Sun Love In With NDP

Is subversive socialism creeping into the Sun Editorial Room. After all their new marketing slogan smacks of Bolshevism; Read Red. Red being their banner colour.

And they are saying nice things about Brian Mason and the NDP after Brian met with them yesterday.

When Mason appeared yesterday to talk to the Sun's editorial board he didn't seem to have any blood-sucking socialist fangs and wasn't wearing a red beret.

Instead, he wore a tie and jacket and patiently outlined a policy platform aimed at what ex-premier Ralph Klein dubbed severely normal Albertans.

Kerry Diotte, a transplanted Ontario libertarian, gushes again over Brian and the NDP.

There's long been an innate fear of socialism here and it has been reflected by the poor showing by NDP candidates who run federally and provincially.

That's why it's got to be frustrating for a guy like Alberta NDP Leader Brian Mason, who's the most charismatic of the three major party leaders contesting the March 3 provincial election.

Which is why he falls into the revisionist right wing myth that Alberta fears socialism. Which is contradicted by the historical fact that Western Canadian Socialism was given birth here with the strikes of miners who belonged to the IWW in Medicine Hat and Lethbridge. Again in 1919 with the founding Convention of the One Big Union in Calgary, during the Winnipeg General Strike, organized by the Socialist Party of Canada. And later with the founding of the CCF in Calgary in the 1920's, not as some mistakenly believe in Regina.. Albertans embraced socialism even in its later distributionist right wing variant; Social Credit.

Neil Waugh gushed this week over Brian as well.

There was nothing about a Liberal-style assault on the oilsands for Our Brian, clearly a friend of the working man and woman, or at least not for now. Heck, he even wants to charge a bitumen removal "barrel tax" to force oilsands outfits to upgrade their production here.

Then today Waugh joins in with a clarion call of pending class war because of Big Oil's finger puppet Ed Stelmach. Suddenly Waugh is sounding like more like Lenin than Ayn Rand.

That was all before Canadian National Resources Ltd.'s $2-billion oilsands overrun suddenly appeared to bite the Tories this week.

With only 10% of the Horizon oil sands plant at Fort McMurray still to build, the costs mysteriously soared 28% in what the company blurb called the "toughest, most labour intensive portion" of the controversial project controlled by Calgary billionaire Murray Edwards.

"Unfortunately, mid to late January and early February saw a significant deterioration of labour productivity on the site," company brass lamented.

The reason was "much colder than normal weather seriously curtailed activity."

Who knew that it sometimes hits -40 C at Fort Mac in the winter? When in doubt, blame the workers and the weather.

But it won't be CNRL shareholders picking up the extra $2 billion. Somebody messed up big time and tried to build the biggest piece of the project in brass monkey weather.

In all likelihood, Alberta taxpayers will once again bite the bullet.

Even under Stelmach's new royalty deal (a strangely forgotten part of the PC campaign), oilsands outfits still only pay pennies on the dollar until the massive plants are paid out. Then the royalty jumps to a more reasonable rate of 25% to 40%, depending on oil prices.

Energy department spokesman Jason Chance insisted that any additional costs "would have to be validated and determined whether they are appropriate. It's based on what the reality is."

The sweet deal CNRL got from the Tories for Horizon allowed the company to tear up the oilsands labour construction deal and broke the peace that ruled in the oilsands for the last quarter century. It touched off last fall's Hard Hat Flu walkouts.

This resulted in the "No Plan" Stelmach attack ads backed by the Alberta Building Trades Council.

These took a turn for the bizarre last weekend when the Alberta Union of Provincial Employees' brass, after "extensive debate," voted to kick in $300,000 to the TV spots, meaning government workers are now attacking their own work.

Meanwhile Employment Minister Iris Evans continues to sit on the probe into CNRL's all-fall-down tank farm, where two Chinese foreign temporary workers were crushed to death.

"The chickens are coming home to roost for Mr. Stelmach," Mason chuckled, calling for a "special unit" of government auditors to "validate and verify" CNRL's cost-overrun claims.

Or is Klein's political ghost now haunting Eddie's campaign bus?

Mason also met with the Liberal Edmonton Journal editorial board. And again a fair gushing ensued over the only charismatic politician in the race. Mason was the winner in the 2000 race, and the NDP has made the transition from being a decimated party in 1993 to rising from the ashes in 1997 to winning four seats in 2004. And in each of those elections the NDP was a new party with new directions and new leaders who appealed to the public.

