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Alberta

Group behind the Alberta Sovereignty Act pleased with Province’s strategy

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Submitted by Free Alberta Strategy

The Alberta Sovereignty Within A United Canada Act – the new full name for the Sovereignty Act – was introduced to the Alberta Legislature on Tuesday.

Now that we’ve had a short while to digest it, we’re confident in saying that when it comes to protecting the interests of Alberta on the national stage, the Act is right on the money.

The Sovereignty Act, in practicality, is just a procedural bill – more or less just a framework for a free vote in the Legislature. It allows for a Cabinet Minister to introduce a motion about a “federal initiative” that the Minister believes to be unconstitutional on the basis of intruding into an area of provincial constitutional jurisdiction, or is otherwise harmful to Albertans, such as by violating Albertans’ rights and freedoms under the Charter of Rights and Freedoms.

The resolution would identify not only the “federal initiative” that is being addressed, but also specific “measures” that the government may use to push back.

The motion would then be debated on the floor of the Legislature, followed by a free vote of MLAs and – if the majority vote is in favour – the passage of the motion.

At this point, Cabinet is then tasked with implementing the specific “measures” identified in the motion.

The usual suspects have continued to claim that it’s unconstitutional for Alberta to insist that the federal government follow the constitution, and to refuse to help them enforce their laws when they don’t.

This was always a strange argument, but even more so now, given the bill explicitly says, right near the start:

 

Nothing in this Act is to be construed as (a) authorizing any order that would be contrary to the Constitution of Canada.

 

Some, however, have now finally come to understand the Strategy.

Take the National Post’s Carson Jerema, for example, who – just a few months ago – was attacking the Sovereignty Act.

Yesterday, he got behind it, in a piece entitled: “Surprise, Danielle Smith’s sovereignty act is very likely constitutional“…

 

This is hardly the Constitution-breaking plan, which Smith’s critics, myself included, warned about during her campaign for the UCP leadership. The characterization of the sovereignty act as a threat to the rule of law, which some critics are still expounding, is simply wrong. Jesse Hartery, a Toronto lawyer with expertise in federalism, says he has been frustrated by the debate around the sovereignty act because the proposal, as currently written “appears to be constitutional,” based on existing law.

“One government can seek assistance from the other, can co-operate with the other, but they can’t require the other to implement and enforce their laws,” he told me by phone Wednesday morning. “So the (Supreme) Court has never endorsed that, and in fact, there’s decisions where the court says: there’s no positive obligation on a province or the federal government to co-operate with the other.”

 

Of course, for those of you who’ve been following our work for a while, it’s not at all a surprise that the Sovereignty Act is constitutional!

It’s not a surprise to us, because this has been our argument for over a year – one that we’ve repeatedly explained in these emails, on social media, on traditional media, in virtual town halls, physical events, and more.

Provinces have always had the right to refuse to endorse federal laws, and to do so is not contrary to the Constitution of Canada.

The reality is that the attacks are nothing but political theatre from a group of politicians and critics that have been missing the mark on western alienation for years now.

We’ve seen how far the federal government is willing to go to impose their Laurentian views on the rest of the country. They’ve made a mockery of the political system over the past eight years, launching an all-out war on our energy industry that has landlocked our resources and destroyed our livelihoods. We all remember the dark days when unemployment was the highest in the country, debts were coming due, and suicide rates were high. None of us want to relive that.

The Sovereignty Act is absolutely necessary, and the fact that the Sovereignty Act is Bill 1 demonstrates that this new government has put standing up to federal overreach at the top of the priority list.

Its introduction has already caught the attention of the federal government, with Prime Minister Justin Trudeau saying that he isn’t “looking for a fight,” over the Sovereignty Act.

In his comments, there appears to be some awareness that bringing the hammer down on Alberta over this legislation would create potential issues in Quebec and Saskatchewan, with both provincial governments undoubtedly monitoring the situation in Edmonton closely.

The Alberta Sovereignty Within A United Canada Act has a purpose – to give Alberta a tool to protect against federal intrusions into provincial affairs. In passing this Bill, it appears that Premier Danielle Smith and her team hit all the right notes.

