UCP WILL DIRECTLY INVEST IN ENERGY TO SAVE INDUSTRY
In a throne speech shrouded in dark economic clouds, the UCP makes a startling announcement.
The government promises to invest directly in energy projects to get them moving — a sharp change from UCP policy of encouraging business through tax policy rather than direct intervention.
“When regulatory uncertainty, hostility by the federal government or pressure from special-interest groups inhibits investment in Alberta resource development, my government will act,” says the speech read to the legislature by the lieutenant-governor.
“Like the government of the late premier (Peter) Lougheed, Alberta is prepared to invest directly and support companies and Indigenous groups, when necessary, to assure the future of responsible resource development.”
Premier Jason Kenney said the government has one such investment in mind and will consider others.
He even suggested shares might be sold to the public, as Lougheed did with the Alberta Energy Company, a publicly owned tool for energy development in the 1970s and ’80s.
Twitter critics branded Kenney a “socialist” in the Rachel Notley mould when he first mentioned public investment Monday.
Kenney would rather be linked to former Progressive Conservative premier Lougheed, who intervened heavily in the economy, most notably by purchasing controlling interest in Pacific Western Airlines.
In 1974, Alberta picked up Canada’s third-largest airline for $36 million.
What a deal! But Lougheed was immediately called Peter the Red by conservatives from Kenney’s side of the fence, then known as Social Credit.
Over time, direct investment became an Alberta conservative tradition for stimulating or diversifying the economy.
It can lead to disaster, as with investments in Novatel, Magcan and even the Lloydminster upgrader, on which the province took a 90 per cent loss.
And yet there were big wins, too — most notably PWA and Alberta Energy. Never once did the turkeys bring defeat of a conservative government.
Kenney will step into these treacherous waters with some hope that Albertans will approve and even put up their own money if it’s needed to launch promising but investment-starved resource projects.
After the appalling Teck Resources failure, the government expects even more difficulty attracting capital. Kenney said he’s already had talks with potential investors who are suddenly more wary.
The government had expected to announce some major investments by the end of March. Now there may be some doubt.
But Alberta “will not be stopped,” Kenney said. “We will not be shut down.”
There’s the big difference between what Lougheed did and what Kenney hopes to do.
The earlier premier was launching an energy economy with infinite prospects. Kenney is trying to preserve it.
In the throne speech there are mention of efforts to curb emissions but nothing about renewable energy. The words “climate change” do not appear.
Another notable move is creation of a parole board to deal with provincial prisoners sentenced to less than two years.
This is the first of the Fair Deal proposals to be actually implemented. We can expect more. Judging by Kenney’s rhetoric there’s active consideration of a provincial police force, provincial pension plan and other measures.
And the government immediately tabled Bill 1, which imposes massive fines on people who disrupt crucial infrastructure including railroads, bridges and even telecommunications.
Individuals would be fined $25,000 per day for blocking access or damaging facilities.
Jail terms of six months could be imposed. Organizations would face penalties of $200,000 per day.
Police would be empowered to act without court injunctions on grounds that these are criminal offences. Kenney said other provinces should do the same to counter rail blockades.
Justice Minister Doug Schweitzer said of recent blockades: “Not in Alberta, not now, not ever.”
In health care, the UCP promises that “Albertans will never have to pay out of pocket for medically necessary service.”
But the government will proceed with structural reforms “that put patients, not politics, at the centre of health care” — a clear reference to tough pushback from unions and the NDP.
There’s a great deal more, including legislation to protect victims of human trafficking, funding for addiction treatment and a clear emphasis on trades rather than academic education.
At one point the speech praises a person who rejected “outdated advice” to pursue academic study and instead became a “successful autobody tradesperson.”
Overall, the speech is pure UCP — except for the small wrinkle that this government party now supports direct investment in business.