Tag Archives: Carbon Tax

United Conservative Party of Alberta leader Jason Kenney.

Jason Kenney as the face of Conservatism in Alberta

When the Legislative Assembly resumes for its fall sitting on Monday, there will be a new seating plan.

Brian Jean Wildrose Leader

Brian Jean

A new Official Opposition United Conservative Caucus made up of twenty-two former Wildrose MLAs and six former Progressive Conservative MLAs will make its debut.

Richard Starke of Vermilion-Lloydminster will continue to sit as a lone PC MLA and former UCP MLA Rick Fraser of Calgary-South East will join exiled former Wildrose MLA Derek Fildebrandt as Independent MLAs. Former New Democratic Party MLA Karen McPherson will join Greg Clark in doubling the Alberta Party Caucus. And sitting alongside Premier Rachel Notley in the government front-benches will be newly appointed Minister of Infrastructure Sandra Jansen, who left the PCs to join the NDP last November.

Leading the new United Conservative Party Caucus will be former Member of Parliament Jason Kenney, who won yesterday’s leadership vote with 61 percent, defeating former Wildrose Party leader Brian Jean, who finished with 31 percent, and Calgary lawyer Doug Schweitzer, who finished a distant third with 7 percent.

Kenney does not have a seat in the Assembly and indicated today that Calgary-Lougheed MLA Dave Rodney will resign on November 1, 2017 in order to create a by-election for his party’s new leader. Rodney was first elected in 2004.

David Eggen

As the new leader of the Official Opposition, Kenney will face some immediate issues as the Assembly reconvenes. He will need to reorganize his caucus office staff, reassign his party’s MLAs to new critic roles, and set an opposition agenda for the next 16 months. Kenney will do his best to avoid the bozoeruptions that plagued the former Wildrose MLAs in his UCP caucus and pivot to issues that will solidify his party’s conservative base.

As Kenney enters his new role as the new face of Conservatism in Alberta, the NDP will hope that Albertans forgive their more unpopular policies when reminded of the new UCP leader’s more bizarre social conservative views and rhetoric.

Education Minister David Eggen will introduce legislation making it illegal for schools to “out” students who join gay-straight alliances. Bill 24: An Act to Support Gay-Straight Alliances will reopen an issue that had conservative politicians tying themselves in knots after Kenney told a Postmedia editorial board that he would support teachers outing students who join GSAs.

Eggen has said most schools have been working with the province to establish codes of conduct against discrimination and adopt policies to protect LGBTQ youth, but a small group of mostly publicly-subsidized private schools are resisting. This bill could reignite the debate over the existence of publicly-subsidized private schools, some of which charge tens of thousands of tuition per student in order to attend.

Rachel Notley Alberta NDP leader

Rachel Notley

Despite calls from their political allies, Notley’s NDP government has avoided overhauling the structure of Alberta’s school system. But open resistance by private schools over GSAs, and by publicly-funded Catholic Superintendents wanting to dumb-down the Sexual Education curriculum, could force a debate over accountability of public funds being provided to these religious schools.

Kenney has been a vocal supporter of the Catholic schools, claiming that Notley’s opposition to a dumbed-down Sexual Education curriculum is the “statist ideology of the NDP on steroids.”

Of course, Notley is not telling publicly-funded Catholic schools not to teach Catholicism, she is telling them that they must teach consent and acknowledge the existence of homosexuality (welcome to the 21st century).

Alberta is one of a few remaining provinces that provides full public funding to Catholic schools. Former PC MLA David King, who served as education minister from 1979 to 1986, has collected close to 1,000 signatures in an online petition demanding a referendum on the future of publicly funded Catholic schools in Alberta.

David King

On the flip-side, as Kenney enters his role as UCP leader, he will hope that Albertans forgive his more bizarre social conservative views and rhetoric when reminded of the NDP’s more unpopular policies.

Repealing farm safety laws and the government’s climate leadership plan, including the carbon tax and phase-out of dirty coal-fired power plants, were two of his key promises, along with much chest-thumping about withdrawing from Canada’s equalization program (which is not something any province can do, because the funds are collected through Canadian federal income taxes, not by the provinces).

We can expect Kenney to spend a lot of time criticizing Prime Minister Justin Trudeau, who has developed a relatively friendly working relationship with Notley’s government on issues ranging from oil pipeline construction to climate change. With deep connections to the Conservatives in Ottawa, expect a Kenney-led UCP to march in lockstep with their federal cousins on these issues.

