Thursday, September 20, 2007
Whose Oil Is it Anyway?
I have been harping on Albertans to read the recently released Royalty Review Report for 2 days now. Here is the link to make it easier.
Hunter Royalty Review Reaction Shows Some in the Oil Patch Just Don't Get It!
What is it that some oil executives and certain investments brokers in the oil patch do not understand about the natural resources belonging to Albertans? Based on media reported comments in the past two days, since the release of the Hunter Royalty Review Report, it appears that some of them don't understand anything around that reality.
The Hunter Royalty Review Report evidence indicates oil industry types seem to think that they are the one who control and dictate the provincial energy resource policies...from top to bottom. From some of the Hunter Royalty Review Report findings, it looks like that has essentially been the way things have been operating in the oil patch with the Klein government apparently just going along with it. I hope the former Premier and his Ministers of Energy will be able to prove to Albertans that this is not - and has not - been the case.
Someone in the Calgary-centric energy investment community is also reported as saying in an
E-mail to clients entitled “Caracas on the Bow River” that if the Hunter Royalty Review Report "is enacted investment decision will be impacted." Duh! Isn't that is what this is all about? The impact is about the appropriate rents and rates Albertans should get from granting a social licence to oil companies to operate in OUR resource base and who is most appropriate to be trusted to develop those resources. This broker claims the Hunter Royalty Review Report “…reads a bit like a Chavez-style manifesto.” Boy is this attitude off base and out of touch with reality.
Then we have news reports of some energy CEOs meeting in London calling for a new National Energy Program demanding an increased federal role in their industry. Interesting timing in the face of a royalty review don't you think?
It was the NEP that killed the Liberals in Alberta 25 years ago and the myths remain. If that were to ever be seen as a possibility then Peter Lougheed’s predictions of a constitutional crisis that would make the old NEP look like a picnic would actually come to pass. Harper needs to win Quebec and not lose Alberta in the process. It is not going to be smart politics for Harper to be revisiting the NEP of Trudeau times especially since he is an old-style Reformer at heart. Stranger things have happened. Harper has flip-flopped before - think Income Trusts!
The oil and gas industry, the Alberta Department of Energy and past Energy Ministers since 1995 have a lot of explaining to do about how they calculated, accounted for and ensured the right royalties have been paid. That reassurance is something that needs to be done in addition to settling the question of how the rates should change and how much they should increase.
Perhaps the Auditor General Report on Royalties due in mid October will shed some more light on this or at worst point to more clouded mystery of perpetually poor accountability that needs to be fixed.
In any event this situation will either lead to Stelmach's finest hour as Premier or his final hour as Premier. Everything is at stake. Stepping up to the plate and hoping to hit a single will not cut it.
Stelmach has to step up to the plate and point to the fence and then swing for a home run. Nothing less will do. Hunter has given him a perfect pitch with this report. Over to you Ed - and here is a tip - keep you eye on the ball!
All eyes in Alberta are soon going to be watching the Premier. They ready to cheer or boo - depending on how well he deals with this. No pressure Ed...it is just about good government and appropriate politics.
The Hunter Royalty Review Report evidence indicates oil industry types seem to think that they are the one who control and dictate the provincial energy resource policies...from top to bottom. From some of the Hunter Royalty Review Report findings, it looks like that has essentially been the way things have been operating in the oil patch with the Klein government apparently just going along with it. I hope the former Premier and his Ministers of Energy will be able to prove to Albertans that this is not - and has not - been the case.
Someone in the Calgary-centric energy investment community is also reported as saying in an
E-mail to clients entitled “Caracas on the Bow River” that if the Hunter Royalty Review Report "is enacted investment decision will be impacted." Duh! Isn't that is what this is all about? The impact is about the appropriate rents and rates Albertans should get from granting a social licence to oil companies to operate in OUR resource base and who is most appropriate to be trusted to develop those resources. This broker claims the Hunter Royalty Review Report “…reads a bit like a Chavez-style manifesto.” Boy is this attitude off base and out of touch with reality.
Then we have news reports of some energy CEOs meeting in London calling for a new National Energy Program demanding an increased federal role in their industry. Interesting timing in the face of a royalty review don't you think?
