At a Glance - February 22, 2023
The Liability Management Incentive Program
Formally known as the R-Star Program, Alberta’s government is scheduling discussions with groups to create “a concept for a royalty credit program to incent accelerated oil and gas site closure”. The proposed program would award $100 million in royalty payment credits to qualified companies earned from new production by cleaning well sites 20 years of age or older.
According to Alberta Energy, “Indigenous groups, municipalities, industry associations, oil and gas companies, landowners and other groups have been asked to provide feedback on the proposed criteria.” Rural Municipalities of Alberta President Paul McLauchlin was critical of the news, saying “for some reason, we're incentivizing future royalties to eliminate liabilities when profits are high. It’s very confusing to a lot of people.”
New Agriculture Tax Credit Announced
In Budget 2023, the provincial government will be including a new Agri-Processing Investment Tax Credit designed to build a competitive edge in the agricultural sector in Alberta. Corporations that make a minimum capital investment of $10 million in value-added agri-processing in the province will be eligible for a 10 per cent non-refundable tax credit.
Applications will open sometime in Spring 2023, and capital investments made on or after February 7th are eligible for consideration. The goal of the program is to “build or expand agri-processing facilities in Alberta”.
Post-Secondary Affordability Announcement
Minister of Advanced Education Demetrios Nicolaides has announced that it will be providing targeted affordability supports to post-secondary students in the province. In the upcoming budget, it was announced that the province would implement a domestic tuition rate increase cap of 2 per cent starting in 2024-25. Additionally, student loan interest rates will be reduced to the prime rate and the interest-free grace period will be extended to 12 months.
Further, the announcement includes an increase to the qualifying threshold of the Repayment Assistance Plan from $25,000 to $40,000 and will increase the Alberta Student Grant to $225 per month, retroactively applied for the 2022-23 academic year.
Alberta Announces Healthcare Plan
Health Minister Jason Copping released the details of the government’s plan to improve Alberta’s healthcare workforce. The province will commit $158 million to retaining healthcare workers, recruit new ones, and to evolve models of care being used in Alberta. Of the total funding, $90 million is being allocated to rural physician retention and recruitment.
The province is also dedicating $7 million to attract new nurses from both the United States and United Kingdom. $29 million of the program is for the new agreement with the Alberta Medical Association, and the final $1 million will be used to fund the Nurse Navigator Program.
Panel Appointed for Alberta’s Energy Future
A new five-member panel has been appointed to “develop a long-term vision for Alberta’s energy future and recommend steps the province should take to ensure the industry continues to thrive for decades to come.” The panel will be comprised of David Yager (chair), Hal Kvisle, Bob Curran, Carey Arnett, and Phill Hodge. The report will is due to the province on June 30, 2023.
Yager is the former president of the Wildrose Party and has considerable experience in the oil and gas industry, having worked as an executive to an energy service company. Hal Kvisle was previously appointed to the 2018 Natural Gas Advisory Panel by the NDP Government of the time.