CALGARY, Sept. 27 /CNW/ - The Canadian Association of Geophysical
Contractors (CAGC) is disturbed by the recent Royalty Review Panel's
recommendations. The report, calling for wholesale changes to the process and
structures of royalties in Alberta, jeopardizes investment and employment in
the Canadian energy industry.
"Natural gas accounts for 65% of the drilling activity in Western
Canada," says Mike Doyle, President of the CAGC. "After a year of Federal tax
increases, trust taxation, sinking natural gas prices and layoffs in the oil
service business, the implementation of this report risks further job losses,
lengthening and deepening the current downturn. We share the investment
community's assessment that this report is draconian."
One in six Albertans work directly or indirectly in the oil and gas
industry. The seismic industry reinvests the majority of its service and
supply dollars in the communities of Alberta. The impact of economic downturns
in our industry in this province has grave implications for the rural
communities that have so strongly supported this government.
"The people of Alberta whose 'fair share' this report professes to defend
are our employees, their friends and families," continued Doyle. "Removing
two billion dollars from the industry that employs so many Albertans and
placing it in government coffers, as this report proposes to do, is an odd way
to help people. It is Albertans' hard work and investor capital, not some
government program that created Alberta's prosperity. The economic multiplier
effect of that lost $2 billion will be staggering, not to mention the loss of
investor confidence that will result."
The CAGC represents the business interests of the seismic industry within
the Canadian Oil and Gas Industry.
For further information:
For further information: Mike Doyle, CAGC President, Ste. 1045; 1015 -
4th St. SW, Calgary, AB T2R 1J4, P (403) 265-0045, F (403) 265-0025, E