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In October, the province announced three-year property tax exemptions for energy companies drilling new oil wells or building new pipelines in an attempt to boost the energy sector and rescue some companies from bankruptcy. The government estimates its plan will save the industry between $81 and $84 million.
Kenney said the tax exemptions developed by new Municipal Affairs Minister Tracy Allard were a “reasonable solution” that would ensure municipalities can get tax revenue in the future.
“It’s not perfect. These are incredibly complex issues, but we all have to play our part to ensure jobs in rural Alberta — and that is our goal,” he said.
McLaughlin said the tax holiday was a compromise and a short-term solution, and credited Allard with resetting the RMA’s relationship with the province.
“That message saying we’re all going to carry this together, I think that’s been appreciated and recognized,” said McLaughlin.
He added industry lobbyists may have held more sway during consultations, but the province has since recognized local knowledge, and the RMA wants to cultivate a better understanding of that knowledge with the province and federal government.
During his speech, Kenney touted steps his government has taken to help rural communities, saying that a provincewide $10 billion investment in infrastructure projects is “disproportionately” being spent in those municipalities.
NDP Opposition Leader Rachel Notley accused Kenney’s government of going from taking rural Alberta for granted to targeting rural communities by antagonizing doctors, increasing policing costs, and introducing the possibility of toll roads.
