NDP Minority Govt in Alberta

[team dirt]

Definatley the most interesting election Alberta has ever had, got a chuckle on the news tonight they had some business gazillionaires warning of an ndp gov, all I could think was how much worse could the PC campaign be putting filthy rich Alberta businessmen on tv warning of issue of increased corporate taxes.

At some point we all work for these (big oil) companies in alberta. Even if you don't directly work in the patch if I spend a dollar in your store you now are getting money from oil. If the NDP get in and start to raise royalties and taxes on these outfits they will just choose to do business elsewhere causing us all to suffer. This might not be horrible because when me and my family are out on the streets then the NPD will be there to give me all the help I can take except at that point there won't be anyomore money as all the big business tax payers will have bailed. Also all the donated computers for schools and money for rec centers will be no more but hey don't worry the NDP will fund that also with money from where. Don't kid yourself people nothing is free and with the NDP eventually we all will pay dearly.

 

[papajake]

if you take away the billionaire businessman there won't be any millionaire politicians and there friends. in 5 years they have spent over 50 million on severance pay for there friends and co workers

 

[bobsledder]

At some point we all work for these (big oil) companies in alberta. Even if you don't directly work in the patch if I spend a dollar in your store you now are getting money from oil. If the NDP get in and start to raise royalties and taxes on these outfits they will just choose to do business elsewhere causing us all to suffer. This might not be horrible because when me and my family are out on the streets then the NPD will be there to give me all the help I can take except at that point there won't be anyomore money as all the big business tax payers will have bailed. Also all the donated computers for schools and money for rec centers will be no more but hey don't worry the NDP will fund that also with money from where. Don't kid yourself people nothing is free and with the NDP eventually we all will pay dearly.

Exactly and small town alberta will look like small town bc. That won't be good for anyone. Just amazing titurn the NDP can be a even considered in Alberta. Prentice is such an arrogant SOB that it is helping them.

 

[ZRrrr]

The Alberta government has failed to collect nearly $2.5 billion per year in resource royalties since 2009 due to a major calculation blunder, according to Jim Roy, a private royalty expert who advises governments around the world.
As a consequence, the province has failed to collect $13 billion in the last five years, charges Roy, a former senior advisor for royalty policy for Alberta Energy.
That's not what Alberta's long-reigning government promised to voters in 2007.
After a controversial royalty review, the first one in a decade, premier Ed Stelmach told Albertans that the new formulas for calculating royalties would increase Alberta's ''fair share'' of hydrocarbon profits by $2 billion a year, beginning in 2009.
At the time Jim Prentice, then federal industry minister, supported the changes proposed by Stelmach.
But instead of increasing royalties by $2 billion a year, Alberta's ''fair share'' plummeted due to bad forecasting and major flaws in how the province collects natural gas and bitumen royalties, Roy said.
''Announcing a royalty increase and delivering a royalty decrease is difficult to explain to voters,'' Roy said. ''The Tories chose to pretend the big blunder did not happen. Nobody talks much about the government gifting the petroleum industry $13 billion.''
Rates more sensitive to price
The management of Alberta's hydrocarbon income has become a significant election issue as the Tory government has posted a $5-billion deficit and raised taxes and cut services for ordinary Albertans.
Since 2009, natural gas revenue for the government has experienced the greatest losses. The new formula implemented in 2009 made the royalty rate much more sensitive to price, and the new formula substantially dropped royalties for unconventional resources such as shale gas.
''The government expected natural gas prices to rise, but instead they collapsed,'' Roy said. ''As a result, government earnings from natural gas dropped by $5 billion after 2009.''

Gas price and Alberta gas royalties. Source: Jim Roy, Parkland Institute.

Despite a substantial increase in world oil prices between 2009 and 2014, bitumen earnings did not increase significantly. Any upward shift in earnings was largely due to added production in volume or project pay-outs. Bitumen developers don't pay royalties until they have written off their capital costs.
But therein lies another problem, Roy said. Alberta has a low royalty rate for bitumen compared to rates in countries that have similar heavy oil resources. Alberta, for example, takes from 25 to 40 per cent of profit, equivalent to 10 per cent of gross revenue. In contrast, Venezuela, which also extracts heavy oil, takes 40 per cent of gross revenue -- four times as much as Alberta.
Saudi Arabia captures 85 per cent of profits from its oil fields, while Norway takes 80 per cent of profit -- both three times as much as Alberta, Roy said. ''Newfoundland/Hibernia takes 30 to 50 per cent of profit, plus 7.5 per cent of gross revenue or twice as much as Alberta.''
The royalty expert also argues that the province has failed to control the pace of bitumen development. As a result, industry has put too much bitumen on the market and that glut, in turn, has played a role in driving down global prices.

Bitumen prices and Alberta bitumen royalties. Source: Jim Roy, Parkland Institute.

