Alberta
Alberta. The Best Province in a Nation in Trouble.
Submitted by Red Deer South MLA Jason Stephan
September 1 is Alberta Day. Alberta is a land of freedom and prosperity, welcoming all who desire to work and to serve, seeking happiness for themselves and their families. Alberta joined confederation and became part of Canada on September 1, 1905. Historically, Alberta has led Canada in key measures such as GDP per capita, business investment per worker, private sector employment, CPP contributions, equalization payments, etc. Alberta is the best.
Canada has benefited from Alberta more than Alberta has benefited from Canada. In this graph produced by the Fraser Institute, for its article titled Understanding Alberta’s Outsized Contribution to Confederation, it is estimated that Alberta businesses and workers, between 2017 to 2023, paid more than $244 billion to Ottawa than it received from Ottawa, dwarfing net contributions of the only two other contributing provinces, Ontario and BC, despite, in the case of Ontario, having a much larger population.
The biggest taker during this period was Quebec, receiving more than $327 billion from Ottawa than it paid. Many have written how Quebec and others “game” confederation to increase transfers from producers. Indeed, the current premier of Quebec said that his favorite thing about Canada is equalization.
While Canada has the potential to be the most free and prosperous country in the world, by objective measures it is not, and the flawed structure of “confederation”, and some who seek to exploit it to glut themselves on the labors of others, hold us back and drag us down. When the “redistribution” of wealth displaces the “production” of wealth as a ruling principle, we are in trouble and that is now.
Many are concerned that Trudeau’s Canada is a growing danger and threat to Alberta’s freedom and prosperity. That is true. Alberta is better off without Trudeau’s Canada. Trudeau’s Canada is a fiscal train wreck. Trudeau has smashed through a trillion dollars in debt, accumulating more debt than all Prime Ministers before him combined. This gross negligence, waste and disrespect will be burdens of our children long after they are gone. Canada now pays more in interest on its debt than it collects from the GST.
Prior to Trudeau, in 2014, Canada’s per capita GDP was 92% of the US. What is it now? In 2022, it is 72%, a 20% drop in less than 10 years, and getting worse. We are getting poorer, fast. It should not be this way, it does not need to be this way.
Canadians awake and alive to the truth of Trudeau’s Canada and where it is leading are rightly concerned and alarmed. But what to do? Some are leaving or have left.
Alberta has the highest per capita GDP in Canada, rejecting Trudeau’s woke, socialist values of mediocrity and virtue signaling, producing nothing. Trudeau’s Canada appears to resent Alberta with policies that single out Alberta, seeking to attack, hold back, or drag it down.
Do not count on many politicians to stand up for a “Fair Deal” for Alberta, because if Alberta gets a Fair Deal, then it means less handouts for others!
Let’s provide Albertans with the unbiased truth and facts surrounding “fiscal federalism”. Who is paying what, and who is getting what, directly or indirectly, from Alberta businesses and workers. Albertans should be supplied with the truth about what they are paying for and what Trudeau’s Canada is costing them. In this fall legislature I will be bringing forward a motion to get to these facts, even if some do not like it.
Let’s arm Albertans with more truth, and then trust them to lead, to know what is best. Let’s increase Alberta’s leverage for a Fair Deal. The less Alberta needs Canada, the more leverage Alberta has. There are many things that Alberta can do for Albertans better than Trudeau’s Canada.
Albertans need alternatives to Trudeau’s Canada; let’s prepare, insulate, and protect ourselves from this accelerating trainwreck, which unabated, will crash as sure as night follows day.
We cannot be complacent – less talk and more action.
Alberta is a blessed land of freedom and prosperity. We must be vigilant to keep it that way. Happy Alberta Day!
Alberta
Alberta’s fiscal update projects budget surplus, but fiscal fortunes could quickly turn
From the Fraser Institute
By Tegan Hill
According to the recent mid-year update tabled Thursday, the Smith government projects a $4.6 billion surplus in 2024/25, up from the $2.9 billion surplus projected just a few months ago. Despite the good news, Premier Smith must reduce spending to avoid budget deficits.
The fiscal update projects resource revenue of $20.3 billion in 2024/25. Today’s relatively high—but very volatile—resource revenue (including oil and gas royalties) is helping finance today’s spending and maintain a balanced budget. But it will not last forever.
For perspective, in just the last decade the Alberta government’s annual resource revenue has been as low as $2.8 billion (2015/16) and as high as $25.2 billion (2022/23).
And while the resource revenue rollercoaster is currently in Alberta’s favor, Finance Minister Nate Horner acknowledges that “risks are on the rise” as oil prices have dropped considerably and forecasters are projecting downward pressure on prices—all of which impacts resource revenue.
In fact, the government’s own estimates show a $1 change in oil prices results in an estimated $630 million revenue swing. So while the Smith government plans to maintain a surplus in 2024/25, a small change in oil prices could quickly plunge Alberta back into deficit. Premier Smith has warned that her government may fall into a budget deficit this fiscal year.
This should come as no surprise. Alberta’s been on the resource revenue rollercoaster for decades. Successive governments have increased spending during the good times of high resource revenue, but failed to rein in spending when resource revenues fell.
