By The Canadian Press September 6, 2012

CALGARY — A spate of small earthquakes in B.C.’s remote northeastern corner were caused by a controversial technique used to extract natural gas from shale rock, says a report by the province’s energy regulator.

The B.C. Oil and Gas Commission launched its probe after a “number of anomalous, low-level seismic events” were detected in the Horn River Basin, a gas-rich shale formation that’s attracted some of the industry’s biggest players.

“The investigation has concluded that the events observed within remote and isolated areas of the Horn River Basin between 2009 and 2011 were caused by fluid injection during hydraulic fracturing in proximity to pre-existing faults,” the agency said in a recent report.

In order to break the rock and free the gas trapped inside of it, operators inject a combination of water, sand and chemicals underground at high pressure.

The process known as hydraulic fracturing, or fracking, has drawn concern from environmentalists and landowners for the amount of water the process requires and for potential contamination of groundwater.

Studies have also linked fracking to earthquakes around shale formations in England and Oklahoma.

The 38 events detected by Natural Resources Canada ranged between magnitudes of 2.2 and 3.8 on the Richter scale. A quake of between 4.0 and 4.9 is considered “light” and may cause a noticeable shaking of indoor items and rattling noises.

Another 234 events were picked up by industry-deployed devices in the area that are capable of picking up much smaller shakes than Natural Resources Canada’s equipment can.

“We wanted to make sure that we knew what was causing the events and we wanted to make sure that the events would pose no risk to safety or the environment,” said Ken Paulson, chief operating officer at the commission.

Only one quake was felt at the surface near where the fracking was taking place.

“There was no risk posed to public safety or environment by any of the events that were looked at as part of this investigation,” said Paulson.

The report said more than 8,000 fracking completions have been performed in northeastern B.C. that haven’t been associated with unusual seismic activity.

The report said no quakes were recorded in the area prior to April 2009.

It said all of the events began after fracking took place. The quakes happened within five kilometres of fracking operations and within 300 metres of the depth at which the rock was being fractured.

Among other things, the report recommends improvements in seismic detection in the area, further study to identify pre-existing fault lines and stronger monitoring and reporting procedures.

It also calls for an examination of the relationship between hydraulic fracturing parameters and seismic activity. For instance, lower pump rates or injection volumes may be considered.

Geoscience BC is providing funding to update the seismographic grid network in the area to boost monitoring. The commission is also undertaking further study with the University of British Columbia.

The Canadian Association of Petroleum Producers welcomed the report’s recommendations, acknowledging that seismic activity associated with oil and gas extraction is of concern to the public.

Dave Collyer, president of the energy industry group, said natural gas companies provided the commission with data for its study and support its conclusions. The industry is finalizing guidelines for operators and is financially supporting more seismic monitoring in the region.

“Continuing our record of no harm to people or structures is paramount, as is supporting geoscience that can assure landowners and the public hydraulic fracturing can and will continue safely.”

By Darcy Henton, Calgary Herald September 5, 2012 9:00 AM

Alberta’s premier and her minister of international and intergovernmental relations announced respective trips to Asia and Europe Tuesday, running up the cost of cabinet travel this year to nearly $380,000 just days after the government conceded the deficit is ballooning.

Premier Alison Redford, who recently returned from an $84,000 trip to the London Olympics, is headed to Asia for the second time this year at an estimated cost of $66,895.

International and Intergovernmental Relations Minister Cal Dallas is off to Scotland, Germany and Italy at a cost of $41,645, the government said Tuesday. Upon their return, the pair will have racked up travel bills of more than $360,000 between them this year on 10 international trips.

The premier’s spokesman, Jay O’Neill, defended the expenses as necessary for opening new markets for Alberta.

“As a government we have business to take care of,” he said.

But critics expressed shock at the size of the travel bill and the signal it sends to Albertans who’ve been warned to expect a deficit more than triple the $886 million forecast last February.

They also question whether Albertans get any value for the cost in taxpayer dollars.

Liberal Leader Raj Sherman said Redford should be travelling more frugally to set an example. Travelling around the world in first class seats is “a slap in the face of Albertans,” he said.

“True leadership is leading by example.”

