The "sister site" to this Blog at http://www.rebootalberta.wordpress.com/ is getting attention and attracting readers. Reboot Alberta is part of a movement amongst progressive Albertans who are concerned about the direction and destination of Alberta.
There are some interesting and thought-provoking blog posts at Reboot Alberta that I recommend you read and reflect upon. There is a growing sense amongst progressive thought leaders that Alberta is not living up to its potential economically, its responsibilities environmentally and it duty socially.
Don Schurman's Reboot Alberta post today talks about accepting personal responsibility for change and you can't press for change if you only "empower someone else to change it for you." He calls for a more informed and active sense of citizenship to come from individual Albertans.
Michael Brechtel's Reboot Alberta post sees change coming but believes in Alberta "The Glass is Definitely Half Full." He also points out that many Albertans "... disengaged from their citizenship." He takes the view that "...the current political climate is the chance we've been waiting for." He calls upon Albertans to re-engage and actually create "a culture of engagement" in the politics of the times.
Dave King's Reboot Alberta post poses the question of "What's the Way Forward for Alberta's Politics." Dave is darker in his POV. He believes Albertans are "living on exhausted and toxic political soil." He calls for a rejection of "the politics of fear, confrontation and intimidation."
Alberta, like the rest of the world, is coping with turbulent economic times. But our future promises that we will continue to grow. The question is will Albertans emerge from this recession with the capacity and goal to adapt to the new economic, environmental and societal realities and responsibilities? Or will we simply fall back into the same-old unsustainable and irresponsible behaviours that brought us to these debacles?
Some Albertans what to change course. They see the danger in the current trajectory of the province. Where to go, what to do and how to redefine and redesign progress for a more responsible, equitable and sustainable future are big questions. They will be part the discussions happening at Reboot Alberta as 88 thought-leaders from across the province gather together in Red Deer for Reboot Alberta.
I am optimistic that at by the end of November there will be the energy and desire by a small group of individuals with a collective intention to work together and get a fresh start in this province. That is my hope for Reboot Alberta.
You too can become a part of this movement to effect and influence progressive change in our province. The world is run by those who show up. So re-engage, join the discussion and invest some of yourself and your talents into the Reboot Alberta process. If you want to know more just email me ken@cambridgestrategies.com and we will get you in the loop.
Wednesday, November 18, 2009
Tuesday, November 17, 2009
Local Governments Getting Together to Influence Alberta Government
The recent Working Protocol Agreement between the Alberta Urban Municipalities Association and the Alberta Association of Municipal Districts and Counties is a very important step in the right direction for better governance in Alberta. Congratulations are in order all around.
The local government, the so-called "third order" of governance, is the most vulnerable because of its limited revenue generating capacity and growing demands in its areas or responsibility. Paradoxically it is the order of government closest to the everyday lives of citizens but has the least governance authority of any order of government.
The senior orders of government most often overlook the municipal level unless they want to download costs and responsibilities in tough times. Not always true as seen in the federal stimulus funding finally going directly to local government and the Paul Martin direct payment of Gas Tax revenues to local government. The big boys at the province often like to put local politician in their place by pointing out that they are merely "creatures of provincial law." I always like to remind the provincial politicians that they too are creatures of statute from the federal level and refer them to The Alberta Act that created the province.
There seems to be constant battles over boundaries and services and cost sharing between municipalities and surrounding rural areas. Sometimes those can be negotiated but often a province has to dictate resolutions. The threat of a provincially imposed regional planning "solution" in the greater Edmonton areas was enough to bring the parties to the table. They worked out a mutually acceptable deal. Not perfect but better than submitting to an imposed deal by the province.
That said, here is an excerpt from the News Release that outlines the essence of the deal between the parties:
"The AUMA/AAMDC Working Protocol provides opportunities for joint political advocacy and calls for organizations to strengthen and enhance their individual business services to members. Both organizations’ boards have agreed to meet regularly to monitor the development of the Working Protocol. The protocol outlines that there will be times when the AUMA and AAMDC must take different positions on an issue. However, they have agreed that these times will not affect other positive joint efforts."
