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Alberta

Alberta justice minister hikes fines, promises renewed effort on COVID-19 scofflaws

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EDMONTON — Alberta has doubled fines for disobeying public health measures meant to fight COVID-19 and Justice Minister Kaycee Madu is promising a renewed effort to stop public health scofflaws will succeed.

“Enforcement will be done, and Albertans will see it being done,” Madu told a news conference Wednesday.

“It has become clear that there are a small few who refuse to comply with reasonable and legitimate public health orders”

The United Conservative government passed an order in council Wednesday that doubles fines for public health violations to $2,000.

Madu said there is also a new protocol for health officials, police and government to co-ordinate and target repeat individuals and groups that flout the law.

He said he discussed with police chiefs this week what further tools and resources they need to step up enforcement.

Premier Jason Kenney on Tuesday announced stronger measures to reverse soaring COVID-19 cases that threaten to overwhelm hospitals by month’s end and to force doctors to decide which patients get life-saving care.

Kenney’s government has been criticized for being a paper tiger on lawbreakers. In January, it allowed some restaurants to flout dine-in restrictions. GraceLife church, in Spruce Grove, Alta., west of Edmonton, was able to hold Sunday services for months that officials have said ignored rules on masks, capacity limits and physical distancing. Police physically blocked off the church just a month ago.

The enforcement issue made headlines again on this weekend when hundreds of people gathered near Bowden in central Alberta for a pre-advertised maskless “No More Lockdowns” protest rodeo.

Edmonton and Calgary have also seen maskless mass protests against health restrictions.

Action was taken Wednesday against one accused repeat offender. Alberta Health Services announced the Whistle Stop Café in Mirror, Alta., had been physically closed and access barred. The café had been flagged for repeatedly breaking COVID-19 health restrictions by staying open and serving customers.

Opposition NDP Leader Rachel Notley said Kenney’s government set its enforcement policy up for failure from the get-go by stressing education first and enforcement as a last resort.

Referring to the protocol Madu outlined, Notley said: “The fact there is a protocol to tell them to talk to each other is not new. It is a policy dressed up to look like action, but it is not significant, and that’s why we’re calling on them to do more.”

She criticized the plan to target only repeat offenders: “(That) says to me their plan is to give everybody their first rodeo free, which is in effect what they did with the Bowden rodeo.

“This has to stop because that Bowden rodeo will turn out to be a super-spreader. People will get sick from that rodeo. People will get seriously ill.”

Kenney announced tighter rules Tuesday, some of which came in effect Wednesday. Outdoor gatherings, which had been limited to 10 people, are now capped at five. Worship services, which were allowed at 15 per cent capacity, have been reduced to 15 people maximum.

Retailers, which had been open at 15 per cent customer capacity, are restricted to 10 per cent.

On Friday, all kindergarten to Grade 12 students will learn from home. On Sunday, restaurants must close their patios and offer takeout service only. Personal wellness services, including hair salons and barber shops, will have to close.

Indoor social gatherings remain banned. Entertainment venues, including movie theatres and casinos, also remain closed.

As of Wednesday, Alberta had 24,156 active cases of COVID-19, with 666 people in hospital. It has experienced the highest infection rates in North America in recent weeks.

There are almost 1.7 million Albertans who have received at least one dose of vaccine. About one in three adults have had a shot.

Kenney said the vaccination rollout will be expanded drastically, with everyone in the province 12 and older to soon be eligible.

Every Albertan born in 1991 or earlier will be able to book vaccinations starting Friday. On Monday, appointments will be offered to anyone born between 2009 and 1992.

Earlier Wednesday, Health Canada approved the Pfizer-BioNTech vaccine for children as young as 12.

This report by The Canadian Press was first published May 5, 2021.

Dean Bennett, The Canadian Press

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Alberta

Low oil prices could have big consequences for Alberta’s finances

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From the Fraser Institute

By Tegan Hill

Amid the tariff war, the price of West Texas Intermediate oil—a common benchmark—recently dropped below US$60 per barrel. Given every $1 drop in oil prices is an estimated $750 million hit to provincial revenues, if oil prices remain low for long, there could be big implications for Alberta’s budget.

The Smith government already projects a $5.2 billion budget deficit in 2025/26 with continued deficits over the following two years. This year’s deficit is based on oil prices averaging US$68.00 per barrel. While the budget does include a $4 billion “contingency” for unforeseen events, given the economic and fiscal impact of Trump’s tariffs, it could quickly be eaten up.

