Alberta
Alberta awash in corporate welfare
From the Fraser Institute
By Matthew Lau
To understand Ottawa’s negative impact on Alberta’s economy and living standards, juxtapose two recent pieces of data.
First, in July the Trudeau government made three separate “economic development” spending announcements in Alberta, totalling more than $80 million and affecting 37 different projects related to the “green economy,” clean technology and agriculture. And second, as noted in a new essay by Fraser Institute senior fellow Kenneth Green, inflation-adjusted business investment (excluding residential structures) in Canada’s extraction sector (mining, quarrying, oil and gas) fell 51.2 per cent from 2014 to 2022.
The productivity gains that raise living standards and improve economic conditions rely on business investment. But business investment in Canada has declined over the past decade and total economic growth per person (inflation-adjusted) from Q3-2015 through to Q1-2024 has been less than 1 per cent versus robust growth of nearly 16 per cent in the United States over the same period.
For Canada’s extraction sector, as Green documents, federal policies—new fuel regulations, extended review processes on major infrastructure projects, an effective ban on oil shipments on British Columbia’s northern coast, a hard greenhouse gas emissions cap targeting oil and gas, and other regulatory initiatives—are largely to blame for the massive decline in investment.
Meanwhile, as Ottawa impedes private investment, its latest bundle of economic development announcements underscores its strategy to have government take the lead in allocating economic resources, whether for infrastructure and public institutions or for corporate welfare to private companies.
Consider these federally-subsidized projects.
A gas cloud imaging company received $4.1 million from taxpayers to expand marketing, operations and product development. The Battery Metals Association of Canada received $850,000 to “support growth of the battery metals sector in Western Canada by enhancing collaboration and education stakeholders.” A food manufacturer in Lethbridge received $5.2 million to increase production of plant-based protein products. Ermineskin Cree Nation received nearly $400,000 for a feasibility study for a new solar farm. The Town of Coronation received almost $900,000 to renovate and retrofit two buildings into a business incubator. The Petroleum Technology Alliance Canada received $400,000 for marketing and other support to help boost clean technology product exports. And so on.
When the Trudeau government announced all this corporate welfare and spending, it naturally claimed it create economic growth and good jobs. But corporate welfare doesn’t create growth and good jobs, it only directs resources (including labour) to subsidized sectors and businesses and away from sectors and businesses that must be more heavily taxed to support the subsidies. The effect of government initiatives that reduce private investment and replace it with government spending is a net economic loss.
As 20th-century business and economics journalist Henry Hazlitt put it, the case for government directing investment (instead of the private sector) relies on politicians and bureaucrats—who did not earn the money and to whom the money does not belong—investing that money wisely and with almost perfect foresight. Of course, that’s preposterous.
Alas, this replacement of private-sector investment with public spending is happening not only in Alberta but across Canada today due to the Trudeau government’s fiscal policies. Lower productivity and lower living standards, the data show, are the unhappy results.
Author:
Alberta
Alberta’s methane emissions fall 52 per cent
Alberta has cut its methane emissions from the oil and gas sector in half, showing how to reduce emissions and keep powering the world.
As global demand for energy continues to rise, Alberta remains one of the most responsible producers in the world. The province was the first in Canada to set a methane emissions reduction target for the upstream oil and gas sector, and its approach has won international awards and recognition.
This is the message Alberta’s government will take to COP 29. The Alberta approach is working. It is possible to reduce methane emissions and grow the economy, all while delivering the safe, affordable, reliable energy the world will need for generations to come.
According to the latest data from the Alberta Energy Regulator, Alberta has now officially reduced methane emissions from the oil and gas sector by 52 per cent since 2014, even as production has continued rising. The province’s common-sense approach is reducing emissions, creating jobs and growing the economy without punitive federal regulations or caps.
“We do not need Ottawa to tell us how to reduce emissions. In fact, the federal government should learn from Alberta’s success. By working closely with industry and focusing on technology, not costly taxes or unrealistic targets, we can achieve rapid emission reductions while delivering the safe, affordable, reliable energy the world needs.”
Under Alberta’s equivalency agreement with the Government of Canada, the province is in charge of regulating methane emissions. Alberta’s approach is working closely with industry and focusing on achievable results, including early action programs like carbon offsets, implementation of strong provincial regulatory requirements in place for all facilities, and improved leak detection and repair. This is estimated to have saved industry about $600 million compared with the alternative federal regulations that would otherwise have been required.
Since 2020, Alberta has invested $78 million from the industry-funded Technology Innovation and Emissions Reduction program to improve methane monitoring and management. Almost 15,000 well sites and facilities have been reviewed across the province, preventing nearly 17 million tonnes of emissions from being released.
Continuing this momentum, the province recently announced $15 million in funding for the NGIF Emissions Testing Centre to help companies test technologies free of charge in both laboratory and live settings, attract investors and get methane emissions reduction technologies to market faster. Alberta is also engaging with industry to develop a flexible, forward-looking path that will keep reducing emissions while supporting responsible energy production.
