Alberta Politics Thread

[Weitz]

Well this should be fun:

EDMONTON – It’s budget day in Alberta, but Finance Minister Joe Ceci has already announced the biggest piece of bad news. Ceci has said the oil-reliant province will confirm a budget deficit in excess of $10 billion.

But he says the budget will also include updated details on job creation and economic diversification strategies. The prolonged slump in oil prices has resulted in tens of thousands of job losses in Alberta and placed pressure on Ceci and Premier Rachel Notley to cut spending to avoid skyrocketing debt. Ceci and Notley have said that some new programs will be delayed or spread over a longer time, but that front-line jobs will not be cut.

An accelerated $34-billion infrastructure program is to continue. The government also plans to spend an additional $500 million or more in seniors housing. Notley has said making deep cuts would only make a bad situation worse.

The low prices have dampened the bottom lines of energy producing provinces across the country. The government of Newfoundland and Labrador, another province heavily reliant on energy income, is also to table a budget Thursday.

Tax hikes, job losses and spending cuts are among grim expectations as the oil price slide takes its toll there as well. West Texas Intermediate, the benchmark price for oil, fell below US$30 a barrel in January, but has recovered slightly and hovers in the low $40s. It was more than US $100 a barrel in the summer of 2014.

Notley’s provincewide TV address last week revealed this year’s resource revenue will total $1.4 billion compared with almost $9 billion in the 2014-15 budget year. The budget is also to include details of a new carbon tax set to begin Jan. 1. It’s part of Alberta’s climate-change plan and is to provide incentives to go greener by increasing the cost of everything from gas at the pumps to home heating and electricity.

The tax is expected to bring in $3 billion a year, but the government plans to give rebates to low and middle-income Albertans. Opposition Wildrose Leader Brian Jean says the government needs to rethink the tax given the sluggish economy. Ric McIver of the PCs says it’s time to bring in a plan to get Alberta’s books back in balance.

http://boereport.com/2016/04/14/albe...nveils-budget/

[Locke]

Wait...did I read that right? They're going to generate $1.4B in revenue from Royalties but the Carbon Tax is going to double that?

Well hell, why bother with Oil at all? Lets just juice the crap out of that Carbon tax. Seems like Magic Money.

[nik-]

A year to get a budget going

[llwhiteoutll]

They need to stop calling it a carbon tax and claiming that it is meant to shift people towards energy efficiency.

It's a tax on everything meant to boost general revenue and nothing more.

[Locke]

Originally Posted by llwhiteoutll

They need to stop calling it a carbon tax and claiming that it is meant to shift people towards energy efficiency.

It's a tax on everything meant to boost general revenue and nothing more.

Sure, but 'Carbon Tax meant to incentivize people to go greener' tickles their cockles and strokes their egos more so that they dont have to admit that their ethos is ridiculous.

When does the drum circle start where we weave our own clothes? I dont want to be late but I had to sell my watch which was made of oil products oppressive to Mother Gaia so now I have to be attentive to the position of the sun.

[CaptainCrunch]

Just wait until people start adding up the cost increases to gas, and heating and electricity and other utilities, On top of that food pricing will go up because transportation costs are going to go up.

And its going to general revenue.

People are going to get squeezed and its going to be at the worst possible time.

Oh sure we're going to get rebates to the lower and middle classes, but chances are that its not going to come close to making up for the increases that are going to happen.

Its like getting the quarterly GST rebates for $64.00 when it first came out.

When the government grabs your wallet from you're left side and generally rapes it, then throws you a couple of bucks for the inconvenience its not making up for the loss of dollars.

As batshyte crazy as O'Leary is, he's right, this tax needs to be treated like a mutual fund. The government needs to release audited reports on how much was bought in on the tax and exactly what was it spent on. Separate it out and make it a true investment fund.

But if it goes into the general day to day operating fund, that money will be entirely pissed away.

[CaptainCrunch]

Originally Posted by Locke

Sure, but 'Carbon Tax meant to incentivize people to go greener' tickles their cockles and strokes their egos more so that they dont have to admit that their ethos is ridiculous.

When does the drum circle start where we weave our own clothes? I dont want to be late but I had to sell my watch which was made of oil products oppressive to Mother Gaia so now I have to be attentive to the position of the sun.

You mean you can't tell time just by looking at the suns position, or the howling of an owl at night. What are you a caveman?

[Locke]

Originally Posted by CaptainCrunch

You mean you can't tell time just by looking at the suns position, or the howling of an owl at night. What are you a caveman?

I try but every time I look at her Queen Sola burns my retinas with her loving fury! Why oh why can we not harness her sweet embrace and bask peacefully in her loving glory?!?

[Flash Walken]

Spoiler!

It's all starting to make sense now.

Murray Edwards must've hired Notley to impose the Carbon Tax to Kill the Oil Industry so he could justify moving to London, the Curry Capital of his heart (and the world).

[CaptainCrunch]

or, he knew that whatever he said, Notely was going to target the industry and no matter what he said she was going to impose the carbon tax. So instead of fighting it, he put a stamp on it, and we've seen with the rebates to the Oil companies (I think that's what its called) the Carbon tax to these companies is less punitive then it could be.

Instead it basically became a provincial sales tax that targets individuals instead of mega companies.

So as an individual he bolted.

