Redford warns ‘bitumen bubble’ to cost Alberta $6 billion in royalties – Video

EDMONTON — A dramatic drop in the price Alberta oilsands companies receive for their product will strip about $6 billion in resource royalties from the coming 2013-14 budget, Premier Alison Redford revealed Thursday in a televised state of the province address.

“This bitumen bubble means the Alberta government will collect about $6 billion less in revenue this year alone,” Redford said in a taped eight-minute video clip shot in her Calgary home last Friday. “To put that into context, that’s the equivalent to all our government’s spending on education each year. So as we prepare for this year’s budget, it means we have to make some very difficult choices.”

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