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Alberta

Alberta remains largest net contributor to Ottawa’s coffers despite damaging federal policies

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From the Fraser Institute

By Tegan Hill and Spencer Gudewill

According to a recent poll by the Angus Reid Institute, nearly half of Albertans believe they get a “raw deal”—that is, they give more than they get—being part of Canada. It’s easy to see why Albertans are frustrated. Despite the province’s crucial role in the federation, the federal government continues to inflict restrictive and damaging policies on the Albertan economy.

The Trudeau government’s list of policies includes Bill C-69 (which imposes complex, uncertain and onerous review requirements on major energy projects), Bill C-48, (which bans large oil tankers off British Columbia’s northern coast and limits access to Asian markets), the oil and gas emission cap, the “clean fuel standard,” numerous “net-zero” targets that disproportionately impact Alberta, and so on. Not surprisingly, the same poll found that 65 per cent of Albertans believe federal government policies have hurt their province’s economy.

What’s less clear is why the federal government wants to thwart Alberta’s economic engine, considering how much the province contributes to the federation financially. In our current system of federalism, Ottawa collects various taxes then redistributes money to Canadians in other provinces for federal programs including equalization, the Canada Pension Plan (CPP) and employment insurance.

According to a new study published by the Fraser Institute, from 2007 to 2022 (the latest period of available data), Albertans contributed $244.6 billion more in taxes and other payments to the federal government than they received in federal spending—more than five times as much as British Columbians or Ontarians. The other seven provinces received more federal dollars than they contributed to federal revenues. In other words, Alberta is by far the largest net contributor to Ottawa’s coffers.

Alberta’s large net contribution reflects its comparatively young population (fewer retirees), higher rates of employment, higher average incomes and relatively strong economy. Alberta has a history of punching above its weight economically. For perspective, from 1981 to 2022, the province had the highest annual average economic growth rate in Canada. And despite dips in growth due to the 2014 oil-price collapse and COVID, in 2022 Alberta accounted for 17.9 per cent of Canada’s total economic growth despite being home to just 11.6 per cent of the country’s population.

It’s a similar story for business investment per private-sector worker (in 2022, Alberta’s level more than doubled the non-Alberta average among provinces) and private-sector job growth with Alberta contributing nearly one in every five private-sector jobs created in Canada in 2022.

Alberta’s prosperity, which helps fuel federation, may help explain why in 2022 56,245 more Canadian residents moved to Alberta than left it—a much higher net inflow than in any other province. For decades, Alberta has provided economic opportunities for Canadians from other provinces willing to relocate.

Finally, without Alberta’s large net contribution to the federal government’s bottom line, Ottawa would have significantly larger budget deficits. In 2022, for instance, without Alberta the Trudeau government’s $25.7 billion budget deficit would have ballooned to $39.9 billion. The larger the deficit (all else equal) the greater the debt accumulation, which Canadians must ultimately finance through their taxes.

When Alberta’s economy is strong and prosperous, it benefits all of Canada. And due to Alberta’s economic success, Albertans continue to contribute relatively more to the federation than Canadians in other provinces. That’s something the federal government should encourage, not discourage.

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Alberta

Ottawa’s oil and gas emissions cap will hit Alberta with a wallop

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From the Fraser Institute

By Kenneth P. Green

Even if Canada eliminated all its GHG emissions expected in 2030 due to the federal cap, the emission reduction would equal only four-tenths of one per cent of global emissions—a reduction unlikely to have any impact on the trajectory of the climate in any detectable manner or produce any related environmental, health or safety benefits.

After considerable waiting, the Trudeau government released on Monday draft regulations to cap greenhouse gas (GHG) emissions from Canada’s oil and gas producers.

The proposed regulations would set a cap on GHG emissions equivalent to 35 per cent of the emissions produced in 2019 and create a GHG emissions “cap and trade” system to enable oil and gas producers (who cannot reduce emissions enough to avoid the cap) to buy credits from other producers able to meet the cap. Producers unable to meet the cap will also be able to obtain emission credits (of up to 20 per cent of their needed emission reductions) by investing in decarbonization programs or by buying emission “offsets” in Canada’s carbon markets.

According to the government, the cap will “cap pollution, drive innovation, and create jobs in the oil and gas industry.” But in reality, while the cap may well cap pollution and drive some innovation, according to several recent analyses it won’t create jobs in the oil and gas industry and will in fact kill many jobs.

For example, the Conference Board of Canada think-tank estimates that the cap would reduce Canada’s GDP by up to $1 trillion between 2030 and 2040, kill up to 151,300 jobs across Canada by 2030, and national economic growth from 2023 to 2030 would slow from 15.3 per cent to 14.3 per cent.