Albertans should be grateful the competent, thoughtful, personable likes of Brian Mason is willing to fight the uphill battle, to make the case for New Democrat MLAs in the legislature at election time, and to stoke debate on issues such as health care each time the Tories introduce one of their numbered "ways" of challenging the public system.

Do the NDs have a place in the next legislature?

That's a decision voters -- in practice, Edmonton voters -- must decide as they balance their desire for change in government offices, their recognition that our new Edmonton-area premier already constitutes change from the Calgary-centric Klein past, and their admiration for stands of principle by people like Mason and his predecessors Raj Pannu and Pam Barrett.

But would this election be as valuable or as useful a forum of political renewal and debate without Mason's and the NDP's thoughtful perspective on issues?

It certainly would not.

The Edmonton media seems to have given Brian and the NDP an election bouquet of good wishes on Valentines Day.


SEE

Careful Of What You Ask For


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Presto Shills For Big Oil

Presto Manning was on CTV Question Period this morning shilling for Big Oil and whining about the Alberta Royalty compromise produced by Eddie Stelmach.

CTV's Question Period: Preston Manning, Fmr. Reform Party leader

Presto was following up on criticisms he made earlier this week in a comment piece he wrote in one of them 'damn eastern newspapers'; the Globe and Mail, aka Canada's National newspaper. Preston Manning: The Stelmach royalty uncertainty principle Which of course is owned by the same folks who own CTV.

Presto has upset folks even on the right like Neil Waugh at the Edmonton Sun. Whose side is Presto on?

Presto engaged in some political prestidigitations on Question Period about how this will hurt Eddie in the polls when the election comes. And as usual with the rose coloured glasses of the Calgary right wing he predicted that it won't benefit the Liberals or NDP or even the would be right wing rump parties, but rather it would be because conservatives will stay home.

Manning added it's becoming increasingly unlikely that Stelmach and the Conservatives will win another election unless the "government demonstrates a capacity it hasn't shown thus far."

"I don't see votes going to the Liberals or the NDP, I think their biggest danger is another 150,000 people staying home who voted Conservative the last time," he said.

Well at least they have homes. It's not just the royalty deal that is driving a stake in the heart of the Tired Old Tories it's stories like this Halloween surprise.

Drastic rent increases at a Fort McMurray complex are renewing calls for rent control.

"The province needs to step in. Every other province has some form of rent control," said Rob Picard, angered by his skyrocketing rent.

On Halloween night, Picard was spooked by an 86% increase to his rent. The three-month notice means the rent on his two-bedroom 700-square-foot apartment in the River Park Glens, also known as the Syncrude Towers, is jumping from $1,425 per month to $2,650.

"I work for Suncor. I make good money, but I can't afford this. The illusion that this is Fort McMurray and everybody can afford this is just wrong," said the heavy equipment operator.

He's not the only one complaining.

Gunner Antos has a two-bedroom apartment in the same building and will see his rent go from $1,500 a month to $2,700. Those prices could even drive highly paid workers away.

"They're crying for workers and they're raping us," said Antos.

"You've got people who have jobs living in tent cities. They have people with jobs living in the bush."

Service Alberta spokesman Eoin Kenny said the government is not looking at rent controls at this time.

The apartment building has about 500 units, although some are individually owned.

"With this type of hit, even though I work for Syncrude, I may be forced to take a room this late in life," said Gerald Morrison, who has lived at the complex for more than 20 years.

"I always thought Fort McMurray was fair and square, but they're gouging now."

The landlords left a note on apartment doors Wednesday afternoon saying the change will be effective Feb. 1.

Mr. Morrison said his three-bedroom apartment is going from $1,800 a month to $2,950 - without utilities - despite a leaky roof, carpenter ants and unpainted walls. Two years ago, his rent went from $1,100 to $1,500, and then to $1,800 last February.

David Campkin said the one-bedroom apartment he and his wife share rose to $2,250 from $1,450. He said the unit's condition is "absolutely appalling" with a carpetless concrete floor and none of the promised security.

The provincial Residential Tenancies Act passed in April requires landlords to give tenants three months' notice before raising rent once a year. River Park Glen appears to have met the conditions.

There is no ceiling on rent increases in Alberta, where a sizzling economy is attracting workers from outside the province and making affordable housing scarce. A government-appointed committee suggested rent controls to Premier Ed Stelmach earlier this year, but he rejected the recommendation.

