Prentice ready to run on ‘ hard truths’

His plan doesn’t depend on oil price recovery

What a difference a year and $ 50 makes.

The day Jim Prentice made his return to politics last May by announcing he was running to replace Alison Redford as leader of Alberta’s Progressive Conservatives, the price of West Texas Intermediate crude was $ 102.31 US per barrel and his focus was on “aggressively” pursuing new outlets for the province’s surging oil production.

By the time Prentice was named premier at a party convention in September, oil had started to free fall and WTI was down to $ 93.32 US. Even then, he was reiterating the call for Alberta to be a leader on environmental issues to ensure market access for its oil.

He won a seat in the legislature in an Oct. 27 byelection as oil hit $ 81.26.

When Prentice announced Tuesday he would seek a new mandate for the 44- year- old Tory political dynasty in oil- rich but suddenly fiscally challenged Alberta, the price of WTI was $ 53.78 a barrel and the onetime banker and former federal cabinet minister was focused on a new message.

Pipelines and environmental stewardship remain fundamental concerns for the province but — with a $ 7- billion revenue shortfall in the March budget — Prentice’s priority is selling Albertans on getting the government off the oil price roller- coaster.

“This is a turning point, and Albertans deserve the right to choose,” Prentice told supporters in Edmonton Tuesday.

“Any meaningful plan must contain hard truths.

“We have made the realistic choices. And we have presented a budget that will have this province back in balance in three years, whether oil prices recover or not.”

Alberta has budgeted WTI will average just under $ 55 a barrel this year.

As oil prices plunged, Prentice had promised to introduce a budget so transformative he would need an electoral mandate from Albertans to implement it.

He’s now campaigning on his 10- year plan to create a leaner and more innovative government.

The Tories held a 72- seat majority in the 87- member legislature after 11 Wildrose members quit to join the government in December.

The opposition Wildrose, New Democrats and Liberals each have fewer than six seats and the fall of Canada’s longest- serving government would be historic.

Nevertheless, politics is nothing if not unpredictable and there’s 28 days of campaigning before the May 5 vote.

The “hard truth” for voters is Prentice was willing to increase taxes, fines and fees on government services for citizens to offset the revenue shortfall but wasn’t prepared to increase oil and gas royalties or corporate taxes given the current challenges to business.

Prentice has been adamant “Alberta needs to be at the forefront of the fight against climate change” but it’s part of a broader effort to maximize the value of Alberta’s oil by supporting pipeline proposals including Keystone XL, Trans Mountain, Energy East and Northern Gateway.

Pipeline bottlenecks have been blamed for the price discounts on Alberta’s oil in recent years.

In a poll for the Herald at the time of the budget, 44 per cent of respondents preferred a corporate tax increase to address the government’s fiscal challenges.

As public criticism of Prentice’s tax plans emerged following the budget, the Canadian Association of Petroleum Producers belatedly offered its support to the government and said in a “turbulent” global oil market “now is not the time to put more cost pressures on industry.”

CAPP said it would be “irresponsible” to add to the burden on industry.

Not only didn’t Prentice increase taxes on business he’s also made it clear in pre- election campaigning since that there won’t be any new taxes for three years to provide industry with a stable policy environment in an unsettled operating environment.

Prentice — who calls this the worst economic climate in Alberta in a generation — warned last week the province hasn’t yet “seen the brunt” of the downturn.

Expect opposition politicians to campaign on the lack of a corporate tax contribution to tackle the budget deficit given Prentice has repeatedly stated “we’ve asked Albertans who can pay a little more to pay a little more” but the policy isn’t extended to multibillion dollar corporations.

Finance Minister Robin Campbell has said corporate taxes are less efficient than other taxes.

Prentice must deliver new a greenhouse gas emissions policy and carbon levy for Alberta by June but it’s clear his priority in this environment is the economy.

When he was sworn in as premier, he made the point that “Alberta is under new management” but with an election now looming it has the feel of business as usual.