Justin Trudeau

Notley’s NDP subtly shifted their messaging last year, focusing on launching new programs and projects they argue will “make lives better for Albertans.” This will provide the NDP with a significant contrast to the Kenney-led UCP, who they will argue would attack public services and hurt Alberta families.

Kenney has said that if he becomes Premier in 2019, the months that follow would be known as the “Summer of Repeal” as his government would immediately move to repeal legislation passed by the NDP since 2015. The trouble with Kenney’s promise to repeal all of the NDP’s agenda is that, despite anger from conservatives still bitter from losing the 2015 election, some of the changes introduced by Notley’s NDP are popular among Albertans.

Would a UCP government cancel the construction of the Cancer Treatment Centre and the Green Line in Calgary or the new hospital in south Edmonton? Would a UCP government increase school fees and cancel the $25/day childcare program? Would Kenney close schools and hospitals, like his political role model Ralph Klein did in the 1990s? Expect the NDP start asking these questions when MLAs meet in Edmonton tomorrow.

This weekend’s UCP leadership vote and the resumption of the Legislative session tomorrow marks a huge change in Alberta’s political landscape. Alberta politics has changed drastically over the past two years, and even the past decade. The next few weeks, and the next 16 months, in Alberta politics will be fascinating to watch.

The Energy East Blame Game. Who blames who?

Today’s announcement by the TransCanada Corporation that it would no longer pursue the construction of the Energy East Pipeline from Hardisty, Alberta to Saint John, New Brunswick triggered a storm of statements, accusations and criticisms from politicians trying to drive their political narratives.

While the reasons for the TransCanada Corporation withdrawing its plans are likely influenced more by economics than by politics, there will certainly be political implications for the politicians – like Premier Rachel Notley – who have tethered their governing agenda to the approval of pipeline projects.

So, politics being politics, here is a quick look at who is blaming who for the demise of the Energy East Pipeline:

The TransCanada Corporation blames existing and likely future delays caused by the National Energy Board regulatory process, associated costs and challenging “issues and obstacles” facing the project.

Alberta Premier Rachel Notley blames “a broad range of factors that any responsible business must consider.”

New Brunswick Premier Brian Gallant doesn’t blame the TransCanada Corporation, but recognizes “recent changes to world market conditions and the price of oil have negatively impacted the viability of the project.”

Saskatchewan Premier Brad Wall blames Justin Trudeau, the federal government, and Montreal mayor Denis Coderre.

Minister of Natural Resources Jim Carr blames the decision to cancel the pipeline project as a business decision.

Conservative Party leader Andrew Scheer blames Prime Minister Justin Trudeau.

Alberta Liberal MPs Randy Boissonnault, Amarjeet Sohi and Kent Hehr blame “current market challenges related to world market conditions and lower commodity prices.

Calgary Conservative MP Michelle Rempel blames “Liberal ideological opposition to the wealth and prosperity of western Canada, to the detriment of the nation as a whole.”

United Conservative Party interim leader Nathan Cooper blames the Alberta NDP.

UCP leadership candidate Brian Jean blames Rachel Notley, Justin Trudeau and Denis Coderre.

UCP leadership candidate Jason Kenney blames the Alberta NDP carbon-tax and social license, and the Trudeau Liberals. He later also blames Denis Coderre.

UCP leadership candidate Doug Schweitzer blames Justin Trudeau and Rachel Notley.

Alberta Party leader Greg Clark blames the Alberta NDP.

Alberta Liberal leader David Khan blames economic factors, describing the decision as “a business decision by TransCanada based on current economic and political realities.”

UCP MLA Drew Barnes blames Justin Trudeau’s Liberals.

UCP MLA Prasad Panda blames the Alberta NDP’s carbon tax.

Former PC MLAs Richard Starke (left) and Rick Fraser (right) at the 2016 Calgary Pride Parade.

No Thanks and So Long. Former PC MLA Rick Fraser leaves the UCP to sit as an Independent

Photo: Former PC MLAs Richard Starke (left) and Rick Fraser (right) at the 2016 Calgary Pride Parade (Photo from Facebook). 

The recently formed United Conservative Party may be leading in the polls but the party is looking a lot less united. One of the party’s 28 MLAs, Calgary-South East MLA Rick Fraser, announced on social media this morning that he was leaving the UCP caucus to sit as an Independent MLA.

