It’s time for the Alberta Sovereignty Act – Red Deer South MLA Jason Stephan

This article submitted by Red Deer South MLA Jason Stephan

THE ALBERTA SOVEREIGNTY ACT IS GOOD FOR ALBERTA

I supported the concept of the Alberta Sovereignty Act before the UCP leadership race. It was developed by the Free Alberta Strategy. I participated in their townhalls supporting their strategies, as did two of the UCP leadership candidates, Danielle Smith and Todd Loewen. Jason Kenney and his cabinet ministers did not.

What is the Alberta Sovereignty Act?

The Sovereignty Act affirms Alberta’s right to refuse and reject Federal Government actions or laws that intrude into provincial areas of jurisdiction or attack the interests of Alberta.

Ottawa recently released a “discussion paper” seeking to limit, or impose additional carbon taxes on, oil and gas development. This is not an isolated incident; this is a pattern of hostile behavior from Ottawa seeking to attack and take advantage of Alberta, holding it back.

Albertans should be aware that this discussion paper is likely a pretext, an excuse to either take more money from Alberta or prevent it from excelling ahead of other provinces.

Albertans should be aware that at any time Ottawa may leverage the Supreme Court of Canada decision permitting carbon taxes, overruling our Court of Appeal describing Ottawa’s carbon taxes as a “constitutional trojan horse”, to impose a targeted windfall or carbon tax on Alberta’s natural resources that discriminates and disproportionately punishes Alberta while sparing Ontario and Quebec from burden or harm.

The Supreme Court of Canada says carbon taxes are a tool that Ottawa has its disposal at any time to punish Alberta, yet under section 92A of the Constitution Act, Alberta has jurisdiction over its natural resources, not Ottawa.

The Alberta Sovereignty Act should be invoked to reject the “discussion paper” and tell Ottawa to leave Alberta and its constitutional jurisdiction alone.

The unfortunate truth is that Ottawa has made itself an unpredictable and hostile variable, a threat to the freedom and prosperity of Alberta businesses and families that should not be underestimated.

Alberta is compelled to protect itself.

Does the Establishment like the Alberta Sovereignty Act? No. Many Eastern politicians and their media pundits do not like the Alberta Sovereignty Act. It challenges the status quo they benefit under.

Their status quo has enabled a pattern of abuse and economic warfare on Alberta, disrespecting its jurisdiction over its resources, creating chaos and injecting commercial uncertainty, chasing away billions in private sector investments and thousands of Alberta jobs.

Albertans are becoming more aware that this is a rigged partnership. Alberta businesses and families give hundreds of millions more to Ottawa than they receive in return, with Ottawa using our money, not to benefit Alberta, but for political gain, primarily in Quebec, the structural welfare recipient under the partnership. Equalization is one of the devices that Ottawa uses for this purpose.

Albertans want change. Alberta held an equalization referendum. Ottawa ignored the result –to them Alberta is means to an end, they want our money. Strongly worded letters from Alberta politicians have accomplished nothing. It is time for less words and more actions.

Boundaries are reasonable and normal.

Boundaries are integral to adult relationships. The Alberta Sovereignty Act seeks to impose boundaries that Ottawa continually disrespects, to discriminate, attack, and force itself into Alberta’s constitutional jurisdictions.

Some of the UCP leadership candidates say the Alberta Sovereignty Act will produce chaos. They are wrong. It is a morally and fiscally bankrupt Ottawa, a trillion dollar plus fiscal train wreck, that is producing chaos. Ottawa is the risk that we can no longer afford, not a law that seeks to do something about it!

The Alberta Sovereignty Act is good for Alberta. Wisely applied it can help protect the Alberta Advantage, as the most attractive Canadian jurisdiction to start and grow a business, to work and raise our families. Alberta is a land of freedom and opportunity for us and our children. We must be vigilant to keep it that way.

The deadline to become a member of the United Conservative Party to vote in this leadership race is this Friday, August 12. We invite all Alberta conservatives to become a member of the party, to vote and have your say on who will be the next leader and Premier of Alberta!

You can buy a membership here, or check if your membership is up-to-date here.

Related Topics:#AlbertaSovereigntyAct #DanielleSmith #JasonKenney #JasonStephen #RedDeerSouthMLAJasonStephan #ToddLoewen feature

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Low oil prices could have big consequences for Alberta’s finances

Published on April 26, 2025

Todayville

From the Fraser Institute

By Tegan Hill

Amid the tariff war, the price of West Texas Intermediate oil—a common benchmark—recently dropped below US$60 per barrel. Given every $1 drop in oil prices is an estimated $750 million hit to provincial revenues, if oil prices remain low for long, there could be big implications for Alberta’s budget.

