Alberta’s largest union urges government to increase oilsands royalty rates

The Alberta Federation of Labour claims it has obtained a government report which shows the province is getting less for it’s heavy oil compared to other jurisdictions with a similar product including war-torn Angola.

AFL President Gil McGowan says the Tory government only has itself to blame for the red ink on it’s ledge.

McGowan says Alberta should increase it’s heavy crude royalty rate from 55 to 64 per cent as recommended by a review panel by in 2007.

He says the reason why former Premier Ed Stelmach reversed a royalty increase a few years ago is because he was a weak leader and was bullied by oil and gas companies that didn’t want to see their profits reduced.

The AFL says hiking royalty rates would not scare away investment and would generate the revenue needed to build hospitals, schools and roads while pumping more cash into the Heritage Savings Trust Fund.

660 News, Thursday, Mar. 28, 2013
Byline: Kevin Usselman