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Alberta

Premier Kenney demands PM Trudeau retaliate against President Biden in defence of Keystone XL

Published

4 years ago

7 minute read

The day before President Biden’s inauguration, the incoming government announced the President would rescind the Presidential permit for the Keystone XL Pipeline.  True to his word, one of the first actions of the new President was to retroactively cancel the pipeline which is partially owned by the Canadian Government.
Considering the massive investment by the Province of Alberta which would leave Alberta taxpayers also on the hook for about a billion dollars, Premier Jason Kenney has been speaking out loudly and aggressively.   Premier Kenney has used strong language including “This is not now you treat a friend and ally.”
Regarding Canada’s response (The federal government is a part owner of the pipeline) Kenney is also calling on Prime Minister Trudeau and the federal government to stand up and retaliate with statements such as. “When the former Trump administration slapped punitive tariffs on Ontario and Quebec steel and aluminum in 2018, the Trudeau government imposed $16 billion worth of countervailing tariffs on U.S. goods the very same day.  By contrast, when Alberta oil was attacked on Wednesday: nothing.”
Here are statements Premier Kenney has released over the last three days in full:

January 19

“Canada should be President Biden’s first priority in re-establishing U.S. energy security. Canada is the environmental, social and governance (ESG) leader among global energy powers.
Alberta’s oilsands, once a source of carbon intensive barrels, has reduced carbon intensity by over 20 per cent in the past nine years. The average barrel produced in Canada is now cleaner than one produced in California.
Canada leads the world in key environmental categories like methane regulation, water use, and innovations like carbon capture and sequestration; and individual Canadian firms hold the top ESG scores in the industry.
TC Energy, the builder of KXL, has also committed to being net zero by 2030, ahead of its US peers, and hire a U.S. union workforce.
You won’t get those commitments from Venezuelan shippers.
Canada’s oil reserves are vast at 170 billion barrels, making Alberta’s oilsands the third largest supply in the world, holding more oil than Russia, China and the USA combined. Keystone XL secures access to this strategic supply for purpose-built U.S. refining capacity in the Gulf.
On environmental and strategic grounds this should be far preferable to carbon-intensive rail transit — or alternate supply from Venezuelan tankers.”

January 20

The United States is our most important ally and trading partner. Amongst all of the Canadian provinces, Alberta has the deepest economic ties to the United States with $100 billion worth of exports, and strong social connections that go back over a century.
As friends and allies of the United States, we are deeply disturbed that one of President Biden’s first actions in office has been to rescind the Presidential permit for the Keystone XL Pipeline border crossing.
My thoughts are with the 2000 people who lost their jobs today, and all those who are coping with the devastating consequences of this decision.
The US State Department’s own exhaustive analysis conducted under President Obama’s administration concluded that Keystone XL would actually reduce emissions, as the alternative will be to move this energy by higher emitting and less secure rail transport.
The Government of Canada has more ambitious emissions goals than the new US Administration, and our provincial government is investing billions of dollars in the development of emissions reductions technology.
This means that Alberta, Canada, and the Keystone XL pipeline are part of the solution in the energy transition.
For months we’ve been told that the Biden transition team would not communicate with foreign governments on this or other issues. And now a decision has been made without even giving Canada a chance to communicate formally with the new administration.
That’s not how you treat a friend and ally.
We will continue to fight for Alberta’s responsible energy industry, and for the 59,000 jobs that this project would create.
Alberta’s government calls for the federal government and Prime Minister Trudeau to immediately enter into talks with the Biden administration on their cancellation of the Keystone XL pipeline in the context of a broader agreement on energy supply and climate action.
Failing an agreement with the American government, we call on the Government of Canada to respond with consequences for this attack on Canada’s largest industry. We are not asking for special treatment, simply the same response that Canada’s government had when other areas of our national economy were under threat from the US government.

January 21

“He has been so anti-oil himself during his five-plus years in office (including not objecting loudly to the Obama administration’s first cancellation of Keystone in 2015), that the incoming Biden administration must have known our Liberals wouldn’t put up much of a stink if it killed Keystone.
When the former Trump administration slapped punitive tariffs on Ontario and Quebec steel and aluminum in 2018, the Trudeau government imposed $16 billion worth of countervailing tariffs on U.S. goods the very same day.
By contrast, when Alberta oil was attacked on Wednesday: nothing.
Also, Trudeau can be blamed for making the death of Keystone matter so much. Had Trudeau not killed two other all-Canadian pipelines — Energy East and Northern Gateway — the end of Keystone wouldn’t be such a crippling blow.”

From January 20

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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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