Not surprisingly, Alberta would be hardest hit. According to the Board, from 2023 to 2030, the province’s economic growth would fall from an estimated 17.8 per cent to 13.3 per cent and employment growth would fall from 15.8 per cent to 13.6 per cent over the same period. Alberta government revenues from the sector would decline by 4.5 per cent in 2030 compared to a scenario without the cap. As a result, Alberta government revenues would be $4.5 billion lower in nominal terms in fiscal year 2030/31. And between 54,000 to 91,500 of Canada’s job losses would occur in Alberta.

Another study by Deloitte estimates that, due to the federal cap, Alberta will see 3.6 per cent less investment, almost 70,000 fewer jobs, and a 4.5 per cent decrease in the province’s economic output (i.e. GDP) by 2040. Ontario would lose more than 15,000 jobs and $2.3 billion from its economy by 2040. And Quebec would lose more than 3,000 jobs and $0.4 billion from its economy during the same period.

Overall, according to Deloitte, Canada would experience an economic loss equivalent to 1.0 per cent of GDP, translating into lower wages, the loss of nearly 113,000 jobs and a 1.3 per cent reduction in government tax revenues. (For context, Canada’s economic growth in 2023 was only 1.1 per cent.)

And what will Canadians get for all that economic pain?

In my study published last year by the Fraser Institute, I found that, even if Canada eliminated all its GHG emissions expected in 2030 due to the federal cap, the emission reduction would equal only four-tenths of one per cent of global emissions—a reduction unlikely to have any impact on the trajectory of the climate in any detectable manner or produce any related environmental, health or safety benefits.

Clearly, the Trudeau government’s new proposed emissions cap on the oil and gas sector will impose significant harms on Canada’s economy, Canadian workers and our quality of life—and hit Alberta with a wallop. And yet, as a measure intended to avert harmful climate change, it’s purely performative (like many of the government’s other GHG regulations) and will generate too little emission reductions to have any meaningful impact on the climate.

In a world of rational policy development, where the benefits of government regulations are supposed to exceed their costs, policymakers would never consider this proposed cap. The Trudeau government will submit the plan to Parliament, and if the cap becomes law, it will await some other future government to undo the damage inflicted on Canadians and their families.

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Alberta

Edmonton public school board takes action in defiance of Alberta’s proposed pro-family policies

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From LifeSiteNews

By Clare Marie Merkowsky

The Edmonton Public School Board filed a motion against Alberta’s new policies requiring parents to opt in rather than opt out of sex-ed classes and mandating that parental permission is obtained before a student uses a different pronoun.

An Edmonton school board submitted a motion to defy Alberta’s policy requiring parental knowledge if a child goes by different pronouns at school.

On November 5, the Edmonton Public School Board filed a motion against Alberta’s new pro-family policies requiring parents to opt in rather than opt out of sex-ed classes and mandating that parental permission is obtained before a student uses a different pronoun.

“The Division’s current policy on sexual orientation, gender identity and gender expression is part of our mandate to provide a safe, welcoming and healthy school environment for students, staff and families,” the board claimed in the motion sent to the Board of Trustees.

“The policy changes being proposed by Premier Smith will contradict what our Board, and previous Boards of Trustees, have worked hard to ensure: the safety and well being of all children in Edmonton Public schools,” it continued.

The new policies, introduced last week by Alberta Premier Danielle Smith under Bill 27, will mean that sex-education classes will not be included in a child’s education, and teachers or school staff will no longer be allowed to conceal whether a student begins to use different pronouns or names.

Once Bill 27 becomes law, schools must notify parents of what is being taught at least “30 days in advance and be given the opportunity to opt in rather than opt out of this instruction.”

However, while Alberta is working to keep parents informed and children safe from the radical LGBT agenda, the Edmonton board has argued parents must be kept in the dark to prevent them from stopping their children from accepting the falsehoods of the LGBT agenda.

“For transgender youth who choose a name different from the one given at birth, use of their chosen name in multiple contexts affirms their gender identity and reduces mental health risks, which are known to be high in this group,” the board claimed.

However, significant body of evidence shows that “affirming” gender confusion carries serious harms, especially when done with impressionable children who lack the mental development, emotional maturity, and life experience to consider the long-term ramifications of the decisions being pushed on them, or full knowledge about the long-term effects of life-altering, physically transformative, and often irreversible surgical and chemical procedures.

Additionally, as LifeSiteNews previously reported, many Ontario parents revealed that public schools did not ask for parental consent before “gender transitioning” their children, resulting in child-parent relationships being destroyed.

Furthermore, many teachers struggle to keep secret from parents. A Saskatchewan teacher who wished to remain anonymous previously told LifeSiteNews that she feels guilty about keeping secrets from parents and supports the decision to keep parents informed.

“I fear that we are not supporting students or parents when we keep secrets,” she explained. “We have many students using alternate names, which sometimes changes frequently during the year, and then are asked by parents if we were aware of the changes after the fact. I feel responsible for keeping the secret and I don’t think it’s fair. I think schools are already taking on too many ‘parent roles’ and it’s important that parents play the ‘parent role’ not teachers!”

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