Lets do some quick math shall we. 500 units X $1500=$750,000. Rolling in the dough while not providing tenants with repairs. Can you say high rise slum lord.

Another whiner from Alberta is Harpers pal the ex-CEO of Encana, Gwyn Morgan
who also published a comment attacking the royalty compromise in that same eastern rag. The irony is that populism was what got Presto elected and made the Reform/Alliance/Conservative party possible. And Gwyn makes the same case that Presto does in attacking Farmer Ed.

Populism tramples principle in Alberta

GWYN MORGAN

From Monday's Globe and Mail
October 29, 2007 at 6:30 AM EST

Experience has taught me that populist politics are seldom principled. It's not that populists don't want to do what's right and best; it's just that if a choice has to be made as to which has priority, what is popular wins.

The second matter of principle Mr. Stelmach's government has violated is reneging on oil sands royalty commitments under which capital has already been invested. Except in the case of Syncrude and Suncor, the money was invested without a contract binding the government to honour the terms.

Nonetheless, investors rightly see this unilateral change as a clear case of doing what is popular rather than what is right. And in terms of doing what is best, the damage to Alberta's reputation certainly illustrates the wrong choice.

Industry is still in shock, but the computer models used to compare before and after investment feasibility are grinding away. Companies with investment opportunities outside Alberta will be looking at them a lot closer. The natural gas drilling and development service sector was already suffering, so expect an even worse downturn. New project decisions in the oil sands will have to factor a much higher government take into a business already replete with risk.

Mr. Stelmach states: "I'm confident we've made the right decisions for today and for Alberta's future."

As for me, I continue to believe that populist politics are seldom principled.

Populism is what kept Ralph in power for years. Of course in Ralph's case that was populism that benefited the oil boys in Calgary. So that was principled.



SEE:

Income Trusts; Predatory Capitalism

Stelmach's Royalty Give Away

Made In Calgary Homeless Plan

The Sky Is Not Falling

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Cavet Emptor Illegitimate Goverment

There is no government like no government.

For an prime example of American Republican Libertarian forms of limited government one needs only look to Alberta.

Last weekend a fire destroyed 94 housing units, the majority were part of a new condo complex, the others were single family dwellings built too close to the complex, with little or no fire protection for their siding and outside walls. The result was mass destruction.And folks left homeless. In a boom economy with rental housing and other ownership options priced beyond most folks means.

The problem is an obsolete building code written in 1960 and based on the notion of preventing fires from spreading from building to building from inside out instead of from the outside in, Wolsey said.

"There has to be a better look at how we deal with building codes as to how we protect our society," he said.

"Is this preventable? I believe it is. With minor amendments to building codes and minimal costs, we can prevent this kind of a devastation from occurring in our communities."

The governments response was little, minor, small, none at all.

The Alberta government's own public safety division recommended changing building codes more than two years ago to prevent fires like Saturday's $20-million inferno in south Edmonton.

But the government chose not to act.

Instead, it forwarded the recommendation to the National Research Council for further study via a provincial committee - although it is under no obligation to wait for an NRC recommendation before making code revisions.

In fact, a year later, the department - then under the leadership of Rob Renner - rejected an official request by the Alberta Urban Municipalities Association to address the insufficient separation between homes, saying there was no evidence to support it.

Government exists to protect citizens, except after the neo-con revolution that defined government as existing above, apart, separate from the people. The earliest forms of self government, have been about building codes and fire prevention. Whether at the municipal, state/provincial or federal level. In Alberta this responsibility has once again been abdicated by the ruling Tories.

Building codes blamed for massive fire
Condo blaze sparks call for tighter fire codes
$25-million fire calls building codes into question
Insurance industry backs tougher building codes
Heed fire's warning: improve building code
Fire chiefs say Alberta should be leader in Canada on building codes

Since the Ralph Revolution of the nineties the neo-con/neo-liberal republican lite agenda of the Fraser Institute and the right wing political business lobby the NCC have dominated conservative politics in Alberta and Canada.

Tougher code carries a price

The Tories created a myth, first they attempted under Lougheed to both expand oilsands development and diversification of the economy. The former succeeded the latter failed. Under Don Getty the diversification expanded, but it ended up a failure because it was simply the government doling out corporate welfare to businesses and lobbyists that had the best selling points, rather than realistic business plans.

