Alberta introduces law for controversial jump in royalty rates
Last Updated: Thursday, November 6, 2008 | 7:26 PM MT
CBC News
The Alberta government introduced legislation Thursday to implement the controversial increases in resource royalties it first announced in 2007.
Energy companies will be charged 20 per cent more for the right to develop Alberta's oil and gas resources. That change will translate into $1.4 billion more in the year starting Jan. 1, 2009.
"This is an indication that we will not be moving away from implementation," Energy Minister Mel Knight said of the legislation. "The new royalty framework will be in place on January 1st."
The government first announced the new rate framework in October 2007.
But the changed world economy has renewed calls for the government to change its mind.
On Thursday, Alberta's Wildrose Alliance party issued a news release asking the province to cancel the increase because of the recent decline in prices for oil and natural gas.
"Clearly, now is not the time to throw another wrench into the economy," party leader Paul Hinman said in the release.
"B.C. and Saskatchewan both realize that it takes lower taxes, not higher, to grow the economy and remain competitive, just as Premier [Ralph] Klein did years ago to attract head offices from Toronto and Montreal by lowering provincial business taxes."
But Knight said the new framework allows for royalties to decrease when prices for commodities like oil and gas are low.
"It protects industry in those cases and of course it provides Albertans with opportunities when prices are high," he said.
Knight said he expects the legislation should be passed by the end of the current fall session in early December.
With files from the Canadian PressShare Tools
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