Perks

One of the perks of being a one party state is that you can give yourself pay raises without fear of opposition in the legislature.

EDMONTON — One of the wealthiest provinces in Canada has dramatically boosted the pay packets of its premier and cabinet ministers.

The Alberta government has approved a pay hike, which will see each of the province's 23 cabinet ministers get a pay hike worth about $42,000, bringing their annual compensation to around $184,000 per year.

Premier Ed Stelmach will become among the nation's best paid premiers after approval of a 34 per cent pay hike.

That brings his total compensation package to over $213,000 per year.

Stelmach is defending the hefty hikes, saying they're needed to help recruit more people into politics.

Scott Hennig, a spokesman for the Canadian Taxpayers Federation, is critical of the move, saying it's not fair that the premier and cabinet were able to get such big pay raises without first putting the matter before the legislature. (CTV)

Oh that's rich Scott the legislature is dominated by the PC's. And they very rarely meet. In fact this pay increase goes to the politicians that work the least in Canada since Alberta has the shortest legislative sittings of any government in Canada. And in fact like most things done by the Alberta Government, (tm)(c) of the PC Association of Alberta, this increase was passed by Cabinet fiat.The issue never will come up in the legislature. That would mean it would be subject to public debate.

When Alberta’s freshly re-elected premier Ed Stelmach decided to hand his caucus a massive pay increase this week, he avoided such complications: there was no panel, no polling. Just a quiet notice buried in the daily compendium of passed Orders in Council, of something called the “MLA Remuneration Order.” In actuality, it was an eye-popping 30% pay raise for cabinet ministers, who now will make $184,000 a year, instead of $142,000 — more than federal MPs and most provincial premiers. Premier Stelmach gets an even bigger boost to the paycheque: He’ll now make $213,450 a year, up from $159,450. Mr. Stelmach now makes more than his Ontario counterpart, Dalton McGuinty, who manages a province nearly four times as large, making Alberta’s CEO the highest paid premier in the land (Quebec’s premier makes $194,900 and everywhere else the rate is $165,000 or lower). Not bad for a government that famously chooses to sit in the legislature for less than five months out of the year. MLAs will also get bonuses for attending committee and cabinet meetings, which had previously been considered part of their full-time job.

Ok folks the Premier has set the rate for collective bargaining increases in Alberta for this year. After all he claims his 34% increase is needed for purposes of attraction and retention, a current problem faced by all employers in the province.

Then Stelmach tried to explain the inexplicable.

"If we are going to attract younger people for government we've got to pay them appropriately," the premier said. "I remain committed," he said without much conviction.

And the Alberta Weekly Average Wage increase was 4.53% as announced by the Government in April. Ed gets a whopping 30% increase over that. Far greater than the incease most Albertans got this year. And a salary increase that is larger than the annual Canadian salary.

Albertans have every right to be furious at Premier Ed Stelmach and his 23 cabinet ministers for topping up their salaries by 30 to 34 per cent.

That's an extra $41,950 to $54,000 a year for work that's always been included in their base salary -- attending meetings for cabinet, Treasury Board and policy committees.

Not a bad promotion, considering the average weekly earnings in Canada last year were just $751, or $39,052 per year.

And certainly larger than any minimum wage increase in Alberta.

In June 2007, government announced minimum wage increases would be adjusted based on the average weekly wage and come into effect April 1. If Alberta's average weekly wage increases from one year to the next, the minimum wage will increase by the same percentage.

And its not like they don't get raises, the Government members get an annual increase based on this same index, so its not like they weren't going to get a raise anyways.

Edmonton Journal

Published: Monday, April 03 2006

Members of the Alberta legislature received pay raises of 5.23 per cent effective Saturday, an increase more than twice the rate of inflation.

That brings their yearly salary to $71,244, up from $67,698 last year.

Salary levels for Alberta MLAs are set every April 1 based on the annual increase in average weekly earnings in the province as calculated by Statistics Canada.

Meanwhile former Tory Energy Minister Greg Melchin gets to become a paid lobbyist to the government that used to employ him. This is the same guy who screwed Albertans out of our fair share of royalties from his pals in Big Oil. This is the ultimate kick back for his doing his masters bidding.