It was the NEP that killed the Liberals in Alberta 25 years ago and the myths remain. If that were to ever be seen as a possibility then Peter Lougheed’s predictions of a constitutional crisis that would make the old NEP look like a picnic would actually come to pass. Harper needs to win Quebec and not lose Alberta in the process. It is not going to be smart politics for Harper to be revisiting the NEP of Trudeau times especially since he is an old-style Reformer at heart. Stranger things have happened. Harper has flip-flopped before - think Income Trusts!
The oil and gas industry, the Alberta Department of Energy and past Energy Ministers since 1995 have a lot of explaining to do about how they calculated, accounted for and ensured the right royalties have been paid. That reassurance is something that needs to be done in addition to settling the question of how the rates should change and how much they should increase.
Perhaps the Auditor General Report on Royalties due in mid October will shed some more light on this or at worst point to more clouded mystery of perpetually poor accountability that needs to be fixed.
In any event this situation will either lead to Stelmach's finest hour as Premier or his final hour as Premier. Everything is at stake. Stepping up to the plate and hoping to hit a single will not cut it.
Stelmach has to step up to the plate and point to the fence and then swing for a home run. Nothing less will do. Hunter has given him a perfect pitch with this report. Over to you Ed - and here is a tip - keep you eye on the ball!
All eyes in Alberta are soon going to be watching the Premier. They ready to cheer or boo - depending on how well he deals with this. No pressure Ed...it is just about good government and appropriate politics.
Wednesday, September 19, 2007
C.D. Howe Institute Ranks the Best and Worst Elementary Schools in Alberta
The C.D. Howe Institute has just released a report on the ranking of the Best and Worst of the 2,240 Elementary schools in Alberta. This review and ranking actually takes into consideration the socio-economic aspects of the individual schools environment.
Rankings are always difficult to do and often mislead as much as they enlighten. In something as complicated and varied as elementary schools in a diverse province like Alberta those ranking problems tend to get amplified.
As Alberta Teachers Association President, Frank Bruseker, has oft said of other school rankings, they essentially measure the house prices in the neighbourhoods where the schools are located. That is a powerful way to say school performance is very strongly influenced by the socio-economic realties of the local neighbourhoods.
Full disclosure, I am a Member of the C.D. Howe Institute so I have a bias in fabour of their work. That notwithstanding, this review and ranking report on Alberta Elementary Schools is worth a serious read.
Rankings are always difficult to do and often mislead as much as they enlighten. In something as complicated and varied as elementary schools in a diverse province like Alberta those ranking problems tend to get amplified.
As Alberta Teachers Association President, Frank Bruseker, has oft said of other school rankings, they essentially measure the house prices in the neighbourhoods where the schools are located. That is a powerful way to say school performance is very strongly influenced by the socio-economic realties of the local neighbourhoods.
Full disclosure, I am a Member of the C.D. Howe Institute so I have a bias in fabour of their work. That notwithstanding, this review and ranking report on Alberta Elementary Schools is worth a serious read.
Does EUB Spying, Muncipal Funding Fiasco and Royalty Rates Review Mean Trouble and Turmoil in Alberta?
Boy what a week – Quebec by-elections, real threats of recession in the States, a run on a British Bank, the US dollar in meltdown and then we have Alberta’s governance in turmoil in the face of a municipal funding fiasco, two damning reports on EUB and spying and the recent Royalty Review report just released.
MUNICIPAL INFRASTRUCTURE FUNDING FIASCO:
There is plenty of consternation in the Edmonton region over the municipal funding for infrastructure. I have had my ear bent by a number of Edmonton politicians and officials on how unfair and damaging this funding approach will be to stability in the Capital City and the surrounding region. I need time to read and reflect on what happened and how it happened and to better understand the implications. Expect the City of Edmonton to take on the Stelmach government and all the other local regional governments surrounding the city. This political and governance turmoil is at play now because of the obvious unfairness of this municipal infrastructure funding model. Edmonton now has a central municipal election issue that will heat up significantly over the next month. Stelmach needs rural support and one of the major cities to retain power. He will not retrieve anything in Calgary and risks losing all of Edmonton with this municipal infrastructure funding formula.
