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Alberta

Canadians owe a debt to Premier Danielle Smith

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9 minute read

From the Frontier Centre for Public Policy

By David MacKinnon

In recent days, Premier Smith has endured criticism from many people about her recent announcements relating to treatments for what is often described as gender transition.

Instead, she deserves praise for decisions that are as important for how they were made as for the gender transition issues that concern her and her colleagues. Her actions on this matter demonstrate how public policy should be developed and explained.

The most important quality of the recent policy announcements by the Alberta government is that they are evidence based.

There is an emerging consensus outside Canada that the evidence supporting pharmacological and surgical procedures to change genders in minors is either very weak or nonexistent.

Sweden, Finland, the UK and Norway have restricted or forbidden the use of these treatments on minors, as have twenty-three American states. Ms. Smith referred to these in her press conference announcing the changes her government is making.

Leaders in other countries have done this after conducting detailed studies including one by the UK High Court of Justice and another by Dr. Hilary Cass, a former President of the Royal College of Pediatrics and Child Health in the United Kingdom

Dr. Cass is an independent expert commissioned to provide advice to the National Health Service on gender treatments. She concluded that “evidence on the appropriate management of children with gender incongruence is inconclusive both nationally and internationally’’.

The second reason the decisions taken by Alberta are important is that they were taken despite ideology advocated by the Government of Canada and the  unwillingness of federal officials including the Prime Minster to support their opposition to the Alberta policies with any evidence.

In his initial comments, the Prime Minister made no reference to any of the many studies that have been done describing the dangers of pharmacological and surgical procedures to change the gender of minor children.

He also displayed no understanding of the experiences of other countries on this matter. He did not refer to the Cass report and its seminal conclusions.

The comments by Federal Health Minister Mark Holland lacked any evidence the public could use. He also used offensive rhetoric.

Mr. Holland described the Alberta decisions as being behaviour that is “extremely dangerous to engage in …. which is, I think, playing politics about children’s lives.” He also referred to the “devastation that its going to bring”, referring to the Alberta changes.

Federal communications marked by a factual vacuum and excessive language are not going to help resolve serious differences of opinion on serious issues. They are also not condusive to good relations between the federal government and an important province.

The third and particularly significant reason the recent changes announced by the Alberta government are so important is that they will protect children.

Adolescence, a phase of child development that has been with us for thousands of years, is an important part of everyone’s life.

It is a vital part of what it means to be human. Delaying or blocking it is dangerous, something that many observers have noted but that the Prime Minister and the Minister of Health do not recognize.

Federal leaders need to inform themselves, particularly about the negative impact of puberty blockers on bone and brain development and the lifelong medical attention many transitioners will need because of the pharmacological and surgical procedures used on them to change genders.

The Prime Minister and the Minister of Health should also learn about the increasingly large number of transitioners who regret their transition and later seek to reverse it. Their situation is particularly tragic because many of the negative consequences of changing genders in children cannot be reversed.

Federal leaders also support hiding from parents the decisions children make in schools about the pronouns they use to describe their genders. This is another practice that many feel is harmful and divisive.

The federal perspective on this is unreasonable.

Our species survived over the centuries because the first priority for most parents is their children and most take good care of them.

There is no basis for a lack of trust in them and in the relatively few cases where parents do not provide appropriate care, the child protection laws come into play.

It is particularly important that federal leaders recognize the grave problems that puberty blockers and related surgeries often pose for children who are gays or lesbians.

These children sometimes display some of the attributes of the opposite sex as they grow, and these are often misinterpreted as gender dysphoria. They then get treated for a problem they don’t have, with serious lifelong consequences.

Unfortunately, this happens in many Canadian pediatric hospitals.

There is nothing wrong with these children. They should be allowed to develop and grow in their own way  and be who they are. That means no puberty blockers or surgeries to change them.

The fourth reason to respect the new directions on gender issues Ms. Smith and her colleagues have decided upon is the moderation displayed by the Alberta government in putting them forward and communicating with the public about them.

The language used has been understated. The changes are lawful in every respect including in relation to the Charter of Rights and Freedom and other legislation.

The evidence has been clearly presented in a way most citizens can readily understand and great care has been taken to deal with those who may have concerns thoughtfully, including allowing time for debate and discussion before the changes are made.

This is a good example of how governments should behave. Federal leaders should show some respect for the approaches taken by Ms. Smith and her colleagues as they dealt with a very complex issue.

The final reason for the importance of the Alberta approach is that it has avoided many of the problems associated with medical practice standards and regulation that are so evident in Canada and which have been a major cause of the difficulties our country faces on gender issues.

Provincial Colleges of Physicians and Surgeons and many regulators elsewhere regulate doctors based largely on prevailing practices by physicians rather than clinical outcomes.

This means that there have been many cases over the years, in Canada and elsewhere, where evidence to support medical procedures has been lacking. Current practices toward gender dysphoria in Canada and some US states are examples.

In these cases, if something is done often enough by enough doctors, that procedure becomes the standard and not clinical outcomes. This often leads to perverse outcomes that everyone ultimately regrets.

In the years to come, unless we change course soon and unless others follow the Alberta path, people will be wondering how the problems summarized in this article developed and why we damaged so many children by an approach defined more by ideology than factual reality.

David MacKinnon is a Senior Fellow at the Frontier Centre for Public Policy

Alberta

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

Published on

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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