Might I suggest that one of the first projects these groups tackle together is pressing the CRTC, Alberta and Canada to require Telus to provide Albertans access to the copper wire land-based phone lines. Once that is done virtually every Albertan can have direct access to the SuperNet fibre optic system. That access is critical to rural and small town Alberta being sustainable and viable. It means time and distance are defeated and the best-of-breed SuperNet online communications network is just a click away for Albertans all over the province - at a fraction of wireless and fibre optic costs.
Reality, maturity and wisdom are all evident in this initiative. Albertans will be better served in the long run because of this collaborative approach amongst local governments. Well done! Full disclosure: I am not currently working with either association but I have been advising a private business who is trying to convince the CRTC to require Telus to provide access to local copper wire for citizen's access to SuperNet, especially in small town and rural Alberta.
The local government, the so-called "third order" of governance, is the most vulnerable because of its limited revenue generating capacity and growing demands in its areas or responsibility. Paradoxically it is the order of government closest to the everyday lives of citizens but has the least governance authority of any order of government.
The senior orders of government most often overlook the municipal level unless they want to download costs and responsibilities in tough times. Not always true as seen in the federal stimulus funding finally going directly to local government and the Paul Martin direct payment of Gas Tax revenues to local government. The big boys at the province often like to put local politician in their place by pointing out that they are merely "creatures of provincial law." I always like to remind the provincial politicians that they too are creatures of statute from the federal level and refer them to The Alberta Act that created the province.
There seems to be constant battles over boundaries and services and cost sharing between municipalities and surrounding rural areas. Sometimes those can be negotiated but often a province has to dictate resolutions. The threat of a provincially imposed regional planning "solution" in the greater Edmonton areas was enough to bring the parties to the table. They worked out a mutually acceptable deal. Not perfect but better than submitting to an imposed deal by the province.
That said, here is an excerpt from the News Release that outlines the essence of the deal between the parties:
"The AUMA/AAMDC Working Protocol provides opportunities for joint political advocacy and calls for organizations to strengthen and enhance their individual business services to members. Both organizations’ boards have agreed to meet regularly to monitor the development of the Working Protocol. The protocol outlines that there will be times when the AUMA and AAMDC must take different positions on an issue. However, they have agreed that these times will not affect other positive joint efforts."
Might I suggest that one of the first projects these groups tackle together is pressing the CRTC, Alberta and Canada to require Telus to provide Albertans access to the copper wire land-based phone lines. Once that is done virtually every Albertan can have direct access to the SuperNet fibre optic system. That access is critical to rural and small town Alberta being sustainable and viable. It means time and distance are defeated and the best-of-breed SuperNet online communications network is just a click away for Albertans all over the province - at a fraction of wireless and fibre optic costs.
Reality, maturity and wisdom are all evident in this initiative. Albertans will be better served in the long run because of this collaborative approach amongst local governments. Well done! Full disclosure: I am not currently working with either association but I have been advising a private business who is trying to convince the CRTC to require Telus to provide access to local copper wire for citizen's access to SuperNet, especially in small town and rural Alberta.
Monday, November 16, 2009
Oilsands Investments Return 1 Year After Industry Threatens to "Leave Alberta"
Interesting to see all the big oilsands players announcing that they are reinvesting billions of capital once again into oilsands projects. A year ago they were all pulling out of Alberta as the played political gamesmanship over the new royalty rates. Albertans should not forget that pure political posturing of the industry that was nothing less than bullying and bluster by some of the corporate elites in the energy sector.
They sure spooked our Premier. He folded about four times on royalties since January 2009. As a result we now collect even less money than we would have if we left the old royalty regime intact. The tenants are acting like owners and dictating the terms. Instead we need Albertans taking the responsibility to ensure our oilsands are giving future generations the benefit of the resource and that we are not "giving it away."
Speaking of "giving it away" I just returned from a great time in Austin Texas on a project. It reminded me something that Murray Smith the first Alberta Envoy, said to a meeting in Austin in 2006. I have a copy of the transcript of his remarks. Here is the most remarkable part of what he said to an American energy audience: "The model that has worked so well for us is that the royalty structure for oil sands is 'give it away' at a 1 percent royalty structure and share the risk of these great ventures and great investments. As soon as they reach payout, the royalty take goes to 25 percent of net."
