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Alberta

No lockdowns in Alberta if Emergency Management Agency was in charge – Former Executive Director David Redman

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As Canadians look south of the border it’s obvious different state governments have taken different approaches in the battle against Covid 19.  Some states have been opened entirely for months while in others, children haven’t been to school in an entire year.  But which approach is better when it comes to reducing Covid cases?  The State of Florida has been open during the entire second wave while New York State is just beginning to lift lockdowns. Despite the different approaches in Florida and New York, in both states cases are down to a third or less of where they were in early January.  Death rates are also down by two thirds since January in both states.

Alberta’s approach could have been vastly different too.  Premier Jason Kenney has the tough job of trying to balance the freedom to gather, to work and to worship, with the mandate to protect the health of Albertans by isolating us from teammates, workmates, and friendships.  As the ebb and flow of restrictions continues one year into the Covid experience, a growing number of people are convinced lockdowns are not an effective response.   But what is the alternative?

One person qualified to answer this difficult question is David Redman.  Redman is former Executive Director of the Alberta Emergency Management Agency.   Before that he spent over 25 years in the military, retiring as a Lieutenant Colonel with vast experience in logistics.  As ED of the Emergency Management Agency, Redman traveled side by side with then Premier Ralph Klein when tragedy struck the province.  His role included formulating plans to deal with a variety of emergencies, including pandemics.  When an emergency occurred, the staff would immediately gather with leaders from government agencies and relevant private companies (power companies, etc).  Within 36 hours, they’d revise an existing plan and present the Premier with options for moving forward.

The province of Alberta’s website makes a bold statement about emergency management.  As this screen shot indicates Alberta’s Emergency Management Agency “leads and oversees all emergency and disaster prevention, preparedness and responses.” 

There’s only one problem with this bold statement.  In what has become the farthest reaching emergency in modern Alberta history, for some reason Alberta’s Emergency Management Agency is not co-ordinating Alberta’s response. Premier Jason Kenney is co-ordinating Alberta’s response with Health Minister Tyler Shandro, Alberta’s Chief Medical Officer Dr. Deena Hinshaw, and others.

This is not sitting well with David Redman.  Redman says when the first wave hit and Alberta announced a general lockdown, Redman was shocked such drastic measures were being taken. He knew immediately the emergency response plan had been thrown out.

Redman began contacting all Canada’s premiers.  He put together a presentation to show what they were doing wrong and what they should be doing instead.  It’s taken months to gain traction, but the media is starting to pay attention to Redman as he shares his presentation to people all over Canada.

His main message; governments can do a far better job of protecting the vulnerable AND protecting the economy.  Even though the second major wave is ebbing and restrictions are slowly disappearing, Redman says the matter is still urgent.  He’s convinced Covid variants will ensure future waves and unless they pivot to a new approach, governments will go back to the tool they’ve been relying on… lockdowns.

This is an abridged version of the presentation Redman has been showing all over the country is his effort to get at least one Premier to show the rest of Canada a different way to react to this emergency.

Also part of David Redman’s presentation is this comparison between lockdown measures and Canada’s Annual Viral Infection Curve.  Redman shows the annual viral infection curve performed exactly as usual in the past year.  In this part of the presentation Redman shows how the lockdown restrictions have coincided with the curve and therefore lockdowns have not greatly affected the spread of Covid.

After 15 years as a TV reporter with Global and CBC and as news director of RDTV in Red Deer, Duane set out on his own 2008 as a visual storyteller. During this period, he became fascinated with a burgeoning online world and how it could better serve local communities. This fascination led to Todayville, launched in 2016.

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Alberta

Alberta’s fiscal update projects budget surplus, but fiscal fortunes could quickly turn

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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.

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Alberta

Premier Smith says Auto Insurance reforms may still result in a publicly owned system

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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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