December 19, 2015

“Paid in Full” a distant memory as Alberta gets second credit downgrade since NDP attack budget tabled

Sheila Gunn ReidRebel Commentator
 

Alberta's credit has been downgraded.

This is no surprise. We were warned right after the NDP's catastrophic "borrow and spend" first budget came out. The bond rating agency, Moody's, immediately declared Alberta credit negative.

At the time, Rachel Notley said she didn't believe that the province's credit would be downgraded. She told the Globe and Mail:

"At the end of the day, I can't control what the different bond rating agencies will do or say but what I will say is that the fundamentals are very, very strong"

When she said that, was she trying to fool herself or us?

And now, only 2 months later, Alberta's credit is downgraded from AAA to AA. Standard and Poor’s, the credit rating agency, cited Alberta's weak revenue forecasts combined with a growing debt burden.

Finance Minister Joe Ceci blamed the cost of oil, which is only partly true. Sure, that dropped the revenue in the government coffers. But what about the uncontrolled spending?

Did the cost of oil make the NDP spend so far out of control to the point where the government will now have to borrow for everyday operations? Joe Ceci said, "The downgrade is a result of the over reliance on non-renewable resource revenues in our budget and that's why we're taking steps to diversify the economy."

What steps are those, Mr. Ceci? Attacking the agriculture sector through Bill 6? Putting rural towns like Hanna in the poor house by phasing out coal? Or chasing away any prospective business with the promise of a carbon tax?

Joe Ceci needs to know the only way to find our way out of this mess is to get those non-renewable resources he hates so much to foreign markets. But as long as the NDP and their gang of anti pipeline activists are in charge that isn't going to happen.

How far we've come from July 12 2004 when Ralph Klein held up the sign that said "paid in full."

Every premier since him has squandered that day.

 

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Comments
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commented 2015-12-22 22:09:32 -0500
So then, to paraphrase Mark Anthony in Shakespeare’s Julius Caesar… “And Joe Ceci is an honourable man…”???…
commented 2015-12-22 13:45:42 -0500
Like I said, serious challenges for serious people.
commented 2015-12-22 13:12:28 -0500
Ceci said yesterday he thinks some of the more costly promises made during the election will need to be modified. I think they’re reviewing spending priorities in response to actual evidence. Good for him
commented 2015-12-22 12:01:59 -0500
Good Spin James Williamson!… But what are you going to say when it’s two or three credit agencies?… Or are you claiming that Alberta has “bottomed out”?…
commented 2015-12-22 02:31:55 -0500
The CBC hasn’t been hauled in front of judges for falsifying fact, inciting racial hatred, or for libellous assaults on innocent people. Or if it has, it defends itself, cleans up its act and moves on. However, I don’t think there is any denying that Alberta’s credit rating was only lowered once by one agency.
commented 2015-12-22 00:34:02 -0500
James CBC? LMAO, they lie all the time. And sorry but we did great last time oil was lower.
commented 2015-12-21 20:15:36 -0500
Andy, yes, blatant misrepresentation. The Moody’s note was only cautionary. There was still a lot of positives AND no downgrade. So, of the three credit reviews only one resulted in a credit rating decline. Not that bad after all.
commented 2015-12-21 18:36:31 -0500
So why don’t the Ezra drones talk about the credit rating? The whole history, which includes the part played by the PC’s since 2008 by running deficits for 7 years in a row, all the while using resource revenue to buy votes and operate the government.
This game doesn’t play any more and the NDP Formed a government just as it reached a crisis. The companies that are cancelling projects and laying off people all talk about pipeline capacity and commodity prices. Projects don’t pay like they did; SAGD and oil sands projects have different cost thresholds from conventional oil and gas production. This is complicated stuff compared to the sound byte world Ezra and his cronies occupy. None of the press releases I’ve read from actual industry players say the NDP is to blame. Finally, even the Fraser Institute has concluded the current problems are caused by long term policy failures.
commented 2015-12-21 15:18:50 -0500
James Williamson, whether the title is misleading or they made a mistake, it dies not matter because the point of the article is that Alberta’s credit was downgraded. That is the real issue. Your attack on the article title is just obfuscation of the real issue.

I have seen far more misleading article titles on the CBC, CTV, Global, Toronto Star, Ottawa Citizen, just to name a few. Do you attack them too? Probably not.

