Alberta
“All talk, no action”. Alberta government not nearly aggressive enough against Ottawa – Project Confederation
This article is submitted by Josh Andrus, Executive Director of Project Confederation
The Alberta Legislature finished for the year on Tuesday and the theme of the session might as well have been “all talk, no action”.
Despite wave after wave of relentless attacks from a hostile federal government in Ottawa, precious little progress has been made to stand up for Alberta.
Given Prime Minister Justin Trudeau and the Liberal government have their foot on the throat of our energy sector, a strong response from the provincial government should be expected, right?
Well, so far we haven’t seen one.
Maybe Alberta’s response is still being worked on, but why the delay?
It’s not like this was unexpected…
The fall federal election gave us an early taste of what was in store.
All five major parties effectively campaigned to end new energy development in Canada and transition to a net-zero future.
Perhaps the most telling moment was when even the Conservatives refused to show their support for Alberta’s oil and gas industry.
During the English language debate, Bloc Quebecois leader Yves-François Blanchet forced Conservative leader Erin O’Toole to reiterate a promise he’d made at the French debate – that, if elected, the Conservatives would not allow a pipeline to be built through Quebec.
The statement from O’Toole was simple: “We’re not going to let that happen.”
Now re-elected to what barely passes for a mandate – 32.3% of the vote with just a 62.3% turnout – the federal Liberal government is preparing to entirely dismantle Canada’s energy sector.
The Alberta government did finally hold their long-promised referendum on equalization – something that more than two years ago, we suggested should have been held immediately.
Alberta has lost a net $600 billion dollars since 1957, with over $240 billion of that leaving Alberta in just the past 13 years, and 61.7% of voters voted in favour of removing the principle of equalization from the constitution of Canada.
The provincial government then introduced a motion in the Legislature to recognize the result of the referendum, a necessary.
But they seemed to treat it as more of a marketing opportunity than the first step to kick off negotiations with Ottawa, timing the passage of the motion to coincide with Premier Kenney’s speech at the UCP AGM, rather than when it would have made the most waves in the media and in Ottawa.
Trudeau, therefore, was able to easily dismiss the referendum out of hand and his flippant response to Albertans’ clear frustration was just the first slight from Trudeau.
As the Alberta government held a press conference to announce the official referendum results, Trudeau rolled out his cabinet, installing radical environmentalist Steven Guilbeault as the new Minister of Environment and Climate Change.
Let’s be clear, none of this is about reducing emissions or responding to climate change.
This is about power.
This is about wealth and this is about kneecapping a region of the country that refuses to get on board with the Liberal’s radical tax-and-spend agenda.
The Liberals’ contingent at the COP26 Glasgow Climate Change summit made it clear that Western Canada’s energy industry will be maimed – all for the noble cause of “saving the world.”
Trudeau and his team upped the ante by announcing that Canada would cap oil and gas emissions and put Canada on a path to net-zero by 2050.
Former Parti Quebecois leader Jean-François Lisée made this point clear when he decided it was high time to publish an op-ed entitled “What Alberta Owes Us,” wherein he declared that Alberta doesn’t pay Quebec enough!
If Ottawa were honest about their intentions to save the climate, they would also be pointing their guns at Canada’s other heavily emitting industries.
“Ottawa will cap emissions from the oil and gas sector,” said Guilbeault upon his appointment.
“We’re not doing that with any other sectors — not steel, not the auto industry, forestry, cement,” he added.
That’s right, he didn’t just single out oil and gas in the regulations, he also actually bragged about it.
Not concrete. Not the auto industry. Not forestry. Not cement. Just oil and gas.
Premier Kenney had a brief moment where he came to the defence of Alberta, after David Suzuki warned at an Extinction Rebellion rally that “there are going to be pipelines blown up if our leaders don’t pay attention to what’s going on.”
Kenney’s response was well-put, so let’s give credit where credit is due:
“Regrettably, we know that there are people to whom he is speaking who believe that the end of, in their view, saving the planet justifies virtually any means, including violence. We do know. I mean, the term ‘eco terrorism’ is not some kind of a conservative talking point – it’s a reflection of a philosophy and real actions that have really taken lives.”
But again, it’s words, not action.
A couple of strongly-worded statements and/or motions in the Legislature won’t cut it in the face of a series of major political attacks from Ottawa.
When the Legislature returns, we need action.
Action on a provincial police force, action on equalization, action on pensions, action on pipelines.
Albertans want action and Project Confederation is ready to take action.
In the new year, we’ll be returning to organizing in-person meetings and events across the province, to build up teams of activists and volunteers who are ready to push for real action.
If you’re ready to get involved, please click here to sign up to volunteer.
If you can help fund these events, and our ongoing activism work, please click here to make a donation.
Alberta
Alberta’s fiscal update projects budget surplus, but fiscal fortunes could quickly turn
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:
Alberta
Premier Smith says Auto Insurance reforms may still result in a publicly owned system
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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