NDP critic David Eggen said jetting around the world doesn’t sit right with Albertans facing the prospect of a $3-billion deficit.

“It sends the wrong message,” he said. “If you are serious about austerity, it starts at the top.”

Wildrose critic Rob Anderson said the exorbitant cost of cabinet travel is likely to anger Albertans who are being asked to lower their expectations in light of the province’s looming financial crunch.

“If this is what belt-tightening looks like I would hate to see the size of their waist line,” he added.

Anderson said it is shocking in light of the controversy earlier this summer over extravagant expense claims made by a senior Alberta Health official.

Scott Hennig, Alberta director of the Canadian Taxpayers Federation, said the Tories need to set priorities to deal with financial realities.

“If you can’t cut down on international travel when you are broke, when can you cut down on it?” he wondered.

But O’Neill said Redford’s second Asia trip was planned last January with the premiers of Saskatchewan and B.C. to promote markets in Western Canada. “Market access is not only important to us but also to premiers of Saskatchewan and B.C.,” he said.

“There are countries that want our energy and want our resources and we’re doing all we can to make sure that happens. We’ve had some foreign investment in the oilsands announced recently … and this is just continuing to drive more interest.”

He rejected opposition calls to curtail travel until the books are balanced.

“They can say what they want,” O’Neill said.

“We have to make sure we’re doing the right thing for Albertans and that is looking at things like market access and that’s working with our counterparts, B.C. and Saskatchewan. … We can’t be worried about what those people are saying about what we’re doing.”

International and Intergov-ernmental Relations spokesman David Sands said that the travel and face-to-face meetings with Chinese officials are already beginning to pay dividends.

“These missions have, and will continue to, bring results to Albertans,” he said in an email.

Sands said in the past five years, Alberta’s exports to China have nearly doubled, jumping from $1.35 billion in 2007 to $2.6 billion in 2011, “thanks in part to Alberta’s ongoing efforts to engage Asia.”

He said meetings between the premier and officials in China have resulted in Chinese oil company executives coming to Calgary for conferences.

“Our continued engagement in these markets demonstrates our commitment and goodwill, the benefits of which we’re already starting to see,” Sands said.

PREMIER ALISON RED-FORD’S 2012 FOREIGN TRAVEL:

London – $84,000*

Asia – $66,895**

Asia – $39,068

Chicago – $23,027

NYC/D.C- $29,541

Virginia/D.C. -$18,967

Washington – $6,251

Total – $267,749

* estimate

** estimate for planned trip in September.

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© Copyright (c) The Calgary Herald

Original source article: Shock over Alison Redford’s travel bills

By Sheila Pratt, Edmonton Journal September 3, 2012

After a bumpy ride this summer, Enbridge will face a tough grilling this week on its $6 billion Northern Gateway project as public hearings enter their final phase in which interveners can challenge the company’s evidence.

Enbridge will square off with unions and First Nations while big oilsands players, including MEG Energy, Cenovus, Suncor, Nexen and Total appear in a joint witness panel. The Alberta government is also prepared to appear for the “questioning” phase of the federal Joint Review Panel hearings to examine the economic benefits of the proposed $6-billion pipeline project to carry Alberta bitumen to Kitimat on the coast of British Columbia for export to China.

Critics like the Alberta Federation of Labour will argue Canada’s refining industry will shrink — with a loss of 8,000 jobs expected — if the pipeline project goes ahead and diverts bitumen feedstock to China. Opponents will also argue there is plenty of room in existing pipelines to handle growing bitumen exports.

Enbridge, however, is “ very confident” going into the hearings as it will finally have a chance to respond to critics, says spokesperson Ivan Giesbrecht, noting the company will speak Tuesday.

“This is our first chance to speak; it’s going to be a rigorous questioning and we welcome that,” Giesbrecht said. “We really feel the project will benefit both provinces and Canada. It’s an opportunity for Canadians to listen in on a very democratic process.”

Enbridge is also required, by noon Tuesday, to submit a highly critical U.S. report on the 2010 Michigan pipeline spill that saw 12,000 barrels of heavy oil spill into Kalamazoo River from its pipeline. Initially, the federal review panel said it would not take the report, but reversed its decision mid-August.

