Category Archives: taxes

As much as they can get away with.

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 Well, this is what an ingrained sense of entitlement gets us. Calgary’s city council is expensing every little thing that they may get away with. These Aldermen make almost $100,000 per year yet they still feel compelled to try to stick as many expenses as possible on the backs of the taxpayers no matter how petty. Keep in mind that these Aldermen are already provided with $145,385 annually to cover travel, business expenses and assistants.

 Here are some of the petty expenses and the sad excuses the aldermen made for them.

Ald. Andre Chabot expensed $79 for a golf lesson. He said:

“It’s not something I expect to do on a regular basis, but I’m not a golfer, right? When I do get a chance to go out and golf with folks, I don’t want to look too foolish”

 Trust me Chabot, you are looking extremely foolish. Who in their right mind would consider golf lessons to be legitimate expenses to ding taxpayers with?

$4,014 was billed to the taxpayers by aldermen for drycleaning. Excuses below:

Alderman Gord Lowe who billed $655 for drycleaning: “In my perspective, it’s allowed because we do have a public appearance, a public presence, and we have to maintain it.”

 Sorry Lowe, laundry is an expense that everybody has public presence or not.

 Alderman Ric McIver who billed $450 for drycleaning: “In a city of a million people, I’m not sure people want their representatives looking shabby”

 Oh BS Ric. In a 7-11 of perhaps a 12 people they do not want their representatives looking shabby, thus they assure that their employees wash their clothing. I really expected better from you.

 Downtown Calgary has thousands and thousands of employees who are expected to be well dressed for their jobs and that requires drycleaning at times. The employees pay that expense themselves and understood that when taking on the employment.

 Extreme leftist Alderman Brian Pincott jumps into the mix of course. He got more creative in his personal expensing to the taxpayers than the others. Pincott expensed $87 to get a passport for example.

 Pincott sniveled: “I have, on a point of principle, not travelled to the United States and I never before had a passport in my life. If it weren’t for this job, I would never travel to the United States.”

 Kiss my ass Pincott. I don’t care about your weird socialist points of principle. People pay for their own damned passports. It does speak volumes about your ideology however in that you hold the American people in such contempt yet have never even been there. That is right up with religious leaders condemning movies that they have not watched.

Pincott spent $76.19 on One Yellow Rabbit’s High Performance Rodeo, a popular local theatre production. I am afraid that I don’t even have any sad excuse to quote out of Pincott on this one. Pincott feels that the taxpayer should pay to keep him entertained. Repugnant.

Pincott is not alone however. Linda-Fox-Mellway expensed $347.62 so her kids could go see Metallica. Fox-Mellway did repay that one. She claims that it was a mistaken credit card. I claim that she likely simply had it disallowed. It really is not that difficult to tell one credit card from another. Fox-Mellway also expensed $207 to have a shirt alteration done. She has since vowed to pay that back. Funny how their tune changes when they are caught.

 Joe Ceci expensed $156.03 to go to Theater Calgary which he paid back after his fingers were spotted in the taxpayer cookie-jar.

 Golf tournaments are a large part of the expenses of council apparently. Stevenson, Jones, Joe Connelly, Chabot and McIver all hit the taxpayer to attend tournaments. These Aldermen are not attending these tournaments in order to promote the city, they are attending in order to promote themselves. One would expect that these guys would know the difference.

Joe Connelly’s statement on billing tournaments to taxpayers: “It’s an allowable expense and I don’t feel like I have to defend it”

 Ahh that brings back memories of  Dingwall saying he was entitled to his entitlements. Yes you do have to defend it you dolt!!! It is not your money to spend! Just because it is allowable does not mean that it is right.

Connelly spent $383.25 for tickets to see Jordan’s Queen Noor, who spoke in April 2008 about global issues and the conflicts between East and West. Well, yeah I can see how many issues from Jordan can be used to learn from and better our city.

 Finally my favorite Druh Farrell had to jump into the mix of course. One of her gems was  billing taxpayers $89.39 for five copies of “Fluoride Deception”, a conspiracy theory book that apparently is better when one gets multiple copies. Druh in her typical arrogance did not even try to defend her using taxpayer money to fund her reading budget.

 Alderman Ray Jones is in charge of determining what can be expensed and what can’t be. He would not specify, but he has declined many expenses. I can’t imagine how stupid these ones must have been.