''The oil sold at low price is gone. The money is lost. The world has given Alberta a clear price signal. Alberta would be foolish to continue increasing bitumen production for sale at low price,'' Roy said.
According to Roy's calculations, approximately 40 per cent of Alberta's projected deficit for fiscal year 2015/16 could be eliminated by returning to the royalty formulas in place prior to 2009.
NDP vows royalty review
Rachel Notley, the leader of Alberta's New Democrats, has already promised to hold a review of the province's royalty structure if her party wins next Tuesday's election.
Premier Prentice contends that a major review of Alberta's royalty formula would have negative consequences.
''I don't think you ever say categorically in the history of the province we should never review where we stand on royalties,'' the former corporate banker told the Calgary Herald on April 29.
But given low oil prices, ''it is the worst thing we could do right now where we are fighting to hang on to every job we can,'' he said.
The province's oil industry has already come out against adjusting Alberta's royalties, among the lowest in North America.
''I don't think there's any room for any increase in royalties,'' Cenovus president and CEO Brian Ferguson told Bloomberg News this week.
''If there are changes that make the structure uncompetitive, that will be negative for investment in Alberta.''
In 2006, Alberta's auditor general reported that the government planned to collect 66 per cent of the economic rent or profits available from petroleum extraction, but the government was not meeting its objective and was not clear about how it even measured economic rent.
The Tory government reached that target only once in 1998. Alberta's share dropped to 31 per cent in the years 2000-2008. Although the new royalty formulas were intended to increase the rent collected, the share collected by the owners of the resource dropped to 13 per cent.

 

[ZRrrr]

Definatley the most interesting election Alberta has ever had, got a chuckle on the news tonight they had some business gazillionaires warning of an ndp gov, all I could think was how much worse could the PC campaign be putting filthy rich Alberta businessmen on tv warning of issue of increased corporate taxes.

Businessmen attack NDP’s ‘amateur’ policies

 

[Eldereldo]

Well thing about politics is that no matter how much politicians talk about radical change, once they get in power they discover that the inertia of the system is such that it isn't possible to make significant changes within a single term and have them start to show the benefits before it is time for another election. Therefore if the NDP does get in, and makes radical changes the most likely result is immediate pain which will just cause them to be tossed at the next election, at which point the next government can exclaim about how it isn't possible to undo everything immediately (think of the GST that was supposed to be gone as soon as the liberals came in) and instead claim the eventual benefits for themselves. I think the biggest danger to the PC is the Wild Rose party grabbing votes they used to be able to count on, and allowing the NDP to get in by default. Somewhat like the Federal PC has managed with the Liberal, Greens and NDP all dividing the non conservative vote up.

 

[Riverjet]

wow....just saw some of the polls, NDP gov't might be a reality here in AB

Did you think I was kidding?

Alberta NDP poised for historic breakthrough, new poll suggests - CBC News | Elections Alberta

 

[Riverjet]

It won't be taking an NDP govt to increase the taxes on everything you do there in Alberta.

Widespread tax hikes announced in Alberta budget - BNN News

Go ahead and vote in NDP and enjoy paying more tax on everything.
Just look at BC they tax everything even your house, it's crazy.
Buy a $500,000.00 house and pay $8000.00 to the province on top of that just because.
Buy a USED car, truck, sled, side by side, trailer, motorcycle or boat and pay an additional 12% on the purchase price (or fair market value at their discretion), when you go to register the the thing. So that covers the idea of a gifted vehicle or sled etc. (see the last paragraph below).
NOTHING IS FREE.........VOTE NDP!

Here's a little snippet of the rules on the real estate tax. Vote the NDP in.........you better get your wallet ready!

BC TRANSFER TAX

When do I have to pay the tax?
You are obliged to pay the tax, when you:

• acquire a registered interest in the property, or
• gain an additional registered interest in the property, or
• become the registered holder of a lease, life estate, or
• right to purchase against the property is required to pay the tax unless they qualify for an exemption. This person is referred to as the transferee or purchaser

Some examples of taxable transactions:

• a transfer of legal title
• a right to purchase (an agreement for sale)
• a lease or lease modification agreement
• a life estate (they get you when you come and go!)
• a foreclosure
• a property transfer pursuant to a corporate reorganization
• an escheat, forfeiture or quit claim
• a Crown grant

What happens I do not pay the tax?
Your transaction may not be registered!
What is the Fair Market Value?!
In most cases it is the purchasing price. However, in some cases there is no monetary exchange (gift, transfer to a shareholder). In such situation, fair market value is used for the tax purposes. This value is usually based on BC property assessment.

 

[Riverjet]

Choose to do business elsewhere? LOL, where?

At some point we all work for these (big oil) companies in alberta. Even if you don't directly work in the patch if I spend a dollar in your store you now are getting money from oil. If the NDP get in and start to raise royalties and taxes on these outfits they will just choose to do business elsewhere causing us all to suffer. This might not be horrible because when me and my family are out on the streets then the NPD will be there to give me all the help I can take except at that point there won't be anyomore money as all the big business tax payers will have bailed. Also all the donated computers for schools and money for rec centers will be no more but hey don't worry the NDP will fund that also with money from where. Don't kid yourself people nothing is free and with the NDP eventually we all will pay dearly.

