The UCP Kenney government has launched another corporate welfare program – this time hoping to attract petrochemical companies to the province..“The Alberta Petrochemicals Incentive Program, part of Alberta’s Recovery Plan, will bring multi-billion dollar investments to petrochemical projects throughout Alberta, helping to strengthen and diversify the province’s economy and create new jobs for Albertans,” the government said in a Thursday release..Dale Nally, Associate Minister of Natural Gas and Electricity, said at a press conference that financial details of the 10-year plan are still being worked out..“The current global health crisis has highlighted the importance of petrochemical manufacturing around the world. Petrochemical facilities make the building blocks required for everyday consumer and professional items like medical equipment, computers and cellphones, personal protective equipment like rubber gloves and masks, car seats and tires, and fertilizer for agriculture and home gardening,” the province said..Alberta’s Industrial Heartland Association estimates there could be a further $30 billion of private-sector investment in the province’s petrochemical sector by 2030 resulting in 90,000 jobs..“While Alberta is already a Canadian leader in petrochemicals manufacturing, the sky is the limit for this sector’s benefits to our province. Over the last 10 years, petrochemical investment in the United States reached $250 billion, more than 10 times what was invested in Canada. With our affordable 300-year supply of natural gas, technically skilled and educated workforce, and respected innovation and research sectors, Alberta is ready to seize the opportunity to become a global destination for petrochemical manufacturing, benefiting all Albertans,” said Nally..Nally said no grant money will be handed out until a new petro-chemical facility is up an running..“Every project that meets the program’s criteria will receive funding once built and operational. Government will no longer pick winners and losers through a private evaluation process,” the release said..” In the current economic climate, grants are the most effective way to attract investment. Grants allow companies to better account for the full value of the incentive provided when calculating their project’s return on investment. “.The Canadian Taxpayers Federation called the program “blank-cheque petrochemical corporate welfare.”. Defying crackdown, hundreds march against lockdowns in Calgary .“We need to get the economy going again, but the answer is not to make struggling taxpayers sign a blank-cheque for another petrochemical corporate welfare program,” said Franco Terrazzano, the CTF’s Alberta Director..“Premier Jason Kenney should stay focused on tax relief instead of risking tax dollars trying to play investment banker.”.The CTF obtained a leaked briefing note produced by Treasury Board and Finance officials warning former finance minister Joe Ceci about the risks associated with subsidies for the petrochemical industry, which states: “the proposed incentive program cannot be justified on economic merit alone” and “there is no guarantee that the incentive program will actually lead to additional investment.”.“Lowering business taxes to eight per cent was a much better move because it helps all businesses in all sectors and we desperately need entrepreneurs of every size and shape to create jobs for their neighbours, but the Alberta government is taking a wrong turn when it fires more tax dollars at a handpicked sector based on bureaucratically determined criteria,” said Terrazzano..Economist Trevor Tombe was also disappointed with the announcement..“Disappointed to see Alberta continuing its long tradition of subsidizing businesses in an attempt to “diversify”,” he tweeted..According to the Chemistry Industry Association of Canada, Alberta’s chemicals sector, comprised predominantly of petrochemicals, was valued at $12.1 billion and employed about 58,400 people directly and indirectly in 2019..Dave Naylor is the News Editor of the Western Standard.dnaylor@westernstandardonline.com.Twitter.com/nobby7694
The UCP Kenney government has launched another corporate welfare program – this time hoping to attract petrochemical companies to the province..“The Alberta Petrochemicals Incentive Program, part of Alberta’s Recovery Plan, will bring multi-billion dollar investments to petrochemical projects throughout Alberta, helping to strengthen and diversify the province’s economy and create new jobs for Albertans,” the government said in a Thursday release..Dale Nally, Associate Minister of Natural Gas and Electricity, said at a press conference that financial details of the 10-year plan are still being worked out..“The current global health crisis has highlighted the importance of petrochemical manufacturing around the world. Petrochemical facilities make the building blocks required for everyday consumer and professional items like medical equipment, computers and cellphones, personal protective equipment like rubber gloves and masks, car seats and tires, and fertilizer for agriculture and home gardening,” the province said..Alberta’s Industrial Heartland Association estimates there could be a further $30 billion of private-sector investment in the province’s petrochemical sector by 2030 resulting in 90,000 jobs..“While Alberta is already a Canadian leader in petrochemicals manufacturing, the sky is the limit for this sector’s benefits to our province. Over the last 10 years, petrochemical investment in the United States reached $250 billion, more than 10 times what was invested in Canada. With our affordable 300-year supply of natural gas, technically skilled and educated workforce, and respected innovation and research sectors, Alberta is ready to seize the opportunity to become a global destination for petrochemical manufacturing, benefiting all Albertans,” said Nally..Nally said no grant money will be handed out until a new petro-chemical facility is up an running..“Every project that meets the program’s criteria will receive funding once built and operational. Government will no longer pick winners and losers through a private evaluation process,” the release said..” In the current economic climate, grants are the most effective way to attract investment. Grants allow companies to better account for the full value of the incentive provided when calculating their project’s return on investment. “.The Canadian Taxpayers Federation called the program “blank-cheque petrochemical corporate welfare.”. Defying crackdown, hundreds march against lockdowns in Calgary .“We need to get the economy going again, but the answer is not to make struggling taxpayers sign a blank-cheque for another petrochemical corporate welfare program,” said Franco Terrazzano, the CTF’s Alberta Director..“Premier Jason Kenney should stay focused on tax relief instead of risking tax dollars trying to play investment banker.”.The CTF obtained a leaked briefing note produced by Treasury Board and Finance officials warning former finance minister Joe Ceci about the risks associated with subsidies for the petrochemical industry, which states: “the proposed incentive program cannot be justified on economic merit alone” and “there is no guarantee that the incentive program will actually lead to additional investment.”.“Lowering business taxes to eight per cent was a much better move because it helps all businesses in all sectors and we desperately need entrepreneurs of every size and shape to create jobs for their neighbours, but the Alberta government is taking a wrong turn when it fires more tax dollars at a handpicked sector based on bureaucratically determined criteria,” said Terrazzano..Economist Trevor Tombe was also disappointed with the announcement..“Disappointed to see Alberta continuing its long tradition of subsidizing businesses in an attempt to “diversify”,” he tweeted..According to the Chemistry Industry Association of Canada, Alberta’s chemicals sector, comprised predominantly of petrochemicals, was valued at $12.1 billion and employed about 58,400 people directly and indirectly in 2019..Dave Naylor is the News Editor of the Western Standard.dnaylor@westernstandardonline.com.Twitter.com/nobby7694