Enbridge’s project — twin pipelines, with one to carry 585,000 barrels of diluted bitumen west and another to carry the diluent — faced growing resistance, starting in late July when B.C. Premier Christy Clark raised the stakes. Her province will not approve the pipeline unless B.C. gets a share of the increased revenues Alberta will gain from shipping more bitumen, she said.

With the project stuck in political hot water, B.C. newspaper tycoon David Black stepped in with a proposal for a $13-billion refinery in Kitimat as a way to bring economic benefit to the province. The oilpatch was not keen on the idea.

Meanwhile, Enbridge came under fire for a smaller spill in late July in Wisconsin. It also hit rough water when it posted a map of the Douglas Channel route into the Kitimat port that left out many islands, rocks and narrow channels that make the route particularly difficult to navigate. Around the same time, the company also announced $500 million in improvements to pipeline safety for the Northern Gateway pipelines which start in Bruderheim northeast of Edmonton. Those include increasing the thickness of the line by 20 per cent, adding 50 per cent more shut-off valves and increasing inspections by 50 per cent.

The Alberta government remains firmly committed to the project to diversify markets for bitumen, said Tim Markle, spokesman for Alberta Energy. Oilsands producers will only get higher world prices when they have access to Asian markets, said Markle, noting the price differential is up to $20 a barrel.

The province will be represented at the hearings by Christopher Holly from Alberta Energy and Skip York of Wood Mackenzie Consulting, the consulting company which predicted the province will lose $72 billion over nine years if the pipeline is not built.

Gil McGowan, leader of the Alberta Federation of Labour, disputes the province’s figures.

“We think this project will kill more jobs than it will create,” said McGowan, noting that Enbridge’s own figures estimate a four-per-cent reduction in refining capacity by 2018 in Canada as a result of the pipeline.

“This isn’t just about losing value-added jobs in the future, it’s now becoming clear that existing jobs in the refining sector are also threatened,” McGowan said.

He said “we will be raising questions” that there is no agreement in the evidence of the proposed pipeline’s impact on refining jobs in Alberta.

Oilsands producers will get higher prices for their product in Asia, but that will only be temporary, McGowan said, noting that China’s industry is state-run so there is no real market pricing.

In a report for Forest Ethics Advocacy, David Hughes, a former geologist with the federal government, says the price differential will be eliminated when the glut at Cushing, Oklahoma in the U.S. Midwest is relieved.

“Once it gets to the Gulf coast, the oil can go around the world and they will be forced to pay world price and that’s important,” said Hughes, adding that could eliminate the need for the Northern Gateway.

Meanwhile, Canadians should talk about whether “we should liquidate our energy resources to sovereign countries like China” or look at longer-term strategies for national energy security, he added.

The hearings begin Tuesday at 2 p.m. at the Holiday Inn at 4485 Gateway Blvd. They run until Saturday Sept. 9, then resume again Sept. 17 at 9:30 a.m. for ten days at the Westwood Inn at 18035 Stony Plain Road.

In November, hearings continue in Prince George to deal with pipeline safety and later in Prince Rupert to deal with marine issues.

Last week, just days before the hearing, Enbridge received approval from the Energy Resources Conservation Board Alberta for a new 400,000-barrel-a-day pipeline to bring bitumen from Fort McMurray to its Edmonton hub. The company says the new Woodland pipeline project is not connected to the Northern Gateway.

[email protected]

© Copyright (c) The Edmonton Journal

Original source article: Public hearings resume on Enbridge’s Northern Gateway project

By Tamara Gignac, Calgary Herald September 3, 2012

CALGARY — Taber corn is one of Alberta’s edible icons, a vegetable reputed to be five times sweeter than garden variety cobs.

But with praise comes imitation — and that has some southern Alberta farmers fuming. They say too many fraudulent corn pedlars are trying to pass off ordinary corn as the succulent ears from Taber.

Farmers in the Taber area want to see the end of the annual crop of counterfeit corn because they say it disrespects the brand.

“The fear is people will say, ‘I bought this corn, it was Taber and it was terrible,’ ” said David Jensen, president of the Alberta Corn Growers Association.

It’s easy enough to claim corn from British Columbia, Washington or even Ontario is Taber-grown, he noted.