Fraser, who was re-elected for a second term as a Progressive Conservative MLA in 2015, is the third politician to leave the ranks of the UCP since it was formed in July 2017. Vermilion-Lloydminster MLA Richard Starke declined to join the UCP and decided to continue sitting as a PC MLA in the Assembly shortly after he party was founded. Then, in August 2017, the party’s co-finance critic Derek Fildebrandt resigned from the caucus after an expenses controversy and a traffic-accident related court battle.

In his resignation letter, Fraser gave a number of reasons for his departure, ranging from social and economic issues to the party’s increasingly polarizing hyper-partisan tone. While the UCP does not yet have any official policies, or even a permanent leader, it is seems clear that Fraser is uncomfortable with the direction that the province’s largest conservative party is heading.

Social issues are the achilles heel for the UCP, just as they were for the party’s previous incarnation, the Wildrose Party.

The two main candidates for the leadership of the party,  Jason Kenney and Brian Jean, are openly appealing to the party’s social conservative and rural base of supporters and have been extremely reluctant to discuss any social issues. And as we saw in this week’s UCP leadership debate, only Calgary lawyer Doug Schweitzer was willing to come out in support of gay rights, taking Kenney to task for his silence.

Earlier this year, Wildrose MLAs were tying themselves in knots over student-organized Gay-Straight Alliances and whether school administrators should be required to inform parents if their children joined one of the anti-bullying clubs. The debate, which was triggered by comments Kenney made to the Postmedia editorial board in Calgary, was painful and acrimonious to watch.

And while the party’s interim governing board has issued a statement in support of LGBTQ rights, support for that position by some of UCP MLAs and party members is questionable.

The unanimous position among the UCP leadership candidates to repeal the carbon tax without proposing any alternatives to reform or replace it suggests that none of them see climate change as a serious issue.

Comments, tweets and Facebook posts promoting climate change denial and skepticism have been rampant among the former Wildrose MLAs in the UCP caucus. Earlier this year, Cypress-Medicine Hat UCP MLA Drew Barnes helped fund a film promoting climate science skepticism. And last year, Drumheller-Stettler UCP MLA Rick Strankman was  forced to apologize – twice – after penning an article comparing Alberta’s carbon tax to the Holodomor – the Ukrainian genocide of the 1930s.

An MLA’s first responsibility is to their constituents, and if Fraser does not feel he can effectively represent the people of Calgary-South East as a member of the UCP, he has every right to leave that caucus. He was elected under that banner of the Progressive Conservative Party and now that party is now essentially defunct.

Fraser writes in his letter that he will consult his constituents before making any future decisions, which means he might be open to joining another party sometime in the future. I am willing to bet that Greg Clark , leader of the upstart conservative-lite Alberta Party, is making some phone calls today.

Bozo-Eruption Alert: Wildrose campus club email declares “Feminism is Cancer”

Feminism is Cancer” was the subject line of an email sent out by the Wildrose Party campus club at the University of Calgary promoting the showing of the film “Red Pill.” The Wildrose club planned to screen the film, which online reviews describe as exploring Men’s Rights issues, on the U of C campus on International Women’s Day.

Brian Jean Wildrose Leader

Brian Jean

The Oxford Dictionary defines feminism as “the advocacy of women’s rights on the ground of the equality of the sexes” and I will assume that the Young Wildrosers who wrote the email were not referring to cancer by its purely medical definition.

The email and the event are offensive and after a swift backlash online, the club responded on twitter that it had fired its director of communications and was no longer co-sponsoring the event.

The federal Conservative Party club also announced it would no long co-sponsor the film screening but the event is still being held by another co-sponsor, a group calling itself the “Canadian Advocates for Freedom and Liberty.” It is bizarre that even a campus political club would be so tone-deaf and insensitive, especially with talk of creating a new conservative party before the next election.

Last month the same Wildrose campus club announced it had endorsed Jason Kenney‘s bid to dissolve the Progressive Conservative Party and lead a new conservative party.

It would be easy to chalk up the “Feminism is Cancer” email to student tomfoolery or immaturity if it were not already part of a trend of Wildrose Party bozo-eruptions that go all the way back to the 2012 election.

The blog post predicting an ‘eternity in the lake of fire’ for gays and lesbians and claims of a caucasian advantage by mostly unknown candidates in that election likely cost the Wildrose Party its chance of forming government in 2012.

