Pipelines, energy and natural resources

[Brad Sallows]

an attempt at sarcasm that failed but seriously, do you really think that this government could undertake any major development project without the aforementioned cost overruns and delays and without building trying to make it environmentally friendly at the same time as in the electric construction equipment? If you thought that was far-fetched just think of California's mandating all electric transport trucks>

We can't be sure of the details, but that government will self-impose costly mandates is a safe bet. One of the simplest is the popular "union-equivalent wage".

 

[Fishbone Jones]

Income and sales taxes are siphoned off of everyone, and are not siphoned off of provinces. The complaint, maybe, is that AB taxpayers don't get a more equal share of transfers back.

Stack it any way you like, but Alberta loses a lot more money to Ottawa than any other province........or people living in said province. Of course Ottawa's ham-fisted and partisan distribution of those funds proves the need for a total revamp of the Transfer Payment system.

 

[daftandbarmy]

Stack it any way you like, but Alberta loses a lot more money to Ottawa than any other province........or people living in said province. Of course Ottawa's ham-fisted and partisan distribution of those funds proves the need for a total revamp of the Transfer Payment system.

They don't have a sales tax either, which is also a novel idea

 

[Czech_pivo]

Meaningless without an accurate accounting of the value of whatever the money was spent on. Again: opportunity cost. Without determining it, everything else is just wishful hand-waving in which an interlocutor makes up something about the one side of the story he wants to tell.

You’re a master of the art of deflection.

 

[AmmoTech90]

And, having moved from Ontario to Alberta, Alberta is more expensive. The lack of taxes don't save you. It just lets people feel good. It's part of the bread and circuses that are needed to keep the part of the population that is from here, and will not move, happy in a boom and bust economy that is becoming more bust.

One advantage is if you got on the housing ladder early you can stay on it, or even climb, if you're willing to not live around a big city.

 

[Brad Sallows]

You’re a master of the art of deflection.

Deflection? The crux of every issue is cost:benefit. "This is a good idea, let's do it" is a ridiculous foundation for any kind of commitment of resources. The question "in lieu of what else" always has to be answered.

 

[Good2Golf]

Meaningless without an accurate accounting of the value of whatever the money was spent on. Again: opportunity cost. Without determining it, everything else is just wishful hand-waving in which an interlocutor makes up something about the one side of the story he wants to tell.

Sure. Quibble about numbers. Can’t argue the methodology differences.

I won’t bother asking you to give your thoughts on why the Heritage Fund was/is more effective and beneficial for Albertans than the Sovereign Wealth Fund is for Norwegians. INo doubt Albertans are better off in your world than the Norgies.

NSWF profits for 25H1…$68B US. How did AHF do in H1?

Norway wealth fund posts half year $68 billion profit - Michael Power Accountants

Norway’s $2 trillion sovereign wealth fund, the world’s largest, posted a 698 billion Norwegian crowns ($68.28 billion) profit for the first half of the year, lifted by strong returns among...

michaelpoweraccountants.ie

 

[Brad Sallows]

Sure. Quibble about numbers. Can’t argue the methodology differences.

I won’t bother asking you to give your thoughts on why the Heritage Fund was/is more effective and beneficial for Albertans than the Sovereign Wealth Fund is for Norwegians. INo doubt Albertans are better off in your world than the Norgies.

That isn't the issue I'm writing about. The issue is whether spending money right now has more net utility than building up a nest egg. An imaginary AB SWF can be whatever the imaginer wants it to be; fiscal (and political) pressures and market limitations are reality.

A government accumulated deficit (debt) is, crudely, a SWF in reverse. I probably already wrote that in principle a government might be able to invest at greater RoI than its debt servicing costs, but just paying down debt and reducing those costs frees up money for other things, while reducing exposure to adverse economic blips in a way that trying to work a spread does not. The federal and all provincial governments in Canada have that choice. Beating on AB is a pointless exercise that smacks of envy.

 

[Czech_pivo]

That isn't the issue I'm writing about. The issue is whether spending money right now has more net utility than building up a nest egg. An imaginary AB SWF can be whatever the imaginer wants it to be; fiscal (and political) pressures and market limitations are reality.