The Smith government already projects a $5.2 billion budget deficit in 2025/26 with continued deficits over the following two years. This year’s deficit is based on oil prices averaging US$68.00 per barrel. While the budget does include a $4 billion “contingency” for unforeseen events, given the economic and fiscal impact of Trump’s tariffs, it could quickly be eaten up.

Budget deficits come with costs for Albertans, who will already pay a projected $600 each in provincial government debt interest in 2025/26. That’s money that could have gone towards health care and education, or even tax relief.

Unfortunately, this is all part of the resource revenue rollercoaster that’s are all too familiar to Albertans.

Resource revenue (including oil and gas royalties) is inherently volatile. In the last 10 years alone, it has been as high as $25.2 billion in 2022/23 and as low as $2.8 billion in 2015/16. The provincial government typically enjoys budget surpluses—and increases government spending—when oil prices and resource revenue is relatively high, but is thrown into deficits when resource revenues inevitably fall.

Fortunately, the Smith government can mitigate this volatility.

The key is limiting the level of resource revenue included in the budget to a set stable amount. Any resource revenue above that stable amount is automatically saved in a rainy-day fund to be withdrawn to maintain that stable amount in the budget during years of relatively low resource revenue. The logic is simple: save during the good times so you can weather the storm during bad times.

Indeed, if the Smith government had created a rainy-day account in 2023, for example, it could have already built up a sizeable fund to help stabilize the budget when resource revenue declines. While the Smith government has deposited some money in the Heritage Fund in recent years, it has not created a dedicated rainy-day account or introduced a similar mechanism to help stabilize provincial finances.

Limiting the amount of resource revenue in the budget, particularly during times of relatively high resource revenue, also tempers demand for higher spending, which is only fiscally sustainable with permanently high resource revenues. In other words, if the government creates a rainy-day account, spending would become more closely align with stable ongoing levels of revenue.

And it’s not too late. To end the boom-bust cycle and finally help stabilize provincial finances, the Smith government should create a rainy-day account.

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Governments in Alberta should spur homebuilding amid population explosion

Published on April 26, 2025

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From the Fraser Institute

By Tegan Hill and Austin Thompson

In 2024, construction started on 47,827 housing units—the most since 48,336 units in 2007 when population growth was less than half of what it was in 2024.

Alberta has long been viewed as an oasis in Canada’s overheated housing market—a refuge for Canadians priced out of high-cost centres such as Vancouver and Toronto. But the oasis is starting to dry up. House prices and rents in the province have spiked by about one-third since the start of the pandemic. According to a recent Maru poll, more than 70 per cent of Calgarians and Edmontonians doubt they will ever be able to afford a home in their city. Which raises the question: how much longer can this go on?

Alberta’s housing affordability problem reflects a simple reality—not enough homes have been built to accommodate the province’s growing population. The result? More Albertans competing for the same homes and rental units, pushing prices higher.

Population growth has always been volatile in Alberta, but the recent surge, fuelled by record levels of immigration, is unprecedented. Alberta has set new population growth records every year since 2022, culminating in the largest-ever increase of 186,704 new residents in 2024—nearly 70 per cent more than the largest pre-pandemic increase in 2013.

Homebuilding has increased, but not enough to keep pace with the rise in population. In 2024, construction started on 47,827 housing units—the most since 48,336 units in 2007 when population growth was less than half of what it was in 2024.

Moreover, from 1972 to 2019, Alberta added 2.1 new residents (on average) for every housing unit started compared to 3.9 new residents for every housing unit started in 2024. Put differently, today nearly twice as many new residents are potentially competing for each new home compared to historical norms.

While Alberta attracts more Canadians from other provinces than any other province, federal immigration and residency policies drive Alberta’s population growth. So while the provincial government has little control over its population growth, provincial and municipal governments can affect the pace of homebuilding.

For example, recent provincial amendments to the city charters in Calgary and Edmonton have helped standardize building codes, which should minimize cost and complexity for builders who operate across different jurisdictions. Municipal zoning reforms in Calgary, Edmonton and Red Deer have made it easier to build higher-density housing, and Lethbridge and Medicine Hat may soon follow suit. These changes should make it easier and faster to build homes, helping Alberta maintain some of the least restrictive building rules and quickest approval timelines in Canada.

There is, however, room for improvement. Policymakers at both the provincial and municipal level should streamline rules for building, reduce regulatory uncertainty and development costs, and shorten timelines for permit approvals. Calgary, for instance, imposes fees on developers to fund a wide array of public infrastructure—including roads, sewers, libraries, even buses—while Edmonton currently only imposes fees to fund the construction of new firehalls.

It’s difficult to say how long Alberta’s housing affordability woes will endure, but the situation is unlikely to improve unless homebuilding increases, spurred by government policies that facilitate more development.