Opinion
Blackfalds, Sylvan Lake, Penhold all grew in population last year while Red Deer declined.
Penhold has a population of 3,277. It takes the same time for the residents of Penhold to get to Hunting Hills High School in Red Deer or the Collicutt Center as the residents in the Kentwood subdivision in Red Deer. It will be quicker for the Penhold residents to get to the Collicutt Centre than any residents planned for north of 11a.
The population of Penhold is 10% of the population north of the river in Red Deer, now and will be only about 6% after developing the land north of 11A. Yet there is not a high school or a secondary school now or being planned for north of the river.
Let us look at Penhold, with 10% of the population and possibly easier access to Red Deer High Schools and the Collicutt Centre built.
For starters they worked with various groups and built Penhold Crossing Secondary School and the Penhold Multiplex combination.
Our beautiful new school in Penhold is a unique ‘P3’ partnership with the Province of Alberta, the Town of Penhold, and Chinook’s Edge. It is adjacent to the Penhold Multiplex, which provides the school community with access to the newly constructed arena, gym and community library. We are a grade 6 – 12 school, which has been growing substantially each year.
The Penhold Multiplex is a diverse facility located in Penhold at 1 Waskasoo Avenue.
Serving all of central Alberta, the facility boasts:
• An exceptional NHL size ice surface
• Meeting rooms
• A fitness center
• Running track
• Dance studio
• Concession
• Lounge
• Library
• Town administration offices
Penhold has a population of 3,277, they planned ahead, they acquired more needed land and they grew last year, while Red Deer shrank.
Blackfalds grew after developing the Abbey Centre, which like Penhold was not built downtown. Sylvan Lake invested in the Nexsource Centre-multiplex. Blackfalds gained 700 new residents last year, Sylvan lake gained 632 last year, Penhold gained 491 new residents while Red Deer lost 975 residents. 777 of those who moved out of Red Deer lived north of the river.
All these communities are less than half of the population of Red Deer, north of the river, with Penhold at 10%, being the smallest. They are all growth communities.
Why then, can’t the city, the province and the school boards address this deficiency.
A proposal that I have been suggesting for years now, is develop Hazlett Lake. Not only would it address these issues it would encourage tourism, help the less fortunate, combat juvenile delinquencies, encourage growth, and the stature of the city.
Hazlett Lake is up for development now, and I worry that the city will chop it up, industrialize it, or completely ignore it’s potential. Highly visible from Hwy 2 and Hwy 11A, it would draw tourism. Lethbridge built Henderson Lake Park around a man-made slough and they are the 5th fastest growing city in Canada.
Build a Collicutt Centre type complex with a 51m pool, a Penhold Multiplex with a library and a secondary school, with a 51m pool competition pool. Incorporate the lake for swimming, boating, fishing, kayaking, canoeing, photography or sun tanning on a beach like Lethbridge does.
Lethbridge, Penhold, Blackfalds, Sylvan Lake must have done something right because they all grew last year while Red Deer shrank. There must be something we learn from this?
armed forces
State of federal finances make NATO spending target very challenging
From the Fraser Institute
By Jake Fuss and Grady Munro
Defence Minister Bill Blair recently claimed the federal government could “absolutely” achieve the North Atlantic Treaty Organization (NATO) defence spending target of 2.0 per cent of gross domestic product (GDP—a measure of the size of the economy) by 2027. However, the dismal state of Canada’s finances makes this accelerated timeline very costly to Canadians.
First, some background. In 2014, Canada (along with the other NATO members) formally pledged to increase spending on defence up to a target of 2.0 per cent of GDP by 2024. At the time, Canada spent 1.01 per cent of GDP on defence. A decade has passed and Canada has failed to fulfill that pledge. Indeed, based on the current defence spending plan and the latest GDP projections, Canada’s defence spending is expected to reach just 1.34 per cent of GDP ($41.0 billion) in 2024/25.
Based on the latest spending estimates from NATO, Canada is one of only eight NATO members (out of 31 in total) to spend less than 2.0 per cent of GDP on defence. As the large majority of the alliance has now met the spending target, and President Donald Trump has called for the target to be raised even further to 5 per cent of GDP, Canada will have to dramatically increase defence spending (lest we be at complete odds with our allies).
However, meeting the NATO 2.0 per cent target by 2027/28 would require billions more in annual federal spending (see the following figure).Over the next three years, according to the Parliamentary Budget Officer (PBO), the federal government will increase defence spending from a projected $41.0 billion in 2024/25 to $53.5 billion in 2027/28—with the majority of this increase occurring in the first year. This means, based on the current plan, Canada’s defence spending would only reach 1.55 per cent of GDP by 2027/28.
