Alleged Stelmach quote contradicts royalty recommendation

Alberta Premier Ed Stelmach came under fire Friday over remarks he reportedly made behind closed doors that contradict a government-appointed panel on energy royalties.

Stelmach was quoted as telling business leaders he "will not trounce existing agreements" on royalties, which is the opposite of the panel's call to raise royalty raises.

"It was our recommendation that there would be no grandfathering," Bill Hunter, head of the panel thatcalled fora $2-billion increase in annual royalties, said Friday.

Stelmach was not available to clarify his remarks, but two of his staff, including one who was in the room when he spoke, said they wouldn't dispute the quote.

"It sounds like something he might have said," said David Heyman with the premier's communications staff in Calgary. "I didn't have a tape recorder and I wasn't taking any notes."

The premier was speaking to about 50 business executives at a breakfast event in Calgary on Thursday. His alleged remarks were reportedly passed on to a reporter by someone who attended the speech.

"I'm not disavowing the quote," said Tom Olsen, Stelmach's communications director. "What I am saying is that no decisions have been made and the premier is committed to meeting the objectives of the Hunter report."

'I think this premier is about as transparent as a slab of granite.' —Brian Mason, Alberta NDP leader

NDP Leader Brian Mason warned that if Stelmach grandfathers existing royalty agreements, he'd be turning his back on billions of dollars in energy revenues that "the people of Alberta are owed.

"It really sounds to me like he's already made up his mind that the oil companies are going to win here," Mason said Friday.

The NDP leader also chastised Stelmach for sharing his views with business leaders while refusing to provide the same information to other Albertans.

"I think this premier is about as transparent as a slab of granite," said Mason.

"A government that is so heavily dependent on corporate donations, particularly from big oil, is not going to be able to be transparent with the people of Alberta about its dealings. It's just too incestuous a relationship."

The energy industry has been making daily announcements that thousands of jobs and billions of dollars worth of investments will be lost to Alberta if the proposed royalty increases are adopted.