 Yes, these are not huge dollar numbers. The principle is critical however. These people are tasked with managing a city of over a million people and billions of dollars. The regard that our aldermen show for our money is reflected in what they expense to us and sadly and predictably they hold us and our funds in low regard.

 These little expenses are only what we can see. Much spending is hidden and mired in the caverns of city hall. The need for a municipal auditor general is more acute than ever and I hope Stelmach gets around to doing that soon. A private members Bill went before our legislature last winter calling for such an auditor. The bill has now been referred to a standing committee.  

 Calgary desperately needs an independent audit before the next municipal election.

Ed gets one right.

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 Though I think it is more due to his having drained the provincial coffers dry with idiotic spending than any sort of visionary brilliance, Stelmach is right to pretty much drop the concept of the high-speed train between Calgary and Edmonton into the lap of the private sector.

 Let’s face it, a bullet-train between Edmonton and Calgary is simply an unviable pie-in-the-sky concept that is best left to people’s imagination. Rest assured, if there was really any need for such as project the private sector would already be racing to get a piece of this.

 Already too much money has been spent in studying the viability of this project. The studies continually find that a high-speed train would cost a fortune and the utilization would not justify the project. In one of the sudies conducted in 2004, it was found that only 3% of Albertans who travel highway 2 would consider parking their cars and taking a high-speed train. Those who take the bus or fly are at 35% and 46% in consideration. This will depend on ticket price of course which likely would be huge.

 So, the only way this train would happen would be with billions and billions of taxpayer’s dollars. In order to get people to ride, taxpayers would likely have to subsidize the tickets. Even with all of that, we would only see a 3% drop in traffic on highway 2 where the problem is. What we may see however is a strong blow to the successful bus and airlines who provide transportation between Edmonton and Calgary. Come to think of it, it is surprising that Stelmach would pass up such an opportunity to beat on successful private companies. He does seem to enjoy doing such.

 Part of the reason that Eddie would not like to initiate such a vanity project is the timeline. In Alberta we can’t even get a powerline approved accross the province. Can you imagine how long it would take to expropriate the land required for a bullet-train? How many impact studies? How many court challenges? Even if we began today, we would be lucky to see the train moving for decades. Eddie will want a more immediate legacy project.

 The drive between Edmonton and Calgary is only three hours. Depending on the vehicle, one can expect to spend about $50 in fuel going both ways. Taking a bullet-train would cost at least that much going one way. While the train trip would only take one hour, the rider will then have to either get a taxi, rent a car or take a bus to wherever they are going. Lets not forget that Calgary will doubtless gouge the riders for parking at the station. Is it really a wonder why so few people would actually use this train?

 It is past time to put this concept on the shelf forever. If some strange and wealth philanthropist wants to spend their dollars to build this thing then by all means. Alberta would be better served by expanding the capacity of highway 2. That is realistic in scope and that is where the need is.

train

Something is very wrong.

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 Last week while at a local convenience store, I observed a young man demonstrating the telltale signs of being homeless. His hair and beard were overgrown and unkempt and his clothing was filthy. He appeared to be in his 20s and he got in line behind me. The young man was very polite at the counter as he deposited a handful of mixed change in order to purchase a cigar. What was most striking though was that when this man spoke it became quite obvious that this man was suffering from a developmental disability.

 About a month ago I had the opportunity to be taken on a tour of  The Vocational and Rehabilitation Research Institute by a friend. This is a non-profit institute that works in affiliation with the University of Calgary and has been doing so since 1969. This institute works with people with disabilities and helps them in a community support sort of role. The facility boasts a bottle depot and a contract with the Calgary Airport that employs people with disabilities. There are also some great recreational and rehabilitation facilities provided as well as their research facilities.

 I am sure that my description of the facility is doing it terrible justice so I do suggest that people click on the link to it in order to learn more about it. What I was most impressed with was that the people there are dedicated to trying to find rational and successful approaches to helping people with disabilities in our community.

 What I was not impressed with was the condition of the facility itself. While the functional areas were as well maintained as possible by staff with limited resources, entire sections were completely shut down. The building is getting old and they simply can’t afford the maintenance on sections of it. Old dorm rooms are now being used as offices and I saw three desks jammed into what obviously served as an individual dorm rooms for patients. The floors above that level were completely closed as was what used to be a cafeteria.

