Alberta
It’s time for the Alberta Sovereignty Act – Red Deer South MLA Jason Stephan
This article submitted by Red Deer South MLA Jason Stephan
THE ALBERTA SOVEREIGNTY ACT IS GOOD FOR ALBERTA
I supported the concept of the Alberta Sovereignty Act before the UCP leadership race. It was developed by the Free Alberta Strategy. I participated in their townhalls supporting their strategies, as did two of the UCP leadership candidates, Danielle Smith and Todd Loewen. Jason Kenney and his cabinet ministers did not.
What is the Alberta Sovereignty Act?
The Sovereignty Act affirms Alberta’s right to refuse and reject Federal Government actions or laws that intrude into provincial areas of jurisdiction or attack the interests of Alberta.
Ottawa recently released a “discussion paper” seeking to limit, or impose additional carbon taxes on, oil and gas development. This is not an isolated incident; this is a pattern of hostile behavior from Ottawa seeking to attack and take advantage of Alberta, holding it back.
Albertans should be aware that this discussion paper is likely a pretext, an excuse to either take more money from Alberta or prevent it from excelling ahead of other provinces.
Albertans should be aware that at any time Ottawa may leverage the Supreme Court of Canada decision permitting carbon taxes, overruling our Court of Appeal describing Ottawa’s carbon taxes as a “constitutional trojan horse”, to impose a targeted windfall or carbon tax on Alberta’s natural resources that discriminates and disproportionately punishes Alberta while sparing Ontario and Quebec from burden or harm.
The Supreme Court of Canada says carbon taxes are a tool that Ottawa has its disposal at any time to punish Alberta, yet under section 92A of the Constitution Act, Alberta has jurisdiction over its natural resources, not Ottawa.
The Alberta Sovereignty Act should be invoked to reject the “discussion paper” and tell Ottawa to leave Alberta and its constitutional jurisdiction alone.
The unfortunate truth is that Ottawa has made itself an unpredictable and hostile variable, a threat to the freedom and prosperity of Alberta businesses and families that should not be underestimated.
Alberta is compelled to protect itself.
Does the Establishment like the Alberta Sovereignty Act? No. Many Eastern politicians and their media pundits do not like the Alberta Sovereignty Act. It challenges the status quo they benefit under.
Their status quo has enabled a pattern of abuse and economic warfare on Alberta, disrespecting its jurisdiction over its resources, creating chaos and injecting commercial uncertainty, chasing away billions in private sector investments and thousands of Alberta jobs.
Albertans are becoming more aware that this is a rigged partnership. Alberta businesses and families give hundreds of millions more to Ottawa than they receive in return, with Ottawa using our money, not to benefit Alberta, but for political gain, primarily in Quebec, the structural welfare recipient under the partnership. Equalization is one of the devices that Ottawa uses for this purpose.
Albertans want change. Alberta held an equalization referendum. Ottawa ignored the result –to them Alberta is means to an end, they want our money. Strongly worded letters from Alberta politicians have accomplished nothing. It is time for less words and more actions.
Boundaries are reasonable and normal.
Boundaries are integral to adult relationships. The Alberta Sovereignty Act seeks to impose boundaries that Ottawa continually disrespects, to discriminate, attack, and force itself into Alberta’s constitutional jurisdictions.
Some of the UCP leadership candidates say the Alberta Sovereignty Act will produce chaos. They are wrong. It is a morally and fiscally bankrupt Ottawa, a trillion dollar plus fiscal train wreck, that is producing chaos. Ottawa is the risk that we can no longer afford, not a law that seeks to do something about it!
The Alberta Sovereignty Act is good for Alberta. Wisely applied it can help protect the Alberta Advantage, as the most attractive Canadian jurisdiction to start and grow a business, to work and raise our families. Alberta is a land of freedom and opportunity for us and our children. We must be vigilant to keep it that way.
The deadline to become a member of the United Conservative Party to vote in this leadership race is this Friday, August 12. We invite all Alberta conservatives to become a member of the party, to vote and have your say on who will be the next leader and Premier of Alberta!
You can buy a membership here, or check if your membership is up-to-date here.
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
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.”
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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