Wildrose Feminism is Cancer

A screenshot of the email (click to enlarge)

More recently, nine Wildrose MLAs were called out for signing an op-ed sent to rural newspapers that compared the NDP government’s carbon tax to the Holodomor, the genocide that killed an estimated 2.5–7.5 million Ukrainians in the Soviet Union from 1932 to 1933. And there was the incident surrounding Derek Fildebrandt’s “suspension” from the Wildrose caucus, which ended up lasting around 72 hours in total. Weird tirades against the threat of communism and denial of climate change by Wildrose MLAs just add more flames to the [lake of] fire.

Back in 2012, before the Lake of Fire became part of the province’s political lingo, then-party leader Danielle Smith confirmed the existence of a good conduct bonds of $1,000 to be paid by anyone who ran for a Wildrose Party nomination.

Maybe it will be time for Brian Jean and Jason Kenney to increase the good conduct bond to $10,000?

Premier Rachel Notley and Environment Minister Shannon Phillips release Alberta's climate change plan.

The Winter of Discontent over the Carbon Tax

Alberta’s carbon tax, lauded by economists and experts and derided by opposition conservatives, came into force on January 1, 2017.

From photo-ops at gas pumps to outright climate change denial, opposition to the carbon tax has been nothing short of hysterical over the past week.

Don MacIntyre MLA

Don MacIntyre

Don MacIntyre, Wildrose MLA for Innisfail-Sylvan Lake, sidelined his party’s attack on the carbon tax as a ‘tax on everything’ when he dove into climate change denying rhetoric during a January 2, 2017 press conference at the Legislature. “The science isn’t settled,” MacIntyre is reported to have said, despite the existence of overwhelming scientific evidence claiming otherwise.

Wildrose MLA Derek Fildebrandt marked New Year’s Eve by posting photos of himself filling up his truck and jerrycans to avoid any increase to gas prices caused by the carbon tax on January 1. It is estimated that he may have saved a few dollars, but in many locations across Alberta the price of gas actually dropped after the weekend (gas at the local station in my neighbourhood in northeast Edmonton is six cents cheaper per litre today than it was on Dec. 31).

Jason Kenney

Jason Kenney

Progressive Conservative leadership candidate Jason Kenney probably levelled the silliest criticism of the carbon tax when he tweeted on January 4 a photo of Tesla charging station in Fort Macleod, which was empty. This was apparently meant to be an argument that the four day old carbon tax was a failure.

Despite claims by opposition Wildrose and PC politicians that they would repeal the tax if elected in 2019, a federal carbon tax dictated by Ottawa would likely be imposed in its absence.

But arguments in favour of the made-in-Alberta carbon tax have been, well, confusing and technical.

Shannon Phillips

Shannon Phillips

Environment and Parks Minister Shannon Phillips’ statement that the province is “still standing” the day after the carbon tax was implemented was factually correct but probably not the statement most Albertans were waiting to hear. Phillips is one of the government’s smartest cabinet ministers, and has done a good job promoting the flagship Climate Leadership Plan, but the NDP have fallen short when it comes to easing Albertans worries about the cost of implementing the carbon tax during an economic downturn.

Economists like Trevor Tombe and Andrew Leach have penned or compiled intelligent arguments defending the carbon tax. Even executives of Canada’s largest oil and gas companies have come out in support of the carbon tax. Many of those executives stood on stage with Phillips and Premier Rachel Notley, along with environmental leaders, when the climate change plan was released in November 2015.

Justin Trudeau

Justin Trudeau

In November 2016, Prime Minister Justin Trudeau heaped praise on Notley for Alberta’s climate change plan, which includes the carbon tax, as a key reason for the approval of the Kinder Morgan Trans-Mountain pipeline expansion and the Enbridge Line 3 pipeline replacement.

But as anyone involved in politics knows, emotion and anger can sometimes trump facts, science and research. The recent presidential election south of the border confirms this.

Advertisements recently released by the Ontario government are, in my opinion, a good example of an emotional argument in favour of a climate change plan.

One of the arguments that I continue to hear is that Alberta and Canada should not implement a carbon tax because Donald Trump does not support a carbon tax. Trump also tweeted that he believes climate change is a conspiracy created by the Chinese government, so I am not confident that he is someone we should be looking to for leadership on this issue.

Donald Trump

Donald Trump

Overall public opposition to the carbon tax might start to fade in the coming months as many Albertans begin receiving their rebate cheques – around sixty percent of Alberta households will get a rebate, with full rebates for single Albertans earning $47,500 or less, and couples and families who earn $95,000 or less – but the NDP government will need to work overtime to provide clear evidence of how the carbon tax will benefit Albertans.

