From the Calgary Herald:
In the throne speech to open the legislature this week, B.C. Premier Christy Clark’s government revealed it will add a tax on exports of liquefied natural gas to generate $100 billion over 30 years for a provincial “prosperity fund” similar to Alberta’s Heritage Savings Fund.
The industry isn’t happy. In fact, it’s already crying poverty.
The B.C. announcement came less than a week after a Vancouver Sun report that LNG producers have asked the federal government for $2 billion in annual tax savings to support development of the 10 LNG plants on the drawing board for Kitimat and Prince Rupert.
Clark’s government also used the throne speech to increase the number of LNG plants it expects to be in operation by 2020 from three to five.
It’s worth noting the first LNG plant isn’t likely before 2015 and most companies have yet to make final investment decisions.
The B.C. government would be wise to look to Alberta to better appreciate the complex dynamics of the marriage of convenience between a province and companies developing its resources when it becomes the lifeblood of the economy.
In that scenario, government is a partner as much as a resource owner or a regulator.
Alberta is as rich in natural resources as any jurisdiction but the vagaries of commodity price economics have translated into five consecutive government budget deficits and fears of a $6-billion revenue shortfall this year due to lower-than-forecast oil royalties.
As for a $100-billion Prosperity Fund, remember that Alberta launched its Heritage Fund in 1976 and today it is worth just over $16 billion.
20 thoughts on “B.C Voters? Heed this warning: “…the honeymoon is quickly coming to an end for the LNG business in British Columbia””
hello laila ! when i read your post i thought there it goes another pie in the skye. and then i saw the picture lol
Haha!! Great minds think alike Renate! ( but a Liberal pie is not nearly as good as yours 😉
I’ll be dead in thirty years and her fund will be empty! Doesn’t she know anyone that can read the newspapers to her? There is a worldwide glut of natural gas for goodness sake!
Ummm.. I dont think Christy actually does any of the leg work on these policies.. she just shows up for photo ops!
B.C.’s version of “Fantasyland”. Correct me if I’m wrong, but my impression of the whole LNG script is that it cannot survive without Government handouts. Every other country I have read about concerning LNG’s has gone into debt. The only people making money are the Corporations. Plus, the major players have more gas under their surface than they know what to do with. So, what your going to see is an undercutting of prices to compete, which has started now. These country’s are ahead of us in getting these plant’s up and running, so the blueprint is in front of our eye’s. Plus, it does not take very many people to run one of these plants. So there is no big employment gain. Any employment, in my mind is short term. Also, the fracking problem. Company reports are in direct opposition to independent reports. Not surprising. The only way I could even accept this is for the Government to build it’s own LNG and service the Province, thus servicing the taxpayer. Probably dreaming on that one, but one country has done it and it’s people are enjoying low,low gas prices. To me it’s another pillage of a resource.
Just happened to find a tape of a high level meeting between CC and George, just before her big announcement of a 10yr. for teachers. Show’s the complex discussion that took place prior to the plan. People might enjoy this:
Very much on point, and very much like the many P3’s in the province. Looks good, but once you peel the veneer off…. not so much.
That’s a good looking pie Laila…sadly, it holds more promise than anything Miss Christy’s throne speech did.
I second G West`s comment, that is one good looking pie, I am personally fond of blueberry.
The Throne(groan) speech was more like Humble Pie..
They’re not happy? Good. Maybe they’ll build their stupid, water-wasting, power-wasting, gas-fracking, highly-subsidized, non-job-producing LNG plants somewhere else.
I do not believe one promise made by any politician.
If this “budget” is the best they can do after a 9 MONTH absence from the Legislature……
Christy Clark has proven once again that she is totally unworthy of office.
A complete sham , totally out of her depth, being led by greedy puppet masters.
This election cant come soon enough.
I would vote for a monkey if it was allowed.
At least a monkey is too stupid to lie.
I wondered too. China has huge gas fields of their own.
The Campbell/Clark BC Liberals have sold everything of value out of BC. There is very little left to recover with. We are burdened with those, stupid smart meters. Our BCR gone. Our rivers and hydro utterly destroyed. The die off of the wild Salmon.
There are many mines and mine expansions coming. However, I doubt BC miners will get those jobs either.
The mill industry could take a hit too. China’s economy is weakening.
The ship building contract is where?
We have tourism, and that’s going to be harder than hell to keep. We certainly do not want those massive oil tankers, endangering our Whales and other marine life. We can’t permit the F.N. food sources to be under threat either.
I have to say, I am very sorry for the NDP if they have to try and save this province.
That Christy Clark has overplayed the LNG hand is indisputable. Remember however that the Tarsands needs cheap natural gas to function. If Alberta oil now sells for $60/barrel, remember that it would require $34 of natural gas to produce, if that natural gas was at world price. The only way the tarsands can boom, is if we keep feeding it cheap gas. Brazil and Japan have just puchased natural gas at $17/mmcf. We keep shipping BC gas to Alberta at $3.50/mmcf . Expect a lot more opposition to LNG exports from Alberta and Harper.
The pie in the sky goes along with her head in the clouds. 🙂
Off topic Laila, but wanted to draw attention to again, this government’s secrecy:.
(And isn’t it Fassbender who has just thrown his hat in in Langley to run for the lieberals? And I see he’s chair of the PavCo board. Sheesh, another one. These people have no shame.)
Not so Fass… he’s running in Surrey/Fleetwood. Hopefully, he’ll be running back to Langley after May 14.
Laila (You rock girl)
One of my favorite all time skits is Abbot and Costello in “Whose on first base.”
And just think you actually had Abbot in this video. How do you do it?
Keep up the good work
Many thanks Eric! 🙂
They are the D.D.T. politicians. Remember the good old days when D.D.T. was good for us.
Seems like it is back only now it is FRACKING. Same sort of spin. But then D.D.T. could stand for DROP DEAD TWICE.
Gee Trixie, tell us how you really feel 😉
Oligarch Harper continues the sale of Canada
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