SANDRA M STANWAY
Brooks Bulletin
The Rural Municipalities Association (RMA) is putting on the gloves to fight back against powerful oil and gas lobbyists who want a reduction in municipal taxes.
“It’s time for a balanced approach to oil and gas policies – one that doesn’t leave municipalities struggling,” said Paul McLauchlin, outgoing president of RMA.
The fight is through the campaign Below the Drill.
The campaign is not anti-oil and gas but it is opposing the “special nod” to the oil and gas industry.
“We do believe that this government is listening to this narrative and we’re striking back because enough is enough,” said McLauchlin.
He said the lobby group, which has been gaining momentum, has been telling government that the industry can’t operate because municipal taxes are the largest fixed cost of running a company and they’re too high.
“(It) is categorically incorrect. Its about nine or 10 on the list of fixed costs,” he said.
Between 2021 and 2023 the industry had a three year tax holiday during which time rural municipalities lost about $332 million in municipal taxes and there is the continued issue of non-payment of taxes.
The industry will no longer pay a well drilling equipment tax and they will benefit from a permanent 35 per cent reduction on assessment.
“This was done to placate parts of the industry,” McLauchlin told The Bulletin.
The cuts, reductions and unpaid taxes have forced the rural taxpayer to pay more.
“Reductions in municipal revenue are a growing concern for RMA, as rural municipalities have limited ways to generate income and declining provincial grants,” the RMA reported.
“We’re getting to a point as it stands right now, that there’s not much more to give and the stark reality is that if you continue to listen to this one lobby group and champion their causes on the backs of municipal taxation, you’re going to start to impair, and I think in many cases, they already have impaired municipalities,” McLauchlin said.
“It’s been harder and harder for us to actually meet our goals.”
The association reports that policies such as the removal of taxes cut into municipal budgets and impact roads, essential services and the future of communities while they have been forced to do more with less.
There has also been provincial grant reductions but an annual increase in policing and sharing funds through intermunicipal collaboration agreements.
Although the industry is painted with a wide brush, McLauchlin admits while there are bad operators, the majority of the industry wants to pay their bills and they’re cleaning up their mess.
“For some reason this small microcosm of the industry has allowed its voice and is the one that is quite honestly attacking rural municipalities honestly as gouging for taxation which is a ridiculous notion.
“All that money goes to transportation and goes to the bridges and roads and ultimately we’ve been great partners in oil and gas and will continue to be so,” he said.
McLauchlin said rural MLAs must be called upon to start to champion issues tied to rural Albertans.
The RMA convention will take place next month and McLauchlin said Below the Drill will be the centre of much of it.
“My members are really, really concerned about moves from this government related to their own gas industry.
“They’re concerned about unpaid taxes continually. We’ve had two companies go bankrupt in the last eight weeks and they owe $60 million to my members.”
