Despite the fact that for the past two weeks the majority of polls indicated a strong finish for the NDP, few Albertans expected the NDP sweeping majority on election night. This is a landmark electoral decision that ends a 43 year PC dynasty, and undoubtedly will produce significant government policy changes.
After reviewing Premier-Elect Notley’s statements and the NDP platform, we have provided our analysis of some of the most relevant potential policy commitments of the new government for our members. These include:
Increased corporate tax rate from 10% to 12%
We are concerned that this is the wrong time to put extra financial pressure on industries that are already hard-hit by the down-turn in oil prices.
Scale back pipeline advocacy (Opposition to KXL and Northern Gateway, Support for Energy East and Kinder Morgan’s Trans Mountain)
This policy would have a significant impact on the oil industry in general and pipeline construction specifically. It would have a direct and significant impact on PCA members.
Royalty rates review
The NDP has provided few details, and has recently tried to soften their statements on this policy. However, energy analysts agree that increasing royalty rates during a time of depressed oil and gas prices would have dramatic and negative impacts on energy production in Alberta.
Implementation of higher taxes for top 10% of tax filers
– 12% on taxable income over $125,000 to $150,000;
– 13% on taxable income over $150,000 to $200,000;
– 14% on taxable income over $200,000 to $300,000; and
– 15% on taxable income over $300,000.
This policy will pose higher personal taxes for PCA members and many of their skilled tradespeople.
Other policies potentially of relevance to PCA members would include:
Commitment to transparency on construction of public infrastructure projects.
PCA has long advocated transparency and competition in the awarding of infrastructure projects in Alberta. PCA will closely monitor the development of this policy to make sure the reality matches the rhetoric.
Phase out coal power
This policy could present construction opportunities for PCA members through construction of Natural Gas electrical generation plants.
Job creation tax credit
This policy could further aid companies who are expanding and creating new positions. PCA will monitor this policy closely and advise members in this regard.
For more details on the NDP platform, go here: ow.ly/MC9fJ
PCA will continue to closely monitor these developments and advocate for our members.