24 July 2008

Sound advice, thus far ignored

Non-renewable resource revenue should be invested, at least in part, according to several economists and economic experts.

"You don't want extraction commodities to be the sole provider of prosperity," says Brett Gartner, an economist with the Canada West Foundation. "The risk is that when things are going well, the whole push to innovate and to diversify the economy gets forgotten, crowded out by all the money being made off resources."

The provincial government has thus far expressly refused to consider even a small investment fund of the type common in other places where non-renewable resources are a major or the major source of economic activity. 

In Norway and Alberta, a portion of government resource revenues is invested, thereby generating additional revenue for the future.



Create wealth fund: OECD

Investing non-renewable revenues