Of the funds collected by the carbon tax, the government says $2.3 billion will go towards rebate programs, $3.4 billion will help businesses adjust to the carbon levy, $6.2 billion will go toward energy industry diversification and job creation, $3.4 billion for large scale renewable energy and technology, and $2.2 billion for green infrastructure. As well as $645 million will be directed towards the new provincial agency Energy Efficiency Alberta and $195 million to assist coal communities, which will be impacted by the phase out of coal-fired power plants by 2030.

The NDP also cut the small business tax from three percent to two percent, a change that came into effect as the carbon tax was implemented.

Taxes in Alberta remain low, some of the lowest in Canada. Investing in measures that could create a cleaner environment for the next generations is not a burden, it is a responsibility. The carbon tax is a sensible policy, but it could be an uphill battle to convince Albertans to embrace it.

Pierre Trudeau Peter Lougheed Alberta NEP

Notley searches for her Lougheed moment by demanding pipelines for Trudeau’s carbon tax

Demanding the federal government help “break the landlock” and support the construction of oil pipelines from Alberta, Premier Rachel Notley and Environment and Parks Minister Shannon Phillips drew a line for Alberta’s support of the Justin Trudeau government’s proposed national carbon pricing plan. In a statement released today, Ms. Notley stated that the Alberta government would not support the federal carbon pricing plan without federal support for increased “energy infrastructure” (a.k.a. oil pipelines).

Rachel Notley Alberta NDP leader

Rachel Notley

There is nothing more Albertan than a good old fashioned political battle between the provincial government and Ottawa over energy issues. Premier Notley may be hoping this standoff could be reminiscent of the heated political disputes that took place between the governments of Premier Peter Lougheed and Prime Minister Pierre Trudeau in the 1970s and 1980s. In the case of Mr. Lougheed, an iconic figure in Alberta politics, political fights with Ottawa can help boost a politician’s popularity at home.

When Progressive Conservative leader Jim Prentice began casting the New Democratic Party as “extremists” during the 2015 election, Ms. Notley frequently turned to quotes by Mr. Lougheed to support her party’s positions on issues like raising corporate taxes.

Ms. Notley’s NDP have been vocal supporters of the expansion of the Kinder Morgan Trans-Mountain Pipeline and the TransCanada Energy East Pipeline since she became party leader in 2014. Now, as government, the Alberta NDP’s support for oil pipeline expansion has contributed to an increasingly deep divide between the national and provincial NDP in this province. The national NDP, with strong support in anti-pipeline constituencies in British Columbia, Ontario and Quebec, has played a much less supportive role in advocating for Alberta’s oil industry.

Brad Wall

Brad Wall

The Alberta government’s criticism of the federal government puts Ms. Notley in the company of conservative Saskatchewan Premier Brad Wall, a constant critic of Ottawa. But unlike Mr. Wall’s government, which has dragged its feet on tackling climate change, Ms. Notley’s government cannot be accused of doing nothing to address climate change. Alberta’s NDP government has led the charge with its flagship ‘Climate Leadership Plan‘ which includes its own carbon tax and an aggressive phasing out of dirty coal-fired power plants.

The Alberta NDP plan enjoys the support of environmental groups and oil and gas industry heavyweights like Cenovus, Suncor, CNRL and Shell.

Meanwhile, opposition groups like the Wildrose Party are literally hoping to rehash the political battles of the 1980s. The official opposition Wildrose Party circulated a meme online today comparing the national carbon tax announcement to the unpopular National Energy Program of the 1980s. The Wildrose Party continues to be fierce critics of the federal Liberals and NDP but party leader Brian Jean has yet to offer any alternative solutions to reduce carbon emissions.

Brian Jean Wildrose

Brian Jean

Ironically, the Wildrose Party’s 2015 election platform proposes to “Ensure Alberta’s standards for CO2 emissions and pollutants are in line with national and international standards.” This statement was written during a time when Stephen Harper was Prime Minister and a national climate change plan was nowhere on the agenda. It is amazing how quickly politics can change in a short seventeen months.