What is your opinion on the downgrade in Alberta’s credit rating and is it tied to the NDP’s policies?
commented 2015-12-21 15:04:37 -0500
Blatant?…. How about Moody’s on October the 28th…. Then Standard and Poor’s December the 18th?…
commented 2015-12-21 13:47:22 -0500
What about my question regarding the basis of this article? It is a blatant misrepresentation of the recent history of this matter. There never was a first downgrade in the credit rating, so how can there be a second downgrade? I’m not really surprised by the misleading nature of the title as it is typical for this site.
commented 2015-12-21 13:21:00 -0500
The NDP have no plan other than to destroy the Alberta economy. Most working behind the scenes are from Toronto who hated that Alberta was richer than Ontario. Look what Ontario is doing now. A liberal government with all the tools low oil low dollar and still in the shit hole. It comes down to policies and taxation. The left can’t see when the money is in the hands of the electorate the economy flourishes. When its in the hands of Liberal or NDP governments the economies tank and the electorate is much poorer. You see in a progressive or Liberal government all the takers come out to feed at the trough. The NDP didn’t cut any spending in the public sector because they are planning on their union friends to prop them up in the next election. In Alberta their biggest problem is not the price of oil but the lack of ability to get their product to tide water and receive a fair price on their product. Running the oil to the USA is selling at a discount.
commented 2015-12-21 10:36:02 -0500
The NDP are certainly scrapping the bottom of the bucket with this toothless wonder!
commented 2015-12-21 10:34:54 -0500
It’s easier to do nothing and blame someone else than it is to do the right thing, and do the job you are paid for. Now we have lazy ass government who don’t know anything about running a viable economy, so they do the worst thing possible, instead of doing the right thing. Airheads do not make productive government officials, because they are leeches, who set out to deceive the public, instead of governing for an efficient economy.
commented 2015-12-21 10:05:17 -0500
" Deficit financing is a reasonable response to the current situation. "
Sure worked in Ontario for Bob Rae. Working well for Wynne’s Liberals too. And it was a real hit in Greece.
commented 2015-12-21 09:58:14 -0500
The NDP aren’t governing at all, they are letting everything fall to hell. Any two year old could do the same thing, so why should we pay these fools at all? Let’s just do nothing and watch what happens. The NDP game plan, is no game plan at all. Fools do foolish things, just like what the NDP have done in less than a year. Just imagine what our economy will look like in 3-4 more years of these no minds. We’ll be lucky to strike a match with the leftover trash!
commented 2015-12-21 09:34:22 -0500
Jamie, you can put whatever you want on your wall. It doesn’t change anything. The NDP won’t govern by temper tantrum like we’ve become accustomed to from the Conservatives. Deficit financing is a reasonable response to the current situation. The irrational caterwauling from irresponsible conservatives is not
commented 2015-12-21 08:46:00 -0500
“…NDP were elected on a platform of a balanced and reasoned response …”

If you don’t mind JAMES WILLIAMSON, I’ll frame that one and put it on the wall beside the platitudes from the Toronto Star when Bob Rae was elected in Ontario.
commented 2015-12-21 01:26:14 -0500
The electorate specifically rejected the oil price cycle boom and bust economy in the last election. Boom = spend like drunken sailors; Bust = dismantle the civil service and start over and repeat. I was here for that election. Taxes are the price of civilization. We can’t count on oil revenue and very few places are able to do so.
commented 2015-12-21 00:59:36 -0500
Nathan taxes are not the answer, you do realize we can only pay so many and still survive eh? If taxes are the answer then why is Ontario in the toilet? Funny how left wingers hated FPTP when Harper won , but not when Chretin won or when Justin won with less votes than Harper.
commented 2015-12-21 00:57:29 -0500
James and Nathan oil has been lower for much longer periods, and why is Ontario not booming as they blamed the high dollar and the price of oil for their failure LMAO. The patch was busy in the first half of the 2000’s with lower oil prices for multiple years, sad how you folls have to blame others when your chosen commie is in charge.
commented 2015-12-21 00:03:37 -0500
None of the comments below directed at me haven’t answered my basic position: the oil revenue game has failed and anyone in power would have the problem of finding new revenue sources to make up the huge revenue shortfall. The Fraser Institute has warned the PC’s repeatedly that there was an over-reliance on oil and gas revenues. The childish abuse that Levant and company indulge in is not helpful.
These are problems for serious people with some genuine civic spirit. Levant is not one of these people.
commented 2015-12-20 20:46:29 -0500
Which “uncontrolled spending”?
The reason is the price of oil, which means that other revenue raising measures need to be adopted. The oil party is over, and Albertans are going to have to understand that other taxes will be needed. That having been said, a consumption tax (sales tax) would have been the smartest move, since it has the least damaging effect on production.
Funny how right wingers think FPTP is great when it elects them, but are complaining now. Why not have proportional representation?
commented 2015-12-20 19:04:51 -0500
@ Bravo – Re: Poland

That is how the left act all the time when the right wins. We see it here, too. If the right wins, it is an illegitimate government, but when the left wins, then it is a valid government. It is just further proof that all left wingers on the planet have a group think mentality. But the fact that the right won all the seats, that is hilarious! I wish that would happen here.
commented 2015-12-20 17:23:34 -0500
Poland – once a left leaning country is now a single party government.

All lefties were tossed

http://www.breitbart.com/london/2015/12/20/pics-losers-landslide-election-cleared-every-left-wing-mp-polish-parliament-stage-protests/

Now they are demonstrating.

Personally I would give the lefty protesters one choice

Shut up and go back to work – or be arrested and deported for fucking the country in the first place.

Merkel is threatening court action while Poland has decreed no EU flags to be flown.

I think Poland will tell Merkel and the courts to go and screw themselves

Democracy has spoken and the lefties were tossed – might see that in Alberta in a few years.

Certainly hope so..
commented 2015-12-20 16:30:08 -0500
Williamson, You talk Sxxt.
You butt hole is envious of what comes out of your mouth. With a distorted history of Alberta politics like you have, I doubt you even live in the province. Do us a favor and keep your scatological musings to #bitter commie tossers in the twitterbox.