“It’s no different than me making ketchup and telling everyone that it’s Heniz. That’s what these people are doing. They are using our name and reputation for good quality corn and defrauding the public.”

Taber, situated some 270 kilometres south of Calgary, prides itself on producing some of the tastiest corn in the country.

The area’s near perfect growing conditions — a blend of long, warm summer days and cool nights — make the annual harvest a highly-anticipated event.

In some cases in the Edmonton area, sellers are using phrases like “southern Alberta’s finest” in a bid to dupe unsuspecting consumers into buying lower-quality produce.

But the Alberta Corn Growers Association warns people to be wary of such claims. The best way for suspicious shoppers to be certain the corn they’re buying is genuine is to ask vendors to provide a certificate of authenticity that includes the name and phone number of the farm where the produce originated.

“It’s a corporate seal and impossible to duplicate,” Jensen said. “I field hundreds of calls about this. It’s the only way our association can police it.”

If caught, phoney corn pedlars face penalties under the Fair Trading Act. That could mean fines of up to $100,000 and possibly jail time.

But it’s not always easy to tell the difference between a legitimate cob and a mere imitation. Geography is also a thorny issue.

“What constitutes Taber corn? Is it just within Taber proper, or does Barnwell count? These are the kinds of things that make it difficult to authenticate,” said Service Alberta spokesman Gerald Kastendieck.

“It’s a challenge to prove and difficult to prosecute.”

Making matters worse, complaints sometimes arise after corn enthusiasts have already consumed the suspect cob.

“It makes it hard to verify,” Kastendieck said.

Brad Jensen has a weekday job in Calgary but sells Taber corn at a handful of locations in Airdrie.

His advice to consumers? Stick to trusted vendors who can prove they work with Taber farmers.

“If you want good quality corn, find a stand that gives you fresh stuff and stay there. If you’re going to some fly-by-night stand on the side of the road, you might get stung,” he said.

[email protected]

© Copyright (c) The Calgary Herald

Wednesday, 29 August 2012 20:00 Gauthier, Gerald

Trevor Busch
SOUTHERN ALBERTA NEWSPAPERS – TABER
Environment and Sustainable Resource Development Minister Diana McQueen headed a delegation touring irrigation districts and value-added industries in southern Alberta Wednesday.
During a lunch stop in Taber, McQueen briefly described the morning’s aerial tour of irrigation districts and works in the region.
“We’re here as MLAs, coming to have a tour of southern Alberta, certainly to have a tour of the irrigation districts. We had a chance to do a fly-over, so that myself, and our colleagues, can have the opportunity to see on the ground what it looks like. We’ve finished the tour of the irrigation districts, and now we’re on a ground tour as well.”
Included as part of the delegation were the extreme south’s only PC MLAs, Lethbridge West’s Greg Weadick and Lethbridge East’s Bridget Pastoor, as well as MLA(s) David Dorward, Rick Fraser, Linda Johnson and Maureen Kubinec, from other areas of the province.
McQueen noted in terms of southern Alberta’s extensive relationship with irrigation, seeing really is believing, and that it is important for new MLAs to gain a working knowledge of this vital aspect of Alberta’s economy.
In the afternoon, the government delegation visited the LambWeston Potato Processing as well as the Lantic Sugar Plant in Taber, both important value-added agricultural ventures in the area, before finishing the tour with a stop at Bayer Crop Science in Coaldale.
“That’s a great opportunity for us,” said McQueen, referring to the opportunity to see some value-added industries. “We talk a lot as MLAs, and as government, and Albertans, about adding more value in the province. And so when we come and get the chance to tour some of the opportunities that are here, it gives us the opportunity to see the importance of value-added first hand and to grow our agriculture industry in the value-added area – be it sugar, or potatoes, whatever that happens to be – it’s important for us to be able to come and see and talk to those that are producers.”
McQueen touched on the importance of water conservation in the province and the effective job irrigation districts have done in making it a reality.
“The irrigation districts should really be commended for the work that they have done, and continue to do, to conserve water, to make sure that water is being stored well. So they’ve come a long way, and that’s certainly something that we’ve learned, but also that they’ve learned. Especially in an enclosed basin in the south here, it’s so important that we make sure that every drop counts, and that we conserve wherever we can, and they’re doing an excellent job in doing that. In times when we have drought, they’re there to share with others as well, so that’s very important.”
The tour group also included a number of staff members of the Alberta Irrigation Products Association (AIPA) as well as high-ranking bureaucrats from the Ministries of Environment and Sustainable Resource Development, Municipal Affairs, and Agriculture and Rural Development.