Though some plans and businesses were by their nature something the state should have done as public services, such as hazardous waste disposal, due to the costs and long term responsibilities involved, as well as the continuing need for state funded research and development required for technological and industrial advances.

And as usual the left wing moonbats like Neil Waugh of the Edmonton Sun trash our glorious republican government for their obvious contradictions.

More study is needed before deciding whether to update building codes to prevent repeats of a $25-million condo development inferno, Alberta's municipal affairs minister said yesterday.

Although he said he personally favours a "proactive" approach, Municipal Affairs Minister Ray Danyluk also said the numbers aren't all in. He said the province approached the National Research Council 18 months ago and asked it to study the issue. Its next major amendment of national standards, however, isn't until 2010.

Ray's job in Ed Stelmach's Country Club Cabinet is housing and municipal affairs. Both are hot topics after Wolsey warmed up to his usual theme following the MacEwan Fireball. Edmonton houses are fire prone. Thanks to the controversial vinyl siding that's slapped on them without any fire retardant board beneath.

Wolsey talked about a "simple fix." And when asked whether the MacEwan blaze and other similar fires involving Boom-berta houses are preventable, he answered: "I believe it is."

He talked about "minor amendments" to the building code. Which is Ray's responsibility.

And if the houses around the condo blaze had something as simple as exterior grade drywall under the plastic siding "we probably wouldn't have lost any of those homes."

So here's the question I put to Ray in the flower garden.

"Are get-rich-quick developers cutting corners and building shoddy houses that could put Albertans' lives in peril?"

Which, of course, is the Monday-morning-coming-down question for many folks.

No emergency meeting with Battlin' Randy Wolsey, no read-the-riot-act session with the Edmonton Region Homebuilders Association, no task force of surly bureaucrats to prepare a report, make recommendations and get to the bottom of what's going down out on Pleasant Acres Drive and Woodside Wynd.

Instead Danyluk froze up like a rusty Lada at 40 below.

The best he could offer was that the National Research Council is apparently working on something, but it won't be ready for three years.

Once again showing this government has no use for its citizens and is in the pocket of establishment special interests.

Caveat Emptor, citizen beware you have nobody to blame for getting screwed but yourself, the government refuses to protect you or to govern for the public good. Just as they have failed renters in this province now they fail homeowners, in favour of developers.

This then is limited government in a nutshell.

See:

Pay 'Em What They Want

He Can't Manage

Drumheller Bell Weather

Stelmach Tanks

Alberta Deja Vu

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Our Pal Ed

Lame duck Premier Ed Stelmach is our pal says the Biggest Landlord in Canada....

"We are extremely pleased," whooped Boardwalk president Roberto Geremia.

"Though confronted with intense pressure from the media and opposition parties," he continued, "the provincial government has remained steadfast in its stand against legislated rent controls."

CEO Sam Kolias said Boardwalk was now "poised to generate significant gains," and reminded unitholders that "today's most exciting investment story surrounds our Alberta portfolio," which he described as "really hot."

And Edmonton in particular, where 32% of Boardwalk's apartment units are concentrated and the vacancy rate is running under 1%, is "poised to generate significant gains over the next coming months."

Then Kolias rolled out the happy numbers for the cheerleading stockies listening on the conference call.

Funds from operations were up 25% over the same three months in 2006. Distributable income per unit was up 27%. Rental revenues were up 15%, while net operating income of $51 million was up 19%.

Happy days are here again. And probably the most important stat of all was Boardwalk's "outlook and guidance" prediction that distributable income will climb from $1.87 to as high as $2.04 per unit in 2007.

"We're being thoughtful in the amount we are increasing rents," he continued.

"Although the market can bear more," Kolias sighed, "we do realize that our customers are the most important thing that we have."

H/T to West of the Fourth who discovered Neil Waugh is as Socialist.

Something I have pointed out over the past couple of years about Neil.

After you suffer thirty five years of an incompetent One Party State, socialism actually looks good.

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Stelmach the Perfect Strom

As I have said before our new Alberta CEO Ed Stelmach is haunted by the ghost of a Premier past; the lame duck Harry Strom.

