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Alberta

Canada’s food costs expected to increase by $700 per family in 2024: report

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From LifeSiteNews

By Clare Marie Merkowsky

‘When Trudeau’s carbon tax makes it more expensive for farmers to grow food and truckers to deliver food, his carbon tax makes it more expensive for families to buy food’

A new report estimates that food costs for a family of four in Canada will increase by $700 in 2024 amid the ongoing carbon tax and rising inflation. 

On November 27, researchers from Dalhousie University, the University of Guelph, the University of Saskatchewan, and the University of British Columbia published Canada’s Food Price Report 2024, which reveals that food prices will only rise in 2024.  

“The current rate for food price increases is within the predicted range at 5.9% according to the latest available CPI data,” the report stated. The report further revealed that the increases are expected to be less than in 2023.  

According to the research, the total grocery bill for a family of four in 2024 is projected to be $16,297.20, which is a $701.79 increase from last year.   

Bakery, meat, and vegetables are expected to see a 5% to 7% increase, while dairy and fruit prices are projected to ride 1-3%. Restaurant and seafood costs are estimated to increase 3-5%.  

The report further revealed that, “Canadians are spending less on food this year despite inflation,” instead choosing either to buy less food or to buy poorer quality of food.  

“Food retail sales data indicates a decline from a monthly spend of $261.24 per capita in August 2022 to a monthly spend of $252.89 per capita in August 2023, indicating that Canadians are reducing their expenditures on groceries, either by reducing the quantity or quality of food they are buying or by substituting less expensive alternatives,” it continued.  

In addition to food prices, the report found that “household expenses like rent and utilities are also increasing year over year.”  

“A recent report by TransUnion found that the average Canadian has a credit card bill of $4,000 and a 4.2% increase in household debt compared to last year, all of which are possible contributors to reduced food expenditures for Canadians,” it continued.  

“When Trudeau’s carbon tax makes it more expensive for farmers to grow food and truckers to deliver food, his carbon tax makes it more expensive for families to buy food,” he explained.  

“The carbon tax will cost Canadian farmers $1 billion by 2030,” Terrazzano added. “The government could make groceries more affordable for Canadians by scrapping the carbon tax.” 

Conservative leader Pierre Poilievre referenced the report, blaming the increased prices on Prime Minister Justin Trudeau’s policies, saying, “EVERYTHING is more expensive after 8 years of Trudeau. He’s not worth the cost.” 

The report should not come as a surprise to Canadians considering a September report by Statistics Canada revealing that food prices are rising faster than the headline inflation rate – the overall inflation rate in the country – as staple food items are increasing at a rate of 10 to 18 percent year-over-year. 

Despite numerous reports indicating Canadians are experiencing financial hardship, the Trudeau government has largely ignored the pleas of those asking for help, while consistently denying their policies have any impact on inflation or the economy more broadly. 

Trudeau has continued to refuse to extend the carbon tax exemption to all forms of home heating, instead only giving relief to Liberal voting provinces.  

The carbon tax, framed as a way to reduce carbon emissions, has cost Canadians hundreds more annually despite rebates.      

The increased costs are only expected to rise, as a recent report revealed that a carbon tax of more than $350 per tonne is needed to reach Trudeau’s net-zero goals by 2050.      

Currently, Canadians living in provinces under the federal carbon pricing scheme pay $65 per tonne, but the Trudeau government has a goal of $170 per tonne by 2030.     

The Trudeau government’s current environmental goals – which are in lockstep with the United Nations’ “2030 Agenda for Sustainable Development” – include phasing out coal-fired power plants, reducing fertilizer usage, and curbing natural gas use over the coming decades.  

The reduction and eventual elimination of so-called “fossil fuels” and a transition to unreliable “green” energy has also been pushed by the World Economic Forum (WEF) – the globalist group behind the socialist “Great Reset” agenda in which Trudeau and some of his cabinet are involved.  

However, some western provinces have declared they will not follow the regulations but instead focus on the wellbeing of Canadians.   

Both Alberta and Saskatchewan have repeatedly promised to place the interests of their people above the Trudeau government’s “unconstitutional” demands, while consistently reminding the federal government that their infrastructures and economies depend upon oil, gas, and coal.  

“We will never allow these regulations to be implemented here, full stop,” Alberta Premier Danielle Smith recently declared. “If they become the law of the land, they would crush Albertans’ finances, and they would also cause dramatic increases in electricity bills for families and businesses across Canada.”      

Saskatchewan Premier Scott Moe has likewise promised to fight back against Trudeau’s new regulations, saying recently that “Trudeau’s net-zero electricity regulations are unaffordable, unrealistic and unconstitutional.”    

