Alberta
Alberta awash in corporate welfare
![](https://www.todayville.com/wp-content/uploads/2024/07/tvrd-fi-corporate-welfare-image-2024-07-26.jpg)
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
‘Coutts Two’ Verdict: Bail and Mischief
![](https://www.todayville.com/wp-content/uploads/2024/09/tvrd-fcpp-coutts-protest-feb-2022-image-2024-09-02.jpg)
Protesters demonstrating against COVID-19 mandates and restrictions gather as a truck convoy blocks the highway at the Canada-U.S. border crossing in Coutts, Alta., on Feb. 2, 2022. The Canadian Press/Jeff McIntosh
From the Frontier Centre for Public Policy
By Ray McGinnis
Imagine spending over two years behind bars, only to be told the evidence never supported the charges against you.
On Aug. 2, a Lethbridge jury found Chris Carbert and Tony Olienick not guilty of the most serious charge of conspiracy to commit murder of police officers. However, though they were declared innocent, the conspiracy charge was the basis for their being held in remand for at least 925 days. They were denied bail based on this charge.
The sentencing hearing for other charges against Carbert and Olienick is taking place this week.
Granting Bail Typical for Serious Offences
In Canada, when someone is charged with committing a crime, they’re released on bail. This includes those charged with murder. For example, in September 2021, 31-year-old Umar Zameer was released on bail after being charged with the first-degree murder of Toronto Police Constable Jeffrey Northrup.
A case of double murder in the city of Mission in B.C.’s Fraser Valley concerned the deaths of Lisa Dudley and her boyfriend Guthrie McKay. Tom Holden, accused of first-degree murder in the case, was released on bail.
Conditions for not Granting Bail
Why do we release people from custody after being charged with a crime? Why don’t we hold people indefinitely? It’s been a Canadian tradition that there’s a process in place to which we adhere. Does the person charged with a crime seem to present a risk of repeating an offence? Carbert and Olienick hadn’t previously committed the offence(s) they were charged with. They didn’t have any criminal records for any violence. So, the likelihood of repetition of offence didn’t apply.
Another reason for denying bail is flight risk. But the Crown agreed neither of these men posed a flight risk. If you’re not clear about the identity of the person you’ve arrested, you can hold them in custody. But the Crown and the RCMP were certain of the identity of these men.
How about denying bail for evidence protection? If let go, was it possible the Crown or RCMP would lose evidence, and they needed to keep Carbert and Olienick in remand? No.
Were Carbert or Olienick considered a danger to the public? No. They had no past history of committing violent crimes, so in the case of the Coutts Two this was not a reason to deny bail.
The Crown insisted the pair be denied bail because their release would undermine confidence in the judicial system. Due to the seriousness of the offences the pair were charged with, releasing them would put the legal system into disrepute. But this is a circular argument. In authoritarian countries, police may arrest citizens on serious charges they’re not guilty of and leave them in prison indefinitely.
Granting Bail Goes Back to Magna Carta
Since the Magna Carta was signed in 1215, western judicial institutions have allowed those charged with a crime to be presumed innocent until proven guilty. With that provision comes the right to bail and a speedy trial. When citizens are accused of a crime and left to rot in prison without having their day in court, their spirits can be broken and persuaded to agree to plead guilty even when they are innocent.
Unindicted Co-conspirators Never Interviewed
During the trial, the Crown repeatedly named a list of unindicted co-conspirators. Each had a licence to carry a weapon in public for years. None of them were ever searched. None of them were ever interviewed. None of the alleged co-conspirators received any communication from the RCMP, or other authorities, about their possible connection to a conspiracy to murder police officers. However, the list of names provided for some legal theatre in the court added to the ominous scale of the supposed conspiracy to murder police officers.
Intelligence
Former career police officer Vincent Gircys had standing in the Justice Mosley decision. The judge ruled in January 2024 that the government’s invocation of the Emergencies Act in February 2022 to end the convoy protests was unconstitutional.
