Parnell – Treadwell campaign Newsletter

Posted: October 12th, 2010 | Author: KSDP Public Affairs | Filed under: 2010

Sean Parnell and Mead Treadwell will lead with action, not words and have said again and again that job number one is keeping the oil pipeline flowing and that we must fix our tax structure to keep Alaska competitive. Ethan Berkowitz has proposed a massively destabilizing system to collect revenue instead.
Parnell and Treadwell believe that renegotiating royalties lease by lease would be a hugely destabilizing force on Alaska’s economy and that's why we need your support today to send the right team for Governor and Lt. Governor to our state capitol.

`Ethan Berkowitz's All-Royalty Plan leaves Alaskans scratching their heads -- here's what they're saying:`

Bob Poe Sarcastically Blasted The Plan. “Bob Poe, who dropped out of the Democratic primary for governor last month and is watching from the sidelines, said last week he doesn't think the Berkowitz proposal is practical. ‘Somehow we're going to have this super bureaucrat who is immune from all the political push and pull that goes on in the world and they're going to be able to negotiate these really sensible royalty deals for each field. And to do this you have to take all our past tax policy and just throw it out the window,’ Poe said.” (Sean Cockerham, “Oil Taxation Splits Democrats Running For Alaska Governor,” Anchorage Daily News, 7/13/10)

Analyst Is “Troubled” By Ethan’s Plan And Believes It Will Deliver Instability. Fineberg said he's troubled by Berkowitz's plan saying that such a radical change in Alaska's tax system would create instability that is not good for the state or the industry. 'I believe it would be a huge signal to the industry that either we're your pawn, are going to roll over and play dead, or we are delivering the instability that you fear,' he said.” (Sean Cockerham, “Oil Taxation Splits Democrats Running For Alaska Governor,” Anchorage Daily News, 7/13/10)

Berkowitz’s Plan Was Met With “Stunned Silence” By “Scads Of Democrats Across The State.” “Last week in the Anchorage Daily News, we learned about Ethan Berkowitz’s new plan to do away with ACES. It’s OK if you’re still sitting in stunned silence. We were too. And so were scads of Democrats across the state.” (“Politics v. Policy: ‘The Wrong Side Wins With Berkowitz’s Visionary Plan,” The Mudflats, 7/19/10)

Even The Reliably Berkowitz-Friendly ADN Is Skeptical

ADN Editorial On Berkowitz’s All-Royalty Plan: “Right Now It Looks, At Best, A Work In Progress – And At Worst, An Exercise In Making It Up As You Go Along.” “For Ethan Berkowitz: Can you explain your all-royalty plan for securing the state's fair share of oil production revenue? Can you explain it in terms we can all understand? Right now it looks like, at best, a work in progress -- and at worst, an exercise in making it up as you go along.” (Editorial, “Our View: Governor's Race,” Anchorage Daily News, 8/27/10)

According To An Economist At UAA, The Berkowitz Plan Gives The Producer “Inherent Advantages In The Negotiations” With The Commission. “Matt Berman, an oil economist at the University of Alaska Anchorage's Institute of Social and Economic Research, said there are problems with switching to the kind of plan Berkowitz proposes, with field-by-field negotiations. ‘The basic problem with negotiating royalty rates is that the (oil company) knows more about the economics of the field than the government ...This difference in information gives the producer an inherent advantages in the negotiations,’ Berman said.” (Sean Cockerham, “Oil Taxation Splits Democrats Running For Alaska Governor <http://a%20href=>,” Anchorage Daily News, 7/13/10)

Of Course, Ethan Was Light On Details For His Plan

In July, Berkowitz “Waved Off A Discussion Of Details” On His Plan Saying, “The Focus Should Be On Principles, Not Particulars.” “For his part, Berkowitz says he was just trying to start a discussion on how to do things differently -- and maybe better -- when it comes to getting Alaska on better financial footing. In an interview earlier this week, Berkowitz waved off a discussion of details of a field-by-field royalty plan. ‘The principle is what's important,’ he said. ‘The focus should be on principles, not particulars.’” (Patti Epler, “Berkowitz Going Rogue On ACES<http://alaskadispatch.com/blogs/political-animal/6101-berkowitz-going-rogue-on-aces>,” The Alaska Dispatch, 7/21/10)