With Alberta projected to garner $19.8 billion in oil and gas revenues in 2024-25, the importance of the petroleum industry to the province as a whole cannot be understated.
Helping to fund hospitals, schools, roads and highways, and myriad of other public things, funds raised by oil and gas development is vital to the financial success of communities large and small, including in this district.
Brian Jean, minister of Alberta Energy and Minerals, said recently that the province’s oil and gas industry will remain a key part of the Alberta’s economy for years to come.
He also called the current federal government “anti-energy” and “anti-development.”
“Alberta’s oil and gas sector is driving Canada’s economy, and we will continue to defend the sector by any means possible,” said Jean.
While Jean and other ministers have been quick to applaud the importance of the oil and gas industry for Alberta, the Rural Municipalities of Alberta (RMA) says the Smith government needs to do more to ensure petroleum revenues help support local municipalities.
The association, representing 69 municipalities including Mountain View and Red Deer counties, has launched a new information campaign called Below the Drill.
The campaign will highlight provincial government policies the association says are having negative impacts on the viability of municipalities.
The four main policy areas being highlighted are removal of the well drilling tax, the ongoing non-payment of municipal taxes by the oil and gas sector, the holiday on assessment of newly drilled wells, and the 35 per cent assessment reduction for shallow wells.
“In recent years, the government of Alberta has implemented several policy initiatives to reduce oil and gas industry costs at the expense of municipal revenue, resulting in a loss of $332 million in rural municipal tax revenue between 2021 and 2023,” the association says.
“While RMA members have long supported the industry, ongoing revenue erosion threatens municipal viability.”
Albertans want and expect the Smith government to support municipalities and resource development with equal conviction.
Dan Singleton is an editor with the Albertan.