Word of the cabinet pay hike broke the same day we learned former energy minister Greg Melchin was hired on to the board of a Calgary oil company -- just three months after leaving politics.

Turns out Melchin is exempt from the government's six-month cooling-off period because he hadn't been energy minister since 2006. (He's also not bound by the new 12-month cooling-off period because he left politics before April 1.) He was most recently minister of seniors. So, there's no problem with him taking the oil company job, says the province's ethic's commissioner.

Rules are made to be broken or gotten around, or well you see how it works. It's all very transparent and above board. The rules don't apply to clever Tory Cabinet Ministers never have, never will. After all those who write the rules know how to get around them, they wrote them.

The Democratic Deficit continues in Alberta, it is the Alberta Advantage for the Tired Old Tories.


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Turncoat Dwarkin Recants

As I posted here yesterday the Big Oil ringer Dr Judith Dwarkin who sat on the Oil Royalty Panel issued her own report on the Oil Royalties, one that was countering her own panels recommendations and denounced her fellow committee members in unflattering terms. Her paper was sanctioned by her company in defense of their pals in the Petroleum Club in Calgary.

Ken Chapman, who has been also doing stellar work covering the reaction to the Royalty review, has published her recantation.

Ken is a thoughtful public policy wonk who also happens to be a Conservative, though he prefers the company of Progressive Bloggers to the partisan whingnuts over at the Blogging Tories. Good on ya Ken.

Once again the One Party State in Alberta resembles other One Party State's where officials make statements and then recant.

Don't Let Big Oil Set Our Royalty Rates make sure Ed hears from you


SEE:

Hugo Stelmach

I Am Malcontent

Who Will Decide About Royalties

Headline Says It All

Ohhh Pulllleeeaasse

Alberta Needs A Chavez

Albertans Are Simpletons Says Government

Royalty Is NOT A Tax

Fearless Prediction Confirmed

Morons

More Shills For Big Oil

Stelmach Sells Out

King Ralph Shills For Big Oil

Find blog posts, photos, events and more off-site about:
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Bill Hunter, Alberta Royalty Review,
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Alberta Oil Royalty Sell Out

Looks like we will not be getting any real news about Farmer Ed's plans around oil royalties when he does his Ed TV program next week.

Alberta royalty details now expected by month end

Instead he spent this week spinning why he is not going to get tough on Big Oil, preparing us for lowered expectations regarding his royalty review.

Stelmach touts benefits of existing royalties

Having met with the oil boys in private and having his Energy Minister do the same they knew this was coming down the pike.

Royalty proposal 'overly aggressive': Panel member

A key member of the panel that recommended controversial increases to oil and gas royalties in Alberta has distanced herself from its conclusions, calling them "overly aggressive" and "dumb" in some cases.

Judith Dwarkin, chief economist at Ross Smith Energy Group Ltd., a top Calgary-based independent energy research firm, co-wrote a new report that criticizes the panel for lacking the "requisite industry expertise and time" to adequately make certain recommendations, resulting in flawed conclusions.

Ms. Dwarkin, who holds a doctorate in economics and at one time was responsible for evaluating Alberta's oil-and-gas royalty system for the Department of Energy, was seen as the most credible member of her six-person panel because of her extensive experience.

A report we have never seen because the Minister has kept it secret. She was the governments Big Oil ringer on the committee so this should come as no surprise.

So what could we hear from Farmer Ed when it comes to royalties. Well not 20%, not 10% nope. Wait for it.....

Making the rounds in Calgary's financial community yesterday was speculation that the province has arrived at a decision to boost royalties on oilsands projects - but not as much as is currently discounted in stock prices.

The scenario - under which royalties would increase to 5% from 1% before project payout, and to 30% from 25% after investment is recovered, and also involves the scrapping of a proposal for a new super royalty - was seen as positive for Canadian oilsands players, whose stocks rallied as oil was rocketing higher.

Meanwhile despite all the doom and gloom being raised over the royalty report it has had little real impact on the industry.

Here is the stock chart for the year for one the oilsands giant; Suncor. And despite a blip in September, after the royalty review announcement the shares just keep going up, and up, and up....In fact they are doing better than they were last spring prior to the Royalty Review report.