A government accumulated deficit (debt) is, crudely, a SWF in reverse. I probably already wrote that in principle a government might be able to invest at greater RoI than its debt servicing costs, but just paying down debt and reducing those costs frees up money for other things, while reducing exposure to adverse economic blips in a way that trying to work a spread does not. The federal and all provincial governments in Canada have that choice. Beating on AB is a pointless exercise that smacks of envy.

The 10yr rate of return on the TSX60 is greater than the 10yr Canada bond interest rate - over the long run investing for the future when the investment is returning more than the interest on debt is always the smart move.
Any competent financial advisor will tell you to choose to invest rather than pay off debt if the opportunity to earn more is greater than the cost of maintaining the debt.

My current mortgage term, which expires in 10 days, was a 4yr fixed at 1.74% - I would have been an utter fool to use any extra money to pay down my mortgage quicker over the last 4yrs when I could have taken the quick and idiot proof method and dumped extra money into fixed 1, 2, 3yr GIC’s and earned double that interest at a min. Or, bought a market ETF for the TSX or S&P or NYSE and earned 20+% over a 2, 3 or4yr period.

 

[Kirkhill]

The crux of the matter.

"No taxation without representation"

Do you trust the people who take your taxes to spend them in your interest?

Is it in Albertans' interest to keep Canadians happy?

 

[brihard]

The 10yr rate of return on the TSX60 is greater than the 10yr Canada bond interest rate - over the long run investing for the future when the investment is returning more than the interest on debt is always the smart move.
Any competent financial advisor will tell you to choose to invest rather than pay off debt if the opportunity to earn more is greater than the cost of maintaining the debt.

My current mortgage term, which expires in 10 days, was a 4yr fixed at 1.74% - I would have been an utter fool to use any extra money to pay down my mortgage quicker over the last 4yrs when I could have taken the quick and idiot proof method and dumped extra money into fixed 1, 2, 3yr GIC’s and earned double that interest at a min. Or, bought a market ETF for the TSX or S&P or NYSE and earned 20+% over a 2, 3 or4yr period.

Yup. Mortgages are 'cheap money' if you aren't an idiot with your capital. While I do have a notion of some modest earlier paydown to try to sync up my 'house is paid off' with the day I'm eligible for my pension, that will probably yield (heh) to the math. Better to keep the payments lower and just keep filling the TFSA/RRSPs.

 

[Fishbone Jones]

Yup. Mortgages are 'cheap money' if you aren't an idiot with your capital. While I do have a notion of some modest earlier paydown to try to sync up my 'house is paid off' with the day I'm eligible for my pension, that will probably yield (heh) to the math. Better to keep the payments lower and just keep filling the TFSA/RRSPs.

I went into retirement owing nothing. All capital expenses were zeroed out. Home, vehicles, etc. I don’t know what it would be like still owning and using retirement funds. But, I will say, going in free and clear, relieves a lot of angst and pressure.

 

[brihard]

I went into retirement owing nothing. All capital expenses were zeroed out. Home, vehicles, etc. I don’t know what it would be like still owning and using retirement funds. But, I will say, going in free and clear, relieves a lot of angst and pressure.

Absolutely, that peace of mind can have its own value.

For me this only applies if I take my pension pretty much as soon as I can. I’d be in my early 50s, my wife would still have most of a decade to work, so very likely I’d be ‘retiring’ from my current employer, taking the pension, but continuing to work for someone else and double dipping.

It’s still a long ways out, so no decision made yet.

 

[Good2Golf]

That isn't the issue I'm writing about. The issue is whether spending money right now has more net utility than building up a nest egg. An imaginary AB SWF can be whatever the imaginer wants it to be; fiscal (and political) pressures and market limitations are reality.

A government accumulated deficit (debt) is, crudely, a SWF in reverse. I probably already wrote that in principle a government might be able to invest at greater RoI than its debt servicing costs, but just paying down debt and reducing those costs frees up money for other things, while reducing exposure to adverse economic blips in a way that trying to work a spread does not. The federal and all provincial governments in Canada have that choice. Beating on AB is a pointless exercise that smacks of envy.

Good thing then that Alberta used the Heritage Fund to reduce its debt so that it has…checks math…$49 per person less provincial tax than…check map…New Brunswick.

 

[childs56]

And, having moved from Ontario to Alberta, Alberta is more expensive.

That's interesting, many who I have talked to have said the opposite, but not knowing the specifics it is hard to compare your situation.

