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Alberta

Danielle Smith vows Alberta won’t be ‘transitioning away’ from oil, natural gas

Published

12 months ago

5 minute read

From LifeSiteNews

By Clare Marie Merkowsky

‘Energy security and affordability are comparable with sustainability. Alberta is actively reducing emissions through technology, not taxes’

Alberta is refusing to phase out oil and gas, despite the regulations proposed by Prime Minster Justin Trudeau’s government.

On November 20, Alberta Premier Danielle Smith announced on X, formerly known as Twitter, that the province will focus on reducing emissions but will not eliminate the gas and oil sector, as effectively demanded by the Trudeau government.  

“Energy security and affordability are comparable with sustainability. Alberta is actively reducing emissions through technology, not taxes,” she wrote.  

“But, we will not be transitioning away from oil and natural gas,” Smith declared.  

Also on November 20, Smith blasted Alberta’s leader of the provincial opposition, the New Democratic Party’s Rachel Notley, for pushing for energy regulations and the carbon tax on Albertans.  

“I think Albertans wish the member of the opposite would stand up for Albertans for a change rather than take marching orders from the federal NDP leader,” she said, referring to NDP leader Jagmeet Singh who has sided with the Liberal government in favor of the carbon tax and energy regulations.  

“If they had just agreed to eliminate the carbon tax, it would reduce inflation 16%, which means we wouldn’t have to see an increase in interest rates, which means people could afford to buy a house as well,” she continued, referring to information from the Bank of Canada.  

“Maybe she should stand up for Albertans for a change,” Smith declared.  

Smith’s statements come in response to Trudeau attempting to force a net zero emissions goal on provinces across Canada, regardless of the negative effects it will have on Canadians’ lives.  

Trudeau has also refused to extend the carbon tax exemption to all forms of home heating, instead only exempting the forms of heating used in the Liberal-held Atlantic provinces.

Smith has repeatedly refused to submit to the Liberal government’s demands, warning that Canadians could freeze in the winter if the new “clean emissions” regulations are enforced. 

Smith’s warnings are not unfounded. Alberta’s electric grid operator, Alberta Electric System Operator (AESO), warned that Trudeau’s 2035 net-zero power grid goal will mean instability for the western province and are “not feasible.”  

In September, Smith announced that she is preparing to use her province’s Sovereignty Act to fight the energy regulations. 

The draft version of the federal government’s Clean Electricity Regulations (CER) states that there will be billions of higher costs associated with a so-called “green” power transition, especially in the resource-rich provinces of Alberta, Saskatchewan, New Brunswick, and Nova Scotia, which use natural gas and coal to fuel power plants. 

In May, Minister of Environment Steven Guilbeault declared that violating environmental regulations banning the use of coal and gas-fired power after 2035 may even result in criminal sanctions, a statement that only increased the tension between the federal government and the provinces opposed to the proposed policies. 

The Trudeau government also recently threatened to withhold billions of taxpayer money to provinces that will continue to use resources such as natural gas, oil and coal to generate electricity beyond 2035. 

In addition to Smith, Saskatchewan Premier Scott Moe has likewise promised to fight back against the new regulations, saying recently that “Trudeau’s net-zero electricity regulations are unaffordable, unrealistic and unconstitutional.” 

“They will drive electricity rates through the roof and leave Saskatchewan with an unreliable power supply. Our government will not let the federal government do that to the Saskatchewan people,” he charged. 

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 with which Trudeau and some of his cabinet are involved. 

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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

By

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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