Wednesday, 29 August 2012 20:01 May, Katie

Katie May
LETHBRIDGE HERALD
[email protected]
The town of Fort Macleod is devastated by a “kick below the belt” decision to cancel construction of a high-tech police training centre in the small southern Alberta community.
Long-anticipated plans for the new police training centre came to a screeching halt Wednesday when the provincial government shocked southern Albertans by announcing it won’t pay for the proposed multi-million-dollar police college.
“Everyone’s been dropped down an elevator shaft here,” said Fort Macleod Mayor Shawn Patience, fresh out of a 1.5-hour emergency council meeting Wednesday evening. “We believe our municipal and our provincial and our federal leaders need to deal from a place of integrity, and that their commitments whether they’re verbal or written, need to mean something. And today that definition has changed dramatically. I’ve lost a lot of confidence and faith in the system.”
The province, which first announced it would build the centre in Fort Macleod six years ago, now says the project is an unnecessary waste of taxpayer money. If built today, the centre would cost $120.7 million, according to Jonathan Denis, Alberta’s minister of Justice and Solicitor General. The government has already sunk just under $2 million into the project for architectural designs and construction site preparation, Denis said, although Patience argues much more money has been invested.
“Given the large price tag, it’s not in the taxpayers’ interest to proceed with this large project, nor in the interest of law enforcement,” Denis said. “The police college is not something that’s necessary to continue with the quality of training that we do have. We can accomplish this through existing facilities and frankly, I think the money is better spent elsewhere.”
A persuasive letter from the Alberta Association of Chiefs of Police, which argued existing police training facilities in Calgary, Edmonton and Regina are sufficient, changed Denis’ mind about the project, he said. After he received the letter in July, the minister asked police forces across the province for their feedback on the proposed Fort Macleod centre and found that a majority saw no need for it.
Asked why the government didn’t seek input from law enforcement agencies earlier in the planning process, Denis said only that cancelling the project was one of the most difficult decisions he’s had to make as minister.
“I can’t speak for previous ministers. I’ve been in this position about 10 months. But I can tell you that this was a very difficult decision to make, but I believe it’s the correct one,” he said, adding he was influenced by police from Calgary, Edmonton and the RCMP, whose members comprise most of Alberta’s police. “When 94 per cent of your stakeholders are telling you something, that weighs very heavily on the decision-making process.”
The much-delayed Alberta Public Safety and Law Enforcement Training Centre picked up momentum just last month when provincially-contracted architects unveiled impressive designs for the expansive campus, billing it as the first high-tech police training centre of its kind in Canada. Contracts were awarded to Bird Construction and Stantec Architecture Ltd. to complete the centre by Aug. 2014. Architects – hired in July to draw up plans for the centre within a $95 million design budget set by the Solicitor General’s office – boasted that the state-of-the-art centre could attract recruits from across Canada and even the United States.
The Lethbridge Regional Police Service (LRPS) and smaller municipal police departments in the region had been eagerly awaiting the completion of those plans, which included a high-speed driving track, indoor and outdoor shooting ranges, urban and rural training properties and a mock courtroom.
“We could have gained a lot of advantages by having this high-tech, fully advanced training centre that close to us,” said Lethbridge police chief Tom McKenzie, who said the LRPS wrote a letter in support of the project when the Solicitor General asked for feedback last month. But the concerns expressed by larger police forces with different priorities for policing ultimately tipped the scales toward scrapping the project.
“I guess that’s politics,” said McKenzie, who added the province heard some opposition to the new training centre since it was first proposed.
“I feel that we were consulted. Were we consulted effectively and efficiently to the point that we should have (been)? No. But it’s difficult with any project,” he said diplomatically.
The sudden Conservative government cancellation prompted provincial opposition members from the Wildrose, NDP and Liberal parties to accuse the province of axing the project because Fort Macleod is represented by a Wildrose MLA. Livingstone-Macleod MLA Pat Stier did not return calls for comment by deadline Wednesday, but he issued a statement on the “devastating news” in a Wildrose press release.
“This government led us down a path, made us believe this facility was coming, told us how important it was, even announced a construction company and design firm, and just like that it’s all gone. I’m appalled and extremely disappointed.”
Mayor Patience echoed that bitter disappointment, mourning a project that had been hailed as a saviour for the town’s economic slump – a project he’d poured his hopes into for years.
“Right now, I just have a community that’s extremely devastated and the rationale behind it is so hollow that it doesn’t even allow for anything to lean on,” he said. “You know what, we’re tough out here and this process has made us stronger and it’s united this community. I want to ensure that the community stays united. As for the provincial government, if that’s their rural development strategy, then I suggest they take a hard look at it.”