That was a necessary model in the early stages of oilsands development in the late 1990's when extraction and upgrading costs and capital costs were higher than the commodity price of the product. That is not longer the case so why are we perpetuating this old model of "giving it away" when Alberta is the best place to assure secure and a safe supply of hydrocarbons?
When we charge royalties on net returns, how do we know we are not getting screwed on cost allocations within companies? When we allow royalties to be deferred until all capital costs are recovered how do we have any control on the project costs? Does this indemnity to recover costs from foregone royalty make the companies who are building the project really care that much about controlling costs?
At the record oil prices of last year controlling cost didn't seem to matter too much. Once the recession was acknowledged in September 2008 the future projects were shelved instantaneously. Well that was then and this is now and the projects are all coming back. Go figure!
BTW - Here is the link to Vue Weekly interview with Green Oil author Satya Das. Green Oil emphasizes the point that Albertans own the oilsands and have the obligation to ensure the stewardship of energy industry players who our government licenses to exploit this non-renewable resource on our behalf.
They sure spooked our Premier. He folded about four times on royalties since January 2009. As a result we now collect even less money than we would have if we left the old royalty regime intact. The tenants are acting like owners and dictating the terms. Instead we need Albertans taking the responsibility to ensure our oilsands are giving future generations the benefit of the resource and that we are not "giving it away."
Speaking of "giving it away" I just returned from a great time in Austin Texas on a project. It reminded me something that Murray Smith the first Alberta Envoy, said to a meeting in Austin in 2006. I have a copy of the transcript of his remarks. Here is the most remarkable part of what he said to an American energy audience: "The model that has worked so well for us is that the royalty structure for oil sands is 'give it away' at a 1 percent royalty structure and share the risk of these great ventures and great investments. As soon as they reach payout, the royalty take goes to 25 percent of net."
That was a necessary model in the early stages of oilsands development in the late 1990's when extraction and upgrading costs and capital costs were higher than the commodity price of the product. That is not longer the case so why are we perpetuating this old model of "giving it away" when Alberta is the best place to assure secure and a safe supply of hydrocarbons?
When we charge royalties on net returns, how do we know we are not getting screwed on cost allocations within companies? When we allow royalties to be deferred until all capital costs are recovered how do we have any control on the project costs? Does this indemnity to recover costs from foregone royalty make the companies who are building the project really care that much about controlling costs?
At the record oil prices of last year controlling cost didn't seem to matter too much. Once the recession was acknowledged in September 2008 the future projects were shelved instantaneously. Well that was then and this is now and the projects are all coming back. Go figure!
BTW - Here is the link to Vue Weekly interview with Green Oil author Satya Das. Green Oil emphasizes the point that Albertans own the oilsands and have the obligation to ensure the stewardship of energy industry players who our government licenses to exploit this non-renewable resource on our behalf.
Tuesday, November 10, 2009
What Does the Fiscal Four Mean for the Stelmach Government?
Here it comes! The seeds of a PC caucus rebellion are planted by a group forming and publically calling themselves the Fiscal Four! Is this reminiscent of the (not so) Deep Six that Stelmach was part of as a rookie MLA? Three of them are strong social conservatives from in and around Calgary that were active in pushing the anti-gay, anti-teacher aspects of Bill 44. This will not sit well with the powers that be!
Is the Party Behind Stelmach but the Caucus, Not So Much?
This split in caucus is not a surprise. It is just coming much sooner than I expected. The 77% party support solution from the recent PC AGM was a great example of the wisdom of crowd. It was not so low that it caused a partisan panic. It was not so high that the Premier’s office could claim all was well in Ed's world regardless of evidence to the contrary.
The response from Premier Stelmach was obvious relief but too tentative in terms of articulating what he heard and what is intends to do. He says he will make changes - but slowly and on his time schedule. The delusional declaration that the PC policy is perfect and then blaming of the media for the poor communications and the head nod solution to using social media is inadequate and unimpressive. This response to the public’s resistance to the Stelmach government policy is just a “pocket full of mumbles.” That is the true communications problem.
