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Alberta

Danielle Smith: Just ‘watch me’ protect Alberta from federal restrictions on oil, gas production

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8 minute read

From LifeSiteNews

By Anthony Murdoch

‘That is what the Sovereignty Act was about, sending the indication that we’re simply not going to comply with federal rules around this’

Alberta Premier Danielle Smith warned the federal government of Prime Minister Justin Trudeau to “watch me” over how she will shield her province from economic damage and high fuel prices after the feds announced a plan to cut oil and gas production by a third via an “emissions” reduction scheme by 2030.

“You’ll just have to watch me if you don’t believe me. That is what the Sovereignty Act was about, sending the indication that we’re simply not going to comply with federal rules around this,” Smith said while speaking to reporters at the United Nations’ COP28 climate confab on Thursday.

Smith warned that the Trudeau government is risking a full-blown “constitutional crisis” over what she said are “economic sanctions” on Alberta because of Trudeau’s oil and gas production cut.

On Thursday, Environment Minister Steven Guilbeault unveiled a plan at COP28 to slash oil and gas emissions by 35% to 38% below 2019 levels. He claimed that Canada needs to reach “carbon neutrality in Canada by 2050.”

Natural Resources Minister Jonathan Wilkinson claimed that the federal government’s new rules are needed to keep the planet from “burning up.”

Smith agreed to attend COP28 to paint her province in a positive light and to promote its oil and gas industry in direct opposition to the Trudeau feds. She said Alberta and Canada are under attack by the Trudeau government and his “eco-extremist,” admitted socialist environment minister.

Smith issued a joint statement with Alberta Minister of Environment and Protected Areas Minister Rebecca Schulz on Thursday that said the Trudeau government’s new rules amount to a “de facto production cap on Alberta’s oil and gas sector” that is an “an intentional attack by the federal government on the economy of Alberta and the financial well-being of millions of Albertans and Canadians.”

“Alberta owns our resources and under the constitution we have the exclusive jurisdiction to develop and manage them,” Smith said.

“We have done so responsibly by setting a price on carbon as far back as 2007, developing a carbon offset and trading program (TIER), investing billions in commercial scale carbon capture, creating an innovation fund that has so far supported 260 emissions reducing projects with $2.6 billion in grants.”

Smith noted that Alberta has its own plan for “reaching carbon neutrality across our entire economy by 2050,” which may or may not come to fruition.

She then took a shot at Guilbeault, calling him an “eco-extremist” whose ideals are “threatening the jobs of hundreds of thousands of Albertans.”

“Ironically, they are also significantly undercutting global emissions reduction efforts by effectively de-incentivizing capital investment by the oil and gas sector in the emissions-reducing technologies and fuels the world needs Alberta to develop and share,” she said.

Earlier this week, Guilbeault announced at COP28 his first attack on the oil and gas sector via a methane emissions cap. Smith blasted his new rules as “unrealistic” and “unconstitutional.”

The Trudeau government is trying to force net-zero regulations on all Canadian provinces, notably on electricity generation, as early as 2035. His government has also refused to extend a carbon tax exemption on heating fuels to all provinces, allowing only Atlantic provinces this benefit.

Trudeau’s current environmental goals are in lockstep with the United Nations’ “2030 Agenda for Sustainable Development” and 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 the use 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 – an organization in which Trudeau and some of his cabinet are involved.

Last month, after announcing she had “enough” of Trudeau’s extreme environmental rules, Smith said her province has no choice but to assert control over its electricity grid to combat federal overreach, by enacting its Sovereignty Act.” The Sovereignty Act serves to shield Albertans from future power blackouts due to federal government overreach.

Unlike most provinces in Canada, Alberta’s electricity industry is nearly fully deregulated. However, the government still has the ability to take control of it at a moment’s notice.

Guilbeault’s extreme eco-activist past

Guilbeault is as extreme as they come for an environment minister and his background shows a history of breaking the law via activism. In 1997, he joined Greenpeace and served for a time as a director and then campaign manager of its Quebec chapter for about 10 years.

He was arrested many times for environmental protests, the most famous arrest coming after an incident in 2001 when he climbed Toronto’s CN Tower with British activist Chris Holden. The pair hung a banner saying “Canada and Bush — Climate Killers.”

Greenpeace is a group that advocates for population control in addition to calling for an end to all oil and gas.

His extreme ideals have continued in his role as environment minister. He threatened arrest and jail time for Saskatchewan Premier Scott Moe, who said that on January 1 his province will no longer collect a federally imposed carbon tax on electric heat in addition to natural gas.

Smith has repeatedly defended Alberta from Trudeau’s climate regulations and asserted Alberta’s right to control its power grid, also promising the province will not be “transitioning away” from oil and natural gas. She has called on Trudeau to replace Guilbeault because he is too “extreme.”

Alberta does have support from the Supreme Court, however, which recently sided in favor of provincial autonomy when it comes to natural resources. The Supreme Court ruled that Trudeau’s law, C-69, dubbed the “no-more pipelines” bill, is “mostly unconstitutional.” This was a huge win for Alberta and Saskatchewan, who challenged the law in court. The decision returned authority over the pipelines to provincial governments, meaning oil and gas projects headed up by the provinces should be allowed to proceed without federal intrusion.

The Trudeau government, however, seems insistent on defying the recent rulings by pushing forward with its various regulations.

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Alberta

Alberta’s fiscal update projects budget surplus, but fiscal fortunes could quickly turn

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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.

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Alberta

Premier Smith says Auto Insurance reforms may still result in a publicly owned system

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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.”

Danielle Smith, Premier

“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.”

Nate Horner, President of Treasury Board and Minister of Finance

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.”

Nathan Neudorf, Minister of Affordability and Utilities

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
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