Alberta
Ministerial Mandate Letters highlight upcoming showdowns between Alberta and Ottawa
Contributed by Free Alberta Strategy
After every election in Alberta, once the new government is formed and Cabinet has been selected, the Premier provides documents called mandate letters to each of their new Cabinet Ministers. These mandate letters outline the government’s priorities and policy objectives, as well as the Premier’s expectations, for each Minister’s performance in their respective roles. It is also common for these mandate letters to be released publicly, giving us as the public an early look at where the government is likely headed in the coming months and years. Over the last few days, the first of these mandate letters have been released, so we wanted to bring you a few of the highlights.
The constant theme throughout the letters is a very clear message to the federal government that Alberta will be flexing its muscles on the national stage in the coming four years. In particular, the two highest-profile Ministries – namely Finance and Energy – got mandate letters that put the federal government right in their crosshairs.
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Drumheller-Stettler MLA Nate Horner is in Cabinet as Finance Minister and has been tasked with looking at the establishment of an Alberta Revenue Agency and an Alberta Pension Plan.
These are both fundamental concepts of the Free Alberta Strategy, and both are strongly opposed by the New Democrats led by Rachel Notley.
The concept of an Alberta Revenue Agency isn’t as scary as most of the opposition is making it out to be.
Quebec already has a Quebec Revenue Agency that collects all provincial tax.
Saskatchewan just passed the Saskatchewan Revenue Agency Act, which gives them the ability to defend Saskatchewan’s economic autonomy, industries and jobs from federal intrusion and constitutional overreach.
Also, Alberta already collects provincial corporate tax through the Tax and Revenue Administration department.
So, in some ways, the Alberta Revenue Agency already exists – we just need to expand its mandate to include other types of taxes other than corporate tax.
This move would also provide greater flexibility for the province when it comes to provincial tax collection policy.
As a bonus, once this is done, we will then be able to join Quebec in lobbying the federal government for the ability of provinces to collect federal taxes.
This is something that Quebec has been pushing for for quite some time, and while they haven’t made any progress in convincing the current federal Liberal Party, several recent Conservative Party leaders have expressed support for the idea.
With regards to an Alberta Pension Plan, there is an actuarial report due to be released sometime soon that has studied this issue.
“It’s something that’s been outlined as a potential opportunity and something that we need to really flesh out and get into the numbers and make sure that Albertans understand,” said Horner.
We’ve pointed out here a few times that Albertans contribute more into the Canada Pension Plan than we take out in benefits.
In essence, Ottawa is using the CPP as just one more way to subsidize the rest of Canada with our money.
We anticipate the report – when it is released – will point out that due to our young demographics and provincial income levels, an Alberta Pension Plan will give us the ability to decrease contributions while maintaining the same benefits to our seniors, keep contribution levels the same while increasing benefits to our seniors, or some combination of the two.
Alberta’s exit from the Canada Pension Plan would also leave a huge hole in the national fund – one that would require premiums to dramatically increase in the rest of the country to make up for the subsidy they’ll no longer be getting from Albertans.
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Fort McMurray-Lac La Biche MLA Brian Jean steps into the crucial role of Energy and Minerals, a very fitting role given the riding he represents is the very heartland of the energy industry.
Jean will face off against a federal government that has been violating provincial natural resource jurisdiction ever since its election, and he will be expected to stand up to the politicians in Ottawa who are seeking to systematically decimate our natural resource industry.
Specifically, Jean is tasked with “defending Alberta’s energy interests against federal overreach and developing strategic alliances with other provinces to deal with energy-related issues.”
Recently, Federal Environment Minister Steven Guilbeault has gone so far as to state his belief that oil and gas production is likely to be reduced by 75% by 2050.
And given Justin Trudeau’s plans for a Just Transition / Sustainable Jobs Act, a net-zero electricity grid by 2035, an emissions / production cap on oil and gas at the end of this year, and more, we should believe him when he says he intends to try.
Considering the impact the aggressive climate ambitions of the federal government are anticipated to have on the national economy, prioritizing the defence of the industry on a jurisdictional basis is absolutely essential to ensure the future of Alberta.
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Horner, Jean, and the rest of Cabinet are about to become willing participants in the biggest fight of their political lives.
They will be expected to stand up for Alberta against the next wave of federal attacks and wrest control of our future back from Ottawa.
Here at the Free Alberta Strategy, we will be pushing the government to stay resolute in the face of these attacks, and to implement our ideas and proposals.
We’ve seen once before that a government in Alberta can be elected on a strong mandate to stand up to the federal government but back off when left-wing activists and media pressure them to stop.
That’s why we need to keep the pressure on to keep going, and make sure this government follows through.
To help us keep the pressure on, please consider making a donation to the Free Alberta Strategy:
We need your support to continue our research, policy analysis, grassroots organizing, and communications efforts.
Thanks for your support!
Regards,
The Free Alberta Strategy Team
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DONATE has two key objectives:
- Establishing complete Provincial Legislative Sovereignty within Canada
- Ending Equalization and Net Federal Transfers out of Alberta
The Strategy accomplishes these two objectives through a series of legislative and other policies that must be implemented by Alberta’s Provincial Government
From the Fraser Institute
By Tegan Hill
According to the recent mid-year update tabled Thursday, the Smith government projects a $4.6 billion surplus in 2024/25, up from the $2.9 billion surplus projected just a few months ago. Despite the good news, Premier Smith must reduce spending to avoid budget deficits.