EUB PLAYS "I SPY WITH MY PRIVATE EYE:"
I want to post on the EUB private investigator issues but need to find the time to read the two reports. The political responses to the reports are important and need comment. My sense is the government is under reacting and the opposition is over reacting. The implication for how citizens are treated by such agencies boards and commissions is critical and the security and protection of public officials is equally important. This is not about a trade-off of competing values. It is about what is a reasonable and responsible exercise of judgment and authority by public officials. More to come later.
ROYALTY REVIEW REPORT COULD AND SHOULD ENERGIZE THE STELMACH GOVERNMENT:
The Royalty Review is even more vital to the future of Alberta economically and politically. This report needs a thorough read and study. The importance of this report and the political, industry and citizen reaction cannot be over stated. It is foundational to the future of Alberta and not just the rates and payments. It is just as important to consider in terms of the relationship and roles of the development and management of this public-owned resource. How is the public’s government to behave as proxy for the citizenry? How is the oil and gas industry doing in the execution of its responsibility? How does it fulfil its various societal outcomes, ecological integrity and sustainable economic duties within the social license to operate responsibly and sustainably in this non-renewable energy resource sector?
IT IS TIME FOR CITIZENS TO READ AND REFLECT AND TO BE RESPONSIVE
Again I need time to read and reflect and respond to the reports and their recommendations. I encourage anyone who takes their citizenship seriously to read and reflect on these reports and to let their MLAs know what they think about the implications and impacts in each case. These reports identify issues that are all too critical to leave to politicians, government administrations, appointed agencies and industry self-interests to deal with alone.
MUNICIPAL INFRASTRUCTURE FUNDING FIASCO:
There is plenty of consternation in the Edmonton region over the municipal funding for infrastructure. I have had my ear bent by a number of Edmonton politicians and officials on how unfair and damaging this funding approach will be to stability in the Capital City and the surrounding region. I need time to read and reflect on what happened and how it happened and to better understand the implications. Expect the City of Edmonton to take on the Stelmach government and all the other local regional governments surrounding the city. This political and governance turmoil is at play now because of the obvious unfairness of this municipal infrastructure funding model. Edmonton now has a central municipal election issue that will heat up significantly over the next month. Stelmach needs rural support and one of the major cities to retain power. He will not retrieve anything in Calgary and risks losing all of Edmonton with this municipal infrastructure funding formula.
EUB PLAYS "I SPY WITH MY PRIVATE EYE:"
I want to post on the EUB private investigator issues but need to find the time to read the two reports. The political responses to the reports are important and need comment. My sense is the government is under reacting and the opposition is over reacting. The implication for how citizens are treated by such agencies boards and commissions is critical and the security and protection of public officials is equally important. This is not about a trade-off of competing values. It is about what is a reasonable and responsible exercise of judgment and authority by public officials. More to come later.
ROYALTY REVIEW REPORT COULD AND SHOULD ENERGIZE THE STELMACH GOVERNMENT:
The Royalty Review is even more vital to the future of Alberta economically and politically. This report needs a thorough read and study. The importance of this report and the political, industry and citizen reaction cannot be over stated. It is foundational to the future of Alberta and not just the rates and payments. It is just as important to consider in terms of the relationship and roles of the development and management of this public-owned resource. How is the public’s government to behave as proxy for the citizenry? How is the oil and gas industry doing in the execution of its responsibility? How does it fulfil its various societal outcomes, ecological integrity and sustainable economic duties within the social license to operate responsibly and sustainably in this non-renewable energy resource sector?
IT IS TIME FOR CITIZENS TO READ AND REFLECT AND TO BE RESPONSIVE
Again I need time to read and reflect and respond to the reports and their recommendations. I encourage anyone who takes their citizenship seriously to read and reflect on these reports and to let their MLAs know what they think about the implications and impacts in each case. These reports identify issues that are all too critical to leave to politicians, government administrations, appointed agencies and industry self-interests to deal with alone.
Tuesday, September 18, 2007
Quebec By-Elections Herald Change and Uncertainty
What Happened in Quebec Politics Yesterday?
I watched the by-elections last night and had to wonder what is going on in Quebec. For the most part I think it is healthy for democracy and could be good for Canada. The reality is these events were by-elections. Personality of candidates often means more in those events than party or policy or leadership. There is a reality of the timing of these by-elections too. The current minority government could be brought down any given day the House is sitting and now the NDP alone can save the Conservative’s bacon in a confidence vote. So the consequences of a local constituency “getting it wrong” are not too damaging. So why not send the powers that be a message?