Previous research has shown that, in Alberta, a $1 increase in resource revenue is associated with an estimated 56-cent increase in program spending the following fiscal year (on a per-person, inflation-adjusted basis). However, a decline in resource revenue is not similarly associated with a reduction in program spending. This pattern has led to historically high levels of government spending—and budget deficits—even in more recent years.
Consider this: If this fiscal year the Smith government received an average level of resource revenue (based on levels over the last 10 years), it would receive approximately $13,000 per Albertan. Yet the government plans to spend nearly $15,000 per Albertan this fiscal year (after adjusting for inflation). That’s a huge gap of roughly $2,000—and it means the government is continuing to take big risks with the provincial budget.
Of course, if the government falls back into deficit there are implications for everyday Albertans.
When the government runs a deficit, it accumulates debt, which Albertans must pay to service. In 2024/25, the government’s debt interest payments will cost each Albertan nearly $650. That’s largely because, despite running surpluses over the last few years, Albertans are still paying for debt accumulated during the most recent string of deficits from 2008/09 to 2020/21 (excluding 2014/15), which only ended when the government enjoyed an unexpected windfall in resource revenue in 2021/22.
According to Thursday’s mid-year fiscal update, Alberta’s finances continue to be at risk. To avoid deficits, the Smith government should meaningfully reduce spending so that it’s aligned with more reliable, stable levels of revenue.
Author:
Alberta
Premier Smith says Auto Insurance reforms may still result in a publicly owned system
Better, faster, more affordable auto insurance
Alberta’s government is introducing a new auto insurance system that will provide better and faster services to Albertans while reducing auto insurance premiums.
After hearing from more than 16,000 Albertans through an online survey about their priorities for auto insurance policies, Alberta’s government is introducing a new privately delivered, care-focused auto insurance system.
Right now, insurance in the province is not affordable or care focused. Despite high premiums, Albertans injured in collisions do not get the timely medical care and income support they need in a system that is complex to navigate. When fully implemented, Alberta’s new auto insurance system will deliver better and faster care for those involved in collisions, and Albertans will see cost savings up to $400 per year.
“Albertans have been clear they need an auto insurance system that provides better, faster care and is more affordable. When it’s implemented, our new privately delivered, care-centred insurance system will put the focus on Albertans’ recovery, providing more effective support and will deliver lower rates.”
“High auto insurance rates put strain on Albertans. By shifting to a system that offers improved benefits and support, we are providing better and faster care to Albertans, with lower costs.”
Albertans who suffer injuries due to a collision currently wait months for a simple claim to be resolved and can wait years for claims related to more serious and life-changing injuries to addressed. Additionally, the medical and financial benefits they receive often expire before they’re fully recovered.
Under the new system, Albertans who suffer catastrophic injuries will receive treatment and care for the rest of their lives. Those who sustain serious injuries will receive treatment until they are fully recovered. These changes mirror and build upon the Saskatchewan insurance model, where at-fault drivers can be sued for pain and suffering damages if they are convicted of a criminal offence, such as impaired driving or dangerous driving, or conviction of certain offenses under the Traffic Safety Act.
Work on this new auto insurance system will require legislation in the spring of 2025. In order to reconfigure auto insurance policies for 3.4 million Albertans, auto insurance companies need time to create and implement the new system. Alberta’s government expects the new system to be fully implemented by January 2027.
In the interim, starting in January 2025, the good driver rate cap will be adjusted to a 7.5% increase due to high legal costs, increasing vehicle damage repair costs and natural disaster costs. This protects good drivers from significant rate increases while ensuring that auto insurance providers remain financially viable in Alberta.
Albertans have been clear that they still want premiums to be based on risk. Bad drivers will continue to pay higher premiums than good drivers.
By providing significantly enhanced medical, rehabilitation and income support benefits, this system supports Albertans injured in collisions while reducing the impact of litigation costs on the amount that Albertans pay for their insurance.
“Keeping more money in Albertans’ pockets is one of the best ways to address the rising cost of living. This shift to a care-first automobile insurance system will do just that by helping lower premiums for people across the province.”
Quick facts
- Alberta’s government commissioned two auto insurance reports, which showed that legal fees and litigation costs tied to the province’s current system significantly increase premiums.
- A 2023 report by MNP shows
-
ESG2 days ago
Can’t afford Rent? Groceries for your kids? Trudeau says suck it up and pay the tax!
-
Brownstone Institute2 days ago
The Most Devastating Report So Far
-
Aristotle Foundation1 day ago
Toronto cancels history, again: The irony and injustice of renaming Yonge-Dundas Square to Sankofa Square
-
International1 day ago
Euthanasia advocates use deception to affect public’s perception of assisted suicide
-
armed forces22 hours ago
Judge dismisses Canadian military personnel’s lawsuit against COVID shot mandate
-
Addictions1 day ago
BC Addictions Expert Questions Ties Between Safer Supply Advocates and For-Profit Companies
-
Business2 days ago
Carbon tax bureaucracy costs taxpayers $800 million
-
conflict1 day ago
US and UK authorize missile strikes into Russia, but are we really in danger of World War III?