If every Norwegian’s a millionaire, why’s Alberta in hock?

[sumdumguy]

You would think that the oil producing provinces and states would put their heads together and raise their royalties. There was a ton of money flying out of here. Now what?

[sumdumguy]

I guess I should say energy producing provinces/states should get together. An unfortunate consequence of high oil wages is that young families took on a load of debt by way of big new houses, new super cabs, new trailers, boats and other luxuries. As hours are cut and layoffs are handed out, how will they handle the debt load?

[Hamloc]

I am an Albertan and I find our collective way of looking at things rather short sighted. First off you only extract a natural resource once therefore present and future generations must benefit. Unfortunately we give away our resources with to small of a royalty, instead of controlling our rate of production and putting in place refining infrastructure to maximize returns we try to produce as fast as we can and ship raw unrefined products to the world. More importantly we refuse to implement a sales tax instead we will reimpose health premiums, raise sin taxes and increase taxes on high income earners. No new ideas. Interestingly enough I despise big government but I despise government debt and Albertans short sighted outlook more.

[rockpile]

I read the article a few days ago in the Calgary Herald. I started reading up on Norway. Btw, SF3, the population of Alberta (est. 4th qtr 2014) is over 4.1 million. Norway has a blended economy with a strong private sector side by side with State enterprises though in the last 15 years they've been moving to a more deregulated market driven economy. True, they don't charge royalties on oil and gas - they charge exploration and production licence fees so get their blood upfront. The 2 State owned oil companies control about 60% of the resource production. There are outside players. Both companies are now traded on their stock exchange. True, they pay way more in taxes. Saw a comparison for a CEO earning $577,000 USD and what he paid in income tax vs what he would pay in Massachusetts (highest taxed state) and Florida (lowest taxed state). Plus there is the VAT. Then come the intangibles - superior infrastructure, free health care (even if your just a tourist it's free), free education (check university tuition fees anywhere in the US) and the biggest one - zero national debt. In fact in 2009, Norway was the only country in the world with a budget surplus. So if you figure we're better off because of lower taxes, think again. The only reason your taxes are lower is because your Government went out and borrowed a pile of money on your behalf. But you're on the hook for paying it back.

[HFL]

How many dollars has Norway sent to Quebec?

[rockpile]

Interesting question HFL. None of course! But, as a Country, they are completely committed to equalization among regions. Almost half of their Municipal regions don't levy property taxes. They are more committed to regional equality than we ever will be.

[grower99]

A great discussion. The "Calgary School of Economics" where our pm went is a sham.Who paid his tuition? The "national citizens'coalition" or the northern foundation? He takes the credit for our recovery from the recession but he was the "economist" who,before he became pm,wanted to deregulate the banks like the US system!.Our regulated chartered banks is the reason our economy remained as strong as it is. A high reserve ratio compels our banks to practise due diligence.Sad to say but our pm and his policies need to be revamped.

[fjlip]

Bank regulation is proof Canadian economy needs way MORE regulation of private businesses and transparency, IE railroads, grain companies, oil producers both wholesale and retail. Free market competition is great, but HD oversight and regs to keep the greedy bastards inline and honest.

[grower99]

Just turned on the tv for the Canada/Slovakia game. More taxpayer paid ads to support the federal govt! Why are these ads not paid from conservative party donations? This is not fiscally responsible with taxpayer money!

[samhill]

Politicians would sell Granma's false teeth for a small bag of salt, where do you think the money goes?

[helmsdale]

It's always fun when bureaucrats are breathing down someone else's neck rather than your own.

[sawfly]

one guess why Norway is in the black.
sorry guys but left leaning govt.s is why .

Oliver .
potash was an asset in Saskatchewan.

and a Conservative govt. comes along and sells it out.
Who was the failure?

and remember the only reason potash was nationalized in the first place was a flat out refusal to pay royalties by the potash company's.

at least Wall has not jumped on that train yet.

i wonder why?

because he had the brains to realize
how important those royalties are to the province.

and see this is an asset like oil that belongs
to the people of sask.

and why Sask. and Alberta never got together on royalties.
well Sask at one time held the line
on royalties, like 40 years Alberta did not follow suit.

maybe or maybe not that was a mistake on sask.s part.
because Alberta got most of the early development.
and sask. was shunned.

But , if sask. had caved on royalties
on oil in the beginning , what would
either have for royalties now?

or if Alberta had held the line with
Sask. Maybe it would be like Norway here.
or the US would have invaded and taken it anyway . Who knows?

either way we are here now.

and there were some excesses of the CCF/NDP
, but at least they protected the assets of the province.
oil , potash , timber and even farmland with non resident ownership laws.

i can live with a fiscal or free enterprise Conservative govt.

but protect our assets and don't give the farm away to every corporation that walks thru the door.
( like Alberta gave away all their timber for like 1 or 10 bucks an acre, something super cheap)

and by the way , if Norway is something to aspire to .

guess who would not sign up to the UPOV 91 seed regulations
Norway


here we bend over on oil and seed
and timber etc. etc. etc.
end of rant.