The fiscal update projects resource revenue of $20.3 billion in 2024/25. Today’s relatively high—but very volatile—resource revenue (including oil and gas royalties) is helping finance today’s spending and maintain a balanced budget. But it will not last forever.
For perspective, in just the last decade the Alberta government’s annual resource revenue has been as low as $2.8 billion (2015/16) and as high as $25.2 billion (2022/23).
And while the resource revenue rollercoaster is currently in Alberta’s favor, Finance Minister Nate Horner acknowledges that “risks are on the rise” as oil prices have dropped considerably and forecasters are projecting downward pressure on prices—all of which impacts resource revenue.
In fact, the government’s own estimates show a $1 change in oil prices results in an estimated $630 million revenue swing. So while the Smith government plans to maintain a surplus in 2024/25, a small change in oil prices could quickly plunge Alberta back into deficit. Premier Smith has warned that her government may fall into a budget deficit this fiscal year.
This should come as no surprise. Alberta’s been on the resource revenue rollercoaster for decades. Successive governments have increased spending during the good times of high resource revenue, but failed to rein in spending when resource revenues fell.
Previous research has shown that, in Alberta, a $1 increase in resource revenue is associated with an estimated 56-cent increase in program spending the following fiscal year (on a per-person, inflation-adjusted basis). However, a decline in resource revenue is not similarly associated with a reduction in program spending. This pattern has led to historically high levels of government spending—and budget deficits—even in more recent years.
Consider this: If this fiscal year the Smith government received an average level of resource revenue (based on levels over the last 10 years), it would receive approximately $13,000 per Albertan. Yet the government plans to spend nearly $15,000 per Albertan this fiscal year (after adjusting for inflation). That’s a huge gap of roughly $2,000—and it means the government is continuing to take big risks with the provincial budget.
Of course, if the government falls back into deficit there are implications for everyday Albertans.
When the government runs a deficit, it accumulates debt, which Albertans must pay to service. In 2024/25, the government’s debt interest payments will cost each Albertan nearly $650. That’s largely because, despite running surpluses over the last few years, Albertans are still paying for debt accumulated during the most recent string of deficits from 2008/09 to 2020/21 (excluding 2014/15), which only ended when the government enjoyed an unexpected windfall in resource revenue in 2021/22.
According to Thursday’s mid-year fiscal update, Alberta’s finances continue to be at risk. To avoid deficits, the Smith government should meaningfully reduce spending so that it’s aligned with more reliable, stable levels of revenue.
Author:
Better, faster, more affordable auto insurance
Alberta’s government is introducing a new auto insurance system that will provide better and faster services to Albertans while reducing auto insurance premiums.
After hearing from more than 16,000 Albertans through an online survey about their priorities for auto insurance policies, Alberta’s government is introducing a new privately delivered, care-focused auto insurance system.
Right now, insurance in the province is not affordable or care focused. Despite high premiums, Albertans injured in collisions do not get the timely medical care and income support they need in a system that is complex to navigate. When fully implemented, Alberta’s new auto insurance system will deliver better and faster care for those involved in collisions, and Albertans will see cost savings up to $400 per year.
“Albertans have been clear they need an auto insurance system that provides better, faster care and is more affordable. When it’s implemented, our new privately delivered, care-centred insurance system will put the focus on Albertans’ recovery, providing more effective support and will deliver lower rates.”
“High auto insurance rates put strain on Albertans. By shifting to a system that offers improved benefits and support, we are providing better and faster care to Albertans, with lower costs.”
Albertans who suffer injuries due to a collision currently wait months for a simple claim to be resolved and can wait years for claims related to more serious and life-changing injuries to addressed. Additionally, the medical and financial benefits they receive often expire before they’re fully recovered.
Under the new system, Albertans who suffer catastrophic injuries will receive treatment and care for the rest of their lives. Those who sustain serious injuries will receive treatment until they are fully recovered. These changes mirror and build upon the Saskatchewan insurance model, where at-fault drivers can be sued for pain and suffering damages if they are convicted of a criminal offence, such as impaired driving or dangerous driving, or conviction of certain offenses under the Traffic Safety Act.
Work on this new auto insurance system will require legislation in the spring of 2025. In order to reconfigure auto insurance policies for 3.4 million Albertans, auto insurance companies need time to create and implement the new system. Alberta’s government expects the new system to be fully implemented by January 2027.
In the interim, starting in January 2025, the good driver rate cap will be adjusted to a 7.5% increase due to high legal costs, increasing vehicle damage repair costs and natural disaster costs. This protects good drivers from significant rate increases while ensuring that auto insurance providers remain financially viable in Alberta.
Albertans have been clear that they still want premiums to be based on risk. Bad drivers will continue to pay higher premiums than good drivers.
By providing significantly enhanced medical, rehabilitation and income support benefits, this system supports Albertans injured in collisions while reducing the impact of litigation costs on the amount that Albertans pay for their insurance.
“Keeping more money in Albertans’ pockets is one of the best ways to address the rising cost of living. This shift to a care-first automobile insurance system will do just that by helping lower premiums for people across the province.”
Quick facts
- Alberta’s government commissioned two auto insurance reports, which showed that legal fees and litigation costs tied to the province’s current system significantly increase premiums.
- A 2023 report by MNP shows
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