Alberta
Canadians in three provinces will spend roughly the same on debt interest as K-12 education
From the Fraser Institute
By Grady Munro and Jake Fuss
From 2008/09 to 2023/24, the federal government is projected to have run deficits every single year, with no interruptions. This has resulted in federal net debt (total debt minus financial assets) increasing by $603.6 billion (inflation-adjusted).
For more than a decade, Canadian governments have increasingly relied on borrowed money to fund their excessive spending habits. However, as debt has continued to pile up so have the costs associated with this debt—namely interest costs. A recent study shows that in some of the largest provinces, governments now spend nearly as much or more on debt interest costs than on K-12 education.
Since the 2008/09 financial crisis, governments across Canada have fallen into the habit of utilizing debt to fund their spending habits. For example, consider the federal government.
From 2008/09 to 2023/24, the federal government is projected to have run deficits every single year, with no interruptions. This has resulted in federal net debt (total debt minus financial assets) increasing by $603.6 billion (inflation-adjusted). Conversely, from 1996/97 to 2007/08, the federal government actually lowered its net debt by $348.1 billion (inflation-adjusted). Clearly, there’s been a shift in the government’s approach towards debt accumulation.
This is not simply a federal problem, as provinces have also seen their debt burdens rise as well. Cumulatively, provincial and federal net debt has increased by $1.0 trillion (inflation-adjusted) from 2007/08 to 2023/24.
Government debt carries costs, primarily in the form of the interest payments, which represent money that doesn’t go towards paying down the actual debt amount, nor does it go towards providing government services or tax relief. And since governments must utilize tax revenues to pay interest, taxpayers are ultimately on the hook for servicing government debt.
But how much do Canadians actually pay in debt interest costs?
Using data from the most recent fiscal updates, a new study compares combined (federal and provincial) debt interest costs for residents in three of the largest provinces (Ontario, Quebec and Alberta) with what those provinces expect to spend on K-12 education in 2023/24. The study utilizes combined debt interest costs because Canadians are ultimately responsible for interest costs incurred by both the federal government and the province in which they live. The following chart summarizes the comparisons from the study.
As is clear from the chart, combined interest costs for residents in these provinces are nearly as much or more than their province expects to spend on K-12 education in 2023/24. Specifically, combined interest costs are $31.5 billion for Ontarians, which is only $3.2 billion less than the province will spend on K-12 education in 2023/24. Combined interest costs for Quebecers ($20.3 billion) will actually exceed the $19.9 billion the province will devote towards K-12 education. And combined interest costs for Albertans are only slightly lower than the $8.9 billion that will be spent on K-12 education.
In other words, taxpayers in Ontario, Quebec and Alberta are paying nearly as much or more to service federal and provincial government debt than they are paying to fund K-12 education in their province. This budget season, it’s important to remember the costs associated with growing government debt.
Authors:
Protesters demonstrating against COVID-19 mandates and restrictions gather as a truck convoy blocks the highway at the Canada-U.S. border crossing in Coutts, Alta., on Feb. 2, 2022. The Canadian Press/Jeff McIntosh
From the Frontier Centre for Public Policy
By Ray McGinnis
Imagine spending over two years behind bars, only to be told the evidence never supported the charges against you.
On Aug. 2, a Lethbridge jury found Chris Carbert and Tony Olienick not guilty of the most serious charge of conspiracy to commit murder of police officers. However, though they were declared innocent, the conspiracy charge was the basis for their being held in remand for at least 925 days. They were denied bail based on this charge.
The sentencing hearing for other charges against Carbert and Olienick is taking place this week.
Granting Bail Typical for Serious Offences
In Canada, when someone is charged with committing a crime, they’re released on bail. This includes those charged with murder. For example, in September 2021, 31-year-old Umar Zameer was released on bail after being charged with the first-degree murder of Toronto Police Constable Jeffrey Northrup.
A case of double murder in the city of Mission in B.C.’s Fraser Valley concerned the deaths of Lisa Dudley and her boyfriend Guthrie McKay. Tom Holden, accused of first-degree murder in the case, was released on bail.
Conditions for not Granting Bail
Why do we release people from custody after being charged with a crime? Why don’t we hold people indefinitely? It’s been a Canadian tradition that there’s a process in place to which we adhere. Does the person charged with a crime seem to present a risk of repeating an offence? Carbert and Olienick hadn’t previously committed the offence(s) they were charged with. They didn’t have any criminal records for any violence. So, the likelihood of repetition of offence didn’t apply.
Another reason for denying bail is flight risk. But the Crown agreed neither of these men posed a flight risk. If you’re not clear about the identity of the person you’ve arrested, you can hold them in custody. But the Crown and the RCMP were certain of the identity of these men.
How about denying bail for evidence protection? If let go, was it possible the Crown or RCMP would lose evidence, and they needed to keep Carbert and Olienick in remand? No.
Were Carbert or Olienick considered a danger to the public? No. They had no past history of committing violent crimes, so in the case of the Coutts Two this was not a reason to deny bail.