Edmonton Sun columnist Neil Waugh knows this too and gloating with glee likes to rub it in;

Listen up on land

Last week Premier Ed Stelmach finally gave Albertans a peek under the tent flaps about his plans to stop the insanity of Ralph Klein's flawed oilsands policy, which sees energy companies pay a penny-on-the-dollar in royalties while at the same time shipping raw bitumen and jobs down the pipeline to Illinois and Texas and turning 48 townships of pristine boreal forest around Fort McMurray into a vast industrial zone.

"My government is committed to ensuring there will never again be a major downturn like we saw in the 1980s," Stelmach boomed to the Canadian Energy Research Institute.

He plans to thwart any National Energy Program rerun by "developing and diversifying" the energy industry.

During the Alberta PC leadership campaign last fall Stelmach compared pipelining raw bitumen to Texas as selling the "topsoil" from a farm.

"This includes encouraging more upgrading and value-added activities in the province," he told the oilmen. "Our government will encourage that to happen."

He has a strange way of doing it. The latest jobs-down-the-pipeline dust-up happens before the National Energy Board in Calgary on June 4 when TransCanada Pipelines pitches its ultra-controversial Keystone bitumen pipeline to the States.

Alberta Federation of Labour president Gil McGowan has already filed an intervention describing the dubious line as a "devil's bargain".

NEB documents reveal the Alberta government is intervening too. But instead of a blizzard of submissions backing up the premier's pledge, Alberta taxpayers will be represented by one lowly "regulatory analyst" who is only there to "monitor" the hearings on behalf of his Edmonton bosses.

Spare us any more goofy speeches, Ed.

Tories drop ball on housing problem

They recommended the premier consider "limited, short-term market intervention." In short, they proposed the province impose "rent stability guidelines" consisting of once-a-year rent increases of no more than 2% above inflation. Also proposed was a one-year notice for condo conversions with no lease-busting rent increases in the meantime.

The task force report described this recommendation as a "very difficult one."

The Alberta Tories obviously had a difficult time of it as well. Because when the smoke cleared and Housing Minister Ray Danyluk released his $285-million response this week, rent controls were mysteriously missing.

In their place were a series of half-hearted attempts to rein in runaway accommodation costs.

The proposed condo conversion restrictions have been accepted. But landlords can impose once-a-year hikes with no ceiling.

Instead of responding boldly and constructively to a problem that's creating economic hardship for large numbers of Albertans and employment problems for many Alberta businesses trying to compete with the oilsands developers for workers, the Tories tried to dodge the bullet. They're attempting to buy a little more time.

In the meantime, apartment owners will continue to record huge profits, the affordable housing crisis will continue and the whole problem will blow up again next spring.

This is not leadership.

Boom's deadly toll

The blood spilled and the body count wasn't as high as in the tragic Diversified 690 bus crash. Thank God for that. But the cause of the death of two Chinese temporary foreign workers at Canadian Natural Resources Ltd.'s Horizon oilsands plant this week can be traced back to same source.

And that's the Alberta Tories' botched - and now extremely deadly - oilsands policy, which triggered a massive oilsands building boom without first putting in place the necessary infrastructure.

The Tories then conspired with the developers to tear up the labour peace treaty that ruled the oilsands for more than a decade.

There followed the airlift of cheap foreign workers, while thousands of Alberta tradesmen and women sit on union dispatch lists.

The collapse of the tank roof structure that killed Genbao Ge and Hong Liang Liu and injured four others working for the Chinese-government-owned contractor was the culmination of this goofy policy.

It's the same one that allows oilsands developers to pay a penny-on-the-dollar royalty until the multi-billion-buck plants are paid out, while at the same time shipping raw bitumen and jobs down the pipeline to Illinois and Texas and leaving behind irreparable environmental damage in the pristine boreal bush north of Fort McMurray.

It wasn't until after the bus crash that killed six construction workers on the Syncrude job that the Alberta PCs finally admitted that Highway 63 was fundamentally dangerous. And they're now playing a desperate game of catch-up to twin the major route to the oilsands.

But only last week, Finance Minister Lyle Oberg was bragging in his budget speech about more offshore workers coming in.

"We will develop an immigration strategy to encourage more skilled workers to come to Alberta." Oberg boomed. Well, how do you like your strategy now, Lyle?

And just how panicked the Stelmach government is to control the damage and deflect the blame has been clearly evident since Tuesday's tragedy.

A limited internal investigation by government bureaucrats - and no public report, but simply a handover to the dubious Alberta Justice Department, which already has the worst record in Canada on bringing boardroom bad guys to justice. (They've yet to get the trucker who crashed into Bus 690 into court - an accident that happened way back on May 20, 2005.)