Is Social Media Stelmach's Communications Solution?
The old-school command and control, top down, message management mentality of the PCs, and the Wildrose Alliance too, will not work in the culture of the new world order known as social media. The PCs tried to adapt to social media a year or so ago - and with some considerable effort and enthusiasm. The effort was shown with the set up of MYPCMLA site. As soon as the social media conversation started to work, the PCs enthusiasm waned and they have essentially abandoned the effort. Now a few PC MLAs still use it as well as Twitter, Facebook and personal blogs but on a cautious and inconsistent basis.
Fear of the openness of the social media world is the dominant reaction of traditionalists in political parties. This fear is because the inner circle political machinery in the Stelmach government wanted to continue to have absolute control over the messages. You can't do that in the social media world. It is too democratic for that. They are wary of joining in any authentic conversation with engaged Albertans online using social media tools.
Facing the rabble known as netizens without the usual tools of coercion and fear feigning as respect forced them PCs to retreat from the field. The rabble is talking about them anyway so it would be wiser to be involved and ensuring accuracy, understanding and context as well as the opportunity to learn and show real leadership.
So What is With the Fiscal Four?
Now we have the Fiscal Four breaking ranks and sending out their own messages. Two of them are very adroit at using social media and have substantial networks in the wired world. Is this self-anointed fiscal watch-dog group the start of the PC caucus “big tent” folding and not flourishing?
Are some of these MLAs part of the 10 closeted Wildrose floor-crossers that were rumored to exist a few weeks ago? Are they so fearful of defeat in the next election under the current leadership that this is now every man for himself - especially in Calgary? It has been that way for Edmonton PCs for decades. Or are these guys in Kris Kristofferson land and feeling a new found freedom because they have nothing left to lose?
Looks like the Premier may have to fast-track identifying and making the changes he alluded to last week end in his speech after the confidence vote. To delay now will only weaken his power, his base and undermine his own effectiveness and survival. He was quick to reverse the liquor tax increase last summer because he said he "did not feel right about it." He may need to be that nimble and assertive now. For sure he will have to be more substantive and more strategic now that these caucus cracks are showing.
Is the Wildrose Alliance Worth the Risk?
Albertans have to ask ourselves why the Wildrose Alliance is the best alternative for most us...not just the wealthy elites from the Calgary oil patch. They are in many ways scarier than the old Alliance crowd because they are not open and transparent on social and environmental policies. They seem to be conniving to avoid talking about key social (gay rights, abortion) and environmental issues because they say they are "divisive." It is all about aligning with the narrow and shallow Fraser Institute culture for the Wildrose Alliance.
It is as if the Wildrose Alliance believes if we just ignore human rights abuses, the plight of the poor, the obligation to the vulnerable, like children, seniors and the disabled they will go magically to away. It is as if the goal for Albertans is to aspire to get as rich as possible and as quickly as possible regardless of environmental implications.
The Wildrose Alliance has pledged to stifle government by starving its capacity with more ill-advised tax cuts. That way the self-fulfilling prophesy of government being incapable of doings it job is assured - but that is ok because that is the world unfolding as it should in a Wildrose Alberta.
The next government can deal with social fabric breakdown fallout, the environmental and climate change disasters we are developing today through a wanton and reckless focus on only economic policy. To them it is as if that is somehow acceptable for the current narcissist generation to ignore and avoid any social or environmental responsibility to future generations.
We still don't know who funded and is hidden behind the scenes and influencing the new Wildrose leader. She has refused to disclose her funders and the reason is "because they fear reprisals" from the government. That is not good enough.
Lots to look at and much more attention needs to be directed towards the Wildrose Alliance Party by all Albertans. We need to see if they are an alternative to be trusted and worthy of our consent to govern us. And by “us” I mean all Albertans from all over the province - not just the beautiful and bountiful Albertans in the Calgary elites and the disgruntled old-school former Reformers they are currently courting.
Is the Party Behind Stelmach but the Caucus, Not So Much?