Enough context (excuses???) Here are the messages I got from the result in Quebec last night. Dion and Duceppe are damaged and personally deflated by these results. Layton is the big leadership winner by making a breakthrough in Quebec for the first time and very decisively.
The personality issue played well for the NDP with Mulcair but he also had some fascinating political manoeuvrings at play in his victory too. He attracted a large segment of the Bloc voters (Ouch Mon. Duceppe – that has to hurt) and what were those Bloc voters saying? Were they ticked with the Bloc and wanted to “block” the Liberals. Don’t forget Mulcair was a Charest Liberal Cabinet Minister who resigned and turned Dipper. His election as a Dipper sends a message to the federal and provincial Liberals and bruises them both badly.
The Conservative win by Lebel in Roberval was stunning. Not only was the margin of victory impressive it was in separatist country. This Conservative win was by a guy who, a few short months ago, was also a Bloc party member and presumably a separatist himself. Did Mr. Harper’s Quebec Nation sentiments trump his stance on Afghanistan? One can’t help wonder if Lebel is eventually going to be to Harper what Bouchard was to Mulroney.
Duceppe had something to smile about winning St Hyacinthe “comfortably” and over a Conservative…who will no doubt be breathing down the Bloc’s neck come the next election.
Dion is the sacrificial lamb in all of this. Quebec is still smarting and clearly unforgiving over Adscam and about being “played” by the cynical Chrétien government. It was the Chrétien government who tried to buy Quebec’s loyalty with flags and banners scam perpetrated by a Quebec Liberal party arm that was infected with culture of fraud and favouritism.
Quebecers were insulted and still unforgiving of the Liberals and Dion has to wear it. Such is the reality of the Liberals in Quebec...and for a while yet obviously. And while all this is not technically not Dion’s doing or fault – as the leader of the Liberal Party of Canada he has to carry that baggage. It is proving to be a heavy load. That past party baggage is not a new phenomenon nor unique to Dion. Harper had to live through the disaster that was Stockwell Day when he took over the Conservative Party and on his way to 24 Sussex Drive. All this is as it should be.
The larger question is what doe this mean for Quebec politics and how does that impact Canada? Quebec is no longer a fight between Liberal federalists and Bloc Separatists. Quebec’s feelings and political aspirations are much more unclear, uncertain and consequential for Canada since yesterday. Is the Quebec-Canada Cold War over? If so what political relationship within Quebec and between Quebec and Canada fills the vacuum? Is the Rest of Canada ready to deal with the Harper declaration of the Quebec Nation as a reality? Is Mr Harper the new voice for Quebec aspirations or just a means to an end in Quebec – that end being power or at least access to it?
Will Harper “play” Quebec or will Quebec “play” Harper for power and which “player” wins in such a power-game? What happens to the Harper’s western political base in either event? Wasn’t this the kind of Quebec Problem that Mulroney dealt with in his efforts around Charlottetown and Meech Lake? Wasn’t all of that the stuff that lead to the formation of the Reform Party in the first place? Interesting time ahead – interesting times indeed.
In summary – here is how I saw last nights by-elections. Duceppe had some cold water poured on his Quebec sovereigntist torch last night. Dion’s Quebec torch was all but blown out last night by winds of change in those three by-elections. Both of these parties and their leaders were sent strong and angry messages by the Quebec people last night.
Layton has found a small candle in the Quebec winds of change and will have to tend it carefully if he is to keep it lit. One candle does not make a torch…but it can light one.
And as for Mr. Harper, well he was seen as the new and emerging de facto torch carrier for Quebec’s national aspirations. Last night Harper was handed the Quebec Nation’s torch and we shall see how high and well he carries it…or if it ends up burning him and his political carrier in the process.
Bon chance Prime Minister Harper as you move to bring Quebec into nationhood and lead the rest of Canada into a better understanding and an abiding acceptance those unique francophone aspirations. The eyes of an uncertain and a hesitant nation(s) are all upon you.
