Open Letter to Canadians
Alberta
Freedom Pipeline
February 16, 2021
FOR IMMEDIATE RELEASE
Red Deer – Mountain View, AB
Hours after being sworn into office on January 20, 2021, U.S. President Biden signed an executive order to revoke the presidential permit, thus cancelling the Keystone XL pipeline expansion project.
Thousands of direct jobs on both sides of the Canada-U.S. border were immediately lost. While this is disappointing to many Albertans, it does not come as a surprise as the Obama administration, which Biden was vice-president in, took a similar stance.
Prior to cancellation, TC Energy committed to operate the pipeline with net zero emissions when it was placed into service in 2023. Although Keystone XL is cancelled, the demand for oil will continue. Instead of shipping oil via a zero emissions pipeline, alternatives such as truck and rail will be required. This results in higher emissions and increased safety concerns.
From recent polling data, there is very little support from Canadians to see the federal government engage with the Biden administration in an attempt to have the permit re-instated. The Alberta government and other supporters of the pipeline have called for retaliatory measures and sanctions against the United States in an effort to restart the permit negotiation process. Unfortunately, these calls will fall on deaf ears. Additionally, the sanctions that could be brought against the United States would likely have little impact or only serve to make the situation worse. It is evident that the current Liberal government will not be taking further action on this file based on their initial comments on the decision and their overall ideological stance regarding the Western Canadian energy industry.
As nations around the world shift to stronger nationalist positions in light of the COVID-19 pandemic, Canada too must look out for its own interests. We must stop relying on other countries in matters of national importance. Energy independence is a decision of national importance.
The United States will continue to be a major trading partner for Canada but we must take steps to become more self-reliant. This starts with understanding the regulatory and social environment that Alberta’s oil and gas industry currently operates in.
Bill C-69 (no more pipelines) and Bill C-48 (tanker ban) enacted by the current Liberal government have created a poor investment climate in the oil and gas industry. The cancellation of Energy East and Enbridge Northern Gateway were both tied to these Bills. Critics will state that neither project was economically viable. This however is false. Global oil demand continues to remain strong, and has rebounded quickly after a significant decline due to wide scale shutdowns due to COVID-19.
Energy infrastructure projects that cross provincial borders are subject to regulatory review by the Canada Energy Regulator. This process is time consuming and overbearing. Given the current regulatory environment, Canadians (specifically Western Canadians) have two options. Continue to complain about said regulatory environment or think outside of the box to develop a new solution to get our most important resource to market. This is where “Freedom Pipeline” comes into play.
Pipeline infrastructure currently exists to move Western Canadian oil from Fort McMurray, Alberta to Cromer, Manitoba. The “Freedom Pipeline” would build on this existing infrastructure and move oil from Cromer to Churchill, Manitoba. As this leg of the pipeline would be completed within Manitoba’s borders, it would not be subject the Canada Energy Regulator (CER). This is supported by the July 26, 2019 decision by the National Energy Board (now CER) in relation to the Coastal GasLink Pipeline in British Columbia.
In order to proceed with this pipeline, the National Coalition of Chiefs should be immediately consulted so as to maximize the opportunities for First Nations communities throughout Manitoba. This should include discussions around the inclusion of First Nations owned businesses in the construction of the pipeline as well as an ownership stake in order to defeat on-reserve poverty.
Modern technology should be used to construct, protect and operate the pipeline. These include:
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Pipeline leak detection and containment system.
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Equipping oil tankers, moving through the Hudson Bay, with double-hull tanks and with Small Modular Reactors (SMRs) for propulsion.
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Commitment to operate the pipeline with renewable resources within a reasonable timeline and when economically viable.
In addition to providing good paying jobs to First Nations communities along the pipeline route and to Western Canadian oilfield workers, this pipeline will bring significant benefits to other Canadians. Jobs within Ontario’s steel industry would be created. Refinery positions would be created on Canada’s east coast, a region that is desperately in need of private sector investment and growth. Engineering and other professional service positions would be created as well. All of these jobs provide the dignity of work to the individuals who secure them and hope for a brighter future for their children.
What happens if the Liberal government enacts legislation to ban tanker traffic in the Hudson Bay and ultimately the route to refineries on the east coast? If this were to occur, Western provinces would immediately need to make a decision about their ongoing position in Confederation. If a tanker ban was enacted, Western provinces should exercise all available actions to secure autonomy. This would include exploring provincial pensions and referendums on equalization payments. The next step would be to explore options for separation.
Western provinces cannot continually be expected to be a part of a Confederation that doesn’t allow their industries to get products to market, families to provide for their children and communities to support the vulnerable.
The COVID-19 pandemic has ravaged our economy. Governments have spent hundreds of billions in response. We are faced with difficult decisions on how to secure our future. The “Freedom Pipeline” provides a quality option to secure paycheques for thousands of Canadians and bring hope back to our great country. It’s time to get to work.
Sincerely,
Jared Pilon
Libertarian Party Candidate for Red Deer – Mountain View, AB
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:
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.”
“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.”
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.”
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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