 Right-of-center people are often referred to as uncaring ogres and individualists to the point of not caring for anybody aside from themselves. In reality, most conservative-minded people live by the principle that we should take care of those who can’t take care of themselves as opposed to those who won’t take care of themselves.

 It should go without question that many people with mental disabilities and disorders fall into that category of not being able to take care of themselves. The degree of need varies from some limited community support to full institutional care.

 So why the hell is this realm of government programming so chronically underfunded?

 Crime and homelessness are constantly issues that people are concerned about. Unfortunately the solution always appears to be blind spending. For a person with a mental disability, affordable housing is not going to be of aid. New expensive downtown public washrooms will not help these people nor will expansion of homeless shelters. What is required are programs suited to helping these people based on the unique challenges that they face.

 Sadly, facilities such as the The Vocational and Rehabilitation Research Institute do not provide for the photo-op ribbon cutting ceremonies that new public toilets and expansions of homeless shelters provide. Such help for people is complicated and not romantic thus gets ignored by politicians.

 Decades ago a misguided initiative of deinstitutionalization took off in general public policy. It was considered inhumane that some people be kept in institutions for life and many people have been tossed in the streets due to this. Many of those people never should have been discharged and many of these people are the ones we see covered in rags under our bridges. The number of beds in mental health facilities in Canada are now a fraction of what they used to be. That statistic is not a victory, it means that thousands of people were put out on the streets that never had the life-skills required in order to make it on their own.

 I am not fond of the NDP. They are far to the other side of the ideological spectrum from myself. Credit must be given to the Alberta NDP today though for their persistence in obtaining and exposing a damning report of the Progressive Conservative’s treatment of mental health needs in Alberta.

 As is all too common with our provincial government, they have acted very strongly to suppress information that they determine to be detrimental to the Progressive Conservative Party of Alberta. A report entitled “Beyond Beds…to Balanced Care Mental Health” was commissioned and presented to Alberta Health and Wellness and the Alberta Mental Health Board in 2007 and was approved by the Steering Committee on Mental Health.

 The report then disappeared.

 Alberta Health and Wellness refused an access to information request by the NDP to see the report. Albertans paid for this report, why the hell can’t we see it? It took a leak (somebody, somewhere has a conscience) for the NDP to obtain the report.

 It is easy to see why the Progressive Conservatives wanted to hide that report. The report is very damning of the government and their complete inaction on mental health issues. It shows that Alberta has four times fewer mental health beds than the national average. The national average is too damn low as it is.

 Rather than act on shortcomings, our government works to hide them. The Stelmach government does not care about our most vulnerable in society, they simply want to remain in power.

 While on their decade long spending spree, the PC government has more than doubled provincial spending. While pissing away our tax-dollars to who knows where, the PC government was also starving our mental health programs to the point where Alberta is the shame of the country. How do we spend far more per-capita in Alberta than any other province yet have the least amount of mental health beds? What are the priorities of our government?

 It is past time to do more than pay lip-service to crime and homelessness in Alberta. How much improvement would we see in these areas if we invested in helping people with mental challenges instead of working to hide them? We will never know the answer to that as long as Ed Stelmach remains in power.

 Keep these thoughts in mind every time you see some poor soul dressed in rags while pushing a shopping cart and talking to themselves.

The Canadian Taxpayers Federation are “Goofballs”

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 At least according to the President of Alberta’s Treasury Board; Lloyd Snelgrove.

 Today I engaged in one of my more masochistic activities and watched question period in the Alberta Legislature. I was watching in vain hope of seeing some critical discussion of the record deficit budget that Special Ed Stelmach has dumped on Albertans. Sadly I was in for the usual disappointment. All I heard was repeated yelping from both the Liberals and the NDP using the words “Americanized” and howling about the deregistration of some health services.

 None of these fools seem to realize that it is prolonged overspending that has led to seeking ways to cutting services today.

 It is frightening seeing where discussion is in the legislature today. The Liberals swung deeply into left-wing territory with their election of  David Swann as their leader and the NDP has always dwelled in the land of Marxism. Both of those parties are thrilled with the deficit and would eagerly make it larger should they ever get the opportunity.