Canadian stocks rally, led by energy and mining

Suncor Energy closes at all-time high

And as usual it had less to do with royalties than the oil and gas market.

Oil Slips

Crude oil fell 0.8 percent to $88.77 a barrel on speculation that U.S. supplies are sufficient to meet demand, after rising above $90 in New York for the first time,

EnCana Corp., the nation's largest natural-gas producer, fell C$2.60, or 4 percent, to C$62.85. Smaller rival Canadian Natural Resources Ltd. retreated C$2.96 to C$74.83. Suncor Energy, the world's second-largest oil-sands miner, dropped C$2.44 from a record to C$100.96.

A measure of energy shares, after gaining 4.1 percent this week before today as oil touched daily records, retreated 2.7 percent today. It helped the S&P/TSX climb 11 percent this year before today. Seven of the benchmark's 10 subgroups fell more than 2 percent today.

Don't Let Big Oil Set Our Royalty Rates make sure Ed hears from you


SEE:

Hugo Stelmach

I Am Malcontent

Who Will Decide About Royalties

Headline Says It All

Ohhh Pulllleeeaasse

Alberta Needs A Chavez

Albertans Are Simpletons Says Government

Royalty Is NOT A Tax

Fearless Prediction Confirmed

Morons

More Shills For Big Oil

Stelmach Sells Out

King Ralph Shills For Big Oil

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Bill Hunter, Alberta Royalty Review,
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Big Oil,oil royalties, PC, Calgary, Party of Calgary, politics, NEP, Conservatives, Fort McMurray, One Party State,

Robot Protest

Robot comes from the Russian word Robotnichki, meaning drudgery and worker. A wage slave by any other name.

And when the Oil Rig bosses pay their wage slaves to protest on their behalf against the workers own self interest this is what you get.

During the speeches, the workers showed little emotion, cheering only sporadically.

The Alberta government said yesterday that only $15.2-million was spent on new exploration rights for conventional oil and natural gas in a bimonthly auction.

It is the lowest total this year for conventional energy, a sector in which proposals for higher royalties have provoked considerable anger from industry.

For exploration rights in the oil sands, $15.7-million was collected, which ranks as a median result for the year, ahead of 10 other auctions. With oil prices at a record, the call for higher royalties on that resource has caused less controversy.

In sum, the sale of exploration rights so far this year is down 62 per cent to $1.18-billion from $3.14-billion in the same period a year earlier.

Exploration rights on Crown land in Alberta are posted for sale by the provincial government at the request of individual companies and are awarded in a blind auction where energy firms submit sealed bids. The government take from these auctions can vary dramatically as energy companies spend aggressively when commodity prices are high but pull back quickly when they fall.

A record take of $3.43-billion was reached in 2006, up more than 50 per cent from the previous record of $2.26-billion in 2005. That, in turn, surpassed the long-standing record of $1.15-billion set in 1997, which was reached in part because of the first oil sands boom following the adoption of a generous royalty regime.

This year's decline mirrors collapses recorded in 1981, 1999 and 2002.

That's because such auctions tend to generate less money in Alberta than in other jurisdictions, generally because access to drill for oil and natural gas is seasonal and in the oil sands the raw resource is of lower quality than in major oil fields elsewhere.

Don't Let Big Oil Set Our Royalty Rates make sure Ed hears from you

See:

Real Oil Workers Rally

I Am Malcontent

Who Will Decide About Royalties

Alberta's Tar Sands Gamble

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Rent A Crowd

The right wing press pundits and those opposed to Albertans getting their fair share will make a big deal out of the Oil Bosses Venezuelan Style Protest at the Leg today. Until you realize that the workers there were bussed in by the bosses and paid to be there, complete with signs provided by their bosses.

Also most of them have not read the Royalty Report nor know what its recommendations are. And thanks to your's truly helping get the message out about this right wing demo a counter protest occurred.

The workers, many carrying signs printed by Ensign Energy, the drilling giant based out out of Calgary, and wearing hard hats brought by the company for the occasion, said they fear losing their livelihoods if the report's recommendations are accepted.

