Government Incompetence

As citizens in Alberta, we were very concerned about the economic implications of the enactment of the New Royalty Framework as recommended by the Alberta’s Royalty Review panel. In October of 2007, hundreds of fellow concerned Albertans stood at the steps of the Legislature building in Edmonton in an attempt to educate the Government of the dire consequences such a move would have on the oil service industry and ultimately all Albertans. Unfortunately, our voices fell on deaf ears and the consequences are now costing thousands of jobs in every sector of economy from hotels to restaurants to fabricators, and dozens of other business sectors. Those who criticized the royalty increases were written off by the Alberta Federation of Labor (AFL) and the media as a bunch of business owners who had paid their employees to take a day off work to help “Big Oil”. Nothing is further from the truth. Now tens of thousands of workers are suffering including AFL union workers who have lost their construction jobs in the oilsands.

Since announcing its intention to increase royalties in October of 2007, our government has not only ruined the Alberta Advantage, but has continued to erode investor confidence and chase investment capital our of our province. Instead of admitting the whole review was a mistake from the beginning, the government keeps making revisions and making changes, making it very difficult for an oil and gas company to plan a budget or be confident that investing money in Alberta would be beneficial. The latest incentives announced in March have again our businesses and employees’ livelihoods. By making the effective date April 1, rigs have been shut down until after the incentives take effect. Unfortunately this takes us into “spring breakup” which is essentially another shutdown for 2-3 months. This is the incompetence, coupled with low commodity prices, that is killing our industry. We are fighting just to survive with our Government beating us down further.

The government will try and say it is only low commodity prices which is hurting us. This could not be further from the truth. Read any economic report or talk to any oil and gas producer. Investment companies across the country have reported that Alberta is no longer a desirable place to invest. If this is what our “Fair Share” is, we would like to give it back. Respected oil and gas investment analyst, and new Chairman of Calgary’s Economic Development Wilf Gobert was quoted in the Calgary Herald as calling the royalty changes, “…the most disastrous economic decision the province has ever made”.We will be spearheading an advocacy group to speak for the thousands of Albertans whose livelihood has been negatively affected with the Stelmach regime’s actions and press for a complete reversal to the framework. It is impossible not to be outraged. If Governments would let business run without continuing to attack our industry, we would be able to continue rolling through the good times and bad. But when the government keeps pulling the rug out from under us, it is impossible to stand on your feet. It is very unfortunate they can not see the problems they have created. Updates and information will be available on the Grassroots Oilworkers of Alberta website. We urge all Albertans negatively affected to join our protest