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Alberta

MLA says Trudeau’s “Emergency” underlines the need for a full public inquiry into government handling of covid crisis

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This article and video submitted by Red Deer South MLA Jason Stephan

As of Tuesday restrictions are substantially all gone from Alberta. Good. This is more how it should have been all along. We have seen too much top-down, command and control approach by all levels of government. I have and will continue to ask for an independent, comprehensive public inquiry. The better way is for Governments to trust adults to govern themselves and their families in respectful ways. Trudeau’s use of the Emergency Act looks increasingly ridiculous, even dangerous.

Last week the Alberta Government brought forward a motion on the Emergency Act. I stood in the legislature and the following are excerpts of my statement:  (video and then written statement)

 

“Mr. Speaker, about a month ago I attended the Trucker Convoy Rally at Gasoline Alley. It was packed with friends. It was not an angry gathering; it was a positive atmosphere filled with hope. Why? Because men and women and families, had felt voiceless, disenfranchised by Federal and Provincial governments. But now they had a voice in a trucker convoy. That was a cause to celebrate; they did not feel listened to, they felt ignored.

I understand that feeling. I have felt it myself. We have seen a top-down, command and control approach that treated adults as children, not respecting and trusting them to govern themselves and their families in respectful ways.
Mr. Speaker what I have witnessed, offends my core values as a public servant. Mr. Speaker, many Albertans feel the same. In the end the truth will prevail, and history will show, that governments made gross errors, that across-the-board vaccine passports and mandates caused more harm than good, especially to young adults and children. Public health authorities undermined their own authority with biased reporting and using fear and coercion as a tool.

Mr. Speaker I have spoken on this before, and I will be bringing forward a motion in this legislature for there to be a comprehensive, public inquiry into COVID, including a full cost analysis of COVID restrictions, mandates and passports, especially on young adults and children. The truth must prevail. Mr. Speaker, in respect of the trucker convoy, we know what the Prime Minister did, that he went into hiding, and sought to cancel and delegitimize the protestors calling them a fringe minority, labelling them as misogynists and racists.

Now Mr. Speaker, there were a few protestors who did blockade public roads. I do not condone that. I do not believe, like some politicians in this legislature, that the ends justify the means. Even in a cause that is just, it is not right to blockade. It undermines the moral high ground of a just cause. I sorrow that it occurs. The Prime Minister enacted the Emergency Act. While he quickly revoked it, why did he do it in the first place? This was not an emergency. Yes, there were a few breaking the law, and in those isolated cases, the police should have been enforcing the laws.

This is a very serious matter. The Emergency Act must never be used as a political tool, attacking an entire movement of Canadians, including many Albertans, who felt disenfranchised, whose crime was disagreeing with government.
It labelled an entire movement which disagrees with government, as a public danger, an emergency, a voice that must be stomped out and silenced. Mr. Speaker, this is a very bad precedent. What will the government do when there is a real emergency? Will citizens need to look over their shoulders if they support causes that an insecure, unprincipled government feels threatens their power and position? Government is supposed to protect freedoms and support prosperity for its people. In many cases, they have done the opposite. There is cause for concern, turbulence is on the horizon, in some respects it is already upon us. There is an urgency to prepare.”

The truth produces hope.  There is healing in the truth.  The truth makes us better.  In the end, the truth prevails.

 

Alberta

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

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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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