Alberta
Alberta justice minister hikes fines, promises renewed effort on COVID-19 scofflaws
EDMONTON — Alberta has doubled fines for disobeying public health measures meant to fight COVID-19 and Justice Minister Kaycee Madu is promising a renewed effort to stop public health scofflaws will succeed.
“Enforcement will be done, and Albertans will see it being done,” Madu told a news conference Wednesday.
“It has become clear that there are a small few who refuse to comply with reasonable and legitimate public health orders”
The United Conservative government passed an order in council Wednesday that doubles fines for public health violations to $2,000.
Madu said there is also a new protocol for health officials, police and government to co-ordinate and target repeat individuals and groups that flout the law.
He said he discussed with police chiefs this week what further tools and resources they need to step up enforcement.
Premier Jason Kenney on Tuesday announced stronger measures to reverse soaring COVID-19 cases that threaten to overwhelm hospitals by month’s end and to force doctors to decide which patients get life-saving care.
Kenney’s government has been criticized for being a paper tiger on lawbreakers. In January, it allowed some restaurants to flout dine-in restrictions. GraceLife church, in Spruce Grove, Alta., west of Edmonton, was able to hold Sunday services for months that officials have said ignored rules on masks, capacity limits and physical distancing. Police physically blocked off the church just a month ago.
The enforcement issue made headlines again on this weekend when hundreds of people gathered near Bowden in central Alberta for a pre-advertised maskless “No More Lockdowns” protest rodeo.
Edmonton and Calgary have also seen maskless mass protests against health restrictions.
Action was taken Wednesday against one accused repeat offender. Alberta Health Services announced the Whistle Stop Café in Mirror, Alta., had been physically closed and access barred. The café had been flagged for repeatedly breaking COVID-19 health restrictions by staying open and serving customers.
Opposition NDP Leader Rachel Notley said Kenney’s government set its enforcement policy up for failure from the get-go by stressing education first and enforcement as a last resort.
Referring to the protocol Madu outlined, Notley said: “The fact there is a protocol to tell them to talk to each other is not new. It is a policy dressed up to look like action, but it is not significant, and that’s why we’re calling on them to do more.”
She criticized the plan to target only repeat offenders: “(That) says to me their plan is to give everybody their first rodeo free, which is in effect what they did with the Bowden rodeo.
“This has to stop because that Bowden rodeo will turn out to be a super-spreader. People will get sick from that rodeo. People will get seriously ill.”
Kenney announced tighter rules Tuesday, some of which came in effect Wednesday. Outdoor gatherings, which had been limited to 10 people, are now capped at five. Worship services, which were allowed at 15 per cent capacity, have been reduced to 15 people maximum.
Retailers, which had been open at 15 per cent customer capacity, are restricted to 10 per cent.
On Friday, all kindergarten to Grade 12 students will learn from home. On Sunday, restaurants must close their patios and offer takeout service only. Personal wellness services, including hair salons and barber shops, will have to close.
Indoor social gatherings remain banned. Entertainment venues, including movie theatres and casinos, also remain closed.
As of Wednesday, Alberta had 24,156 active cases of COVID-19, with 666 people in hospital. It has experienced the highest infection rates in North America in recent weeks.
There are almost 1.7 million Albertans who have received at least one dose of vaccine. About one in three adults have had a shot.
Kenney said the vaccination rollout will be expanded drastically, with everyone in the province 12 and older to soon be eligible.
Every Albertan born in 1991 or earlier will be able to book vaccinations starting Friday. On Monday, appointments will be offered to anyone born between 2009 and 1992.
Earlier Wednesday, Health Canada approved the Pfizer-BioNTech vaccine for children as young as 12.
This report by The Canadian Press was first published May 5, 2021.
Dean Bennett, The Canadian Press
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
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