Dylan Jones, President of the Canada West Foundation, issued the following statement in response to today’s Government of Alberta royalty review panel findings.
Nothing the panel did today could put the 50,000-plus Albertans who lost their jobs back to work in the short term. The recommendations, however, provide the certainty necessary for energy companies to make investment decisions.
The industry has been working very hard to bring the cost of production down. While it is not the government’s role to dictate how the industry reduces costs, it does help to have a system that supports that goal. Essentially, this plan appears to provide less of a reward for companies with higher than average costs and greater benefits for those who are good at cost management.
A question is whether this announcement restores confidence in Alberta. It should help. The government was under significant pressure (and had the opportunity) to make a cash grab to address the $6-billion-plus deficit. Taking more resource revenue, however, would have led to loss of corporate and income tax, hardship for families, slower economic recovery and, downstream, worse not better public services. It is heartening to see the government take a long-term view.