This split in caucus is not a surprise. It is just coming much sooner than I expected. The 77% party support solution from the recent PC AGM was a great example of the wisdom of crowd. It was not so low that it caused a partisan panic. It was not so high that the Premier’s office could claim all was well in Ed's world regardless of evidence to the contrary.
The response from Premier Stelmach was obvious relief but too tentative in terms of articulating what he heard and what is intends to do. He says he will make changes - but slowly and on his time schedule. The delusional declaration that the PC policy is perfect and then blaming of the media for the poor communications and the head nod solution to using social media is inadequate and unimpressive. This response to the public’s resistance to the Stelmach government policy is just a “pocket full of mumbles.” That is the true communications problem.
Is Social Media Stelmach's Communications Solution?
The old-school command and control, top down, message management mentality of the PCs, and the Wildrose Alliance too, will not work in the culture of the new world order known as social media. The PCs tried to adapt to social media a year or so ago - and with some considerable effort and enthusiasm. The effort was shown with the set up of MYPCMLA site. As soon as the social media conversation started to work, the PCs enthusiasm waned and they have essentially abandoned the effort. Now a few PC MLAs still use it as well as Twitter, Facebook and personal blogs but on a cautious and inconsistent basis.
Fear of the openness of the social media world is the dominant reaction of traditionalists in political parties. This fear is because the inner circle political machinery in the Stelmach government wanted to continue to have absolute control over the messages. You can't do that in the social media world. It is too democratic for that. They are wary of joining in any authentic conversation with engaged Albertans online using social media tools.
Facing the rabble known as netizens without the usual tools of coercion and fear feigning as respect forced them PCs to retreat from the field. The rabble is talking about them anyway so it would be wiser to be involved and ensuring accuracy, understanding and context as well as the opportunity to learn and show real leadership.
So What is With the Fiscal Four?
Now we have the Fiscal Four breaking ranks and sending out their own messages. Two of them are very adroit at using social media and have substantial networks in the wired world. Is this self-anointed fiscal watch-dog group the start of the PC caucus “big tent” folding and not flourishing?
Are some of these MLAs part of the 10 closeted Wildrose floor-crossers that were rumored to exist a few weeks ago? Are they so fearful of defeat in the next election under the current leadership that this is now every man for himself - especially in Calgary? It has been that way for Edmonton PCs for decades. Or are these guys in Kris Kristofferson land and feeling a new found freedom because they have nothing left to lose?
Looks like the Premier may have to fast-track identifying and making the changes he alluded to last week end in his speech after the confidence vote. To delay now will only weaken his power, his base and undermine his own effectiveness and survival. He was quick to reverse the liquor tax increase last summer because he said he "did not feel right about it." He may need to be that nimble and assertive now. For sure he will have to be more substantive and more strategic now that these caucus cracks are showing.
Is the Wildrose Alliance Worth the Risk?
Albertans have to ask ourselves why the Wildrose Alliance is the best alternative for most us...not just the wealthy elites from the Calgary oil patch. They are in many ways scarier than the old Alliance crowd because they are not open and transparent on social and environmental policies. They seem to be conniving to avoid talking about key social (gay rights, abortion) and environmental issues because they say they are "divisive." It is all about aligning with the narrow and shallow Fraser Institute culture for the Wildrose Alliance.
It is as if the Wildrose Alliance believes if we just ignore human rights abuses, the plight of the poor, the obligation to the vulnerable, like children, seniors and the disabled they will go magically to away. It is as if the goal for Albertans is to aspire to get as rich as possible and as quickly as possible regardless of environmental implications.
The Wildrose Alliance has pledged to stifle government by starving its capacity with more ill-advised tax cuts. That way the self-fulfilling prophesy of government being incapable of doings it job is assured - but that is ok because that is the world unfolding as it should in a Wildrose Alberta.
The next government can deal with social fabric breakdown fallout, the environmental and climate change disasters we are developing today through a wanton and reckless focus on only economic policy. To them it is as if that is somehow acceptable for the current narcissist generation to ignore and avoid any social or environmental responsibility to future generations.
