Premier Christy Clark announced in Tuesday's throne speech plans to tap the liquefied natural gas industry to create a B.C. version of Alberta's Heritage Fund.
Just as Alberta built up its rainy fund on oil and gas windfalls, Clark announced plans to create a new fund – the British Columbia Prosperity Fund – based on taxes and royalties collected on the upstream natural gas industry and on LNG exports.
Unlike Alberta's Heritage Fund, however, which was originally established as a rainy day fund, and only later tapped for general operations, Clark plans to use the Prosperity Fund to reduce the provincial debt and fund government programs.
"We have a transformative opportunity for our province with natural gas and we are moving forward without delay with a strong plan," Clark said in Tuesday's throne speech.
"By developing this opportunity safely and in partnership with First Nations, B.C. can create tens of thousands of jobs for families throughout the province and generate $1 trillion in economic activity over the next 30 years."
The Clark government estimates it could generate between $130 billion and $260 billion in revenue for the provincial government over 30 years.
Those calculations may be overly optimistic, however. They are based on five LNG plants being built in B.C. – two large-scale plants and three smaller ones. The provincial government estimates the five plants would generate $1 trillion.
In November 2012, noted energy economist Peter Tertzakian wrote that it is unlikely that B.C. will see more than two LNG plants built.
Clark is scheduled to give her first post-budget – and post-throne speech – address to the Vancouver Board of Trade February 20.
http://www.boardoftrade.com/events/overview/1088267875.aspx
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