[CaptainCrunch]

Originally Posted by Locke

I try but every time I look at her Queen Sola burns my retinas with her loving fury! Why oh why can we not harness her sweet embrace and bask peacefully in her loving glory?!?

But the night god will cool your flaming retinas as it chases Queen Sola across the sky. Some day its going to catch Queen Sola and devour her, or have sex with her depending on the season, and all our retinas will be saved.

[chemgear]

Originally Posted by llwhiteoutll

They need to stop calling it a carbon tax and claiming that it is meant to shift people towards energy efficiency.

It's a tax on everything meant to boost general revenue and nothing more.

But, but, but . . . it's Revenue Neutral™

[Derek Sutton]

The NDP sure likes to play the blame game. Oil prices have been in the tank for a year now with no optimism out there, they had one full year to try and make the numbers work but were incapable. There revenue projections are out to lunch. The balanced budget is now promised for 2024 instead of 2020 which was what they ran on. 13 billion for Alberta health care, 7.5 billion for public schools. $57 billion in debt by the end of the NDP term (2019). Unbelievable, We are so screwed.

They have also scrapped the 15% debt to GDP ration which they themselves implemented.

[chemgear]

http://calgaryherald.com/news/politi...rowing-by-2018

Boosting borrowing to offset a 90 per cent reduction in resource revenues, the NDP government has maxed out its credit limit and been forced to apply for a higher one.
Finance Minister Joe Ceci said he planned to introduce legislation to eliminate the cap in order for the government to continue to invest in infrastructure during the fiscal crisis.

Just a decade ago, premier Ralph Klein was touting Alberta’s debt-free status.

For the first time since 1994, Alberta will borrow money — $5.4 billion this year, $8.4 billion next year — for operational spending to run the province, having finally depleted its $6.5 billion contingency fund.

Previously, Alberta governments borrowed for capital projects only.

Ceci told reporters he didn’t expect the province to be back in the black until 2024 and he said he has not yet set out a blueprint to get there.

[mrkajz44]

Originally Posted by Derek Sutton

The NDP sure likes to play the blame game. Oil prices have been in the tank for a year now with no optimism out there, they had one full year to try and make the numbers work but were incapable. There revenue projections are out to lunch. The balanced budget is now promised for 2024 instead of 2020 which was what they ran on. 13 billion for Alberta health care, 7.5 billion for public schools. $57 billion in debt by the end of the NDP term (2019). Unbelievable, We are so screwed.

They have also scrapped the 15% debt to GDP ration which they themselves implemented.

This is what is so concerning to me. While the massive deficits that are upcoming in the next few years look bad, it really is directly due to O&G. Revenues from royalties have dropped from around $10B to $1.5B in two years. Any government would have a hard time running balanced budgets with that happening.

But to take away the cap they just put in place is terrible policy. From CTV:

Ceci had previously said the cap would keep interest payments on debt repayment within reasonable limits and not hamstring future generations.

What a joke - so now it is okay to hamstring future generations? I get that that oil prices have put you in a tougher spot than you thought, but to just borrow excessive amounts of money is not the answer. Alberta has the lowest debt carrying charges to GDP of all the provinces right now (I believe). I wonder what that will look like in a few years under this plan.

[Tacopuck]

I have never once considered leaving my home of Alberta permanently, this budget makes me think I may have to.

[chemgear]

Originally Posted by mrkajz44

I wonder what that will look like in a few years under this plan.

Pretty sweet if you're a teacher. Raises!

Originally Posted by Tacopuck

I have never once considered leaving my home of Alberta permanently, this budget makes me think I may have to.

It'll just be teachers left in the wasteland that'll be left.

[Locke]

Originally Posted by chemgear

http://calgaryherald.com/news/politi...rowing-by-2018

Boosting borrowing to offset a 90 per cent reduction in resource revenues, the NDP government has maxed out its credit limit and been forced to apply for a higher one.
Finance Minister Joe Ceci said he planned to introduce legislation to eliminate the cap in order for the government to continue to invest in infrastructure during the fiscal crisis.

Just a decade ago, premier Ralph Klein was touting Alberta’s debt-free status.

For the first time since 1994, Alberta will borrow money — $5.4 billion this year, $8.4 billion next year — for operational spending to run the province, having finally depleted its $6.5 billion contingency fund.

Previously, Alberta governments borrowed for capital projects only.

Ceci told reporters he didn’t expect the province to be back in the black until 2024 and he said he has not yet set out a blueprint to get there.

Ceci's last name is rapidly going to become a 4-letter word around here if he keeps this up.

[Tacopuck]

Originally Posted by chemgear

Pretty sweet if you're a teacher. Raises!



It'll just be teachers left in the wasteland that'll be left.

Maybe teachers can teach the NDP some basic economics because it seems they skipped that class

[Resolute 14]

Originally Posted by CaptainCrunch

or, he knew that whatever he said, Notely was going to target the industry and no matter what he said she was going to impose the carbon tax. So instead of fighting it, he put a stamp on it, and we've seen with the rebates to the Oil companies (I think that's what its called) the Carbon tax to these companies is less punitive then it could be.

Instead it basically became a provincial sales tax that targets individuals instead of mega companies.

So as an individual he bolted.

Yup. I have no problem with Edwards as an individual, but when he and the the leaders of three other large companies lined up behind Notley, it was obvious that the people most likely to benefit - or at least suffer least - were the four people lining up behind Notley. Prudent move on their part, and we get screwed with a PST by another name.