ECA Review 2020-08-06

2 August 6'20 HANNA/CORONATION/stEttLER, AB. ECA REVIEW
OPINION
The opinions expressed are not necessarily
the opinions of this newspaper.
Course correction
B. Schimke
ECA Review
Kenney rolled into power with the
attitude he knew best, consultation
with stakeholders was unnecessary
and everything done by the previous
administration had to go.
He threw out the Alberta Investment
Tax Credit which provided a 30-percent
rebate on equity capital invested
by start-ups in technology research,
development and commercialization.
He eliminated the Interactive Digital
Media tax credit.
He cancelled Ottawa’s Scientific
Research and Experimental
Development tax credit during a pandemic
when the importance of
scientific research could not be more
apparent.
The carbon tax
had to go as well.
For what? To
save a mere $400
million by 2022 - 23
and financially
support the government’s
goal to
cut corporate
taxes.
The argument
that corporate tax
cuts create jobs is
correct—the
problem is in this
season of globalization, jobs aren’t necessarily
created in the jurisdiction that
ponies up the tax savings.
That’s why tax cuts and tax credits
need to be very strategic.
Husky Oil, Ovintiv (formerly
EnCana), Total Energy, Murphy Oil
and other multi-nationals didn’t use
these tax windfalls to invest in
Alberta. Husky’s new investments are
in Saskatchewan; Ovintiv and Murphy
moved their head offices, major investments
and jobs out of the country; and
Total Energy is writing off $9.3B in
assets and divesting from the oil sands.
Corporate tax cuts strengthen the
status quo, fortifies existing monopolies
and effectively stymies
competition, entrepreneurship and
innovation. Start-ups don’t pay taxes.
Today, Kenney’s tune has changed
somewhat. He’s now introduced the
Innovation Employment Grant to help
with staffing costs for tech start-ups
and committed $175-million dollars to
help them access venture capital.
These start-ups will have lost two
years between the cessation of one program
and the start of another and
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EDITORIAL
unfortunately, the new programs are
full of red tape. Start-ups now have to
wade through applications, satisfy
requests for information, and wait for
approvals, denials and appeals.
The Notley support was favoured by
entrepreneurs. It gave the support necessary
for start-ups to attract private
venture capital while adding no red
tape. It functioned seamlessly through
the tax system.
Premier Kenney is also now using
the proceeds from the federal carbon
tax to fund important green initiatives.
Over $10.8 million has been spent on
hydrogen projects in Alberta.
Hydrogen is becoming the star of new
green fuels and its development is complementary
with Alberta’s highly
skilled oil and gas labour force.
Hydrogen is
“
Carbon taxes not only
force mature industries and
individuals to clean up their
acts, but these proceeds
from pollution give
companies in the new
economy a necessary
hand up.
MAIL BAG
light, storable,
energy-dense
and produces
no direct emissions
of
greenhouse
gases or
pollutants.
Well-placed
government
fiscal policies
such as carbon
taxes and tax
credits are very
effective tools
to create jobs, reward innovation and
grow the economy of the future.
Carbon taxes not only force mature
industries and individuals to clean up
their acts, but these proceeds from pollution
give companies in the new
economy a necessary hand up.
Alberta’s oil and gas industry is
today’s economic engine because of the
significant financial largess and risk
sharing given to it by the provincial
and federal governments over many
decades.
Former Premier Notley was using
tax credits and the carbon tax to begin
the transfer of government largess
from the mature industries towards
the future industries—green, tech,
digital and artificial intelligence.
After thoughtlessly tossing out these
strategic future-focussed programs,
the UCP government is now quietly
doing a much-needed course
correction.
Schimke was Executive Assistant to
the Vice President of Finance at
Syncrude during its construction phase
to start-up (1975-1980).
Education system let us down
Dear Editor,
Today’s problems of racism, bigotry,
persecution and violence against
blacks, indigenous peoples/natives,
Jews, Irish, Hispanics, Mormons,
Chinese, Japanese, Muslims, women,
and other non-whites have been going
on for the past 400 years.
The reasons we still are contending
with these problems is that our educational
system has done a very poor job
of educating us about the histories and
the cultures of our diverse society.
It’s been a history of “white people”,
primarily those of white folks from
western Europe.
Turn to Read, Pg 7
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East Central Alberta
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MEMBER OF:
Seed growers are stakeholders
of seed-control industry
Dear Editor,
On July 22 in the House of
Commons, the question was asked by
the Member of Parliament for Battle
River Crowfoot, Damien Kurek, to the
Minister of Agriculture, Marie-Claude
Bibeau, “I have heard from a number
of farmers and certified seed growers
in my constituency who are concerned
about the prospect of what are called
“trailing seed royalties”. Can
the Minister of Agriculture commit to
full consults with producers on this
issue?”
The Minister of Agriculture
responded by saying that she “…is following
this issue closely and is
working with various stakeholders
and the producers who have a stake in
this matter.”
Primary producers feel that she
should not be only following the issue,
she should be on top of the issue.
The question is what stakeholders
and producers is the Minister talking
to and what sort of information is she
receiving?
If she is talking to or taking her
information only from the Canadian
Seed Trade Association (CSTA), comprised
of approximately 130 members
and like-minded people, she could be
or will be ill- informed to a large
extent.
If she, the Minister of Agriculture, is
consulting with primary producers
and seed growers she will be talking or
consulting with approximately 100,000
farm families from across Western
Canada alone.
This trailing royalty issue is a very
real concern, and if it is supported by
our government, it will bring another
crippling financial burden onto the
backs of primary producers.
If the Canadian Seed Trade
Association has their way, the CSTA
will have control of the seed industry
and the federal government could be
left with an excuse to shirk their
responsibility of regulating, administrating,
and efficiently funding our
public funded system.
Our present system is known as a
JOYCE WEBSTER
Publisher/Editor
publisher@ECAreview.com
MAIL BAG
BRENDA SCHIMKE
Editorial Writer
JENNA MOTE
Circulation
renowned seed variety development
program, that is far more cost effective
and focused on food production, while
respecting the environment to the
largest extent possible.
This is to a large extent contrary to
corporate endeavours.
Presently, the approximate financial
cost comparison for single variety
development is $5,000,000 corporatefunded
versus $1,000,000
public-funded.
Who is expected to pay whatever the
cost is?
In the end the primary producer and
the consumer pay, and as a member of
both producer and consumer groups, I
reject the $5,000,000 corporate cost.
We should realize that the $5,000,000
would only be the beginning of everincreasing
costs of “value creation” of
corporate control.
It would be advantageous for our
producers, consumers and government,
if we maintain our present
public-funded system of varietal seed
development, which is more cost-effective
and efficient, quality focused and
environmentally acceptable.
If government refuses to properly
address this issue of seed-industry control,
then they must allow the primary
producers a vote, for primary producers
and seed growers are the
stakeholders in this issue.
People on the ground must have a
say. The seed industry should not be
controlled by corporations with the
corporate goals of dollar creation for
shareholders.
Under the present circumstances,
open consultations with primary producers
must be continued.
With resolve, we must seek a successful
resolution by including the
input of primary producers and
society.
There is an unwritten cheap food
policy in Canada. If that is going to
continue, now is the time to make that
policy work for ALL.
W. Douglas Fawcett
Consort, Alta.
YVONNE THULIEN
Manager
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