Quote:
Originally Posted by yads
A few things on the Norway comparison. In addition to not being our own country, we don't have what basically amounts to a government owned oil company like Statoil.
Another question I have is what should the plan be for the Heritage fund? At what point is it acceptable to start spending it? Is the plan to have everyone employed by the government once industry packs up and leaves? If anything I would support spending a percentage of the money we make from resource revenue now to invest in alternative industry: high tech, manufacturing, alternative energy, etc. So that when the resources run out/become worthless, the entire economy doesn't collapse.
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The principal of the Heritage Savings fund
should never be withdrawn and spent. We as a province
should be investing a significant portion of yearly royalty income into the fund, with the aim of creating an endowment that will yield enough interest income (in perpetuity) to replace royalties in the distant future once the oil dries up. Essentially converting a non-renewable revenue source to a renewable one via investment.
This was Lougheed's initial goal for the fund, but subsequent governments have unfortunately lost sight of this.