Alberta
Alberta’s Covid-19 Report clearly shows the way
From the Frontier Centre for Public Policy
By Lee Harding
The Manning Commission showed that Alberta actually had a very bad process for making critical decisions. Specifically, a court case showed that the PHO checked in with cabinet decisions, but the cabinet denied that the decisions were up to them. This was not even legal
Alberta’s Public Health Emergencies Governance Review Panel has made 90 sound recommendations which that, frankly, all provinces should enact.
The panel chaired by Preston Manning examined whether the province needed better structures and legislation to handle public emergencies. Of course, Alberta needed stronger legislation to handle the COVID_19 pandemic.
The report’s strongest conclusion is that the premier, cabinet, and key ministers “have the ultimate authority and responsibility…[t]o make decisions on the emergency response measures adopted, accounting for key values, priorities and tradeoffs.”
The previous provincial Emergency Management Act left decisions with the provincial health officer (PHO). The Manning Commission showed that Alberta actually had a very bad process for making critical decisions. Specifically, a court case showed that the PHO checked in with cabinet decisions, but the cabinet denied that the decisions were up to them. This was not even legal, as the law said the PHO had final authority in emergency situations
Some critics warned that putting emergency management decisions in the hands of elected officials could leave them swayed by politics. This is a very weak argument because the same could be legitimately said for everything an elected government does.
The government responses to the pandemic led to an eight per cent contraction in the Alberta economy. This $24 billion burden had its own economic and health consequences. Unfortunately, a myopic focus on the virus by the health bureaucrats disregarded the serious toll that isolation, addiction, and suicide had on citizens.
An unfortunate dogma emerged during the COVID-19 pandemic, that social distancing, lockdowns, and rushed vaccines all deserved to be fully supported, while, at the same time, certain inexpensive generic drugs should not be used. At this time, a considerable amount of research shows that there is a defensible contrary perspective, which is a point that the Alberta report’s sharpest critics don’t seem to acknowledge.
In fact, the report wisely advises “‘[t]hat a clear and conscious decision be made by elected officials as to the scope of the scientific advice to be sought and that this decision not be left entirely to the subject-matter agency or department, given that it may have a narrower perspective than that actually required.”
To this end, “whatever scientific advisory committees, advisors and contractors are assembled to support the response be broadly based, multidisciplinary in nature, and appropriately balanced from both inside and outside government.”
The recommendation to consult widely and not to become “stuck” in political paradigms that may not work seems irrefutably sensible. Unfortunately, an openness to “alternative perspectives” has been unduly bashed.
The report emphasized that the education of school children must continue despite an emergency. Most countries avoided the long months of school closures common to Alberta and, indeed, common to other provinces. The report warns that the “compromised learning and reduced socialization…will be felt well into the future by both Alberta and Canada, across all dimensions of society, economy and country.”
Correctly the report recommends that n the future schools must remain open “except under the most exceptional circumstances,” The authors said Alberta law should enshrine not just a right that children have to education, but the province has a duty to offer it, with stiff penalties for the dereliction of such duties. The report argues that in-person learning is preferred to online learning, but improved access to technology for on-line learning was also advised.
The panel also called for helping students who fell by the wayside during school closures so that they can “make up for learning loss.” As well, the panel also called for a system-wide “intensification of punctuality, behavioural and academic performance standards.”
The panel also called for changes to the Employment Standards Code to “disallow permanent dismissals of non-compliant employees during a temporary public emergency.” Those fired for not taking the vaccine can only welcome this recommendation. The report also says that the Health Professions Act needs its “standard of practice” amended to include “recognition and protection of the rights of members to freedom of expression.” Basic measures to bolster health care will only come about when experts can freely express and defend their concerns in open debates.
The panel also recommended that the Alberta Bill of Rights be revised and strengthened. Guarantees of personal and professional freedom and “protection against discrimination on the basis of opinion, disability and medical status or history” were among the most important revisions that were suggested.
Obviously, the COVID-19 pandemic has been a painful memory for both policy makers and citizens, but the thoughtful analysis offered by the Manning panel is necessary so that Alberta is ready for the next crisis. Hopefully, all provincial governments, and indeed the federal government, will look carefully at the Alberta report and they will prepare accordingly. The next crisis, whatever it may be, could unfortunately be soon be upon us.
Lee Harding is Research Fellow for the Frontier Centre for Public Policy.
Alberta
Alberta’s fiscal update projects budget surplus, but fiscal fortunes could quickly turn
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:
Alberta
Premier Smith says Auto Insurance reforms may still result in a publicly owned system
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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