“Tourmaline, like other producers in Western Canada, has been diligently reducing methane emission intensity across our field operations, and we are targeting a 55 per cent reduction from 2020 levels by 2027. We operate a world-leading methane emissions testing centre (ETC) at our West Wolf Lake gas plant near Edson, Alberta. At the ETC site, the latest technologies to better measure and mitigate future methane emissions are being developed.”
Minister of Environment and Protected Areas Rebecca Schulz will travel to the 29th Conference of the Parties to the United Nations Framework Convention on Climate Change (COP 29) from Nov. 10 to 16 to share Alberta’s success with the world. Alberta’s environment minister will use the largest global climate summit to promote the province’s effective approach to reducing emissions while keeping energy reliable, secure and affordable.
Alberta’s government is committed to working with national and international partners to advance shared interests that can lead to new opportunities for people and businesses around the world.
Minister Schulz will attend COP29 with one staff member and three department officials. Mission expenses will be posted on the travel and expense disclosure page.
Itinerary for Minister Schulz*
Nov. 10-11 |
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Nov. 12 |
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Nov. 13 |
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Nov. 14 |
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Nov. 15 |
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Nov. 16 |
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*Subject to change.
Quick facts
- The Alberta Energy Regulator monitors, compiles and reports methane emissions data by facility type, production type and area. It releases the ST60B report annually to ensure the public and stakeholders have the latest information about methane emissions from Alberta’s upstream oil and gas sector.
- Alberta carbon offset protocols resulted in more than 58,000 low- or no-bleed devices being installed, and more than 7 million offset credits have been serialized.
- Alberta uses a combination of bottom-up and top-down measurement, monitoring and verification techniques as part of methane measurement compliance data.
Related information
Alberta
39 percent increase in funding for RCMP instigates discussion about future policing for rural Alberta
Alberta’s government will pay the 39% increase for one year and will begin engagement with smaller communities on their policing needs for the future.
Alberta’s government is temporarily freezing the amount rural municipalities are responsible for paying for front-line policing services in Alberta.
The province is responsible for providing policing services to municipal districts, counties and urban municipalities with populations less than 5,000. In response to rising rural crime, Alberta’s government announced increased funding for RCMP services in 2019 which helped create hundreds of additional RCMP positions across the province.
When these changes came into effect in 2020, the province also worked with Alberta Municipalities and Rural Municipalities of Alberta to create a shared funding model through the Police Funding Regulation. Now, due to higher costs from recent RCMP collective agreements, the cost for policing in these smaller communities will increase by 39 per cent, with no corresponding increase in the services provided. To assist municipalities with these new costs, Alberta’s government will pay the increase for one year and will begin engagement with them on their policing needs for the future.
“The expiring regulation would have municipalities seeing a 39 per cent increase in their costs – with no improvement in policing services delivered. We know this is not acceptable for many municipalities. This cost freeze will give rural municipalities the stability and predictability they need, and it will allow for meaningful engagement between the province and municipalities on equitable support.”
“Alberta’s government understands that such an increase in costs for service will be a challenge to our rural municipalities. With the costs frozen for a year, we look forward to a comprehensive review of the police funding model with our municipal partners. During our review, we will carefully consider all factors to ensure we provide an updated funding model that is sustainable.”
Municipalities are preparing their budgets for 2025, and those served by the RCMP under the Provincial Police Service Agreement can continue to expect the same level of service without the additional costs for one year. While these costs are shared between municipalities and the province, the province will pay a higher proportion of the costs next fiscal year, a total of $27 million, so that municipalities’ costs remain stable while they determine how to cover the increases on a forward basis and what the best model of policing is for their community.
The Police Funding Regulation introduced in 2020 was phased in over several years, with rural municipalities paying an increasing share of their policing costs each year for four years. Municipalities have been paying 30 per cent of front-line policing costs since fiscal year 2023-24. By sharing costs, the province has been able to afford the addition of many new RCMP police officers, programs and services over the past several years.
The Police Funding Regulation has been in place for almost five years, and with the significant cost increases coming from the federal government, the province will undertake a review to determine what improvements may be needed. While the regulation was originally supposed to expire March 31, 2025, Alberta’s government has extended it by one year to March 31, 2026, which will enable the province and municipalities to have fulsome conversations about future policing needs and models. More details about the comprehensive review and engagement opportunities for rural municipalities will be released shortly.
Quick Facts:
- The Police Funding Regulation brought in a new funding model, which was phased in over several years, with rural municipalities paying an increasing share of their policing costs each year, reaching the intended 30 per cent in 2023.
- They were charged 10 per cent starting April 1, 2020. This increased to 15 per cent one year later, 20 per cent the following year and finally 30 per cent starting April 1, 2023.
- The initial funding model was based on 2018 costs to provide certainty and stability to municipalities.
- After 2024-25, the municipal share will be required to be based on current policing costs, resulting in a proposed 39 per cent increase in costs for municipalities.
- The Police Funding Model enabled a $235.4-million investment in policing over five years, adding 285 regular members and 244 civilian positions to enhance rural policing.
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