 Unfortunately the only voices calling for fiscal restraint and responsibility in Alberta are outside of the legislature. The Wildrose Alliance Party has been making great strides and growth but it will be some time before the party has the chance to gain a seat in the legislature. The Canadian Taxpayers Federation has been very effective in promoting a common sense approach to spending but our government dismisses them as goofballs.

 Snelgrove, had you listened to the calls for fiscal restraint that those “goofballs” had been making in the last decade you would not be sitting in the legislature looking like an idiot for being part of the government that took Alberta from a projected $9 billion surplus to a record deficit in less than a year.

 It is critical that we get voices in Alberta’s legislature promoting fiscal sanity. As things stand now, we have parties that stand; center-left, left and far left. With a few more years like this, we will be lucky if our great great grandchildren will be able to pay off the accumulated debt. The Wildrose Alliance Party is the only party promoting fiscal common sense and we need to get their members into the legislature ASAP. Lets hope for some by-elections at least as Ed Stelmach will not want to face the electorate any time soon.

 The Canadian Taxpayers Federation has a blog here with some great postings.

Some more on Iris Evans’ “Good news budget”.

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 It has been hard on the stomach watching our irresponsible provincial government officials patting themselves on the back due to their being able to reduce their spending increase to a mere 3.7% this year. Remember, these people have not stopped increasing spending, only the rate at which they will increase it. They have done this masterful feat by running a potential $7 billion dollar deficit and raising taxes (property owners are taking it yet again). The last decade of double digit spending increases has given the government a rather heavy addiction to our money.

 Miring through the budget documents is a painful exercise and the government works as hard as possible to find out exactly what they are spending all of our money on.

 The Executive Council is one department that seems to have been spared the savages of spending restraint. The Executive Council is the premier’s office of course. Bundled in with the Executive Council is the Public Affairs department that many fondly refer to as the premier’s ministry of truth.

 Last year the Executive Council got a funding increase of 27%. In light of our tighter times, they have limited the raise in funding this year to a paltry 20%.

 You see, in the eyes of Ed Stelmach it is much more important to convince Albertans that government is doing a good job as opposed to actually doing a good job. The Ministry of Truth employs 118 full time little monkeys who are tasked with producing pretty flyers, advertisements, press releases and lacklustre blogs that blow sunshine up the collective asses of Albertans.

 It is not hard to see why the Progressive Conservative Party of Alberta is always rolling in money. The party needs not spend any of their own money on advertisers. The Public Affairs department spends almost $15 million per year telling Albertans why the Progressive Conservatives are heaven sent.

 With this tax-funded propaganda machine working around the clock, we can see part of why it is difficult to dislodge a government that has been in power for almost 40 years.

 Special Ed clearly sees this importance as well. Why else would he keep pumping these massive spending increases into that department in these times of supposed government restraint?

ministry_of_truth

Calgary Stampede causes outrage in the East!

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 The “stimulus” binge continues. The trend of punishing successful companies through taxation and rewarding the incompetent through bailouts is frightening to say the least.

 I see the shotgun approach of blasting tax dollars across the nation has led to the grave error of some of those dollars ending up in Calgary. Suddenly we see Central Canadians outraged with federal waste of tax dollars.

 It appears that the Calgary Stampede is going to receive stimulus bucks. Don’t get me wrong, I think it is a joke that the Stampede is getting a federal subsidy. That annual event is just fine and throwing tax dollars at it is simply a waste of money.

 What I find striking in this issue is the hypocritical outrage displayed by Eastern commenters in this article. While Central Canadians screech and demand that Bombardier, GMC and Pravda (CBC) be constant recipients of the fruits of the productive, it is inexcusable that a Calgary event get a few bucks in any circumstance.

 Alberta is the producer for the Canadian moocher. We must never forget that role and the attitude from Central Canadians demonstrates this. The tens of billions that Alberta pours into confederation with no return on investment are immediately lost when a few bucks manage to drift back West.

Here are some of  the comments:

The Centrist from Canada writes: Another sponsorship scandal in the making. This stampede is profitable. Why is the government supporting it instead of the CBC?

Catherine Wilkie from Canada writes: “Our sector is no less deserving [of support] … than the automotive industry,” Mr. Jones said, referring to the fact Ottawa has advanced big loans to ailing auto makers.’
Bone dumb statement.