To reach 2.0 per cent of GDP in 2027/28, the government would need to spend $68.8 billion on defence during that fiscal year. Assuming the initial jump remains the same, this implies the government would need to increase annual defence spending by $16.5 billion from 2025/26 to 2027/28—$15.3 billion more than currently planned.
The federal government plans to run four consecutive budget deficits from 2024/25 to 2027/28 that add up to $151.9 billion in expected borrowing. In other words, the government already plans to spend more than it collects in revenues. Assuming the government adopts the spending plan shown in the above figure, reaching the NATO target by 2027/28 would require an additional $22.7 billion in borrowing.
Increasing the amount borrowed will impose substantial costs on Canadians. In the near-term it results in higher debt interest payments. Government must pay interest on its debt—same as a family with a mortgage—and rising interest costs leave less money available for programs and services. For perspective, largely due to past borrowing under the Trudeau government, federal debt interest payments are expected to equal all Goods and Services Tax (GST) revenues (and then some) in 2024/25. Longer-term, an increase in borrowed money will also burden future generations of taxpayers who will likely face higher taxes to pay for today’s spending.
Clearly, borrowing money to fund higher defence spending will only worsen the state of federal finances, meaning Canada is in a lose-lose situation when it comes to meeting the NATO 2.0 per cent target—risk the consequences of further disappointing our allies or take on billions more in debt.
Instead, Ottawa should identify and cut wasteful spending and use those savings for national defence. Simply put, smaller and smarter government spending could help get Canada out of this lose-lose situation.
Business
Trump’s executive orders represent massive threat to Canadian competitiveness
From the Fraser Institute
Donald Trump had a busy first day back on the job. From his desk in the Oval Office, President Trump signed a suite of executive orders including on energy and regulation, with major implications for Canada. He’s clearly rejected the primacy of a regulatory state (in favour of the legislative state), put a lock on the growth of U.S. regulation, and launched regulatory and cost controls. Essentially this means the U.S. will systemically deregulate while Canada is regulating its economy ever more heavily and broadly, making our economy even less competitive with the U.S.
Trump has also put paid to the fallacy of the great electric vehicle (EV) transition by pulling the plug on the U.S. EV mandate and federal consumer subsidies for EVs. Of course, now that the U.S. will not mandate EVs in large numbers, the massive investments Canada has made in EV and battery technology and manufacturing—on the expectation of selling EV parts and vehicles in the U.S. market—will likely see little return.
Trump’s withdrawal (for a second time) from the Paris climate agreement also puts U.S. policy further at odds with Canada. While Canada will spend huge amounts of money to attempt to comply with its climate commitments under the agreement, and hurt its energy and natural resource sectors in the process, the U.S. will not. In fact, the Trump administration will likely undo many of the things that have been done in the name of implementing the Paris agreement.
Trump‘s declaration of an energy emergency and his call for a massive increase in energy production by is also a direct threat to Canada’s energy economy. As we have seen in the past, the Americans can move very quickly to increase the supply of oil and natural gas when they put their mind to it and when regulations don’t stand in the way. A U.S. energy surge could lead to a flood of oil and gas production pretty quickly, leading the U.S. to need less and less Canadian oil and gas (as Trump has flamboyantly proclaimed).
Trump also wants to expedite energy project reviews and approvals, the exact opposite to the Trudeau government’s approach, which has frustrated the building of new pipelines and other projects. This will facilitate the U.S. ability to increase energy and natural resource production at a pace Canada cannot hope to match.
Simply put, setting aside Trump’s threatened tariffs, his day-one executive orders pose a serious threat to Canada’s energy and natural resource sectors, which remain a vital source of prosperity and revenue, and merit an immediate response from our federal government.
In an ideal world, Canada would harmonize its policy approach to the U.S. on energy and natural resources, which has, in fact, been a historical norm. But unfortunately for Canadians, the Trudeau government will likely reject Trump’s policy reforms and continue its pro-administrative state, anti-energy, anti-resource economic philosophy. And given Prime Minister Trudeau’s recent actions to prorogue Parliament, President Trump’s executive-order barrage won’t face a meaningful Canadian response for months, letting the U.S. steal a massive march on energy, natural resource and regulatory policy reforms over a Canada sitting on its hands.
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