Wednesday, 29 August 2012 20:00 Gauthier, Gerald

Garrett Simmons
LETHBRIDGE HERALD
[email protected]
Every summer, it’s always the same for southern Alberta agricultural producers.
As the days get shorter and the crops begin to ripen, harvest anxiety kicks in. With only so many perfect harvest days on the calendar, the pressure is on to maximize those days to the fullest potential. Unfortunately, that often leads to problems.
Laura Nelson, executive director of the Alberta Farm Safety Centre in Raymond, said reports of mishaps are more frequent come harvest time, and still follow a familiar pattern.
“We’re still dealing with a lot of machine entanglements, rollover and runovers,” she said, and added July-August in particular see a jump in the latter two occurrences
Machinery, of course, can be temperamental and come the busy season, those breakdowns can cause significant stress for producers.
“In a perfect world, you’d buy a new piece of equipment and it would never plug or break,” said Nelson, who added when breakdowns do occur, a slight slip up, such as trying to make a quick adjustment while the machinery is still running, can lead to a life-altering injury.
Advances in equipment technology have helped, as Nelson highlighted rollover-protection structures in tractors as an example, but only help if farmers use another important safety feature, one which is often neglected – seatbelts.
“If you catch a tire in the ditch or a pivot track, you want to be safe in that passenger area,” said Nelson, who added even though slower speeds are involved in farm work, the 15,000-pound weight of an average tractor plays a huge factor. “If it rolls over on you, it just doesn’t matter.”
Older tractors can be retrofitted with rollover-protection structures as well, for an added safety feature.
Safety features can make a difference but often, time is a huge factor, especially as the calendar flips from August to September. The dog days of summer give way to long days in the field, and Nelson added farmers need to ensure they get a proper rest.
“No one can work 18-20-hour days day after day and be as sharp on the 15th and 20th day,” she said, and mentioned even short breaks throughout the day can make a big difference. “After a few hours, you need a break, even if it’s just for a few minutes.”
Nelson added growers are sitting on record crops, and the recent hail storm Cardston experienced proves a crop is never safe, until it’s tucked away in the bins.
But safety can’t be lost in the go-go nature of harvest, according to Nelson, who pointed to an Alberta Centre for Injury Control and Research report, called Agricultural-Related Injuries in Alberta, which stated an average of 18 deaths a year took place between 1990-2009. Unlike other injuries, children and the elderly factor into those numbers, due to the unique nature of farm work.
With that, Nelson added it’s important for parents to educate their children, recognize their limitations and follow some simple guidelines. She suggested any farm worker out on the job should communicate where they are going, when they are expected to be back and be provided with a communication device, should any problems arise.
“It’s just a matter of thinking ahead and doing some preparation,” said Nelson, who added it’s also important for workers to know the legal land location, and/or identification number of the land they’re working on.
Nelson mentioned the centre in Raymond focuses on educating youngsters as early as students in kindergarten in rural and colony schools, to build a consistent farm-safety message over the years.
“Before you know it, these kids will be the farm operators,” she said, and added the goal is to create a proactive attitude towards safety, which will ideally positively impact the on-farm decisions they will one day make on the farm.

By Bryan Weismiller And Jamie Komarnicki, Calgary Herald; With Files From Kelly Cryderman August 31, 2012 9:41 AM

As the Tory government warned it’s not ponying up extra cash for public sector negotiations, doctors, teachers and other groups say they’re still expecting a fair shake at the bargaining table.