The lack of taxes don't save you. It just lets people feel good. It's part of the bread and circuses that are needed to keep the part of the population that is from here, and will not move, happy in a boom and bust economy that is becoming more bust.

I have lived across the country. Alberta has been friendly to me since I moved here in 2005. Has allowed me the lifestyle to enjoy not only work but enjoy my time off how I want to do so not dream of doing. Many I know in other areas of Canada have not been as fortunate.

One advantage is if you got on the housing ladder early you can stay on it, or even climb, if you're willing to not live around a big city.

Even the two big cities in Alberta are at least equal to similar size cities in housing ion Ont but in most cases significantly cheaper.

It is always interesting to see cost comparisons from across the board.

 

[Czech_pivo]

Another small 'X' in the win column.

https://www.cbc.ca/news/canada/british-columbia/ksi-lisims-lng-environmental-certificate-1.7634761

$10B Ksi Lisims LNG project in northwest B.C. receives environmental certificate​

the province said the approval of the environmental assessment certificate came after a nearly four-year process by the Environmental Assessment Office (EAO).

It says the EAO consulted with 10 area First Nations as it made the recommendation to issue the certificate.

Some of them, like the Kitselas First Nation and the Gitga'at First Nation, were in support of issuing the certificate.

NOTE: according to the map provided, the LNG location looks to reside on 'Gitga'at First Nation' land. I cannot see where the pipeline route goes.

Would be interesting AND beneficial for ALL of the public, to show the pipeline routes and where the lands of the First Nations that are in favour of the LNG (or other natural resource initiatives) are located and where the lands of those First Nations that are against it reside. Dollars to doughnuts I'm willing to lay down money that more often that not those that are against the initiative are not having the pipeline go through their land and are potentially losing out on revenue sources.

 

[daftandbarmy]

Another small 'X' in the win column.

https://www.cbc.ca/news/canada/british-columbia/ksi-lisims-lng-environmental-certificate-1.7634761

$10B Ksi Lisims LNG project in northwest B.C. receives environmental certificate​

the province said the approval of the environmental assessment certificate came after a nearly four-year process by the Environmental Assessment Office (EAO).

It says the EAO consulted with 10 area First Nations as it made the recommendation to issue the certificate.

Some of them, like the Kitselas First Nation and the Gitga'at First Nation, were in support of issuing the certificate.

NOTE: according to the map provided, the LNG location looks to reside on 'Gitga'at First Nation' land. I cannot see where the pipeline route goes.

Would be interesting AND beneficial for ALL of the public, to show the pipeline routes and where the lands of the First Nations that are in favour of the LNG (or other natural resource initiatives) are located and where the lands of those First Nations that are against it reside. Dollars to doughnuts I'm willing to lay down money that more often that not those that are against the initiative are not having the pipeline go through their land and are potentially losing out on revenue sources.

Interestingly enough, some aspects of FN territorial boundaries are 'confidential', so you might not ever see a map like that shared publicly...

 

[Czech_pivo]

Interestingly enough, some aspects of FN territorial boundaries are 'confidential', so you might not ever see a map like that shared publicly...

Are we talking about 'official' Federal Government of Canada recognized boundaries or 'pie in the sky' boundaries?

 

[Czech_pivo]

Has the worm turned in BC?

More than 60 per cent of British Columbians support LNG expansion: Poll​

More than 60 per cent of British Columbians support LNG expansion: Poll

The results come after a federal announcement that Kitimat’s LNG export facility will be fast-tracked.

vancouversun.com

 

[Kirkhill]

From John Ivison, referencing Carney's comments about austerity:

as former U.S. Treasury Secretary Lawrence Summers noted in his review of Blyth’s book in the Financial Times, asserting that austerity is never the right policy ignores the example of Canada in the 1990s, where reduced government demand was offset by growing exports, which then crowded in investment and created more confidence.

John Ivison: Carney’s many promises confront reality, and real opposition, as the House returns

When revealed in all its gory glory, the deficit may be not only substantial but substantially more than last year.

nationalpost.com

The good news -

The Toronto Star has more columns than the Parthenon suggesting Carney has forsaken the left and is not who he said he is.

....

I still have a preference for Poilievre but even I find Carney tolerable. I'd rather have a lying pragmatist than any ideologue.