Breaking the landlock,’ which I predict will become the latest political buzzword, is analogous to the “bitumen bubble” that former premier Alison Redford warned Albertans of in a televised address in 2014. Both buzzwords are part of a public campaign to build pipelines that would presumably allow for easier export of Alberta’s oil, and allow the private companies exporting the oil to sell Western Canadian Select at a lower discount rate than in previous years. This probably would not make a significant difference to Alberta until the international price of oil rebounds.

Over the past year, Ms. Notley has shown her willingness to work with Mr. Trudeau on a wide-range of issues. This may have led the Prime Minister to expect he would find an ally in Ms. Notley in his bid to implement a national carbon pricing plan. But by attaching strings to Alberta’s support for a national carbon pricing plan, Ms. Notley is playing a political game that could pay out political dividends at home. In a fight between the Alberta government and Ottawa, as Mr. Lougheed discovered, you can bet that nine times out of ten, Albertans will side with Edmonton.


Here is Prime Minister Justin Trudeau’s speech in the House of Commons today announcing the national carbon pricing plan:

Notley NDP make pigs fly again with support for Climate Leadership Plan

When the Alberta government released its Climate Leadership plan in November 2015, I said that Premier Rachel Notley and Environment and Parks Minister Shannon Phillips had made pigs fly by uniting a coalition of industry leaders and environmental leaders in our province.

Defying expectations, or making pigs fly, might be a strength of Ms. Phillips. Today she brought together another impressive coalition of municipal, industry and environmental leaders to support Bill 20: The Climate Leadership Implementation Act (see list below).

Bill 20 would legislate Alberta’s carbon levy and carbon levy rebate, ensure revenue from the carbon levy is invested in addressing climate change, and establish Energy Efficiency Alberta. As economist and Climate Change Panel chairman Andrew Leach pointed out on Twitter today, carbon pricing has wide support from economists from N. Gregory Mankiw to Paul Krugman.

Since the Climate Leadership Plan was released last year, we have seen groups like Norquest College and non-profits like Iron & Earth step up to help with the transition to renewable energy.

After years of inaction by the old Progressive Conservative government, it is refreshing to have a government that believes in climate change and has actually presented a policy to address it.

The Alberta NDP’s climate change plan defies supporters of the much-maligned LEAP Manifesto, which was spearheaded by more radical elements of the federal NDP at that party’s recent convention in Edmonton. By defying the LEAPers, Ms. Phillips and Ms. Notley are demonstrating a clear difference between an NDP government that takes action and an NDP opposition that just talks big.

Bill 20 will spark some interesting debate on the floor of the Alberta Legislature.

Ms. Notley has fended off the radical environmentalists in her party and presented a sensible policy and bill. How will the opposition respond?

Alberta Party leader Greg Clark responded with a list of questions that I expect he will ask Ms. Phillips during debate.

Wildrose Party finance critic Derek Fildebrandt fell into predictable Canadian Taxpayer Federation hysteria, describing the carbon levy as “an assault on taxpayers and families.”

Wildrose MLAs will likely focus their energy attacking the carbon levy and calling for more oil pipelines, but will the official opposition defy the radical climate change deniers in their own ranks and present a policy alternative to the NDP’s Climate Leadership Plan? Will Brian Jean‘s Wildrose Party join the debate with a policy alternative beyond ‘we will repeal whatever the NDP does on climate change‘?

The NDP have told their radicals to take a hike. Can the Wildrose do the same?


List of supporters of Bill 20: The Climate Leadership Implementation Act

•Karen Sorensen, Mayor, Town of Banff

•John Borrowman, Mayor, Town of Canmore

•Don Iveson, Mayor, City of Edmonton

•Jesse Row, Executive Director, Alberta Energy Efficiency Alliance

•Mark Ramsankar, President, Alberta Teachers’ Association

•Scott Thon, President and CEO, AltaLink

•Peter Tertzakian, Chief Energy Economist & Managing Director, ARC Financial Corporation

•Grant Arnold, President and CEO, BluEarth Renewables

•Joe Vipond, Physician, Canadian Association of Physicians for the Environment

•Robert Hornung, President, Canadian Wind Energy Association

•Michael McSweeney, President and CEO, Cement Association of Canada

•Brian Ferguson, President and CEO, Cenovus

•Kathy Bardswick, President and CEO, The Co-Operators

•Ross Hornby, Vice-President, Government Affairs and Policy, GE Canada

•Cory Basil, Vice-President of Development, EDF EN Canada Inc.

