joe Volpe has suggested Ottawa may raise Canada's immigration levels by up to 40 per cent over the next five years.

Earlier this year trade unions opposed a government program that brought in temporary foreign workers to help in Alberta's oil sands.

Labour leaders were still a little skeptical Tuesday.

“Is this really about immigrants or helping business get better access to cheap labour?” questioned Gil McGowan, president of the Alberta Federation of Labour.

“We are not convinced the provincial government has done enough to help groups of workers here in Alberta who could be trained to fill some of these trades jobs.”

McGowan said earlier this year the province refused to help retrain 350 workers who lost jobs when Celanese Canada closed its plant in Fort Saskatchewan, Alta.

“There are also pools and pockets of unemployed in aboriginal communities. Where is the government announcement aimed at them?”

Alberta's jobless rate is about 3.5 per cent, a number the government considers to be near to full employment.

The province draws about seven per cent of Canada's immigrants, a number it hopes to increase to 10 per cent.

Advanced Education Minister Dave Hancock said Alberta, a province built largely by newcomers during its first 100 years, must depend on a wave of immigrants for its future.

“We again need that stream of immigrant people who are prepared to come here to live in a place that has a good quality of life, but where they will have opportunities for themselves and their families.”

Last year about 65 per cent of immigrants who moved to Alberta had a university degree, a non-university diploma or a trade certificate.

Over the last three years most newcomers were from China, the Phillipines, India and Pakistan.

Ads aim to convince Albertans to enjoy $400 rebate

Last Updated Sun, 09 Oct 2005 15:12:23 EDT
CBC News

The government of Alberta is taking out ads to tell its citizens to take the money - and like it. Premier Ralph Klein has announced that every man, woman and child will receive $400 dividend cheques out of the province's record projected surplus of $6.8 billion.

The program is getting mixed reaction. Some Albertans think the money should be used to build schools or eliminate health care premiums.

So the government is spending $65,000 on newspaper ads to explain the rebate.

"We wanted to ensure Albertans know there are two other things we're doing, infrastructure investments and savings," said Marisa Etmanski, Klein's press secretary. "We want to make sure people realize we're also doing things for the future."

"Good news doesn't need to be advertised," said Liberal finance critic Rick Miller. "They've dropped the ball badly. It's frustrating."

The ads suggest that the cheques can be invested in more worthwhile causes than shopping sprees or parties.

"You might choose to save your rebate for your children's future ... you might choose to donate it to a charity of your choice."

Alberta ponders free tuition
Last Updated Wed, 12 Oct 2005 09:42:38 EDT
CBC News

Alberta will consider paying for the first two years of post-secondary education, says the province's advanced education minister.

Dave Hancock says the idea of free tuition will be discussed at an upcoming ministers' forum.

"If you'd asked me a year ago I'd have said in an ideal world that because a good liberal arts education is a value to society, we ought to pay for the first couple years," Hancock told the Calgary Herald editorial board.

"The other end of the spectrum is to deregulate it. Maybe you ought to charge a little more, but throw in a computer for first-year students, and part of their tuition could be tax deductible."

Hancock didn't offer any details on the suggestion, saying only that it would be further discussed at the forum in Edmonton next month.

The suggestion surfaced the same day the province announced details of $400 "prosperity cheques" that would be sent to all Albertans because of the $6.8-billion surplus.

Alberta has the second-highest undergraduate tuition fees in the country, averaging $5,125, behind Nova Scotia at $6,281.