“They will drive electricity rates through the roof and leave Saskatchewan with an unreliable power supply. Our government will not let the federal government do that to the Saskatchewan people,” he charged.   

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Alberta

Alberta takes big step towards shorter wait times and higher quality health care

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From the Fraser Institute

By Nadeem Esmail

On Monday, the Smith government announced that beginning next year it will change the way it funds surgeries in Alberta. This is a big step towards unlocking the ability of Alberta’s health-care system to provide more, better and faster services for the same or possibly fewer dollars.

To understand the significance of this change, you must understand the consequences of the current (and outdated) approach.

Currently, the Alberta government pays a lump sum of money to hospitals each year. Consequently, hospitals perceive patients as a drain on their budgets. From the hospital’s perspective, there’s little financial incentive to serve more patients, operate more efficiently and provide superior quality services.

Consider what would happen if your local grocery store received a giant bag of money each year to feed people. The number of items would quickly decline to whatever was most convenient for the store to provide. (Have a favourite cereal? Too bad.) Store hours would become less convenient for customers, alongside a general decline in overall service. This type of grocery store, like an Alberta hospital, is actually financially better off (that is, it saves money) if you go elsewhere.

The Smith government plans to flip this entire system on its head, to the benefit of patients and taxpayers. Instead of handing out bags of money each year to providers, the new system—known as “activity-based funding”—will pay health-care providers for each patient they treat, based on the patient’s particular condition and important factors that may add complexity or cost to their care.

This turns patients from a drain on budgets into a source of additional revenue. The result, as has been demonstrated in other universal health-care systems worldwide, is more services delivered using existing health-care infrastructure, lower wait times, improved quality of care, improved access to medical technologies, and less waste.

In other words, Albertans will receive far better value from their health-care system, which is currently among the most expensive in the world. And relief can’t come soon enough—for example, last year in Alberta the median wait time for orthopedic surgeries including hip and knee replacements was 66.8 weeks.

The naysayers argue this approach will undermine the province’s universal system and hurt patients. But by allowing a spectrum of providers to compete for the delivery of quality care, Alberta will follow the lead of other more successful universal health-care systems in countries such as Australia, Germany, the Netherlands and Switzerland and create greater accountability for hospitals and other health-care providers. Taxpayers will get a much better picture of what they’re paying for and how much they pay.

Again, Alberta is not exploring an untested policy. Almost every other developed country with universal health care uses some form of “activity-based funding” for hospital and surgical care. And remember, we already spend more on health care than our counterparts in nearly all of these countries yet endure longer wait times and poorer access to services generally, in part because of how we pay for surgical care.

While the devil is always in the details, and while it’s still possible for the Alberta government to get this wrong, Monday’s announcement is a big step in the right direction. A funding model that puts patients first will get Albertans more of the high-quality health care they already pay for in a timelier fashion. And provide to other provinces an example of bold health-care reform.

Nadeem Esmail

Senior Fellow, Fraser Institute
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Alberta

Alberta’s embrace of activity-based funding is great news for patients

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From the Montreal Economic Institute

Alberta’s move to fund acute care services through activity-based funding follows best practices internationally, points out an MEI researcher following an announcement made by Premier Danielle Smith earlier today.

“For too long, the way hospitals were funded in Alberta incentivized treating fewer patients, contributing to our long wait times,” explains Krystle Wittevrongel, director of research at the MEI. “International experience has shown that, with the proper funding models in place, health systems become more efficient to the benefit of patients.”

Currently, Alberta’s hospitals are financed under a system called “global budgeting.” This involves allocating a pre-set amount of funding to pay for a specific number of services based on previous years’ budgets.

Under the government’s newly proposed funding system, hospitals receive a fixed payment for each treatment delivered.

An Economic Note published by the MEI last year showed that Quebec’s gradual adoption of activity-based funding led to higher productivity and lower costs in the province’s health system.

Notably, the province observed that the per-procedure cost of MRIs fell by four per cent as the number of procedures performed increased by 22 per cent.

In the radiology and oncology sector, it observed productivity increases of 26 per cent while procedure costs decreased by seven per cent.

“Being able to perform more surgeries, at lower costs, and within shorter timelines is exactly what Alberta’s patients need, and Premier Smith understands that,” continued Mrs. Wittevrongel. “Today’s announcement is a good first step, and we look forward to seeing a successful roll-out once appropriate funding levels per procedure are set.”

The governments expects to roll-out this new funding model for select procedures starting in 2026.

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The MEI is an independent public policy think tank with offices in Montreal, Ottawa, and Calgary. Through its publications, media appearances, and advisory services to policymakers, the MEI stimulates public policy debate and reforms based on sound economics and entrepreneurship.

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