Alberta
‘Canada should be bold and more intentional…and respond to a world thirsty for more Canadian-made energy, food and critical minerals’
From the Canadian Energy Centre
Bare minimum amendments to Impact Assessment Act ‘do little’ to address Supreme Court’s concerns
One year ago, the Supreme Court of Canada found the federal government’s law to assess major projects like pipelines and highways breaks the rules of the Canadian constitution.
There’s a good chance it still does, despite amendments enacted this spring.
Lawyers with firms including Osler, Hoskin & Harcourt, Bennett Jones and Fasken have warned that Ottawa’s changes to the Impact Assessment Act (IAA) leave it open to further constitutional challenges.
One could come from Alberta as soon as November 1, following a four-week deadline set by Premier Danielle Smith for the federal government to address the province’s concerns.
“I don’t think that the amendments have responded adequately to the Supreme Court of Canada’s decision,” says Brad Gilmour, a partner at Osler, Hoskin & Harcourt who co-argued Alberta’s successful 2023 reference case to the Supreme Court.
The governments of Ontario, British Columbia, Saskatchewan, Quebec, Newfoundland and Labrador, New Brunswick and Manitoba supported Alberta’s case, arguing that the IAA had exceeded federal jurisdiction.
The Supreme Court largely agreed, while allowing that there is a place for federal assessment of major projects.
“The court had some significant concerns about federal overreach into areas of provincial jurisdiction, and I think that the amendments have done really little to address that broad concern,” Gilmour says.
“They’ve made very minor changes to the sections that the courts found to be unconstitutional, and the wording they use lacks clarity and lacks certainty.”
Components of the IAA that the Supreme Court found unconstitutional include the decision that starts the process – whether a project requires a federal impact assessment and the decision at its conclusion – whether or not a project should receive final approval to proceed.
“It appears the government has done the minimum possible to address the Supreme Court’s concerns, adding qualifiers to its areas of authority, but failing to correct the legislation’s negative impacts on the pace, cost and efficiency of project approvals,” wrote the Business Council of Canada’s Michael Gullo and Heather Exner-Pirot.
“Canada can’t wait and should be bold and more intentional in its effort to grow market share and respond to a world thirsty for more Canadian-made energy, food and critical minerals.”
According to Gullo and Exner-Pirot, the negative impact of the IAA legislation, which came into effect in 2019, can be seen in Canada’s national inventory of major resource projects.
In 2015, there were 88 energy projects completed with a value of $53 billion. In 2023, that figure halved to 56 completed projects with a value of $26 billion.
Alberta’s government says it has “made repeated requests” for the federal government to consult with the province on the amendments, to no effect.
“Alberta is not taking their foot off the pedal in pushing back,” Exner-Pirot told CEC.
“Our country’s energy and natural resources cannot be developed in a timely and economic manner under the current federal regulatory regime. This is affecting not only the economy, but also our security and our efforts to move to lower emitting energy sources.”
From the Fraser Institute
By Tegan Hill
Amid the economic uncertainty fuelled by Trump’s trade war, its perhaps more important than ever to understand Alberta’s crucial role in the federation and its outsized contribution to programs such as the Canada Pension Plan (CPP).
From 1981 to 2022, Albertan’s net contribution to the CPP—meaning the amount Albertans paid into the program over and above what retirees in Alberta received in CPP payments—was $53.6 billion. In 2022 (the latest year of available data), Albertans’ net contribution to the CPP was $3.0 billion.
During that same period (1981 to 2022), British Columbia was the only other province where residents paid more into the CPP than retirees received in benefits—and Alberta’s contribution was six times greater than B.C.’s contribution. Put differently, residents in seven out of the nine provinces that participate in the CPP (Quebec has its own plan) receive more back in benefits than they contribute to the program.
Albertans pay an outsized contribution to federal and national programs, including the CPP because of the province’s relatively high rates of employment, higher average incomes and younger population (i.e. more workers pay into the CPP and less retirees take from it).
Put simply, Albertan workers have been helping fund the retirement of Canadians from coast to coast for decades, and without Alberta, the CPP would look much different.
How different?
If Alberta withdrew from the CPP and established its own standalone provincial pension plan, Alberta workers would receive the same retirement benefits but at a lower cost (i.e. lower CPP contribution rate deducted from our paycheques) than other Canadians, while the contribution rate—essentially the CPP tax rate—to fund the program would likely need to increase for the rest of the country to maintain the same benefits.
And given current demographic projections, immigration patterns and Alberta’s long history of leading the provinces in economic growth, Albertan workers will likely continue to pay more into the CPP than Albertan retirees get back from it.
Therefore, considering Alberta’s crucial role in national programs, the next federal government—whoever that may be—should undo and prevent policies that negatively impact the province and Albertans ability to contribute to Canada. Think of Bill C-69 (which imposes complex, uncertain and onerous review requirements on major energy projects), Bill C-48 (which bans large oil tankers off B.C.’s northern coast and limits access to Asian markets), an arbitrary cap on oil and gas emissions, numerous other “net-zero” targets, and so on.
Canada faces serious economic challenges, including a trade war with the United States. In times like this, it’s important to remember Alberta’s crucial role in the federation and the outsized contributions of Alberta workers to the wellbeing of Canadians across the country.
Show your Alberta side. Buy Local. |
When the going gets tough, Albertans stick together. That’s why Alberta’s government is launching a new campaign to benefit hard-working Albertans.
Global uncertainty is threatening the livelihoods of hard-working Alberta farmers, ranchers, processors and their families. The ‘Buy Local’ campaign, recently launched by Alberta’s government, encourages consumers to eat, drink and buy local to show our unified support for the province’s agriculture and food industry.
The government’s ‘Buy Local’ campaign encourages consumers to buy products from Alberta’s hard-working farmers, ranchers and food processors that produce safe, nutritious food for Albertans, Canadians and the world.
“It’s time to let these hard-working Albertans know we have their back. Now, more than ever, we need to shop local and buy made-in-Alberta products. The next time you are grocery shopping or go out for dinner or a drink with your friends or family, support local to demonstrate your Alberta pride. We are pleased tariffs don’t impact the ag industry right now and will keep advocating for our ag industry.”
Alberta’s government supports consumer choice. We are providing tools to help folks easily identify Alberta- and Canadian-made foods and products. Choosing local products keeps Albertans’ hard-earned dollars in our province. Whether it is farm-fresh vegetables, potatoes, honey, craft beer, frozen food or our world-renowned beef, Alberta has an abundance of fresh foods produced right on our doorstep.
Quick facts
- This summer, Albertans can support local at more than 150 farmers’ markets across the province and meet the folks who make, bake and grow our food.
- In March 2023, the Alberta government launched the ‘Made in Alberta’ voluntary food and beverage labelling program to support local agriculture and food sectors.
- Through direct connections with processors, the program has created the momentum to continue expanding consumer awareness about the ‘Made in Alberta’ label to help shoppers quickly identify foods and beverages produced in our province.
- Made in Alberta product catalogue website
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