Rusty Waters from Canada writes: The government is on a crazy spending spree. Future generations will be in debt up to their ears. Where is Iggy?

barb johnston from Canada writes: So, how is this going to help these festivals, who have already booked everything and set their schedules far in advance? Better to use the $100 million to help the 300 000 people who have lost their jobs this year. I don’t think the majority of the 1.3 million jobless who are ineligible for EI are going to think that the Stampede was a better use of tax dollars than reforming the EI system.

Joe Citizen from EVERYTOWN, Canada writes: FOLLOW THE MONEY. I am sure that this is just one example of how HARPER is using STIMULUS MONEY to pad the pockets of his pals.
HARPER is nothing more than a pathetic corrupt incompetent.
How can anyone really be surprised that he would pull off such a stunt. He is probably going to prop-up bankrupt his favourite right-wing propaganda machine CANWEST as well.
This guy is capable of anything. Canada has never seen such a degree of corruption at the federal level. He has turned Canada into BANANA REPUBLIC NORTH.

Anthony Bfrom Maritimes, Canada writes: Why would Harper need to give a “stimulus package” to one of the most successful events in the country? Oh right, I get it …..
Stevie = Calgary riding = election = campaign coffers.

Thomas Harris from London, Canada writes: Harpers gone mad! Come the summer and fall theres going to be a half million people unemployed in Canada alone and millions more throughout the USA…Who the hell is going to have the money to travel and visit these festivals?, Throwing money at these festivals is idiocy to say the least, they already are money makers, thats why they continue year in and year out! Who needs another dozen chuckwagon races ran so some more Horses can die at the hands of some besottened bloated nosed cowboys…Stevie, you’ve lost it pal, theres no buying it back, look in the mirror and realize your only making a fool of yourself now. Do the right thing for yourself and your country and resign… and take off that atrocious toupee already!

Disgusted Canadian from Canada writes: If this a thriving event, why does it need that much money. 100 million is alot of Money and there are more important places to put this money, anywheere but a dam stampede, Stop this carnage now. It looks like another leech is borne. Well, actually, it,s been around along time only now it’s gettin brazen and has more gaul

Honesty is the best Policy from Canada writes:
The sponsorship scheme is back!
This time the conservatives get theirs

mike sty the Coalition Centrist from Canada writes:
Sponsorship II………..the CONs way

 

 By the way, the indignant Easterners keep referencing 100 million. That is the cost of the entire program, the Stampede is only getting a tiny fraction of that. Why let facts get in the way of Western bashing though eh?

 There are many many more comments along the same line. Look at the outrage. These people who are dead silent when billions and billions are poured into Eastern industries, yet immediately they become outraged fiscal conservatives when it is discovered that a few thousand dollars are ending up in Calgary. The hypocrisy is breathtaking but it is not new or surprising.

 The flow of funding is always supposed to go out of Alberta. Never shall there be a dime flowing back in.

 There are only so many things we can do in this circumstance. What this attitude does demonstrate though is the need to build the firewall around our province. Federal efforts are a waste of time. Alberta can only be protected from within. The Alberta Agenda is an excellent beginning. Harper wrote it, Klein rejected it and Stelmach paid lipservice to it. It is now time to implement it.

Trying to polish a turd.

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 Yes I think the saying about the futility of polishing a turd is quite appropriate as we see Iris Evans somehow managing to table a record deficit budget and telling us it is “a good news story”. Geeze Evans, I shudder to think what you would consider a bad news story. In light of the Progressive Conservative’s astoundingly terrible fiscal management, I suspect that Evans will have to disclose a bad news budget within a year.

 I had the opportunity to go to the legislature and watch this travesty of a budget in person yesterday. Rest assured, the turd looks no more shiny when observed in person.

 The first order of business in the legislature was to sheepishly table a new version of the “fiscal responsibility act”. The reason for this of course is that the current budget is illegal. Sadly, when government breaks the law, they simply re-write the law. Sheepish is really not enough, the members of the Progressive Conservative government should all hang their heads in shame.

 The PCs are trying to present this as a budget of restraint. They have reduced the increased spending to match that of population growth plus inflation. That spending model is what fiscally wise people have been telling government to follow for over a decade. Sadly Special Ed is a decade late in figuring it out. Last summer we were projecting a surplus of almost $9 billion. In less than a year we are facing going almost $5 billion into the hole.

