Alberta
MB/SK/AB NeeStaNan Utilities Corridor: First Nations-led utility corridor is a 21st-century nation-building initiative
Port Nelson is 300 kilometres south of Churchill and has a longer ice-free season. In fact, a concrete jetty constructed (and never used) at Port Nelson nearly a hundred years ago remains in place.
From the Frontier Centre for Public Policy
By Terry Etam
“The trading of goods has been in our DNA as Indigenous People for centuries, but somewhere along the way this was lost. It’s time to regain our prosperity, for the betterment of our communities and for our country.” – NeeStaNan website
Ever feel like you’re being neglected by either governments or the various power centers that dominate life? The big places get all the attention, have all the votes, have all the buzz. In Canada, fewer than ten such centers dominate the country. If you’re not in one of those, you won’t know much political power, there won’t be much clout, there won’t be much of anything.
And if you want to know how far you can get from a circle of influence, consider Census Division No. 23, a great big administrative district in northern Manitoba. The size and ruggedness are mindboggling; No. 23 encompasses an area of 233,578 square km/90,185 square miles, six times the area of Switzerland, yet the region’s total population is 4,690. The population density, rounded to the nearest person-per-square km, is zero. If you round it to the nearest tenth of a square km, it is still zero.
It is extremely hard for people of regions like this to register on the national radar for any number of reasons, some of which are just logistical (remote location) and some of which are just rude realities (not much political capital up for grabs in No. 23).29dk2902l
The people of regions like this tend to be absent from all sorts of things, including resource development, even if it happens in these regions. Yes, there will be some local employment, and positive economic spinoffs, but nothing in the way of meaningful ownership or control.
But that may be about to change, for a significant swath of Manitoba, Saskatchewan, and the northeastern part of Alberta. Underway is the NeeStaNan utility corridor, stretching from northern Alberta through north-central Saskatchewan and on to the shores of Hudson Bay in Manitoba.
The significance of this corridor could be profound. It will provide tidewater access for landlocked western Canadian resources that otherwise need to travel to the west coast, or other less efficient routes. As one of the best examples, Saskatchewan must move potash to market via Vancouver, meaning a trip through the Rocky Mountains and on to the coast.
By utilizing the NeeStaNan utility corridor, potash will be able to move to large markets like Brazil far more efficiently. The distance to seawater via Hudson Bay is 630 km/390 miles less than by going through BC ports, and here’s the real economic kicker: the sea route to Brazil’s market is actually 3,800 km less than current routes. That’s almost 2,400 miles, for American friends and for old times’ sake.
The corridor is planned to enter Hudson Bay not at Churchill, but at a much more direct and accessible point called Port Nelson. Port Nelson is some 300 kilometres/180 miles south of Churchill (Hudson Bay is really freaking big) and has a longer ice-free season. In fact, a concrete jetty constructed (and never used) at Port Nelson nearly a hundred years ago remains in place. Port Nelson isn’t a new idea.
The utility corridor isn’t simply a project to enhance the wellbeing of the FN bands along the way, although it will most certainly do that. It is also far more grand in scope: the utility corridor will help Canada’s heartland deliver industrial products to global markets in a more efficient way, and provide the sort of efficiencies that can help multiple Canadian industries enhance global competitiveness, all the while providing an economic boost that is infinitely better than what locals and First Nations along the way have ever known.
Many industries could benefit, including the oil and gas sector, and I’m going to say that now before any legislation passes that makes it illegal. There is potential to utilize the corridor to move rail cargoes, pipelines, lumber, agricultural products, raw materials, manufactured goods… an endless array of the stuff that makes Canada wealthy.
The project is enormously captivating right from its very name. “NeeStaNan” translates as “all of us”. How cool is that; inclusiveness not under the guise some overwrought mandate, but in the sense that the project is being structured to benefit a great number of parties. The home page of the NeeStaNan website describes the project as a utility corridor “uniting Canadians”. Now, doesn’t that phrase sound far more powerful coming from the heartland, from people with skin in the game, as opposed to insincere platitudes thrown about like confetti on the campaign trail?
The utility corridor really could unite Canadians; it is a slingshot of vitality into Canada’s industrial base. It could benefit many critical industries, and open up new trade possibilities. It is a project designed to bring in many First Nations along the route that have very little to show for Canada’s development. It’s not a handout, it’s the opposite – a benefit to Canada and a great many Canadians.
Isn’t this what First Nations Self Determination should be about? Isn’t this a perfect dovetail with the interests of the people who live in these remote areas, who are the only ones there, and who deserve a say in how it is developed? Isn’t it amazing that it is a collaborative effort that by design will benefit industries that these First Nations have no direct stake in?
Isn’t it the best possible goal and achievement of all the efforts to bring First Nations fully into the Canadian matrix on a way that works for everyone, and that benefits everyone?
And who would be better than First Nations along the corridor’s path as the stewards of the corridor itself? Who knows the terrain better? I’ve been there, I grew up not in the path of the corridor but I could see it from a north facing window, and I’ll tell you it’s not territory for the faint of heart. Winters are brutal and long, summers are hot and buggy, and nature is relentless. Local expertise and wisdom would be invaluable.
I can’t really think of an infrastructure project of the past fifty years that could have such multi-dimensional benefits to so many Canadians. It is uplifting to see collaboration across many First Nations and the governments of three provinces. Ottawa may not like it, because the corridor is sure to empower an area of the country that has few votes to harvest, but that is all the more reason to get behind and support the project’s owners, organizers, and operators.
The NeeStaNan utility corridor might do more for a forgotten region of Canada, and its First Nations, than 150 years of federal government “help”. Let’s hope all three prairie provinces and the First Nations along the way bring the corridor into life and to its full potential.
Terry Etam is a columnist with the BOE Report, a leading energy industry newsletter based in Calgary. He is the author of The End of Fossil Fuel Insanity. You can watch his Policy on the Frontier session from May 5, 2022 here.
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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