After the Coutts Two verdict, Gircys was concerned about the intelligence. There was a disconnect between the conspiracy charge and the evidence the Crown brought to trial. Gircys stated, “It’s really important to find where that disconnect is. Because of faulty intelligence? False intelligence? Fabricated intelligence? The evidence that they (RCMP) do have would all be logged, gathered, and time-lined. And that goes to what evidence was not gathered? … How could that information have been laid in the first place? How could the Crown have proceeded with this case to begin with?”
The Coutts Two were found not guilty of conspiracy to commit murder. But by the time they are sentenced on the other charges this week, they will have spent at least 925 days in custody. What does this mean for innocent until proven guilty?
Ray McGinnis is a Senior Fellow with the Frontier Centre for Public Policy. His forthcoming book is “Unjustified: The Emergencies Act and the Inquiry that Got It Wrong.”
Agriculture
P&H Group building $241-million flour milling facility in Red Deer County.
![](https://www.todayville.com/wp-content/uploads/2024/09/tvrd-rd-county-p-h-mill-image-2024-09-06.jpg)
P&H Milling Group has qualified for the Agri-Processing Investment Tax Credit program
Alberta’s food processing sector is the second-largest manufacturing industry in the province and the flour milling industry plays an important role within the sector, generating millions in annual economic impact and creating thousands of jobs. As Canada’s population continues to increase, demand for high-quality wheat flour products is expected to rise. With Alberta farmers growing about one-third of Canada’s wheat crops, the province is well-positioned to help meet this demand.
Alberta’s Agri-Processing Investment Tax Credit program is supporting this growing sector by helping to attract a new wheat flour milling business to Red Deer County. P&H Milling Group, a division of Parrish & Heimbecker, Limited, is constructing a $241-million facility in the hamlet of Springbrook to mill about 750 metric tonnes of wheat from western Canadian farmers into flour, every single day. The new facility will complement the company’s wheat and durum milling operation in Lethbridge.
“P&H Milling Group’s new flour mill project is proof our Agri-Processing Investment Tax Credit program is doing its job to attract large-scale investments in value-added agricultural manufacturing. With incentives like the ag tax credit, we’re providing the right conditions for processors to invest in Alberta, expand their business and help stimulate our economy.”
P&H Milling Group’s project is expected to create about 27 permanent and 200 temporary jobs. Byproducts from the milling process will be sold to the livestock feed industry across Canada to create products for cattle, poultry, swine, bison, goats and fish. The new facility will also have capacity to add two more flour mills as demand for product increases in the future.
“This new facility not only strengthens our position in the Canadian milling industry, but also boostsAlberta’s baking industry by supplying high-quality flour to a diverse range of customers. We are proud to contribute to the local economy and support the agricultural community by sourcing 230,000 metric tonnes of locally grown wheat each year.”
To be considered for the tax credit program, corporations must invest at least $10 million in a project to build or expand a value-added agri-processing facility in Alberta. The program offers a 12 per cent non-refundable tax credit based on eligible capital expenditures. Through this program, Alberta’s government has granted P&H Milling Group conditional approval for a tax credit estimated at $27.3 million.
“We are grateful P&H Milling Group chose to build here in Red Deer County. This partnership willbolster our local economy and showcase our prime centralized location in Alberta, an advantage that facilitates efficient operations and distribution.”
Quick facts
- In 2023, Alberta’s food processing sector generated $24.3 billion in sales, making it the province’s second-largest manufacturing industry, behind petroleum and coal.
- That same year, just over three million metric tonnes of milled wheat and more than 2.3 million metric tonnes of wheat flour was manufactured in Canada.
- Alberta’s milled wheat and meslin flour exports increased from $8.6 million in 2019 to $19.8 million in 2023, a 130.2 per cent increase.
- Demand for flour products rose in Alberta from 2019 to 2022, with retail sales increasing by 24 per cent during that period.
- Alberta’s flour milling industry generated about $840.7 million in economic impact and created more than 2,200 jobs on average between 2018 and 2021.
- Alberta farmers produced 9.3 million metric tonnes of wheat in 2023, representing 29.2 per cent of total Canadian production.
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