Candidates oppose a gas reserves tax
Three gubernatorial hopefuls would vote down ballot measure
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Independent Andrew Halcro, Democrat Tony Knowles and Republican Sarah Palin each said Friday they would vote down a ballot measure proposed for the tax.
The reserves tax initiative, which is on the Nov. 7 ballot, was one of a series of issues the candidates discussed at a two-hour forum sponsored by the public-policy advocacy group Commonwealth North.
The candidates answered more than a dozen questions on a wide range of topics, including a gas pipeline, the controversial Pebble mine prospect and the rising cost of health care. About 135 people attended the luncheon at the Anchorage Hilton.
To the question of how they'd vote on the reserves-tax ballot question, each candidate answered unequivocally no.
"It's a short-sighted public policy, and it's a bad business decision," said Halcro.
Instead of prompting the producers to build a multibillion-dollar gas pipeline to avoid the tax, the producers would challenge it in court, delaying a pipeline, Halcro said.
"It's taxing income before it's earned. Fundamentally, I have a problem with that," said Palin, explaining why she'd vote against the tax.
"We should be negotiating for development, not litigating," she said.
Knowles agreed that the reserves tax would likely lock the state into a legal battle with the producers.
"There is no reason for us to put an additional barrier to the market incentives for people who are willing to invest in Alaska or to tie it up in litigation," Knowles said.
"The people who sponsored it can't even figure out among themselves exactly what it means," he said, referring to the eight-page ballot initiative.
The initiative would tax large, undeveloped gas reserves every year until a pipeline was built. Its sponsors say the intent is to compel the companies to build a pipeline
They could recover some of their tax payments if a pipeline started running, but the amount would depend on when a line was built and on natural gas prices.
Rep. Eric Croft of Anchorage, an initiative co-sponsor, said he and his fellow sponsors clearly understand it.
"It says there's finally going to be a price for delay and they'll get the money back when they start building the (gas) line," said Croft, who lost the Democratic primary to Knowles last month.
He said he wasn't surprised to learn that the gubernatorial candidates opposed the tax, blaming oil- industry influence for the lack of support among public officials and candidates. He's not discouraged, though, noting that more than 47,000 Alaskans signed the petition to get the measure on the ballot.
Here are some of the other topics the candidates addressed at the Commonwealth North event.
GAS PIPELINE
Knowles and Palin said they'd consider other pipeline proposals besides the one Gov. Frank Murkowski negotiated with BP, Conoco Phillips and Exxon Mobil. Knowles said Friday that he'd consider only proposals to build a pipeline down the Alaska Highway through Canada, with a spur line into Southcentral Alaska, and he promised to have a signed contract on state tax and other terms no later than Aug. 1.
Palin, who has said she'd also consider a pipeline to Valdez, said she expects to have competing offers ready to consider within months of taking office.
Halcro set himself apart from his opponents, saying that politics had clouded the gas pipeline issue and the best way to carry on would be to fix the deal Murkowski negotiated.
HEALTH CARE
Halcro, who describes himself as a budgetary conservative, said health care is one area where the state should increase spending, citing a growing number of Alaskans without health insurance who ultimately pass on the cost of their health care to those who are insured.
He said the state should expand programs such as Denali KidCare or even consider creating a state insurance pool that Alaskans could buy into if they didn't have insurance.
Knowles also called for expanding Denali KidCare as well as an insurance pool and a series of other state initiatives, including a program to reduce prescription drug costs and increase health-care-worker training.
Palin laid out a health care plan that includes encouraging Alaskans to lead more healthy lifestyles, creating a more competitive environment for health care providers in the state and encouraging more in-home care for the elderly and infirm.
PEBBLE MINE PROSPECT
The huge Pebble gold and copper mine prospect near Lake Iliamna lies in the headwaters of some rivers that feed Bristol Bay, host to the world's largest sockeye-salmon fishery.
Palin, whose family commercial-fishes in Bristol Bay, said she wouldn't support a project that risked harming the fishery, although she didn't say whether she'd support or oppose the Pebble prospect, which is still in early planning.
Knowles said he opposes developing Pebble.
"It threatens the world's most productive run of wild salmon," he said.
Halcro said that the idea of a massive open-pit mine in an environmentally sensitive area also concerns him but that it's really too soon for the project to be much of a campaign issue.
"Let's be honest. You've got a bunch of people out there poking holes in the ground and permits aren't supposed to be filed for another two years," Halcro said. "Really what we are talking about is speculation."
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Information from: Anchorage Daily News, http://www.adn.com
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