EDMONTON – The latest provincial budget is proof Alberta relies heavily on volatile resource revenues. One way the government is trying to combat that is through what’s called the Alberta Enterprise Corporation. But is it actually benefiting Albertans, or those in other provinces?
At Wednesday’s Public Accounts Committee meeting, Alberta Enterprise Corporation and its chairman, Paul Haggis, were put in the hot seat by MLAs of all party stripes, who questioned where the AEC’s money is going.
Funded by the province, the AEC was created in 2009. Since then, it’s committed $90 million to eight venture capital funds, which, in turn, invest in companies. All but two of the eight funds are headquartered outside of the province.
“That’s not what the fund was for. This money is for Alberta entrepreneurs – not for entrepreneurs outside the province to set up an office here and be able to access millions of dollars of taxpayer money,” argues Wildrose MLA Rob Anderson.
Haggis insists that isn’t the case. He says funds do tend to invest in Alberta because of how they’re selected.
The AEC looks specifically for ones that invest in agriculture and clean-tech industries, which, he says Alberta is at the forefront of. And if a fund gets AEC money, Haggis explains it also has to set up an office in Alberta. Eight offices have been set up.
“So is there a minimum requirement of how many staff have to be at this office,” asked NDP MLA Deron Bilous, “or is it just a matter of opening the doors, throwing up a sign and suddenly they’re entitled a third of their investment dollars being put up by the Alberta taxpayer?”
“It’s not just a nameplate on the door,” maintained Haggis. “The individual has to be an investment officer that is on a partnership level with the general partnership.”
In the end, there were more questions, but time ran out. Haggis agreed to make the AEC’s investments more transparent on its website.
With files from Vassy Kapelos, Global News
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