Thursday, July 02, 2020

Alberta's Kenney finally talks about diversification, but just talking

I've been writing letters to the paper for years about how Alberta should stop whining about how hard done by they are, diversify their economy out of the moribund field of oil and gas, and institute a sales tax like every other province, to the extent that I probably sound like a broken CD (remember those?)
Well, Alberta has just announced a post-COVID economic recovery plan in which Premier Kenney lays out his vision for Alberta's future. And Alberta's future, in Jason Kenney's vision, is distinctly black and sludgy. The $10 billion stimulus package, mainly revolves around corporate tax cuts (an expensive strategy that has not had a good track record of encouraging economic activity), and funding for traditional infrastructure projects, that good old Keynesian solution to economic stimulus, most of which had already been committed to anyway. Also included is $1.5 billion to purchase a stake in the dubious Keystone XL oil pipeline. In fact, it is business as usual as far as Kenney is concerned, and what else would you expect from a staunch conservative: that's just what they do.
The only ray of sunshine in the whole plan, and it is a faint one, is $175 million (out of $10 BILLION) in new venture capital funding, the majority of which I imagine will go to the tech sector. If any economic diversification were to happen, then, this is the sum of Kenney's contribution to it.
That said, the government statement that accompanied the announcement does mention the word "diversification" quite liberally, and even that most un-Kenney-like phrase "energy diversification" is briefly hinted at.  So, Kenney is clearly quite aware that his province really needs to diversify (more desparately than any other province). But he's not actually willing to put any money behind it.

UPDATE
Alberta has also just announced a new petrochemicals incentive program, whereby the province will award no-questions-asked grants to any company misguided enough to want to establish new petrochemical facilities in Alberta. Diversification? Not really.

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