Whether the crowd had considered the accuracy of the report was another matter; while several said they felt it was flawed, they either admitted they hadn't read it, or, in several cases, that they didn't really understand the complexities of the royalty structure. Many also confirmed their employers had given them a paid day off to attend the rally.

And about two dozen pro-report demonstrators also showed up. Alan Boyle said he worked in the oilpatch for nearly 40 years. "I don't blame these people for being apprehensive because the message they're getting is fear and they're following that. They're scared for their jobs. I notice some older fellas who in the 80s were perhaps hurt when the NEP came in."

But Boyle also said based on the price of oil, the only reason for companies to fear monger about slowing down is because they want to make more money, instead of paying the public its fair share -- something that repeated reports from multiple economists suggests hasn't happened in years.

"It's generally fear and these people are bought and paid for. I don't think the royalty review is way out of line. I think it's quite fair. I don't really see where, based on the price of oil per barrel right now, that any company is really hurting. There are traditionally seasonal sectors feeling the pinch right now but that's got nothing to do with oil royalties."

The AFL issued in a statement criticizing the Wednesday event planned for the Alberta legislature in Edmonton. Gil McGowan, president of the AFL, said:

"These are people who have bought into the scare tactics currently being used by Big Oil. Obviously, they have a right to speak for themselves. But let's be clear: they don't speak for anything close to a majority of Albertans working in the oil patch or related industries." "It's always scary when the people who sign your paycheques start talking about job loss," says McGowan. "But it's clear that a strong majority of workers in this province - regardless of what industries they happen to be in - want a much better deal on the resources that we all own collectively as citizens. And they're not about to back down just because a few cranky CEOs have been rattling their sabres." "Right now, Big Oil is behaving like a kid throwing a tantrum," concludes McGowan. "They're stamping their feet and making threats. But they're not about to leave the sandbox - because there's too much money to be made and, frankly, because there's nowhere else for them to go."

He described the legislature rally, organized by owners of small energy and oilfield service companies, as “essentially a bosses’ rally.”

While it’s being billed as a “grassroots oil workers rally,” McGowan wondered how it could be when most of the companies don’t work in the northern Alberta oil patch, including Fort McMurray. He added those involved are mostly natural gas employers. At a time when many industry players have already admitted the gas industry is slowing as basins mature and prices increase, McGowan said these companies are using those pre-existing market conditions as scare tactics.
“These employers have been trying to say their recent layoffs are a sign of things to come when in fact they have almost nothing to do with the current royalty regime or the one being proposed by the royalty panel,” he said. “Their problem has nothing to do with current royalty regime or the proposed one. They’re caused by the recent slump in the price for natural gas.”

As for the claims about the slow down in the conventional gas and oil patch, that is the nature of the business. Last spring was too warm for some patch operations. Guys I know working in the patch who start in December or January weren't getting started till late February early March. This fall appears to be another Indian Summer so again the patch will start up later than usual.

Dave Hamsing, who runs a drilling company south of Calgary, said companies are already scaling back operations, waiting to see how the government responds to the royalty review.

Hamsing has only two rigs booked this winter, after six were cancelled. He fears another bust in Alberta is a possibility.

"The ones who suffer from the fallout will be us, the service companies, entrepreneurs, employees, families. The rest of Alberta is going to suffer if they implement the royalty report in its state," said Derrick Jacobson, owner of a small oil service company in Red Deer.

"It's not threats anymore, I mean some companies have shifted operations to Saskatchewan already."

Jacobson called Wednesday's protest in Edmonton a "grassroots oil workers rally," but the involvement of a high-priced public relations firm is raising questions.

Don't believe me,well then lets ask Mr.Right Wing his-self, Neil Waugh;

Threat of job losses in the oilpatch due to royalty boost may just be a Big Oil invention

But it was a great day for the flat-earth believers in the Calgary oil towers and their compliant, soon-to-be communications directors.

Fortress Stelmach had been finally breached and the Stalmachistas are fleeing for the hills after the Cowtown oil aristocrats launched their third and final desperate assault - code-named the "Perfect Storm."

