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Alberta

Danielle Smith slams Trudeau’s carbon tax exemption for Atlantic Canada and not rest of country

Published

1 year ago

7 minute read

From LifeSiteNews

By Anthony Murdoch

‘As a Canadian, do you feel it is fair to continue paying the carbon tax on home heating when some places are now exempt?’ the Alberta premier asked.

Alberta Premier Danielle Smith chided Prime Minister Justin Trudeau as being unfair in not applying “tax fairness” for Albertans and all Canadians after Trudeau announced a pause on the carbon tax for home heating oil but only for Atlantic Canada.

“If you’re going to have a federal government asserting that they have to have this power so that everybody is treated equally, then they don’t treat everyone equally. It seems to me that that’s something that should go back to the court and ask them whether or not they want to reconsider whether this is an appropriate use of the federal powers,” Smith said recently at a press conference.

“I would rather the federal government accept that if this is a painful tax coming into winter for Atlantic Canadians, it’s a painful tax going into the winter for everyone and just make sure that he does the right thing and takes the tax off for all types of home heating and every province,” Smith said.

 

Smith has been fighting a prolonged battle with the Liberal federal government of Trudeau, who has gone on the attack against Alberta’s oil and gas industry through the implementation of ideologically charged laws, including the punitive carbon tax.

Trudeau, however, has given breaks to some parts of the country on the carbon tax for home heating fuels but not others.

He recently announced that he was pausing the collection of the carbon tax on home heating oil in for three years, but only for Atlantic Canadian provinces. The current cost of the carbon tax on home heating fuel is 17 cents per litre. Most Canadians, however, heat their homes with clean-burning natural gas, a fuel that will not be exempted from the carbon tax.

Trudeau’s announcement came amid dismal polling numbers showing his government will be defeated in a landslide by the Conservative Party come the next election.

Recent political challenges against the carbon tax have failed. Recently, a CPC motion calling for the carbon tax to be paused for all Canadians failed to pass after the Liberal and Bloc Quebecois MPs voted against it. This motion interestingly had support from the New Democratic Party (NDP) but that was not enough to get it passed.

Canadian premiers come together to demand carbon tax pause for all provinces

Trudeau’s latest offering of a three-year pause on the carbon tax in Atlantic Canada has caused a major rift with oil and gas-rich western provinces, notably Alberta and Saskatchewan, and even Manitoba, which has a new NDP government.

This prompted all premiers of Canada to come together to call on the Trudeau government to extend the carbon tax fuel pause to all Canadians.

“All this is doing is causing unfairness, making life less affordable, and really harming the most vulnerable as we get into the winter season,” Smith said today about most provinces being left out of the carbon tax pause.

Going one step further, on November 10, Five Canadian premiers from coast to coast banded together to demand Trudeau drop the carbon tax for home heating for all Canadian provinces, saying his policy of giving one region a tax break over another have caused “divisions” in Canada.

After Trudeau announced a special tax break for Atlantic Canada, Saskatchewan Premier Scott Moe said his province will stop collecting a federal carbon tax on natural gas used to heat homes on January 1, 2024, unless it gets a similar tax break as the Atlantic Canadian provinces.

Alberta has repeatedly promised to place the interests of their people above the Trudeau government’s “unconstitutional” demands while consistently reminding the federal government that their infrastructures and economies depend upon oil, gas, and coal.

As for Smith has fought back, and recently tore a page off a heckler’s fantasy suggestion of a solar and wind battery-powered future after she stepped into the lion’s den to advocate for oil and gas at a conference hosted by a pro-climate change think tank.

Smith has said she will be looking into whether a Supreme Court challenge on the carbon tax is in order. She noted, however, that as Alberta has a deregulated energy industry, unlike Saskatchewan, she is not able to stop collecting the federal carbon tax.

The Trudeau government’s current environmental goals – in lockstep with the United Nations’ “2030 Agenda for Sustainable Development” – include phasing out coal-fired power plants, reducing fertilizer usage, and curbing natural gas use over the coming decades.

The reduction and eventual elimination of the use of so-called “fossil fuels” and a transition to unreliable “green” energy has also been pushed by the World Economic Forum (WEF) – the globalist group behind the socialist “Great Reset” agenda – an organization in which Trudeau and some of his cabinet are involved.

The Trudeau government has also defied a recent Supreme Court ruling and will push ahead with its net-zero emission regulations.

Canada’s Supreme Court recently ruled that the federal government’s “no more pipelines” legislation is mostly unconstitutional after a long legal battle with the province of Alberta, where the Conservative government opposes the radical climate change agenda.

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Alberta

Alberta’s fiscal update projects budget surplus, but fiscal fortunes could quickly turn

Published on November 21, 2024

By

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:

Tegan Hill
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Alberta

Premier Smith says Auto Insurance reforms may still result in a publicly owned system

Published on November 21, 2024

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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.”

Danielle Smith, Premier

“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.”

Nate Horner, President of Treasury Board and Minister of Finance

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.”

Nathan Neudorf, Minister of Affordability and Utilities

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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