Worker error

Meanwhile, CNRL is being allowed to do a parallel "full investigation" of the incident, where worker error will be the inevitable conclusion.

Heck, Employment Minister Iris Evans didn't even bother to issue a press release acknowledging the latest oilpatch accident even happened.

Smoke and mirrors

"Alberta intends to borrow $300 million on behalf of its corporations this year," noted CIBC World Markets economist Avery Shenfeld. "With half of that raised in the public debt market."

Shenfeld added that the government-backed Alberta Capital Finance Authority and ATB Financial plan on floating paper worth $2 billion this year.

BMO Capital Markets economist Michael Gregory also determined that the Tories are back in the borrowing business "which will be subsequently lent to other provincial corporations to meet their funding requirements."

Things get even more murky when you dig deep into the budget documents to find the true meaning of P3 (public/private partnerships), like the Anthony Henday and Stoney Trail ring roads in Edmonton and Calgary.

P3 magic, we are told, is that it "allows the government to transfer certain risks that the private sector is better able to manage."

Without getting too specific.

But the background blurb also admits: "contribution of public financing to a P3 project should reduce total project cost."

And under a section called "debt servicing costs," Oberg's documents show a line identified as "financing costs for government-owned capital (P3s)" growing from $8 million this fiscal year to $22 million by 2009-10.

Yup, we're back in debt.

Except the budget book would prefer to call it "alternative financing" or "capital lease liability".

Of course, there's more debt on the books in "debt free" Alberta.

Another $166 million in medium term bonds comes due this year.

That leaves over $1.2 billion of old Don Getty debt on the books to be paid off from the debt retirement account when it comes due. Some of that won't be until 2013.

Sure, there's another $2.2 billion surplus in the forecast this year plus another $7.7 billion ticking over in the Sustainability Fund.

OTHER FUNDS

At the same time, the Tories will pull another $1.4 billion of investment income out of the Alberta Heritage Fund, while other funds will yield an additional $2.1 billion more.

But isn't the HTF supposed to be used for a rainy day?

Don't worry, it could be pouring soon.

The University of Calgary's Institute for Sustainability, Energy, Environment and Economy recently released a paper on Alberta's economic future.

The results of that study are suddenly showing up in government documents.

The "bulk" of the government resource revenue came from gas royalties in recent years.

In 2004, it hit over $8 billion. By 2013, the institute predicts gas royalty revenue will be only $3 billion.

While oilsands revenue is the next big thing, the way the Tories have screwed up the royalty regime with their goofy penny-on-the-dollar giveaway leads the institute to a grim conclusion.

"In general, one would expect significantly lower royalties as a percentage of revenues in the case of oil- sands compared to conventional oil," the paper warns. Expected royalties compared to recent years will be "substantially lower."

And the projected royalty revenues for 2013 are "just over $5 billion" - which the report points out are "about one-half the average levels" over the past five years.

Looks like Oberg is just getting warmed up for when Alberta is back aboard the debt and deficit wagon.

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Inflation In Alberta

As reported in a couple of the Edmonton Sun columns by their token Left Winger (wink, wink) Neil Waugh, inflation in Alberta was up again.

The sharp jump in wages was almost matched with a 4.5% increase in consumer prices.

But it was not due to wages increasing nope, it was due to the over heated housing market, which keeps going up.

The continued strength of Alberta's energy-based economy resulted in Edmonton's housing market outperforming expectations, making it the hottest market in Canada in the quarter. During the first quarter, the price for a standard two-story house rose 54.4 percent in Edmonton and 27.4 percent in Calgary, Alberta, while the average national rise was 11.8 percent.

And considering the price of the mythical single-family dwelling has increased 16.5% in the first three months of 2007 - and now stands at $398,476 - that's either good news or bad news, depending on what side of the deal you're on.

If you'd bought or sold a year ago, the price you would have to pay has increased by an incredible 55.6% since then. Needless to say, it's a year-to-year record, as are all the other March stats the EREB keeps.

So far in 2007, board realtors have cleared $2.14 billion in sales, which is 80% higher than last year's pace. And that was hardly a recession year either.

In fact the "threat" of another huge spike in house prices has "sparked an early rush for new and resale houses," the ComFree monthly report cautioned.