Finance Minister Doug Horner told reporters Thursday “there will be no new money for public service sector negotiations until we see improvement,” after announcing the provincial deficit is projected this year to surge to as high as $3 billion, based on a fiscal update.

AUPE president Guy Smith said he heard similar warnings in 2010 and his membership is getting “fed up with that broken record of a message.”

“We expect them to say things like that and then we go to the table and negotiate in good faith,” Smith said, referring to the new deal needed for about 21,000 provincial employees next year.

Horner said department spending will also be capped at original budget allocations, meaning there will be no new money available for public sector contracts until the financial picture improves. He said that didn’t necessarily mean a pay freeze for public sector workers, but departments will have to live within whatever budget they received at the start of the year.

Health-care workers’ negotiations may prove particularly thorny in light of Thursday’s announcement.

The province is locked in a contract battle with the Alberta Medical Association after offering a prime deal days before the spring election was called – then, according to the physicians’ group, unilaterally changing the terms and sending the two sides back to the bargaining table in July.

The master agreement for the province’s 7,200 doctors expired March 31, 2011.

According to a statement released Thursday by AMA president Dr. Linda Slocombe, the association hasn’t been informed by government about the implications of the fiscal update on ongoing contract negotiations. She pointed out Alberta doctors haven’t had a fee increase since 2010, while staffing, equipment and other costs have gone up.

Dire words from government are a bargaining tactic that public sector groups in Alberta have had to deal with many times in the past, said Heather Smith of the United Nurses Association. The provincial nurses’ contract expires next March.

Meanwhile, teachers, school boards and the government are trying to hammer out a new framework as provincewide collective agreements expire Friday. Members of the tripartite group told the Herald they’re confident a deal can be reached by the end of October.

[email protected]

[email protected]

© Copyright (c) The Calgary Herald

By Kelly Cryderman, Calgary Herald August 31, 2012 6:25 AM

The provincial government signalled Thursday it will cap spending, look for at least $500 million in savings and re-evaluate all planned building projects as it grapples with lower-than-predicted energy revenues and a growing deficit now projected to surge as high as $3 billion this year.

However, critics were quick to pounce on the “bad news” first-quarter fiscal update delivered by Finance Minister Doug Horner, blaming the Conservative government’s performance as a weak financial manager rather than any wild swings in the global economy or energy prices.

“This is ugly,” said Canadian Taxpayers Federation’s Scott Hennig, summing up the numbers. “They’ve had a lot of bad news quarters.”

In the February budget, the Redford government predicted it would post a more manageable $886-million deficit for the 2012-13 fiscal year. But in its first-quarter update Thursday, the province forecast a deficit between $2.3 billion and $3 billion this year.

Horner said the government will take a number of steps – without raising taxes or imposing drastic cutbacks – to improve the province’s financial health.

All departments will be asked to find $500 million in “in-year savings,” up from $360 million requested in the budget.

All government ministries have also been asked to review capital projects to see what can be delayed or cancelled – although at this point nothing is specifically on the chopping block, Horner said.

In fact, the finance minister said the decision earlier this week to quash the longplanned police college in Fort Macleod wasn’t a financial decision, but based on merit.

But later, when discussing the tough spending decisions ministries will make on capital projects, Horner said “the police college was a very good example of this.”

Despite $400-million less in energy revenues during the first three months of this fiscal year, Horner insisted the province remains on track to record a balanced budget in 2013-14.

He blamed sagging energy revenues in the first three months of the budget year on lower-than-predicted bitumen royalties, conventional oil revenues and Crown lease sales.

In February, the government predicted oil prices would average $99.25 US a barrel this fiscal year. However, it now projects oil averaging $92.75 per barrel for the year. The government also revised its natural gas price to $2 per gigajoule, down from $3 in the budget.

“It’s a bit of a roller-coaster,” Horner said at the legislature.

However, Hennig said the government originally made wildly optimistic projections for other revenue streams, including corporate profits.

More importantly, he added, the fiscal document was significantly pared down compared with past quarterly reports, suggesting the government has something to hide.

He said the “brochure” was scant on financial details or what Albertans could expect in the months ahead.

