Provincial government being disingenuous on budget
| Posted: Wednesday, Feb 06, 2013 01:33 pm
Your Jan.30 editorial has used misinformation to explain why the Provincial government has missed its budget numbers by some $6 billion. You stated that, and I quote “During the 2012 budget it was predicted Alberta would have a $900 million surplus this year and a $5 billion surplus in 2014. However, those budget numbers were based on $100 per barrel oil, not the $50 which is what Alberta is currently receiving on the market.”
The numbers you have used, $100 per barrel oil, is higher by a couple of dollars than what the government actually used and the $50 per barrel price is the discounted price (roughly) of what we receive for our heavy crude from American refineries in today’s market. Thus you have left your readers thinking, through no fault of our government and their estimates of oil prices, there now is a $50 per barrel discount and that is why there will be a $6 billion dollar shortfall in the Province’s revenue steam this year. You must know, or should know, that there always has been a substantial discount on our heavy crude oil prices. Certainly the government knows because they are the recipients of the royalties from the producers. That is why Premier Redford is disingenuous when she tries to explain away the terrible disparity between her government’s budget last year and the real numbers of the huge deficit with which we are now faced. If a manager of a business was so inept at messing up the company’s finances the way Redford’s government has of Alberta’s finances, he or she would be fired. May the voters of Alberta remember these facts when they next go to the polls.