Things just continue to get more interesting for Alberta residents, those who want to represent us, and those who want to invest/do business here.
Tuesday’s high profile announcement by Liberal MLA and energy critic Dave Taylor that it makes sense to sit down and “break bread” with the oil and gas industry was complemented by an open letter to oil patch CEOs from Taylor and Liberal leader David Swann. It acknowledged that Canada and Alberta’s economic health is inextricably linked with that of the patch. Soon the Liberals will announce that the sun will rise in the east. And if that isn’t enough, they now have a policy that proposes to encourage the energy industry and investors by adjusting royalties to reflect economic realities. This from the crowd that insisted during the infamous royalty review debate that Albertans were not getting their “fair share.”
It’s fair to say that Danielle Smith and her Wildrose Alliance are helping us get it Right in Alberta. It appears a movement to the Right is underway, when even the “fair share” Liberals start talking about breaking bread with industry leaders and adjusting royalties to be competitive with other jurisdictions. Interestingly, when newly minted Energy Minister Ron Liepert suggested the same thing, using the euphemism of “lunches at the Petroleum Club,” he took shots for being out of touch.
Yes, the Pete Club is a bit of an anachronism, but there is still no better place to be seen if you’re doing a deal or making a statement. And that is what Liepert has been mandated by the Premier to do: be seen, and make a statement.
Liepert, it must be remembered, represents Calgary West, giving him a real political advantage over his predecessor Mel Knight, whose riding is in Alberta’s northwest. Liepert lives here. He can be seen here. Many remember “the good days” when Energy Ministers Greg Melchin (no partier, but a visible presence) and Murray Smith (more inclined to a good time, and a formidable presence) maintained strong offices in the city and regularly walked the plus-15’s (an elevated pedway that connects the city and protects us from the elements). The oil and gas industry employs people throughout the province, and indeed throughout the nation, but Calgary enjoys “the energy capital” tagline and we like seeing the Minister here.
Here’s the scoop: I attended a breakfast meeting last Friday. So did Liepert. On Saturday, I attended an important fundraiser for STARS Air Ambulance hosted by the Petroleum Services Association of Canada. So did Liepert. He spoke formally at both occasions and, as is his style, was mercifully brief. But at both events, and no doubt many others in the days since his appointment, he visited at length with people and appeared thoughtful and engaged. This is old style politics.
Now, almost everyone admits the 2007 royalty review and results were a bust – even Swann and company who originally goaded the Government to go further. To be fair, not everyone agrees: one of the original “blue chip” panelists is still telling the media we’re not getting high enough returns, but the panel members didn’t understand that there are more benefits to oil and gas activity than just royalties. Albertans have had a painful reminder of that recently.
Liepert, his Deputy and others will be churning through the eagerly anticipated results of Alberta’s Competitiveness Review for several more weeks. By all accounts the authors have solicited solid input on a full range of investment criteria, not just royalties. The Minister says he and his colleagues won’t rush to judgment (as they did with the Royalty Review). Good. He has to get it right. If he proposes changes (and there have been far too many changes and teaks to royalties since the big one in 2007) they have to be real, responsive to circumstances, and as close to permanent as anything a government does.
Like many other Ministers, Liepert has accepted the Premier’s challenge to communicate better with Albertans. He’s talking, and he’s listening. I think he knows the statement he has to make to investors is about restoring trust, reliability, and faith. It’s about restoring the Alberta Advantage, which is far more complex than we used to think. For those of us who want to believe, that’s good news. I’d gladly lunch at the Pete Club to hear it.