“I wouldn’t trust anyone who wouldn’t show me any numbers,” Hennig said.

Horner told reporters that he wanted a more “meaningful” and “understandable” report.

Critics have argued Alberta’s Progressive Conservative government is over-reliant on volatile energy revenues and too optimistic recently in its energy price predictions.

The Wildrose party immediately criticized the government Thursday for failing to balance the budget with oil currently above $90 a barrel, saying their decision put core government programs at risk.

Wildrose MLA Rob Anderson charged the Conservative party was disingenuous to campaign this spring on spending hundreds of millions of dollars for new schools, roads and other programs, while still balancing the books.

“It shows that the preelection Alison Wonderland budget was deceitful, and I believe intentionally so.”

The province has a number of ambitious capital plans still on the books, including adding passing lanes to Highway 63 this year and a promise to build 50 new schools over four years. In June, Health Minister Fred Horne said a new cancer centre in Calgary was once again on the government’s radar.

Horner said Thursday he didn’t want to talk about which capital projects would live or die, but did volunteer that the new Royal Alberta Museum project in downtown Edmonton will go ahead.

Mount Royal University political scientist Duane Bratt said the first-quarter update gives opposition parties new fodder to criticize the governing Tories during the legislature sitting in October.

“It’s not what (the Conservatives) said when they produced their budget, and not what they promised during the election campaign.”

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© Copyright (c) The Calgary Herald

By Karen Kleiss, Edmonton Journal August 30, 2012

EDMONTON – Transparency and accountability advocates lambasted the Redford government Thursday for severely restricting Albertans’ access to information about the troubled state of the province’s finances.

Finance Minister Doug Horner released a first-quarter fiscal update Thursday that makes no financial projections, omits capital planning and financial assets, and dramatically reduces the number of raw figures available for public scrutiny.

The government also revoked journalists’ access to finance officials, who have for decades been available at technical briefings to explain the most complicated aspects of the province’s financial situation. Reporters rely on these briefings to prepare informed questions for political leaders.

Advocates said keeping financial details hidden from the public robs the electorate of its ability to understand what government is doing and strips Albertans of their democratic rights. Horner said the changes were designed to make the information easier for Albertans to understand.

“We didn’t do a technical briefing, because the reality is if we have to do a technical briefing for (journalists), how do we expect that Albertans are going to understand what I am telling them?

“I want Albertans to understand (that) the first-quarter results are based on actual-to-budget, just the way they would do at home or in their businesses, and that’s the way we are going to report.”

He said the Redford government is not going to rewrite the budget four times a year. “We are not going to make decisions for the rest of the year based on what happened three months ago.”

Premier Alison Redford campaigned on promises of transparency and accountability, but advocates say her government has restricted access to the most basic financial information.

“It’s not up to the government to decide what information Albertans should have. They should present all the information,” Democracy Watch spokesman Tyler Sommers said. “If they want to present something simplified, in layman’s terms, they can do that in addition to releasing full information.”

Sommers said it is “insulting” to suggest Albertans should have access to less financial information so they don’t get confused. “Withholding information is essentially stripping Albertans of their democratic rights,” he said.

Michael Karanicolas, a lawyer with the Centre for Law and Democracy, said the move “is very troubling in terms of the government’s broader attitude toward transparency.

“Budgets — and particularly the raw data — are fundamentally important,” Karanicolas said. “That’s really what’s giving you a clear and unadulterated picture of what’s going on, without government spin.

“Journalists play a critical role, and the fact that they’re not getting access to raw information would be very troubling in the sense that it could rob the electorate of full accountability and understanding of what’s happening in their government.”

Karanicolas said the government’s simplified version “represents the version that a particular political administration wants to be reported, rather than the actual truth,” he said. “So there’s enormous potential for manipulation there.”

Scott Hennig of the Canadian Taxpayers’ Federation said the financial brochure released by the government Thursday is “not open or transparent.

“The reason why we have these (updates) … is because Albertans need to know the numbers. I find it absolutely stunning that the finance minister would stand there and say he is not doing a technical briefing because … Albertans are all too stupid to understand it.

“This is one of the most disrespectful things I have ever seen this government do.”

With files from Keith Gerein

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© Copyright (c) The Edmonton Journal