Alberta
Alberta justice minister sorry for saying feds, others rooting for COVID disaster
EDMONTON — Alberta’s justice minister says he was wrong to accuse Prime Minister Justin Trudeau’s government, Alberta’s Opposition N-D-P, and the media of rooting for COVID-19 to buckle his province’s health system.
“I would like to offer an apology for my recent comments on my personal Facebook account,” Kaycee Madu wrote on Twitter Tuesday night.
“Alberta is facing an unprecedented public health crisis. My comments were wrong, as all Canadians want this global pandemic to end as soon as possible.
“I fully support the premier’s recent call to avoid the divisive political rhetoric during what we all hope is the final period of this pandemic and will continue the important work of government in protecting Albertans from this virus.”
The apology came a day after Madu’s spokesman, Blaise Boehmer, told reporters in a statement that Madu was standing by his accusations, adding, “The minister won’t apologize for stating the obvious.”
Earlier Tuesday, prior to Madu’s apology, Trudeau rejected the accusations.
“It’s a shame to see people pointing fingers and laying blame and suggesting that anyone in Canada wants anything else than to get through this pandemic as safely as possible everywhere,” Trudeau said in Ottawa.
Premier Jason Kenney, also asked about Madu’s comments prior to the apology, said he hadn’t seen them but said, “COVID has caused us a lot of us at various times to say things we regret, and I just encourage everybody — whatever side of the political spectrum they’re on — to give each other a break right now.”
Trudeau noted he reached out to Kenney and Alberta’s big city mayors last week to offer further support if called upon. Kenney declined the offer.
“Every step of the way the federal government has been there to support Canadians, with $8 out of every $10 in pandemic support coming from the federal government,” said Trudeau.
The issues of blame and responsibility have recently been at the centre of debate in Alberta. Kenney’s government has been criticized for waiting weeks to respond with tighter health restrictions to the current third wave that now threatens to overrun the health system if left unchecked.
Alberta has recently had COVID-19 case rates that are the highest in North America.
Kenney acted with renewed rules a week ago, closing schools and introducing sharper limits on businesses and worship services.
He also stressed now is not the time to lay blame. Prior to that, Kenney and his ministers had repeatedly accused Trudeau’s government of hamstringing the relief effort with a slow vaccine rollout. As late as April 29, Kenney blamed Alberta’s entire third wave on Ottawa.
Last Friday, Madu, in a Facebook post, wrote that the province couldn’t risk giving the COVID-19 virus a chance to “overwhelm our health-care system.
“That’s what the NDP, the media and the federal Liberals were looking for and want,” he wrote.
NDP Leader Rachel Notley said her caucus has done its job as the Official Opposition.
She said they’ve pushed Kenney’s government to enact rules to reduce the spread of the virus, while giving businesses financial aid to survive and workers support to allow them to isolate but still provide for their families.
Notley added, “You don’t tend to see that sort of incendiary, thoughtless messaging or tone from someone who takes on the role of justice minister.”
Dr. Deena Hinshaw, the chief medical officer of health, reported 24,998 active COVID-19 cases Tuesday. There are 705 people in hospital with the illness, 163 of them in intensive care — the highest since the pandemic began.
Hinshaw confirmed the province won’t give out more first doses of the Oxford-AstraZeneca vaccine for the time being.
“Based on global supply challenges, we do not know when Canada, and in turn Alberta, will receive additional doses,” said Hinshaw.
There are 8,400 doses left, which will be used for second shots.
Hinshaw also said they will wait at least 12 weeks between AstraZeneca doses, given current research is showing that the interval delivers the best protection.
Alberta has administered more than 255,000 first doses of AstraZeneca.
This report by The Canadian Press was first published May 11, 2021.
Dean Bennett, The Canadian Press
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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