| Pembina urges increased royalty rates on oilsands activity
The Pembina Institute, an Alberta environmental think tank, says while oil and gas companies receive record profits from oilsands development, Albertans aren’t getting the return they should due to the current royalty regime and tax breaks for oil and gas companies.
In a recently released report the Pembina says that the royalty revenue return to Albertans for each barrel of oilsands oil produced has declined by 32 per cent between 1996 and 2005. In 1996 Albertans received $3.39 in royalties for each barrel of oilsands oil but in 2005 Albertans received only $2.29 in royalties per barrel.
The provincial government allows oilsands companies to pay a one per cent royalty on gross revenues until their project costs are completely recovered. Then royalty rates go up to 25 per cent. However, as oilsands companies keep expanding their operations they are able to remain at the 1 per cent royalty rate for long periods.
The Pembina also estimates that the federal government has lost as much as $1.65 billion in royalty revenue due to tax breaks to the industry. Under what’s called the Accelerated Capital Cost Allowance, oilsands companies can write off 100 per cent of their capital investments before paying income tax.
Pembina report authors Marlo Raynolds and Amy Taylor say the provincial government should hold a comprehensive public review of oilsands royalty rates to determine how much they should be increased. The authors are also calling on the federal government to eliminate tax breaks to oilsands companies and instead invest the money in renewable energy.
"Albertans, as the owners of the oilsands resource, are giving away too much of their wealth to largely foreign-owned oil companies. The industry has matured quickly and the royalties and tax structures designed originally to give a hand-up to industry are simply no longer needed," says Raynolds in a media release.
Homeless wish list
Calgarians interested in making the holidays a little happier for the burgeoning number of homeless people on our streets have a new option to spread some Christmas cheer.
Members of the Calgary Church of Christ are interviewing homeless residents at the Calgary Drop-In Centre and the Salvation Army about what they would like for Christmas. Their wish list, as well as personal stories about why they have ended up homeless, are up on a new website called www.homelesspartners.com. Calgarians interested in buying presents for people on the website can drop off a present with the first name, last initial and ID number of the gift recipient at one of Calgary’s homeless shelters.
Jennie Keeran, a member of the church, came up with the idea for the wish list after starting a similar project in Vancouver last year. She says the goal is to let homeless people know that Calgarians care about them and that they’re not "invisible." Keeran says she was surprised by the level of homelessness in Calgary and she thinks it’s a bigger problem than in Vancouver. |
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