As of March 31, 2020
Back in the pre-COVID era, when we gathered at dinners, shook hands and hugged (I’m referring to February) a public servant cautioned me not to think that the Government of Alberta was becoming interventionist despite what we had just heard the Premier say.
“Alberta is prepared to invest directly when necessary to assure the future of responsible resource development,” read the line in the Premier’s Throne Speech.
I raised this reference to investing directly in the oil and gas sector with my friend the public servant. He essentially said, it’s a one-off thing. He was pretty firmly closing the door on the idea that it might happen again.
Fast forward one month to this new planet we inhabit. In this new place, where we are all effectively (and necessarily) under house arrest, many businesses lost 100% of their revenues and 100% of their employees, overnight. Here, 30 days into the future, investment bank Goldman Sachs is forecasting US GDP will shrink 34% in the second quarter of 2020. A typical contraction might be 2 or 3%. Unemployment rates could shoot to levels we haven’t seen since the Great Depression. The world has been stood on its head, and when that happens governments must change their approach. They have to rip up the old plan and build a new plan to meet the new challenge. That’s what government after government around the world is doing right now.
If you listened to Premier Kenney today defending the Government of Alberta’s decision to take a $1.5 billion dollar stake in the Keystone XL pipeline, you’ll know that these discussions had started last fall, well before COVID-19 followed by the Saudi-Russia oil production dispute. So, here’s a question to ponder: If a fiscal conservative like Premier Kenney was willing to invest in a pipeline, pre-crisis, will he be open to government involvement or investment in other ideas if they address a full-blown crisis? Without question.
The issue then isn’t the Government of Alberta’s openness to an idea to spark the economy or to protect vulnerable people, the issue is the quality of the idea, how it’s framed, and getting it to the right people.
The old saying is true, fortune really does favour the bold. Don’t wait, governments need your best ideas now.
Monte
-Hon. Monte Solberg, Principal, New West Public Affairs
Federal Response
- The Government is allocating $2 billion to procure personal protective equipment and make bulk purchases for provinces and territories. This is part of the “made-in-Canada” industrial plan to have Canadian companies produce ventilators, masks, and COVID-19 test kits. The government has signed agreements with three Canadian companies so far and is in negotiations with five more. Since asking industry for help last week, more than 2900 companies have reached out to the government.
- Minister of Finance Bill Morneau and Minister of Small Business Mary Ng will be speaking tomorrow morning to provide more details on the government’s 75% wage subsidy for businesses.
- Former Cabinet Minister and long-time liberal MP Ralph Goodale has been appointed as special advisor to the government into Iran’s downing of flight PS752.
Provincial Response
Premiere Kenney Update
- The Premier stood behind his familiar campaign sign of “Jobs, Economy, Pipelines” and announced that his government was “taking action beyond COVID,” and has reached a deal with TC Energy for a $1.5 billion equity investment this year in KXL and a $6 billion loan guarantee next year.
- He was joined by TC Energy CEO, Russ Girling.
- This is the culmination of 6 months of conversations between TC Energy, the Alberta Petroleum Marketing Commission and the Premier’s Office.
- The project will increase crude exports by 830,000 barrels per day, with an aim for project completion by summer of 2023. Shipper deals are completed for 2023 to 2037.
- “Starting tomorrow” shovels will be in the ground. 1400 jobs in Alberta. 1200 in Saskatchewan. 12,000 indirect jobs nation-wide, including 5400 in Alberta.
- After the completion of the project, the Government of Alberta plans to sell its shares at a profit and generate additional revenues.
The Premier also announced his resolve to refuse further Saudi/OPEC interference in North American energy markets.
Public Health Update from Dr. Hinshaw:
- 64 new cases in 24 hours
- 754 cases total including 77 health care workers
- 75 by community transmission
- 9 deaths
- 120 recovered
