Reform Party founder Preston Manning has slammed the Alberta government's new energy royalty plan and questioned Premier Ed Stelmach's competence.
During an appearance Sunday on CTV's Question Period, Manning urged Alberta's government to address "big-picture issues." The new plan creates uncertainty for energy consumers, producers and environmentalists, he said.
"I don't think you can talk about royalty policy without talking about tax policy, continental energy security and environment or vice versa," Manning said.
As Alberta emerges as one of the world's significant energy producers, Manning said Stelmach has yet to demonstrate his capacity to lead on major energy issues.
"I think the big question with Premier Stelmach and the administration is one of its competence. Does it have competence to deal with these big-picture issues?" Manning asked.
"Alberta is a big player, not just in the energy picture, but in the continental picture."
The new royalty plan is set to take effect on Jan. 1, 2009 and will collect $1.4 billion more in royalties by 2010 than the current system.
Under current calculations, royalties from the energy sector will put about $10.5 billion into Alberta coffers representing about one third of the provincial government's total annual revenues.
The Stelmach government modified some of the recommendations and rejected others made by the province's Alberta Royalty Review Panel. The panel had recommended an increase of about $2 billion annually in its September report.
"(The government is) creating uncertainty because there will have to be an election before these things come into power," Manning said. "The big picture just hasn't been spelled out, that's where I see the problems."
The new royalty plan effectively nullifies contracts with two of Alberta's largest oilsands players, creating uncertainty for investors and employees. Stelmach said he wants those negotiations wrapped up within the next 90 days, prompting criticism that his timeline is unrealistic.
The provincial government has yet to determine how the new royalty plan will directly affect energy-sector employment or the quality of life for the average Albertan.
Manning added it's becoming increasingly unlikely that Stelmach and the Conservatives will win another election unless the "government demonstrates a capacity it hasn't shown thus far."
"I don't see votes going to the Liberals or the NDP, I think their biggest danger is another 150,000 people staying home who voted Conservative the last time," he said.
Stelmach defended the plan shortly after it was announced on Oct. 25, saying knee-jerk negative reactions will dissipate as details of the plan are cemented.
"Change is never comfortable," he said during a speech to Conservative delegates last month. "We need a bigger pie to create new jobs, new opportunities and to build for the future.
"As future generations look back on this decision, I'm confident they'll see we were fair and reasonable. Not greedy and short-sighted."
Stelmach maintains the royalty revisions will provide Albertans with the "fair share Albertans rightly expect from the development of their resources."
With files from The Canadian Press
