Alberta
Alberta, Ontario premiers blast gov’t minister for remarks on slashing federal funds for new roads
From LifeSiteNews
Danielle Smith suggested that Environment Minister Steven Guilbeault ‘return to the real world’ and Doug Ford said his province will build roads on its own.
Premiers Danielle Smith of Alberta and Doug Ford of Ontario tore into Canadian Environment Minister Steven Guilbeault after he said the federal government would no longer fund any road construction projects and instead funnel the savings to “climate change” projects that promote people walk instead of drive.
“So now our Environment Minister wants to cut federal funding for roads … because we should all just walk more,” Smith wrote on X (formerly Twitter) Tuesday in reaction to a news report about the minister’s comments.
“Does this minister understand that most Canadians don’t live in downtown Montreal? Most of us can’t just head out the door in the snow and rain and just walk 10km to work each day.”
Smith then said to Guilbeault, “Can we return to the real world Minister @s_guilbeault?”
So now our Environment Minister wants to cut federal funding for roads…because we should all just walk more.
Does this minister understand that most Canadians don’t live in downtown Montreal? Most of us can’t just head out the door in the snow and rain and just walk 10km to… pic.twitter.com/gkX5TTtd91
— Danielle Smith (@ABDanielleSmith) February 13, 2024
Guilbeault made the comments on Tuesday at a transit conference in Montreal, saying, “Our government has made the decision to stop investing in new road infrastructure.”
“Of course we will continue to be there for cities, provinces and territories to maintain the existing network, but there will be no more envelopes from the federal government to enlarge the road network,” he added.
Smith has been battling the minister for the last few months over his extreme climate change policies that seek to destroy Alberta’s oil and gas sector.
Guilbeault’s reasoning for stopping funding to build roads was that according to an “analysis” his office did the current network is “perfectly adequate to respond to the needs we have” and that investing in public transit can help them achieve his “goals of economic, social and human development without more enlargement of the road network.”
On Wednesday, Guilbeault tried to backtrack on his Tuesday comment about roads, saying he was only referring to the federal government’s plan to stop funding only some road projects.
Ford says he is ‘gobsmacked’ by Guilbeault’s road defunding comments
Ford said his province would continue to build roads on its own.
“I’m gobsmacked. A federal minister said they won’t invest in new roads or highways,” Ford wrote on X.
“He doesn’t care that you’re stuck in bumper to bumper traffic. I do. We’re building roads and highways, with or without a cent from the feds.”
Saskatchewan Premier Scott Moe also took a shot at Guilbeault, saying the federal government would no longer fund new road projects and that the minister is “out of touch” with “reality.”
“Millions for ArriveCan, not one more federal dollar for new roads. Guilbeault wants us all to walk everywhere. The Trudeau government gets more out of touch with reality every day,” Moe wrote Wednesday on X.
The reality is that Canada, the second largest country in the world by land mass, has only one four-lane highway that connects the West Coast to the East. However, the TransCanada highway past Manitoba goes down to only two lanes.
To date, the federal government under Prime Minister Justin Trudeau has spent about $30 billion in promoting public transit as well as approximately $400 million to promote walking, e-bikes, roller blades, cycling, and other transportation means, which for most of the year due to winter are not feasible for most.
Also, the Trudeau government has attacked gasoline and diesel cars, even though Guilbeault said on Tuesday that “(w)e must stop thinking that electric cars will solve all our problems.”
Just before Christmas, Guilbeault announced the “Electric Vehicle Availability Standard.” The plan is to mandate that all new cars and trucks by 2035 be electric, which would in effect ban the sale of new gasoline- or diesel-only powered vehicles after that year.
Smith noted that when it comes to Trudeau’s EV mandate, “Ottawa is trying to force increased demands on the electricity grid while simultaneously weakening Alberta’s and other provinces’ grids through their federal electricity regulations.”
Since taking office in 2015, Trudeau has continued to push a radical environmental agenda like the agendas being pushed the World Economic Forum’s “Great Reset” and the United Nations’ “Sustainable Development Goals.”
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 – the globalist group behind the socialist “Great Reset” agenda – an organization in which Trudeau and some of his cabinet are involved.
The reality of Trudeau’s push for so-called renewable energy showed itself just over a month ago after Alberta’s power grid faced near certain collapse due to a failure of wind and solar power. Many called out the Trudeau government’s green energy agenda that is attempting to phase out carbon-based power in favor of “renewables” as the reason for the near failure.
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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