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Alberta

Alberta Votes 2019: The week so far- jobs, oil and gas and cracking down on crime

Published

6 years ago

16 minute read

Alberta’s political parties are in full-on campaign mode as Election Day approaches on April 16th. Each day the parties release information about their policies and platforms, candidate information and reactions to the day’s news. It can be difficult to try and keep up with it all, so from now until the election we’ll regularly compile information released by the parties and present the main points here.

For more information, click on party names to visit campaign websites.

(Parties listed in alphabetical order)

Alberta Party 

Alberta Party announces plans to invest in new technology material sciences and bitumen pucks and create jobs from Alberta’s oil and gas resources.

“As Wayne Gretzky once said, you have to skate to where the puck is going. Passively sitting around and hoping the market works is yesterday’s approach. We need to aggressively get in the game and make big moves to generate more refining and petrochemical processing here in Alberta.”

Stephen Mandel – Leader of the Alberta Party

An Alberta Party government will energize the development of refining and petrochemical processing, creating more value within the province and thousands of good jobs for Albertans.

Supporting the Development of CanaPux

● Commonly referred to as bitumen pucks, CanaPux are developed by CN and Wapahki Energy, owned by Heart Lake First Nation (approximately 300 km northeast of Edmonton).

● The technology converts bitumen into a solid puck product that is capable of being exported by rail or other methods (rather than pipeline).
● This is a potential revolution for Alberta’s oil sands industry — one that enables Albertans to realize the full value of their resources by avoiding pipeline politics.
● An Alberta Party government will expedite approvals for the pilot facility and contribute financial support for one-third of the pilot ($16.7 million).

Increasing the Alberta Innovates budget with a focus on material sciences.
● Alberta Innovates contributes to the creation of new industries in Alberta and strengthens existing ones. It diversifies the economy and creates jobs and increases exports.
● Alberta Innovates currently funds research that focuses on turning bitumen into products other than gas, diesel and other fuels such as asphalt, vanadium batteries, plastics and carbon fibre.
● The development of these alternatives is a long term approach that will help to increase demand for our resources, create jobs, lower our exposure to global oil prices, and help diversify our economy.
● The NDP have reduced the Alberta Innovates budget going from $288M in 2018-19 to $244M in 2020-21.
● An Alberta Party government will not only reverse those cuts but increase the total Alberta Innovates budget by 30% to $375M by 2020-21 and direct the additional funds to a rapid expansion of research into new uses for our resources.

Expanding Refining in Alberta
● Once Phase 1 is proven out, an Alberta Party government will support construction of Phase 2 and Phase 3 of the Sturgeon Refinery.
● This helps Alberta expand its refining capacity, creating more value here in the province and creating thousands of skilled jobs for Albertans.
● An Alberta Party government will expedite the review of necessary approvals and expand its Bitumen Royalty in Kind (BRIK) program.
● Construction of both Phase 2 and 3 have a combined total construction expenditure of an estimated $18.0 billion which will result in an increase in GDP of $16.0 billion, and create 140,000 person-years of employment.
● Once construction is complete, the additional the two phases will increase GDP by an average of $5 billion per year, and result in an estimated 13,000 additional jobs per year.

Energizing Petrochemical Processing
● To stimulate petrochemical processing in the province, an Alberta Party government will establish a Gas Royalty in Kind program that takes a similar approach to the Bitumen Royalty in Kind program.
● This will have the Government of Alberta take a portion of its natural gas royalties “in kind” rather than in cash. This will enable the government to market the natural gas in ways that stimulate gas processing and petrochemical plant expansions in the province.
● An Alberta Party government will also establish Alberta’s petrochemical diversification program as a 10 year program, rather than the NDP’s unpredictable annual program. This would provide stability and certainty to the market, helping attract more investment.
● The petrochemical diversification program will also be adjusted to move from a royaltycredit to a more efficient subsidy program.

 

NDP 

Rachel Notley pledges to expand heavy-load roads and build new access highway to Fort McMurray, creating 7,500 jobs.

“We will never forget the sight of families fleeing out of the city on Highway 63 while flames licked at the trucks and cars. It was one of the scariest moments of people’s lives,” said Notley. “Fort McMurray needs a second route out and we will get it done. We will keep families safe and help people sleep a little easier a night.”

