David Swann On Petrochemical Diversification Plan

Albert Liberal Leader Swann pleased with NDP petrochemical diversification plan:

Alberta Liberal Leader David Swann is pleased with the government’s plan to offer royalty credits to companies willing to build petrochemical facilities in Alberta.

“At first glance, this looks to be a good idea for creating jobs and stimulating investment,” Swann said. “The full details have yet to be released, so my opinion could change, but I’m optimistic.”

“There are several planned projects which could benefit from this new program,” Swann continued. “One example is Williams Energy’s proposal for a polypropylene plant. All in all, it appears to be a win-win for diversification and jobs.”

Producers’ costs have gone up recently with the increase in corporate tax rates and the doubling of the carbon levy on large emitters by 2017. A royalty credit, which a petrochemical facility can sell or trade to a producer, could be used to reduce the producer’s royalty payments to government and incentivize them to provide raw materials to the petrochemical facility.