The failure of the provincial government to properly collect royalties from oil and gas companies is “the most expensive political scandal in Canadian history,” according to the provincial Liberals.

In Alberta auditor general Fred Dunn’s annual report released in October, Dunn said Alberta Energy “estimates that it could collect an additional $1 billion or more per year without stifling industry profitability. However, neither this information nor the reasons why changes have not taken place have been made public.” Liberal leader Kevin Taft is demanding answers from the province. “We’re concerned that this government knowingly decided to leave billions of dollars uncollected against the advice of their own officials,” says Taft.

The Liberals say the missing money could have bought 24 new schools, a new cancer centre, hospital expansions and improved transit in Calgary, as well as a host of other public services and facilities around the province — and money would still be left over for the Heritage Fund.

Stelmach says the missing dollars are benefiting Albertans even though they weren’t collected by the government. “The missing billions is $23 billion worth of debt that’s been paid off,” says Stelmach. “The dollars are in the economy — the best economy in Canada.”

The province has asked former auditor general Peter Valentine to review the way royalties are collected in Alberta to make sure the system is working as it should. He is expected to report to Stelmach in March 2008. The Liberals, meanwhile, want Alberta Energy to release all its internal reports on energy royalties to the public.