I watched the by-elections last night and had to wonder what is going on in Quebec. For the most part I think it is healthy for democracy and could be good for Canada. The reality is these events were by-elections. Personality of candidates often means more in those events than party or policy or leadership. There is a reality of the timing of these by-elections too. The current minority government could be brought down any given day the House is sitting and now the NDP alone can save the Conservative’s bacon in a confidence vote. So the consequences of a local constituency “getting it wrong” are not too damaging. So why not send the powers that be a message?
Enough context (excuses???) Here are the messages I got from the result in Quebec last night. Dion and Duceppe are damaged and personally deflated by these results. Layton is the big leadership winner by making a breakthrough in Quebec for the first time and very decisively.
The personality issue played well for the NDP with Mulcair but he also had some fascinating political manoeuvrings at play in his victory too. He attracted a large segment of the Bloc voters (Ouch Mon. Duceppe – that has to hurt) and what were those Bloc voters saying? Were they ticked with the Bloc and wanted to “block” the Liberals. Don’t forget Mulcair was a Charest Liberal Cabinet Minister who resigned and turned Dipper. His election as a Dipper sends a message to the federal and provincial Liberals and bruises them both badly.
The Conservative win by Lebel in Roberval was stunning. Not only was the margin of victory impressive it was in separatist country. This Conservative win was by a guy who, a few short months ago, was also a Bloc party member and presumably a separatist himself. Did Mr. Harper’s Quebec Nation sentiments trump his stance on Afghanistan? One can’t help wonder if Lebel is eventually going to be to Harper what Bouchard was to Mulroney.
Duceppe had something to smile about winning St Hyacinthe “comfortably” and over a Conservative…who will no doubt be breathing down the Bloc’s neck come the next election.
Dion is the sacrificial lamb in all of this. Quebec is still smarting and clearly unforgiving over Adscam and about being “played” by the cynical Chrétien government. It was the Chrétien government who tried to buy Quebec’s loyalty with flags and banners scam perpetrated by a Quebec Liberal party arm that was infected with culture of fraud and favouritism.
Quebecers were insulted and still unforgiving of the Liberals and Dion has to wear it. Such is the reality of the Liberals in Quebec...and for a while yet obviously. And while all this is not technically not Dion’s doing or fault – as the leader of the Liberal Party of Canada he has to carry that baggage. It is proving to be a heavy load. That past party baggage is not a new phenomenon nor unique to Dion. Harper had to live through the disaster that was Stockwell Day when he took over the Conservative Party and on his way to 24 Sussex Drive. All this is as it should be.
The larger question is what doe this mean for Quebec politics and how does that impact Canada? Quebec is no longer a fight between Liberal federalists and Bloc Separatists. Quebec’s feelings and political aspirations are much more unclear, uncertain and consequential for Canada since yesterday. Is the Quebec-Canada Cold War over? If so what political relationship within Quebec and between Quebec and Canada fills the vacuum? Is the Rest of Canada ready to deal with the Harper declaration of the Quebec Nation as a reality? Is Mr Harper the new voice for Quebec aspirations or just a means to an end in Quebec – that end being power or at least access to it?
Will Harper “play” Quebec or will Quebec “play” Harper for power and which “player” wins in such a power-game? What happens to the Harper’s western political base in either event? Wasn’t this the kind of Quebec Problem that Mulroney dealt with in his efforts around Charlottetown and Meech Lake? Wasn’t all of that the stuff that lead to the formation of the Reform Party in the first place? Interesting time ahead – interesting times indeed.
In summary – here is how I saw last nights by-elections. Duceppe had some cold water poured on his Quebec sovereigntist torch last night. Dion’s Quebec torch was all but blown out last night by winds of change in those three by-elections. Both of these parties and their leaders were sent strong and angry messages by the Quebec people last night.
Layton has found a small candle in the Quebec winds of change and will have to tend it carefully if he is to keep it lit. One candle does not make a torch…but it can light one.
And as for Mr. Harper, well he was seen as the new and emerging de facto torch carrier for Quebec’s national aspirations. Last night Harper was handed the Quebec Nation’s torch and we shall see how high and well he carries it…or if it ends up burning him and his political carrier in the process.
Bon chance Prime Minister Harper as you move to bring Quebec into nationhood and lead the rest of Canada into a better understanding and an abiding acceptance those unique francophone aspirations. The eyes of an uncertain and a hesitant nation(s) are all upon you.
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