 The government is patting itself on the back for the fiscal restraint being shown. Reducing an increase is not an example of fiscal restraint, reducing spending is!

irisa

 Yes Evans is gazing into a crystal ball. You see, part of the budget is pure speculation. While the government is already admitting that they are spending $4.7 billion more this year than they are earning, they are sort of quiet about there being another $2.2 billion in revenue required to make their spending commitments. Essentially the government is praying that oil will massively spike in price in the next few months. If this spike does not occur, the real deficit is close to $7 billion.

 How much faith can we have in the prognostication powers of the government? Well considering the idiots were off on their projected revenue by over $10 billion over a period of some eight months or so, I must say that I am not terribly confident.

 The issue is not too complex. Our problem is not a sagging world economy or low commodity prices (though that does not help), our problem is that the government has been spending money like drunken sailors for over a decade.

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 It does not take an economist to look at the above image and realize that Alberta has been on a collision course with deficit for years. Many voices from the Taxpayers Federation to the Fraser Institute to the Canadian Federation for Independent Business have been pointing this trend out to Stelmach for years. Stelmach blindly and idiotically ignored those voices and continued to piss away the hardearned tax-dollars of Albertans.

 How must it feel for those PC MLAs who sat in the legislature in the 90s? Those MLAs who endured the complaints and pressures to spend as Alberta tightened her belt and ended deficit financing? How does it feel to go so swiftly and deeply back into deficit after all that work guys? I watched the PC seals in the legislature pounding their desks in applause as Evans tabled that document which will place the burden of payment on our children. Can you guys really sleep at night? Have you any shred of principle left?

 This is the sad outcome of a government that has been in power for almost 40 years. There is no principle, there is no vision. The government exists for the Progressive Conservative Party’s interests. The interests of Albertans were discarded years ago. There will be no healing for this sick administration. They are entrenched, visionless and parasitic. The government takes no path aside from what they view as the path of least resistance. In cowardice they have bent to every spending demand and we now are all paying the price.

 Alberta needs to sweep this lost government from the legislature. We are prone to doing that every few decades. It is clear that such a housecleaning is more than in order now.

 The Wildrose Alliance Party is promoting fiscal responsibility and is wisely planning for Alberta’s future. Meetings are being held across the province and growth in the party is unprecedented. Despite the fast growth of the WAP, it will still be a tough and uphill battle to unseat a government that feels they are in power by divine right. It cannot be stressed enough how much Albertan’s need to shed their traditional apathy and to get involved. People need to work to make change. The campaign for election 2012 must begin now if we are to make change in Alberta. Don’t wait for somebody else to do it, they will not.

 If things are left as they are, we will be leaving a sad and shameful legacy to future generations in this province. To have so much potential wasted is intolerable.

It’s bonus season!!

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 As we see the economy slip into the tank, as we see layoffs in all sectors, as stress in households grows with decimated retirement portfolios and as we hearthe Stelmach government tell us that they must borrow our grandchildren into debt for lack of room to cut spending, we hear that the Progressive Conservative government of Alberta has handed out $110,000,000 in “achievement” bonuses for senior civil servants in the last 3 years.

 Considering the explosive increases in spending in the last few years, all we can assume is that the rewarded “achievement”  is achieving excellence in creatively pissing away the hard earned tax dollars of Albertans.

 Bonuses can be an effective means of getting better performances from employees. These bonuses only apply to a few thousand of the senior elite in government however. The civil servants working in the trenches don’t see these lucrative perks. Most of this bonus money has gone to deputy ministers who make an average of $250,000 per year and have seen their salaries increase by 61% since 2005.

 Would not those disproportionate raises in the last few years constitute something of a reward for these people already? Apparently not.

 While the government is bound to report the spending on these bonuses in their respective departments, one department is unsurprisingly exempt from disclosure; that is the Alberta Executive Council.

The Executive Council is made up of the Premier and cabinet ministers.

Well Ed, how many perks have you lined your own and the cabinet’s pockets with bonuses? I guess those 30% raises last fall were not enough. Sadly as Albertans we are not allowed to find out these numbers.

 Keep these kinds of things in mind in a couple weeks as the government releases a deficit budget and claims they have no way to avoid budgeting on our collective credit cards.

Let’s talk bailouts.