The Crown insisted the pair be denied bail because their release would undermine confidence in the judicial system. Due to the seriousness of the offences the pair were charged with, releasing them would put the legal system into disrepute. But this is a circular argument. In authoritarian countries, police may arrest citizens on serious charges they’re not guilty of and leave them in prison indefinitely.
Granting Bail Goes Back to Magna Carta
Since the Magna Carta was signed in 1215, western judicial institutions have allowed those charged with a crime to be presumed innocent until proven guilty. With that provision comes the right to bail and a speedy trial. When citizens are accused of a crime and left to rot in prison without having their day in court, their spirits can be broken and persuaded to agree to plead guilty even when they are innocent.
Unindicted Co-conspirators Never Interviewed
During the trial, the Crown repeatedly named a list of unindicted co-conspirators. Each had a licence to carry a weapon in public for years. None of them were ever searched. None of them were ever interviewed. None of the alleged co-conspirators received any communication from the RCMP, or other authorities, about their possible connection to a conspiracy to murder police officers. However, the list of names provided for some legal theatre in the court added to the ominous scale of the supposed conspiracy to murder police officers.
Intelligence
Former career police officer Vincent Gircys had standing in the Justice Mosley decision. The judge ruled in January 2024 that the government’s invocation of the Emergencies Act in February 2022 to end the convoy protests was unconstitutional.
After the Coutts Two verdict, Gircys was concerned about the intelligence. There was a disconnect between the conspiracy charge and the evidence the Crown brought to trial. Gircys stated, “It’s really important to find where that disconnect is. Because of faulty intelligence? False intelligence? Fabricated intelligence? The evidence that they (RCMP) do have would all be logged, gathered, and time-lined. And that goes to what evidence was not gathered? … How could that information have been laid in the first place? How could the Crown have proceeded with this case to begin with?”
The Coutts Two were found not guilty of conspiracy to commit murder. But by the time they are sentenced on the other charges this week, they will have spent at least 925 days in custody. What does this mean for innocent until proven guilty?
Ray McGinnis is a Senior Fellow with the Frontier Centre for Public Policy. His forthcoming book is “Unjustified: The Emergencies Act and the Inquiry that Got It Wrong.”
P&H Milling Group has qualified for the Agri-Processing Investment Tax Credit program
Alberta’s food processing sector is the second-largest manufacturing industry in the province and the flour milling industry plays an important role within the sector, generating millions in annual economic impact and creating thousands of jobs. As Canada’s population continues to increase, demand for high-quality wheat flour products is expected to rise. With Alberta farmers growing about one-third of Canada’s wheat crops, the province is well-positioned to help meet this demand.
Alberta’s Agri-Processing Investment Tax Credit program is supporting this growing sector by helping to attract a new wheat flour milling business to Red Deer County. P&H Milling Group, a division of Parrish & Heimbecker, Limited, is constructing a $241-million facility in the hamlet of Springbrook to mill about 750 metric tonnes of wheat from western Canadian farmers into flour, every single day. The new facility will complement the company’s wheat and durum milling operation in Lethbridge.
“P&H Milling Group’s new flour mill project is proof our Agri-Processing Investment Tax Credit program is doing its job to attract large-scale investments in value-added agricultural manufacturing. With incentives like the ag tax credit, we’re providing the right conditions for processors to invest in Alberta, expand their business and help stimulate our economy.”
P&H Milling Group’s project is expected to create about 27 permanent and 200 temporary jobs. Byproducts from the milling process will be sold to the livestock feed industry across Canada to create products for cattle, poultry, swine, bison, goats and fish. The new facility will also have capacity to add two more flour mills as demand for product increases in the future.
“This new facility not only strengthens our position in the Canadian milling industry, but also boostsAlberta’s baking industry by supplying high-quality flour to a diverse range of customers. We are proud to contribute to the local economy and support the agricultural community by sourcing 230,000 metric tonnes of locally grown wheat each year.”
To be considered for the tax credit program, corporations must invest at least $10 million in a project to build or expand a value-added agri-processing facility in Alberta. The program offers a 12 per cent non-refundable tax credit based on eligible capital expenditures. Through this program, Alberta’s government has granted P&H Milling Group conditional approval for a tax credit estimated at $27.3 million.
“We are grateful P&H Milling Group chose to build here in Red Deer County. This partnership willbolster our local economy and showcase our prime centralized location in Alberta, an advantage that facilitates efficient operations and distribution.”
Quick facts
- In 2023, Alberta’s food processing sector generated $24.3 billion in sales, making it the province’s second-largest manufacturing industry, behind petroleum and coal.
- That same year, just over three million metric tonnes of milled wheat and more than 2.3 million metric tonnes of wheat flour was manufactured in Canada.
- Alberta’s milled wheat and meslin flour exports increased from $8.6 million in 2019 to $19.8 million in 2023, a 130.2 per cent increase.
- Demand for flour products rose in Alberta from 2019 to 2022, with retail sales increasing by 24 per cent during that period.
- Alberta’s flour milling industry generated about $840.7 million in economic impact and created more than 2,200 jobs on average between 2018 and 2021.
- Alberta farmers produced 9.3 million metric tonnes of wheat in 2023, representing 29.2 per cent of total Canadian production.
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