We still don't know who funded and is hidden behind the scenes and influencing the new Wildrose leader. She has refused to disclose her funders and the reason is "because they fear reprisals" from the government. That is not good enough.
Lots to look at and much more attention needs to be directed towards the Wildrose Alliance Party by all Albertans. We need to see if they are an alternative to be trusted and worthy of our consent to govern us. And by “us” I mean all Albertans from all over the province - not just the beautiful and bountiful Albertans in the Calgary elites and the disgruntled old-school former Reformers they are currently courting.
Monday, November 09, 2009
Green Oil Author Satya Das Drops the Gauntlet
Here is a link to an interview Satya Das did with the Toronto Star that ran last Saturday in their business section. It is a strong statement that says Albertans need to start acting like owners of their resources and demanding better public policies from their government and more accountability and revenues from the energy industry.
That means the citizens of the province need to take back some political control and make demands of the political class to better represent the public interest and not just the interests of the resource industry - the tenants! The Premier promised to make some changes coming out of the 77% party support at the PC AGM last week end. Here is another area that needs some serious policy changes by the Premier - especially in royalty revenues and reclamation responsibilities.
The royalty rates for energy resources are ridiculously low compared to all other energy jurisdictions. Alberta is using non-renewable resource revenues as substitute for a responsible rate of taxation that would fund a pay-as-you go approach to the public interest. What we do now is mortgage the future of our children with social and environmental problems and precious little long term value added benefits from the oilsands in particular.
The Lougheed legacy of saving a significant portion of the resource revenues in the Heritage Trust Fund has been dishonoured for too long. It is time to take the money from royalties off the policy and political table. We should make a stretch goal to save 80% of those revenues in the Heritage Fund as our legacy to future generations. Then we need to tax ourselves at the level needed to pay for the necessary operational needs of the province that we decide are in the public interest. This is instead of the current model of constantly subsidizing the energy industry and beggaring everybody else.
The long term benefits of the Alberta energy resources are being squandered by poor planning, lax royalty collection and revenue policies that favour short term industrial growth and ignoring longer term potential benefits and turning a blind eye to the ecological and social costs of unrestrained growth.
Time to wake up Alberta. Time to dust off your citizenship and start paying attention to what is going on. Time to take on the responsibility of citizenship again. Time to get informed and involved in the politics of this province in a positive way. Indifference is a luxury Albertans can't afford any more. The world is run by those who show up.
Learn more about Satya's ideas for the future of Alberta in his book Green Oil
That means the citizens of the province need to take back some political control and make demands of the political class to better represent the public interest and not just the interests of the resource industry - the tenants! The Premier promised to make some changes coming out of the 77% party support at the PC AGM last week end. Here is another area that needs some serious policy changes by the Premier - especially in royalty revenues and reclamation responsibilities.
The royalty rates for energy resources are ridiculously low compared to all other energy jurisdictions. Alberta is using non-renewable resource revenues as substitute for a responsible rate of taxation that would fund a pay-as-you go approach to the public interest. What we do now is mortgage the future of our children with social and environmental problems and precious little long term value added benefits from the oilsands in particular.
The Lougheed legacy of saving a significant portion of the resource revenues in the Heritage Trust Fund has been dishonoured for too long. It is time to take the money from royalties off the policy and political table. We should make a stretch goal to save 80% of those revenues in the Heritage Fund as our legacy to future generations. Then we need to tax ourselves at the level needed to pay for the necessary operational needs of the province that we decide are in the public interest. This is instead of the current model of constantly subsidizing the energy industry and beggaring everybody else.
The long term benefits of the Alberta energy resources are being squandered by poor planning, lax royalty collection and revenue policies that favour short term industrial growth and ignoring longer term potential benefits and turning a blind eye to the ecological and social costs of unrestrained growth.
Time to wake up Alberta. Time to dust off your citizenship and start paying attention to what is going on. Time to take on the responsibility of citizenship again. Time to get informed and involved in the politics of this province in a positive way. Indifference is a luxury Albertans can't afford any more. The world is run by those who show up.
Learn more about Satya's ideas for the future of Alberta in his book Green Oil
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