Alberta
Don’t use Alberta’s Heritage Fund to pick ‘winners and losers’
From the Fraser Institute
During the mid- to late-1990s, Alberta taxpayers lost more than $2 billion from these failed loans, guarantees and share purchases in major business projects.
Remember the old adage from the writer and philosopher George Santayana that “those who cannot remember the past are condemned to repeat it.”
At a recent Calgary Chamber of Commerce event, Premier Danielle Smith indicated the Alberta government is looking at using Heritage Fund assets “to assist in de-risking projects that were finding it difficult to get financing.” This signals a return to the Alberta government’s industrial policy of the 1970s and 1980s of being in the business of being in business and government picking “winners and losers” as Premier Klein famously said.
A remembrance of the past is in order, so we aren’t condemned to repeat it. Between 1973 and 1992, the Alberta government took a very active role in cultivating economic development. The approach was highly interventionist and involved direct financial assistance through direct loans (even ones issued though the Heritage Fund), loan guarantees and share purchases. The risks attached to these transactions, particularly in a highly cyclical and volatile economy such as Alberta, were significant, generally unknown at the outset, and largely open-ended.
Sure, there were some notable exceptions, but the high degree of risk of direct intervention in the private sector was illustrated by the fact that during the mid- to late-1990s, Alberta taxpayers lost more than $2 billion from these failed loans, guarantees and share purchases in major business projects.
Most notable were losses incurred on such high-profile business projects as Novatel Communications ($556.0 million), the Lloydminster Bi-provincial Upgrader ($392.5 million), the Millar Western Pulp Mill ($244.2 million), Gainers ($208.3 million), the Magnesium Company of Canada ($164.0 million) and the Alberta-Pacific Pulp Mills ($155.0 million).
The premier makes a valid point that financial markets may be averse to financing large business projects because of the risks associated with intrusive federal climate change policies and regulations. Thus, the argument is there’s a need for the provincial government to get involved in financing market failures in the capital markets.
However, from our remembrance of the past practises, raiding the Heritage Fund to pick “winners and losers” is the wrong prescription to solving this problem. Let’s use the tried and true policies of cutting taxes and streamlining regulations to attract more investment capital to Alberta to support business projects. And let’s focus on building a Heritage Fund of $250 billion to $400 billion that will help secure our province’s fiscal and economic future and the future for our children and grandchildren.
Author:
Alberta
Taxpayers: Alberta drivers need a gas tax break for summer
From the Canadian Taxpayers Federation
Author: Kris Sims
“Alberta families packing up the minivan to go visit the grandparents in Manitoba will be shocked to see a much lower gas price over there, thanks to that NDP government’s lower fuel taxes”
The Canadian Taxpayers Federation is urging the Alberta government to give drivers a break on fuel taxes as the summer road trip season kicks off.
“Alberta families packing up the minivan to go visit the grandparents in Manitoba will be shocked to see a much lower gas price over there, thanks to that NDP government’s lower fuel taxes,” said Kris Sims, CTF Alberta Director. “Premier Danielle Smith did the right thing when she suspended the Alberta fuel tax for a year. It saved families so much money and it would be a good thing for her to do that again for the summer.”
In January 2023, the Alberta government fully suspended the provincial fuel tax for a year, saving drivers 13 cents per litre of gasoline and diesel.
On average, that tax suspension saved Alberta drivers about $10 filling up a minivan and about $15 filling up a pickup truck.
On April 1, 2024, the Alberta government hiked the tax back up to 13 cents per litre, on the same day Prime Minister Justin Trudeau increased the federal carbon tax to 17 cents per litre of gasoline and 21 cents per litre of diesel.
Manitoba NDP Premier Wab Kinew fully suspended his province’s 15 cent per litre fuel tax on Jan. 1, 2024. He has now extended it to at least September.
Ontario PC Premier Doug Ford has kept his provincial fuel tax partially suspended, saving five cents per litre for more than two years.
Alberta’s fiscal update is expected to be released by the Alberta government soon, a time that often includes updates on affordability actions by the government, including tax relief.
“Albertans are still waiting for their provincial income tax cut and they are paying the full price at the pump for the provincial fuel tax, so it’s tough for them to feel the Albera Advantage right about now,” said Sims. “The Alberta government needs to make good on its promise of lower taxes and drivers should be given lower fuel taxes at the pumps this summer.”
Alberta
Just in time for Canada Day weekend! Crescent Falls ready to be enjoyed again
The new staircase structure and viewing platform are among many upgrades that visitors can look forward to at the reopening Crescent Falls Provincial Recreation Area. (Credit: Alberta Parks).
The popular Crescent Falls Provincial Recreation Area reopens following a significant capital investment to improve visitor safety and experiences.
Crescent Falls Provincial Recreation Area is ready to welcome visitors back to enjoy one of the most remarkable, accessible waterfall viewing opportunities in Alberta. The upgrades at Crescent Falls will help improve the park’s visitor experience. Guests can expect expanded parking, improved access roads, trails and day use areas, new and improved viewing areas to take in the falls and upgraded safety measures, including signage and wayfinding.
The Provincial Recreation Area (PRA) is reopening over the July long weekend after being closed since 2023. Visitors will notice increased public safety upgrades through additions such as new parking lots, a new stair structure to access the lower falls, new pedestrian trails, a new vehicle bridge to access the camping area and a viewing platform to enjoy the Crescent Falls.
“We are thrilled to welcome visitors back to Crescent Falls Provincial Recreation Area in time for the Canada Day long weekend. These additions will help visitors to safely access and enjoy the area’s natural beauty. Parks are for people and Alberta’s government will continue to invest in high-quality outdoor recreation opportunities.”
“Today marks a significant milestone for our community as we reopen the Crescent Falls Provincial Recreation Area following extensive upgrades. Our province is well known for its incredible natural beauty, and these improvements will make our backcountry more accessible and ensure that Albertans and those visiting our great province can continue to explore our stunning landscapes for years to come.”
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