Edmonton

NDP oil royalty rate review earns praise from Ed Stelmach

Former premier Ed Stelmach is lauding NDP premier Rachel Notley for living up to her campaign promises, in particular a plan to review royalty rates.

Industry anger forced former premier to roll back rates in 2007

Former premier Ed Stelmach leaves the chambers at the Alberta Legislature with wife Marie following the throne speech Monday. (CBC)

Former premier Ed Stelmach is lauding NDP premier Rachel Notley for living up to her campaign promises, in particular a plan to review royalty rates.

"She'll follow through on the commitment," he said. "I'm sure that she'll meet with industry, she'll meet with investors, meet with Albertans that will have their say." 

Stelmach increased royalty rates in 2007, but was forced to roll them back in face of fierce opposition from industry.

He said times are different now, because the price of oil, while low, is stable.

"At least we know what they're going to be for the next few months," he said. 

"When we did ours, oil was $145 and then dropped down to $37 and it was at that time there was very little capitalization simply because the banks were worried about remaining alive and financially stable. It was quite different."

Stelmach was at the legislature Monday to hear the speech from the throne.

Notley said Monday she will announce a panel to review the current rates by the end of summer.