Alberta’s coffers – and its social programs – are suffering because our government has failed to collect its share of oilsands revenue, says political scientist Regan Boychuk.

Boychuk has presented his work on “Artificial Austerity: The Oilpatch and Poverty in Alberta” several times this year, most recently on June 8^th for Women Together Ending Poverty (WTEP).  If you haven’t seen it or gone through the powerpoint yet, it is well worth your time.  Here are some key points, drawn from WTEP’s summary of the article:

• Over the last ten years the government has set royalties targets at 50-75% of rent (the financial surplus left over after oil and gas companies recover costs, and recover a normal rate of profit – typically 10%)
• If the government had managed the middle of its target range, it would have collected an additional $37 billion over the last decade - which could have helped finance well-needed public services.
• In 2007 and 2008 collectively, the province’s share of revenue was $2.5 billion below their bottom target range, while their 2010 deficit was $4.7 billion.
• The 2007 Royalty Review concluded that the government should increase royalties, and according to a Calgary Herald/Edmonton Journal poll, the public agreed.  However, the oil industry swayed the provincial government such that the New Royalty Framework increased royalties by a fraction of what had been recommended. 
•  As such, Boychuk also questions the state of our democracy in Alberta. 

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