Earlier this week the Calgary Real Estate Board revealed 3,939 combined residential sales in March (a new record) and the average sales price inched up 5.6% from February.

But that's a 27% year-to-year increase from last March. CREB president Ed Jensen called it an "interesting" month. No kidding, Ed.

But he also reported a 32% jump in listings over last year, which may mean that folks are trying to cash in on their windfall equity before it disappears like campfire smoke.

ComFree reports its average house price also bumped up 8% in March to $350,300.

And of course inflation is caused by those who exploit this hot housing market. Now usually when inflation increases workers wages are blamed and you can expect interest rates to climb or bosses to fight for claw backs. But when it comes to inflation caused by housing costs, well no one yet has implemented the solution; Rent controls.

But even down at the legislature last week the Alberta Tories were beginning to feel the heat over inflation.

Especially when Alberta NDP leader Brian Mason grilled Premier Ed Stelmach over when the PCs' affordable housing report will finally be released. It contains recommendations to put a clamp on soaring rental rates.

One of the province's biggest landlords, Boardwalk Real Estate Income Trust, recently gave the opposition more ammo when CEO Sam Kolias revealed in his year-end report to unit holders how he "maximized return" by responding to what he called "exceptionally strong market fundamentals.

"As occupancy tracked upward due to positive supply and demand forces," Kolias beamed, "rental rates followed suit, resulting in strong revenue growth."

And with 52% of his property portfolio right here in Boom-berta, he predicted his "proactive operating policies" would result in even greater revenue growth in 2007.

Unless, of course, the PCs implement their own report and slap on rent controls.

Meanwhile the average Albertan even with a good paying job cannot afford to buy a home,

Most Albertans think this is a bad time to buy a house -- but a good time to buy major household items. Leger Marketing surveyed 900 Alberta consumers for PricewaterhouseCoopers, in February, asking about the economy.Leger's report noted "the relatively pessimistic sentiment regarding interest rates, combined with the fact that the housing market in Alberta has boomed over the last two years."

So who is doing all the buying? Why speculators of course hoping to flip the house in the market to make money.

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Condos The Problem

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P3 Failure In Alberta

What raving leftist said this?

"Although it appears that ideology has ruled over common sense. Monopolies have to be rigorously regulated. When they aren’t – the Edmonton Regional Airports Authority and CLS being two obvious examples – they get out of hand. Having the private sector market alcohol has led to competitive pricing, extended business hours and a huge ramp up in selection. It hasn’t been all bad. Even though the trend recently has seen the mom-and-pops being squeezed out by the big chains."

Neil Waugh in the Edmonton Sun on the failure of the current privatization monopoly in liquor distribution in Alberta.

You see when the government privatized its liquor business it sold off its buildings at fire sale prices, and sold the rights to its lucrative government run distribution business, warehousing and trucks included, to a private company. But that company also maintained the State's monopoly. And as a P3 it is not subject to the usual checks and balances that even the promoters of P3's say need to be in place.

The Alberta Liquor Association called it the “disastrous warehouse mess.” The Alberta Hotel and Lodging Association said it’s had a “serious and negative impact” on its members.

Meanwhile, the Canadian Restaurant and Foodservices Association notes that the outfit running the province’s liquor distribution monopoly “enjoys” a deal where there is “no risk of losing market share due to poor service.”

But more to the point, the new Alberta Tories’ first dive into the P3 shark tank appears to have popped its top.

All this and a whole lot more was revealed in a damning report by Pricewaterhouse Coopers into what’s wrong with the province’s liquor distribution system released by the government yesterday. The very first line of the report warned that “a simple, expedient solution to Alberta’s current liquor supply chain challenges does not exist.”

But at least we may now get a liquor warehouse and distribution operator, that has a contract with Alberta taxpayers with performance measures and penalties. Because right now Connect Logistics Services has a sweet deal where “no incentives or disincentives exist for good/poor performance,” the report determined.

But the Pricewaterhouse report is a clear warning that public/private partnerships aren’t the dream team that the PCs would have us believe. Especially if no one is willing to keep a firm hand on the private partner.

But now the Stelmach government is determined to charge ahead. Ring roads are going to be run as P3s under long-term contracts. There’s talk of “bundles” of schools turned over to the private sector. The new Calgary hospital was originally shopped around as a P3. There were no takers. The liquor warehouse report may have just told us why.

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Privatization


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