Budget deficits come with costs for Albertans, who will already pay a projected $600 each in provincial government debt interest in 2025/26. That’s money that could have gone towards health care and education, or even tax relief.

Unfortunately, this is all part of the resource revenue rollercoaster that’s are all too familiar to Albertans.

Resource revenue (including oil and gas royalties) is inherently volatile. In the last 10 years alone, it has been as high as $25.2 billion in 2022/23 and as low as $2.8 billion in 2015/16. The provincial government typically enjoys budget surpluses—and increases government spending—when oil prices and resource revenue is relatively high, but is thrown into deficits when resource revenues inevitably fall.

Fortunately, the Smith government can mitigate this volatility.

The key is limiting the level of resource revenue included in the budget to a set stable amount. Any resource revenue above that stable amount is automatically saved in a rainy-day fund to be withdrawn to maintain that stable amount in the budget during years of relatively low resource revenue. The logic is simple: save during the good times so you can weather the storm during bad times.

Indeed, if the Smith government had created a rainy-day account in 2023, for example, it could have already built up a sizeable fund to help stabilize the budget when resource revenue declines. While the Smith government has deposited some money in the Heritage Fund in recent years, it has not created a dedicated rainy-day account or introduced a similar mechanism to help stabilize provincial finances.

Limiting the amount of resource revenue in the budget, particularly during times of relatively high resource revenue, also tempers demand for higher spending, which is only fiscally sustainable with permanently high resource revenues. In other words, if the government creates a rainy-day account, spending would become more closely align with stable ongoing levels of revenue.

And it’s not too late. To end the boom-bust cycle and finally help stabilize provincial finances, the Smith government should create a rainy-day account.

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Alberta

Governments in Alberta should spur homebuilding amid population explosion

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From the Fraser Institute

By Tegan Hill and Austin Thompson

In 2024, construction started on 47,827 housing units—the most since 48,336 units in 2007 when population growth was less than half of what it was in 2024.

Alberta has long been viewed as an oasis in Canada’s overheated housing market—a refuge for Canadians priced out of high-cost centres such as Vancouver and Toronto. But the oasis is starting to dry up. House prices and rents in the province have spiked by about one-third since the start of the pandemic. According to a recent Maru poll, more than 70 per cent of Calgarians and Edmontonians doubt they will ever be able to afford a home in their city. Which raises the question: how much longer can this go on?

Alberta’s housing affordability problem reflects a simple reality—not enough homes have been built to accommodate the province’s growing population. The result? More Albertans competing for the same homes and rental units, pushing prices higher.

Population growth has always been volatile in Alberta, but the recent surge, fuelled by record levels of immigration, is unprecedented. Alberta has set new population growth records every year since 2022, culminating in the largest-ever increase of 186,704 new residents in 2024—nearly 70 per cent more than the largest pre-pandemic increase in 2013.

Homebuilding has increased, but not enough to keep pace with the rise in population. In 2024, construction started on 47,827 housing units—the most since 48,336 units in 2007 when population growth was less than half of what it was in 2024.

Moreover, from 1972 to 2019, Alberta added 2.1 new residents (on average) for every housing unit started compared to 3.9 new residents for every housing unit started in 2024. Put differently, today nearly twice as many new residents are potentially competing for each new home compared to historical norms.

While Alberta attracts more Canadians from other provinces than any other province, federal immigration and residency policies drive Alberta’s population growth. So while the provincial government has little control over its population growth, provincial and municipal governments can affect the pace of homebuilding.

For example, recent provincial amendments to the city charters in Calgary and Edmonton have helped standardize building codes, which should minimize cost and complexity for builders who operate across different jurisdictions. Municipal zoning reforms in CalgaryEdmonton and Red Deer have made it easier to build higher-density housing, and Lethbridge and Medicine Hat may soon follow suit. These changes should make it easier and faster to build homes, helping Alberta maintain some of the least restrictive building rules and quickest approval timelines in Canada.

There is, however, room for improvement. Policymakers at both the provincial and municipal level should streamline rules for building, reduce regulatory uncertainty and development costs, and shorten timelines for permit approvals. Calgary, for instance, imposes fees on developers to fund a wide array of public infrastructure—including roads, sewers, libraries, even buses—while Edmonton currently only imposes fees to fund the construction of new firehalls.

It’s difficult to say how long Alberta’s housing affordability woes will endure, but the situation is unlikely to improve unless homebuilding increases, spurred by government policies that facilitate more development.

Tegan Hill

Director, Alberta Policy, Fraser Institute

Austin Thompson

Senior Policy Analyst, Fraser Institute
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