Alberta throne speech optimism not shared by business owners

AlbertaPremier Rachel Notley saidher throne speech would focus onpeople coming together, on shared responsibilityand opportunity, and obligations to future generations.

But above all, she said to expect her speech to beoptimistic.

• Democratic reform, corporate tax bumprevealed in Alberta throne speech

However,this has not been a year for optimism in Alberta's business community, and the throne speech from the new government did little to allay that.

"It's not one item," said Ken Kobly, president of the Alberta Chambers of Commerce.

"It's alayeringeffect, it's the layering of minimum wage on top of corporate tax increases, on top of the royalty review, on top of theattending costs that come out of the climate change policy."

Minimum wage

We need to make sure allAlbertansare paid fairly at work,includingthose on the minimum wage. Alberta speech from the throne

About 10 per cent of Albertans make between $10 and $15 per hour. Those workersare set to see their wages increase in the coming year.

Consultations between the province andthe small business community beganthis month. Theprovince has promised more detail on the increase by July 1.

• $15 minimum wage worries retailers, restaurants, small business
• Alberta's $15 minimum wage: How many will actually get a raise?

This continues to be a burr in the side of the small business community.

"We continue to hope thatthe government takes all the information into consideration before doing anything too drastic or too rash," said Amber Ruddy, policy analyst with the Canadian Federation of Independent Business.

Corporate tax rate

Corporatetaxes on the largest and most profitable corporations inAlbertawill be increased from 10per cent to 12 per cent.Alberta speech from the throne

The increase in the corporate tax rate was a hot button issue in the election campaign, but popular enough with voters that there waslittle chance it wouldn't be a priority.

Koblyisrelievedthe small business tax remains unchanged at three per cent, but said small businesses depend on the large corporations.

"We're in a bit of a sluggish economy right now," said Kobly. "We'llwait to see what the details are, including the royalty review, and whether that has a further downward effect on the economybecause if the economy goes down, small businesses are affected as well."

Royalty review

We need to review how the people ofAlberta ... will be rewarded for the development of their own energy resources.Alberta speech from the throne

Notley also nodded to her campaign promise of a royalty review.

Before the throne speech, Notley said she expects to announce more details on the review by the end of summer. As well, she indicated that if the review suggests that it's not the right time to proceed with higher royalties, she is willing to listen.

• Oilsandsfirm delays its forecast over new Alberta government
• Comparing royalty rates in Alberta, Saskatchewan, Texas and North Dakota

"From our industry's point of view, we want to ensure that we can be a competitive jurisdiction," said Tim McMillan, presidentof the Canadian Association of Petroleum Producers."That we can create the jobs and the economic growth that we have historically. And certaintyis an important part of the ability to move forward."

Carbon policy

The province needs to demonstrate real leadership on the environment and climate change. Alberta speech from the throne

McMillan said that he was reassured that the throne speech included a reference to market access.

That reference was connected to carbon policy.

Specifically, that Alberta must demonstrate real leadership on the environment and climate changeandforge a much stronger partnership with other provinces and with the federal government in order to build a Canadian energy strategy that ensures market access.

That nod to market access is a relief to an industry that was recently spooked by the naming of an anti-pipeline lobbyist to the position of chief of staff to Energy Minister MargMcCuaig-Boyd.

"This was one of the first public statements [in favour of market access]," said McMillan. "And we thought it was quite important to acknowledge the importanceto our economy to have it in the throne speech."

As for climate policy, the energy industry itself has been beating the drumfora carbon tax.

"Ithink Alberta has a history of leadership on this file," said McMillan. 'While we were the first, I think other provincesnow have moved on this file.... For us, we want to ensure we can be competitive."