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 OK, it looks like reality finally bit Special Ed Stelmach in the butt and he has realized what tax hikes and socialism do; they stunt and reduce business activity. The greedy “fair share” strategy and royalty hike that Stelmach and Knight pursued brought no increase to provincial revenues and simply managed to pluck the golden goose. On what is Stelmach’s 8th or so “tweaking”  of the royalty regime, the engines of misinformation are working overtime to demonize the oilpatch again.

 A Herald headline the other day demonstrates this rather well:

 Stelmach announces bailout for junior, mid-cap energy companies.

 Tax relief does not constitute a bailout!

 You would think that with all of the real examples of bailouts that we are seeing lately that people would understand the difference. The “stimulus packages” that Harper and Obama are flogging on the backs of our grandchildren are bailouts. The cheques being handed to the auto sectors are bailouts. The cash that the CBC is demanding would be a bailout. The money Air Canada gets every time they mismanage themselves to the brink of bankruptcy is a bailout.

 Where is the cheque coming to the big bad oil companies? Where has the oil industry even asked for a bailout? There are cheques going out, have no doubt of that. The cheques however are going from energy companies to the government.

 Will every tax reduction in the future (should we see any) be defined as a bailout? When Harper reduced the GST, was he offering a bailout to the entire population of Canada? Are we all welfare bums in that sense that we have been bailed out?

 Unsteady Eddie was already realizing that his new royalty scheme was idiocy even before oil prices and the market went into the toilet last fall. Land sale revenues (another cheque from energy companies to government) had plummeted in Alberta to the point that government was not gaining anything with their new “fair share” royalty program. Stelmach had made Alberta uncompetitive and it was very apparent as exploration and development boomed in Saskatchewan and BC while Alberta saw a reduction in activity despite $140 per barrel oil prices.

 In light of the world economic situation, clearly Alberta would be seeing tough times right now whether Stelmach messed with our economy or not. The pain Alberta will feel through this recession will be far more acute due to the market mistrust that the Progressive Conservative gang led by the idiots Ed Stelmach and Mel Knight.

 We are hearing of a credit crunch. Energy exploration and development are capital intensive ventures that require long-term planning and investment. When an energy company seeks credit, like everybody else it must demonstrate assets to the financial institution that may finance development. In energy that translates to proven reserves and speculation on their value when these reserves are developed. Now imagine how hard it is to get credit when the value of your reserves and cost of development changes by the month as Stelmach keeps trying to tinker with the rules. Would you like to invest in a jurisdiction known for tearing up agreements and increasing their take after the development dollars have been invested? Rest assured investors are asking these very questions.

 Stelmach can reduce royalties to even below the levels we had prior to his initial messing around. The market mistrust in Alberta will not go away. It will take a change of government or at least a decade of some true and steady leadership before we see business confidence in Alberta again.

 Some people claim that energy companies have not done enough to win over the hearts of the public thus they lack support at times like this. Just how far are they to go exactly? Have a look around. How many billions must these companies invest in communities before some appreciation is shown? How many more hundreds of millions in charitable initiatives and sponsorships must they invest?

 I don’t think anything will help. Too many people like to simplistically imagine that all of these companies are headed by Scrooge McDuck types who are swimming in money taken from the public. People don’t look at the millions employed, the billions paid in income-taxes and billions spread from the community level to the entire nation. Many do not realize how deeply their pensions are invested in these companies or how many government services are provided thanks to revenue generated from these companies. I don’t know if perception will ever be changed.

 One area that energy companies are working on in hopes of getting a better perception is pumping money at groups who have fully dedicated themselves to demonizing the entire industry and I have to admit I am stumped with this one.

 The Pembina Institute is a leftist organization that is dedicated to misinformation and pretty much every effort possible to halt all energy development. In looking at their report, I am astounded and disgusted to see who is funding them:

There is only one donor listed over $50,000. That donor is ConocoPhilips. In the $10,000 to $20,000 category we find the Canadian Gas Association, Enmax, Nexen, The North American Oilsands Corporation, and Suncor Energy. Getting into the $1000 dollar range there is an even longer list of energy donors.

 Why are you guys paying this group to kick you in the nuts? Have these investments made the releases from the Pembina any more rational or fair? Do you really expect these people to suddenly embrace you?

 When we see anti-energy types howling that energy companies are being bailed out, I would suggest that the dollars wasted on the clowns at the Pembina would be much better spent on ads trying to inform the public on what a bailout actually is.

 Giving more cash to the Pembina is an exercise in masochism at best.