Political stability lowers the cost of big projects. When investors can count on governments keeping their promises, they are more willing to invest and require a lower rate of return.
Where would this province be without the Lougheed government’s commitment to building the CTrain and Edmonton light rail lines? Both projects were huge economic boons for the province of Alberta, created thousands of jobs, and built much-needed transit infrastructure for our ever-expanding major cities.
Over the past year we have witnessed the consequences of what happens when you do business with an unstable government. First, it was the renewables ban. As one of the sunniest and windiest provinces in the country, the potential for a booming renewables industry is limitless and represents billions of dollars in investment.
When the provincial government suddenly decided in August last year that they would ban new renewable energy projects, we witnessed those billions of dollars in potential investment suddenly evaporate. The government signaled to investors that Alberta was closed for business and shuttered a new revenue stream.
Now, the Green Line. The project was finally ready to put shovels into the ground after years of delays, but at the last minute the province reneged on their commitment.
This revocation of funds was devastating not only for us as citizens, but for the wider construction industry. It sent a message that the government of Alberta is not a reliable business partner. The province’s flip-flop will now make future large-scale projects more expensive because of a political risk premium.
As your MLA, I am committed to creating a business-friendly environment, where both the private and public sector can come together to build infrastructure that benefits the people of Alberta.
Please feel free to write my office at [email protected].
Samir
MLA – Calgary Elbow Samir Kayande proudly serves the following Communities: Altadore, Bel-Aire , Britannia, Elbow Park, Elboya, Erlton, Garrison Green, Garrison Woods, Glamorgan, Lincoln Park, Lower Mount Royal, Marda Loop, Mayfair, Meadowlark Park, Mount Royal, North Glenmore Park, Parkhill, Rideau Park, River Park, Roxboro, South Calgary, Upper Mount Royal, Windsor Park