That is where tens of thousands of oilpatch workers would lose their jobs if the modest royalty tweaks go through - not to mention their double wides and dually diesels.

THE PROBLEM IS REAL

Of course, there is a problem. The winter drilling season is going to be a bust. And the summer one was nothing to brag about either.

Big Oil has already pulled back their big budgets. Rigs are racked and trucks haven't turned a wheel all summer, especially in Stelmach's rural heartland.

Big Oil invented the storm. Now they want to pin the blame on Stelmach, as rig moving king pin Murray Mullen tried to do last week when he announced the "temporary layoff" of 100 truck drivers and swampers.

Yep today's protest was the Oil Rig Bosses blaming the Royalty report for the fact that they had a poor spring and summer and are preparing for a slow start this winter. It has nothing to do with our getting our fair share and everything to do with the weather.

But heck you know they would look silly if they protested the weather.

Come to think of it I wonder if they have considered the impact of Global Warming on their jobs.

Nah, that's just another socialist plot like the Royalty Report.

Representatives from the fledgling Wild Rose Party and the Alberta Alliance, Alberta's two ultra-right wing parties, also addressed the crowd. Alliance leader Paul Hinman, the MLA for Cardston-Taber, called the recommendations a colossal mistake. "It's pure politics to talk about 'fair share' because that's how you make everybody upset, by saying 'you didn't get your fair share'," he said.

Don't Let Big Oil Set Our Royalty Rates make sure Ed hears from you

SEE:

Our Resources, Our Future, Our Decisions

Real Oil Workers Rally

I Am Malcontent

Who Will Decide About Royalties

Find blog posts, photos, events and more off-site about:
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Real Oil Workers Rally

In response to the right wing rally by oil company executives in hard hats today at the Legislature the Alberta Federation of Labour will be holding a real oil workers rally in a real oil city.

Thursday, October 18, 2007 at 9pm to 10:30pm

Timberline Room, Sawridge Hotel, Fort McMurray

The Real Oil Workers Forum and Rally

Come sign our petition urging the government to increase royalties and guarantee more value-added production in Alberta. Make your voice heard. Bring copies of the petition back to your jobsites!

Hosted by the Alberta Federation of Labour

Meanwhile the guys from Quattro Energy Services and their Alberta Alliance pals might be in for a surprise at their rally today. Real hard hat oil workers might show up to counter protest.

Don't Let Big Oil Set Our Royalty Rates make sure Ed hears from you



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Hugo Stelmach

The tactics used by the oil bosses in Venezuela are now being used in Alberta.

Media Advisory - Oil Workers to Gather at Legislature to Save Jobs ...

A misleading headline, they aren't really the 'oil' workers. Like Venezuela they are the self interested oil bosses forcing their non-union workers to rally for their jobs that they threaten to cut to stop Albertans getting their fare share of royalties.

Derrick Jacobson, the owner of Quattro Energy Services, a small oil and
gas service company operating in central Alberta, took the initiative of
organizing this rally with his employees and other concerned Albertans.

Digging a bit deeper we find like Venezuala it is a right wing political rally organized by the big oil supporters of the Alberta Alliance Party.

RE: Grassroots Oilworkers Rally

Hello all,

We have booked the grounds at the Alberta Legislature for Wednesday, October17th, 2007 at11:00 am. The address is10800-97th Avenue Edmonton, AB.

We will have MLA Paul Hinman as a guest speaker. If there are any others interested in speaking please let me know so that I may have some type of schedule in place.

I will have a link on my website with all of the reports, petition, as well as releases from Oil Companies. This rally will be designed to inform the public on the crippling effect passing the Royalty Review will have as well as protest the passing of it.

Please be advised it will be kept professional and is not intended to have a wolf pack mentality. We only have one shot at this so let’s be on our best behavior and let our concerns be heard. If anyone is lining up buses etc. I will also post it on my website. This link will be up and running by the end of the day.

The premier is booked to make a public address on the 22nd. Bring your hardhats and let’s show them what Alberta is about. The rally will take place in front of the main entrance steps.

Regards,
Derrick Jacobson
President-Quattro Energy Services Inc.

