[First Lady]

Well, here is one oppositions view....

February 6, 2009

Wildrose Alliance says Proposed Junior Energy Incentive
is no Incentive at all.

For Immediate Release

Wildrose Alliance Leader Paul Hinman reiterates his call for the Stelmach government to cancel the New Royalty Framework (NRF) outright. "Yesterday's announcement of a tax incentive for junior producers will not encourage more investment", he says. "They are not making money now due to higher royalties and lower oil and gas prices. Lower taxes on no income is the same as high taxes on no income: 0!"

Hinman points out that this marks the 8th change to the initial proposed Royalty Program by this government. Further, the Competitiveness Study the government is just beginning promises to bring further changes to the current Royalty Framework which just went into effect as of January 1st. "However, Minister Knight states there will not be changes to the penalizing Royalty Framework. And lest we not forget, we currently have two Royalty systems running in tandem thanks to one of their latest proposals."


"There can be no confidence by those making multi-year investments in this Province of any stability when changes occur bi-monthly. The change itself discourages investment because it is unknown what or when the next change will be, positive or negative." The Province, Hinman says, has foregone billions in land sale revenues already. Yesterday, the Canadian Energy Research Institute announced that oil sands investment will decline by $97 to $241 billion over the next 10 years, which equates to about $30,000 to $73,000 for every Albertan! If re-gained, it is a non-taxpayer funded stimulus program that dwarfs the Federal Government stimulus programs a few times over!


The solution to getting Alberta back up and running is to eliminate the current Royalty Framework and provide capital cost allowances on energy investment. These simple measures will increase drilling activity and create jobs and income across the Province.

"This latest gamble by Premier Stelmach shows how out of touch his government is with the Alberta economy," Hinman says. "There is no income being generated by the energy sector and this proposal won’t change investment levels in Alberta. The higher Royalties being paid are damaging investment and sending dollars out of Province."


Hinman points out that B.C. has figured this out by providing royalty relief on wells to encourage investment. "The only stability Premier Stelmach provides is instability. He should apologize for his mismanagement and costing Albertans their jobs."

The Wildrose Alliance Party is the only party that has opposed the New Royalty Framework from the beginning. The oil and gas sector provides strong support to Albertans through job creation, investment, and royalty income. The sector should be encouraged to further invest in the Province both upstream and downstream.

FOR MORE INFORMATION:
Paul Hinman
Wildrose Alliance leader
Phone: 403 393-2003

info@wildrosealliance.ca