•Kevin Lecht, Business Manager, The International Association of Heat and Frost Insulators and Allied Workers local 110 (Alberta)

•Robert Walker Vice-President, ESG Services & Ethical Funds, NEI Investments

•Ed Whittingham, Executive Director, Pembina Institute

•Rob Harlan, Executive Director, Solar Energy Society of Alberta

•Sean Collins, Co-Founder, Student Energy

•Steve Williams, Chief Executive Officer, Suncor

Alberta Premier Rachel Notley announces the government's plans to not increase royalty rates.

Rachel Notley boosts her credentials as a pragmatist by accepting Tory royalty rates

If you were looking for evidence that Alberta Premier Rachel Notley is a pragmatist, we saw it yesterday. Backed by the members of the Royalty Review Panel, Energy Minister Marg McCuaig-Boyd and the 16 New Democratic Party MLAs from the Calgary region, Ms. Notley announced the Alberta government would not be increasing natural resource royalty rates.

The Royalty Review wraps up the second major review panel launched by the NDP after their win in the 2015 provincial election. The report from Alberta’s Climate Change panel represents a more meaningful shift by the government by phasing out dirty coal fired power plants and introducing a carbon tax. As the Climate Change report represents sweeping change, the royalty review panel embraces the status quo.

It is not the time to reach out and make a big money grab. That just is not going to help Albertans over-all right now, and so I feel quite confident that this is the right direction to take,” Ms. Notley told the news conference in Calgary yesterday.

The decision to keep royalty rates the same is a 180 degree turn from the feisty NDP opposition we knew ten months ago, which claimed Albertans were not getting their fair share from royalties under the old Progressive Conservative regime.

It was also a sharp contrast from the words we heard from the chairman of the province’s previous royalty review. In 2007Bill Hunter wrote that “Albertans do not receive their fair share from energy development. Albertans own the resource. The onus is on their government to re-balance the royalty and tax system so that a fair share is collected.”

If you were paying attention to the moderate language Ms. Notley and NDP cabinet ministers have used when discussing royalty rates since forming government and launching this review panel in mid-2015, you might be less surprised.

With the government’s messaging in mind, it is not shocking that the NDP did not choose to ignore the panels recommendations and impose sweeping changes that many Albertans, including myself, felt were needed. It is my belief that our resource royalties should have been raised to ensure that Albertans are actually getting their fair share when oil prices are high. This report does not do that.

While the decision to accept the status quo on royalty rates will certainly be a divisive issue within the NDP caucus and party, it demonstrates that Ms. Notley is not a partisan ideologue.

The NDP would have faced a severe political backlash from its right-wing opponents, the energy industry, and thousands of Albertans nervous about the state of the economy if they had jacked up royalty rates yesterday. In the short-term, with the current economic situation in mind, it is a smart political decision to keep royalty rates the same, but in the long-term it represents a missed opportunity for Albertans.

Closing the door to royalty increases will also not help solve the revenue shortfall caused by the drop in the international price of oil. After enjoying decades of high oil and natural gas prices, the old conservative government became over dependent on resource royalties to fund the province’s operations budget. With international oil price dropping, the new government now faces a significant shortfall in revenue.

By accepting current royalty rates, the government has also rebuked months of hyper-partisan rhetoric and nasty attacks from Wildrose leader Brian Jean, who claimed the review was risky, ideological and would “not be independent or fair.” It is troubling that Mr. Jean and his party are opposed to even the concept of reviewing Alberta’s resource royalty rates, something that should be done by the Alberta government on a regular basis to assess whether our rates are competitive.

Creating mechanisms for increased transparency around royalties is one positive outcome of this review. The report recommends the annual publication of a capital cost index for oil and gas wells and the costs and royalties paid for each oil sands project. The Auditor General has reported numerous times that the old Conservative government was not properly tracking whether Albertans were receiving the royalty rates they were owed.

Significant new investment in the Heritage Fund when oil prices do rise again will pay off for Albertans in the long-term. In their 2015 election platform, the NDP campaigned on the promise that “100% of incremental royalty revenue, above the sums earned by Alberta under the current regime, will be invested into Alberta’s Heritage Fund.”

Many Albertans will disagree with the report’s claim that Albertans are currently receiving our fair share from resource royalties. Others will claim it will limit the government’s options for dealing with the revenue shortfall. But, for better or worse, it does show the evolution of Ms. Notley and her party from leftish opposition into a moderate government. For better or worse, yesterday we saw Rachel Notley boost her credentials as a pragmatic Premier of Alberta.