“No amount of government subsidy is going to make an unprofitable business profitable. It is only going to transfer the loss to the taxpayer.” – Former Finance Minister Greg Melchin as quoted by Dr. Morton
The recent paper presented by Dr. Ted Morton of the University of Calgary’s School of Public Policy entitled North West Sturgeon Upgrader: Good Money after Bad? raises considerable issues as to his political motivations as well as his credibility.
In an April, 2015 report, Morton is challenging the economic sustainability of the North West Sturgeon Upgrader and in particular the political process in committing the Alberta taxpayer to assist in its financing. It is disconcerting that this report is being released at this time since Dr. Morton appears to have raised these issues some time ago and they were discussed in the Legislature on Nov. 26 of last year.
Equally disconcerting is the claim by Ian MacGregor, president and CEO of Northwest Upgrading that he issued a rebuttal to Dr. Morton’s report on April 17, which appears to have been ignored by media outlets.
Morton in his paper clearly admits that there was a ‘glaring lack of effective government oversight or due diligence’ and hints that this project was ram-rodded through by cabinet despite his strong objections.
What is equally of concern is how Morton as minister of finance in February 2010 in moving to approve the business plan and fiscal policies of the government stated: “I'm pleased to report early signs of economic recovery: higher oil prices …
“Just last month a $4 billion bitumen upgrader was announced for Alberta's Industrial Heartland. That kind of investment is expected to spur Alberta's economy to grow by 2.6 per cent in 2010.” Then further in 2012 as minister of energy he says: “It's interesting to hear the members of the third or fourth party suddenly encouraging government involvement in upgrading. It turns out that the project they're referring to is modelled directly after the North West Upgrader . . . But I'm happy to report that, thanks to the work we're doing in working with North West Upgrader, we're bringing on not just a new upgrading plant but that they'll also be producing diesel that will contribute to the increase in supply and reduce prices.”
It is reasonable to assume that this issue may have spurred Ted Morton to resign as finance minister in January 2011 triggering Premier Ed Stelmach’s resignation, and in turn precipitating the October 2011 leadership race. Morton was the first off the mark as a candidate. As history tells us he was unsuccessful in his second bid for the premiership, but perhaps if he had raised the North West Upgrader as an issue at that time he may have changed the political landscape in Alberta several years ago.
One must question why, given his convictions, that he did not resign as finance minister back in 2010 when he became aware of the financial implications of cabinet’s decision or how he could accept the position of energy minister in the Redford government when he knew he would have to defend a decision that he was so vehemently opposed to.
Where is the boondoggle, on the government’s plate or on Morton’s, or both? Time will tell.
Ken Allred is a former St. Albert alderman and MLA.