Rachel Notley – Leader of the New Democratic Party of Alberta

UCP

UCP outlines plans to tackle growing crime wave.

“We will do everything within our power to stop the revolving door in our justice system, and to keep Albertans safe.” 

Jason Kenney, Leader of the United Conservative Party of Alberta

The UCP has promised more judges, more prosecutors and stronger laws part of a plan to tackle Alberta’s growing crime wave.

Kenney cited statistics that reveal a growing crime problem in Alberta:

  • Auto theft is way up and Alberta leads the country in auto-theft—at three times the national average with 62 stolen vehicles per day, on average.1 The Alberta Motor Association says there has been a 32% increase in vehicle thefts since 20142. 29% percent of all vehicle thefts in Canada happen in Alberta, according to Statistics Canada3
  • By 2018, the rural crime rate in some communities rose by 250% compared with 2011.4They included communities such as Innisfail and Bonnyville where property break-ins were up 94% and up by 133% respectively between 2016 and 2017.5
  • In 2018, Edmonton Police Service reported6)that since 2015, assaults were up 11%; property crimes were up 13%, and sexual assault incidents were up 17%.
  • In 2018, Calgary Police services reported7 that over the last five years there was a 6% increase in property crimes, a 25%increase in financial robberies, a 26.3% increase in sex offences, a  27.6% increase in robberies, and a 35.9% total increase in assault crimes.8
  • Maclean’s reported last November that 7 of the top 10 cities in their Canada’s Most Dangerous Places 2019 ranking (based on 5-year change in crime severity index) are from Alberta.9

Kenney stated a United Conservative Party government will hire 50 new prosecutors and support staff, a $10 million investment.

Kenney also announced that a UCP government will boost funding by $20 million over four years (69 percent) to the Alberta Law Enforcement Response Teams (ALERT), who deal with children’s exploitation, domestic violence, stalking, and gang issues, among others. The $20 million funding increase will:

  • Double ALERT’s funding for its sub-unit, the Integrated Child Exploitation (ICE) unit that tracks, arrests and prosecutes child pornographers
  • Double the funding for its sub-unit, the Integrated Threat and Risk Assessment (I-TRAC) unit, the police unit that helps combat domestic violence and stalking
  • Create a new Opioid Enforcement Team

A UCP government will also work with ALERT to obtain a charitable foundation (akin to the Calgary and Edmonton Police foundations) which can then attract additional funds from the private donors.

Kenney also promised that under a UCP government Albertans would know the truth about crime in their province.

“We will pass the Public’s Right to Know Act. This bill will require an annual report to the legislature containing detailed provincial crime statistics.”

A UCP government would also replace the Parole Board of Canada with an Alberta Parole Board for offenders serving sentences of under two years.

And because crime victims can often fall through the cracks, a UCP government will also conduct an immediate review of the current model of victim service delivery, victim assistance funding, and victim compensation to ensure optimal assistance to victims of crime.

A UCP government would also invest $5 million to increase access to Drug Treatment Courts as an effective way of helping drug addicts to leave the cycle of crime and addiction through treatment, testing, incentives, sanctions and social support.

The responsibility for law enforcement is shared with the federal government. A UCP government will therefore also negotiate with the federal government (and with other provinces as necessary) to:

  • Secure additional Queen’s Bench justice appointments to reduce the backlog in superior courts.
  • Ensure that Grande Prairie be given its own Queen’s Bench.
  • Develop and put in place a specific Repeat Offender Policy.
  • Ensure the return of criminals who have fled to other provinces, to face justice in Alberta. (According to Alberta police forces, flight-across-borders has become a critical problem given the number of jurisdictions involved, especially in western Canada.)
  • Review current Criminal Code sentencing principles to ensure that in rural crime offences, specific facts be considered by a sentencing court as aggravating factors, and that the principles of deterrence and denunciation be prioritized.”

In 2018, the UCP released its Alberta Rural Crime Strategy, calling for a provincially regulated police response system linking all enforcement agencies to pursue the relatively small number of organised, repeat offenders who are responsible for most rural crime.

 

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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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