 

[Riverjet]

Yep, that's it.

You have some weird posts. It must be tough waiting for the right government to get elected in BC, eh?

 

[LennyR]

its nowhere near the same as BC. Alberta will be going up to about $1200 on a $500,000 home. BC has land transfer tax on top, so $500,000 home is closer to $8000 in taxes

slippery slope , foot in the door , call it what you want . theyll soon be the same.

 

[rsaint]

Only 3 days away.

 

[Eldereldo]

Choose to do business elsewhere? LOL, where?

True, they can't move current plants, but they can choose to spend future dollars in other locations if the cost structure in AB becomes onerous, however, it is the nature of any company, or individual to complain anytime the government talks about raising taxes, you do it, I do and the companies do it. Doesn't mean they will truly go some where else, as that involves a lot of additional costs for infrastructure, development, acquisition etc that can quickly eat into any profits realized from a lower royalty rate.

 

[LBZ]

True, they can't move current plants, but they can choose to spend future dollars in other locations if the cost structure in AB becomes onerous, however, it is the nature of any company, or individual to complain anytime the government talks about raising taxes, you do it, I do and the companies do it. Doesn't mean they will truly go some where else, as that involves a lot of additional costs for infrastructure, development, acquisition etc that can quickly eat into any profits realized from a lower royalty rate.

Like where? The geology of canada puts the majority of the oil and gas resources in Alberta. Eventually, they will want to extract it-no matter what the corporate tax cost so long as they can turn a profit. They might cry for a bit but if the government stands fast, they will have to eventually conform.

There are only so many licenses issued in BC to drill for gas and a limited area that is even open. Plus being as remote as most of these places are the cost of extraction is much higher.

Sask is mostly oil. And even with $200 a barrel oil, there is only so much work that can be done due to the lack of infrastructure so their choices are invest billions into that and hope oil stays high or pay a little more tax and keep on keepin on with a more diversified oil field to work in.

 

[bobsledder]

Choose to do business elsewhere? LOL, where?

China, Gabong, Brunie etc. We work for global corporations and compete everyday to get the investment in Canada. These corporations are not handcuffed to Alberta. We are not competing just against other Canadian projects.

 

[LBZ]

China, Gabong, Brunie etc. We work for global corporations and compete everyday to get the investment in Canada. These corporations are not handcuffed to Alberta. We are not competing just against other Canadian projects.

Ya I'm sure we have to compete.

If they can drill and extract oil in those countries where labour is ridiculous cheap and HSE standards are a joke to non-existent and their profit margins would be so much better than they would be and they wouldn't waste their time here with all our rules and reg's. This obviously isn't the case. There is a reason they are in Alberta and it's not a 2% cheaper royalty or cheaper taxes that is attracting them I assure you. No matter what, they will be here so long as there is money to be made.

It's been said a million times already. We have the lowest corporate tax and royalties than anywhere else. We can afford to try and at least bring it up to par and anyone crying about it at the corporate level is just worried they might only be able to afford an 8 million dollar yacht not a 10.

 

[Keith Brown]

Like where? The geology of canada puts the majority of the oil and gas resources in Alberta. Eventually, they will want to extract it-no matter what the corporate tax cost so long as they can turn a profit. They might cry for a bit but if the government stands fast, they will have to eventually conform.

There are only so many licenses issued in BC to drill for gas and a limited area that is even open. Plus being as remote as most of these places are the cost of extraction is much higher.

Sask is mostly oil. And even with $200 a barrel oil, there is only so much work that can be done due to the lack of infrastructure so their choices are invest billions into that and hope oil stays high or pay a little more tax and keep on keepin on with a more diversified oil field to work in.

Yea your right eventually the oil will come out of the ground. Unfortunately the province will be broke and we will all be dead and buried an so will our kids before that happens. Its a global market and Alberta will be forgotten over night if we are no completive. NDP Government in Alberta = Were Fu*ked

 

[LBZ]

Yea your right eventually the oil will come out of the ground. Unfortunately the province will be broke and we will all be dead and buried an so will our kids before that happens. Its a global market and Alberta will be forgotten over night if we are no completive..........................

Ya you bet.
2% is gonna shut the province down. Give your head a shake man.

 

[Keith Brown]

If you believe a NDP government under Nothead will stop at 2% your are in a dream land. By the way have you renewed your membership to the flat earth society yet?

Ya you bet.
2% is gonna shut the province down. Give your head a shake man.

 

[catalac]

If you believe a NDP government under Nothead will stop at 2% your are in a dream land. By the way have you renewed your membership to the flat earth society yet?

and if you believe Prentice will stop at the recent budget with increased booze taxes, increased speeding fines, increased personal tax you are also in dream land.