*****

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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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Alberta

Alberta fiscal update: second quarter is outstanding, challenges ahead

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Alberta maintains a balanced budget while ensuring pressures from population growth are being addressed.

Alberta faces rising risks, including ongoing resource volatility, geopolitical instability and rising pressures at home. With more than 450,000 people moving to Alberta in the last three years, the province has allocated hundreds of millions of dollars to address these pressures and ensure Albertans continue to be supported. Alberta’s government is determined to make every dollar go further with targeted and responsible spending on the priorities of Albertans.

The province is forecasting a $4.6 billion surplus at the end of 2024-25, up from the $2.9 billion first quarter forecast and $355 million from budget, due mainly to higher revenue from personal income taxes and non-renewable resources.

Given the current significant uncertainty in global geopolitics and energy markets, Alberta’s government must continue to make prudent choices to meet its responsibilities, including ongoing bargaining for thousands of public sector workers, fast-tracking school construction, cutting personal income taxes and ensuring Alberta’s surging population has access to high-quality health care, education and other public services.

“These are challenging times, but I believe Alberta is up to the challenge. By being intentional with every dollar, we can boost our prosperity and quality of life now and in the future.”

Nate Horner, President of Treasury Board and Minister of Finance

Midway through 2024-25, the province has stepped up to boost support to Albertans this fiscal year through key investments, including:

  • $716 million to Health for physician compensation incentives and to help Alberta Health Services provide services to a growing and aging population.
  • $125 million to address enrollment growth pressures in Alberta schools.
  • $847 million for disaster and emergency assistance, including:
    • $647 million to fight the Jasper wildfires
    • $163 million for the Wildfire Disaster Recovery Program
    • $5 million to support the municipality of Jasper (half to help with tourism recovery)
    • $12 million to match donations to the Canadian Red Cross
    • $20 million for emergency evacuation payments to evacuees in communities impacted by wildfires
  • $240 million more for Seniors, Community and Social Services to support social support programs.

Looking forward, the province has adjusted its forecast for the price of oil to US$74 per barrel of West Texas Intermediate. It expects to earn more for its crude oil, with a narrowing of the light-heavy differential around US$14 per barrel, higher demand for heavier crude grades and a growing export capacity through the Trans Mountain pipeline. Despite these changes, Alberta still risks running a deficit in the coming fiscal year should oil prices continue to drop below $70 per barrel.

After a 4.4 per cent surge in the 2024 census year, Alberta’s population growth is expected to slow to 2.5 per cent in 2025, lower than the first quarter forecast of 3.2 per cent growth because of reduced immigration and non-permanent residents targets by the federal government.

Revenue

Revenue for 2024-25 is forecast at $77.9 billion, an increase of $4.4 billion from Budget 2024, including:

  • $16.6 billion forecast from personal income taxes, up from $15.6 billion at budget.
  • $20.3 billion forecast from non-renewable resource revenue, up from $17.3 billion at budget.

Expense

Expense for 2024-25 is forecast at $73.3 billion, an increase of $143 million from Budget 2024.

Surplus cash

After calculations and adjustments, $2.9 billion in surplus cash is forecast.

  • $1.4 billion or half will pay debt coming due.
  • The other half, or $1.4 billion, will be put into the Alberta Fund, which can be spent on further debt repayment, deposited into the Alberta Heritage Savings Trust Fund and/or spent on one-time initiatives.

Contingency

Of the $2 billion contingency included in Budget 2024, a preliminary allocation of $1.7 billion is forecast.

Alberta Heritage Savings Trust Fund

The Alberta Heritage Savings Trust Fund grew in the second quarter to a market value of $24.3 billion as of Sept. 30, 2024, up from $23.4 billion at the end of the first quarter.

  • The fund earned a 3.7 per cent return from July to September with a net investment income of $616 million, up from the 2.1 per cent return during the first quarter.

Debt

Taxpayer-supported debt is forecast at $84 billion as of March 31, 2025, $3.8 billion less than estimated in the budget because the higher surplus has lowered borrowing requirements.

  • Debt servicing costs are forecast at $3.2 billion, down $216 million from budget.

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