Don't Let Big Oil Set Our Royalty Rates make sure Ed hears from you


SEE:

I Am Malcontent

Who Will Decide About Royalties

Headline Says It All

Ohhh Pulllleeeaasse

Alberta Needs A Chavez

Albertans Are Simpletons Says Government

Royalty Is NOT A Tax

Fearless Prediction Confirmed

Morons

More Shills For Big Oil

Stelmach Sells Out

King Ralph Shills For Big Oil

Find blog posts, photos, events and more off-site about:
royalties, oil, profits,
Bill Hunter, Alberta Royalty Review,
Alberta Cabinet, CAPP, Ed Stelmach,
Big Oil,oil royalties, PC, Calgary, Party of Calgary, politics, NEP, Conservatives, Fort McMurray, One Party State,

I Am Malcontent

“[The royalty report] has tapped into a pocket of malcontent that nobody knew existed,” said David Yager, chief executive officer of HSE Integrated Ltd., a small energy services company, and a columnist for Oilweek magazine.

That's because the oil elitists and their special interests live in the golden petro towers of Calgary.

Far above the masses on main street.

And I find it interesting he used 'malcontent' rather than what it really is mass discontent with the Tired Old Tories.


Don't Let Big Oil Set Our Royalty Rates make sure Ed hears from you

SEE:

Who Will Decide About Royalties

Headline Says It All

Ohhh Pulllleeeaasse

Alberta Needs A Chavez

Albertans Are Simpletons Says Government

Royalty Is NOT A Tax

Fearless Prediction Confirmed

Morons

More Shills For Big Oil

Stelmach Sells Out

King Ralph Shills For Big Oil

Find blog posts, photos, events and more off-site about:
royalties, oil, profits,
Bill Hunter, Alberta Royalty Review,
Alberta Cabinet, CAPP, Ed Stelmach,
Big Oil,oil royalties, PC, Calgary, Party of Calgary, politics, NEP, Conservatives, Fort McMurray, One Party State,

Who Will Decide About Royalties

Big Oil and their pals in the investment industry according to this story in the Globe and Mail today.The folks who have been whining the most are having secret meetings with Stelmach's Government.

According to Tristone, which has worked closely with Alberta civil servants in Edmonton to produce new work it will present on Monday

“I think Stelmach's going to make the right decision,” said George Gosbee, chairman of Tristone Capital Inc., a Calgary investment bank that has worked to broker a balance between higher royalties and keeping the province's economic engine running.

These are the same guys that said this earlier this month; Tristone CEO sees lower gas output if cost rises

International oil producers will flee Alberta if the Western Canadian province's government implements a proposed hike to oil and natural gas royalties and taxes, an investment bank said on Monday.

Going ahead with a recommended 20 percent, or C$2 billion, hike to Alberta's take from oil and gas production in the province will actually cause government revenue to drop as production falls by half-a-million barrels a day, according to Tristone Capital Inc, an investment bank that serves the oil and gas industry.

"The C$2 billion increase per year in the government's take is an absolute fallacy," George Gosbee, Tristone's chief executive, told reporters.

Instead of an increase, government revenue would fall by about $1 billion a year if the proposals are adopted, the banker said.

Tristone's study is the latest in a series of industry arguments against the royalty hike proposed last month by a government-appointed panel.

Tristone did not make their predictions or objections known to the original Royalty Commission.

Tristone Capital Inc., a brokerage that did not participate in the public review, published a lengthy response to the panel's report,

Don't Let Big Oil Set Our Royalty Rates make sure Ed hears from you


SEE:

Headline Says It All

Ohhh Pulllleeeaasse

Alberta Needs A Chavez

Albertans Are Simpletons Says Government

Royalty Is NOT A Tax

Fearless Prediction Confirmed

Morons

More Shills For Big Oil

Stelmach Sells Out

King Ralph Shills For Big Oil

Find blog posts, photos, events and more off-site about:
royalties, oil, profits,
Bill Hunter, Alberta Royalty Review,
Alberta Cabinet, CAPP, Ed Stelmach,
Big Oil,oil royalties, PC, Calgary, Party of Calgary, politics, NEP, Conservatives, Fort McMurray, One Party State,