Alberta’s premier, Ed Stelmach, has been joining the chorus that is imagining risks of a federal NDP government. But who is he speaking for? Only two of every ten Albertans actually voted for the provincial Tory government. And that government is totally out of step with Alberta opinion polling on almost every issue. On climate change and the environment as well as the tar sands, the difference is stark.
At the height of Alberta’s boom a 2007 poll by Probe Research found that among Albertans, 85 per cent are either very or somewhat concerned about environmental issues in the province. An overwhelming majority of Albertans (91 per cent) expected protection of the environment, even if this slowed down opportunities for oil sands development.
There was even large support for a moratorium on new developments. A full 71 per cent believed that the Alberta government should suspend new oil sands project approvals until environmental and infrastructure issues have been resolved (poll results published by the Pembina Institute).
To take this a step further, a June 2010 Alberta Tory commissioned poll found that there is no clear majority on whether the environment or jobs should be the top priority and in fact Albertans surveyed were closely split — 48 per cent of Albertans surveyed saw the environment as more important than creating jobs and only 40 per cent felt the other way.
A startling Leger Marketing poll at the height of the boom revealed that the majority of Albertans felt they were not benefiting from the boom and 17 per cent said they were worse off. A Parkland Institute research report confirmed that their salaries were being eaten up by high levels of inflation and those on fixed incomes were being left behind. Even mainstream voices like that of former Alberta premier Peter Lougheed were calling for the government to intervene and pace the development of the tar sands.
Alberta is heading into another boom and labour shortages loom once again on the horizon.
The NDP position is actually moderate relative to the priorities of Albertans. The NDP have not called for a moratorium on new approvals nor for government intervention to control the pace of development, both moves the majority of Albertans would support.
Ed Stelmach and the chorus might be better off doing their homework on job creation. The oil industry has the lowest ratio of jobs per dollars invested — it is not a vehicle for job creation. Despite this, the Cap-and Trade vision articulated by the NDP addresses potential job risks by reinvesting the revenues in direct government spending initiatives, which, as mentioned, have much higher job-to-dollar-invested ratios than the oil and gas sector.
Additionally, the potential jobs impact of climate change action such as cap-and-trade is a reality that corporations are already costing in to their investor risk and economic modelling. Shareholders are increasingly demanding that companies report on the investment risk and mitigation strategies they have in place for those costs. The Chartered Accountants of Canada advises strategies and reporting for greenhouse gas emissions, potential cost risks and liabilities. Suncor has already incorporated the price for carbon into economic modelling for projects. Shareholders have also approached Canadian Natural Resources, Canadian Oil Sands Trust and Encana management on climate change related issues.
The spectre of job losses is also premised on an industry that is operating close to the bottom line. That is not the reality for the oil and gas industry. The profits in the oil and gas sector in Alberta have been absurd. An October 2010 Parkland Institute report states that between 1999 and 2008, Alberta’s traditional oil and natural gas industry enjoyed more than $121 billion in excess, unearned pre-tax profits (these are profits above and beyond cost levels plus a normal return on investment). For the tarsands, the number is between $97 billion and $167 billion in pre-tax unearned profits from 1997 to 2009. Large chunks of that wealth leave the province and the nation for the pockets of the shareholders of foreign corporations.
Ed Stelmach and his Tory government do not speak for the majority of Albertans and their brand of Alberta stereotype is way off-base on issues of the environment — it is partisan rhetoric. Albertans themselves support action on climate change, which is also, after all, a global imperative.