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Alberta

OPINION: Marlin Schmidt on water allocation in the Bow River Basin

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Marlin Schmidt, MLA for Edmonton-Gold Bar, Environment and Parks Critic for Alberta’s Official NDP Opposition

The wise allocation of water in Alberta is essential to the sustainable development of an economy that works for all Albertans while preserving our precious natural heritage.

In 2007, Alberta recognized that limits for water allocation in the Bow River basin had been exceeded. No more new allocations of water have been allowed and Albertans have carefully managed the water resources in the basin since then. Fortress Mountain Holdings’ recent application to haul away and sell more than half of the 98 million litres a year it currently has the license to use threatens the careful management of water in the Bow River basin.

The original operators of Fortress Mountain were granted a license in 1968 to use 98 million litres of water per year from a tributary to Galatea Creek to prepare food and provide drinking water to skiers at the resort. The current owners claim that more than half of that allocation is not needed for those purposes and now want permission from Alberta Environment and Parks to haul 50 million litres of water per year away and sell it to the highest bidder. Allowing current license holders to subsidize their business operations with the sale of the unused portions of their licenses moves Alberta further away from the goal of sustainable development and would put the future of our river ecosystems at great risk.

Much has changed in the Bow River basin since 1968 – the demands on the river ecosystem have increased significantly with the twin pressures of population growth and climate change. Re-allocating 50 million litres of water would increase that pressure in a very ecologically sensitive area. It would also set a dangerous precedent for future allocations of water resources. If this application is approved, there’s nothing that will prevent future water license holders from selling their unused water allocations, and while the license holders may profit, our watersheds will pay the price.

Additionally, we must remember that this water allocation would be given priority over all other allocations granted after 1968 under Alberta’s “first-in-time first-in-right water” allocation system. This means that Fortress Mountain would receive priority for this use over a whole host of other users during times of extreme water shortage. Is selling bottled water really a higher priority for the people in the Bow River basin ahead of so many agricultural and municipal water uses? Most Albertans who have talked to me about this issue don’t think so.

Revenues from the sale of the water would apparently fund the goals that the owners have for the development of the resort, including environmentally sound development, living wages for staff, charitable and community activities, as well as reclamation of the site. I support those stated goals, but it should be the skiers who use the resort who pay for those activities. The other Bow River water users and the ecosystem should not be asked to pay for others’ enjoyment of a ski facility.

Alberta Environment and Parks must live up to its mandate of supporting sustainable development now and for future generations. Rejecting Fortress Mountain Holding’s water application would be a step in the right direction.

 

Marlin Schmidt

Environment & Parks Critic

Alberta’s Official NDP Opposition

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Alberta

Province introducing “Patient-Focused Funding Model” to fund acute care in Alberta

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Alberta’s government is introducing a new acute care funding model, increasing the accountability, efficiency and volume of high-quality surgical delivery.

Currently, the health care system is primarily funded by a single grant made to Alberta Health Services to deliver health care across the province. This grant has grown by $3.4 billion since 2018-19, and although Alberta performed about 20,000 more surgeries this past year than at that time, this is not good enough. Albertans deserve surgical wait times that don’t just marginally improve but meet the medically recommended wait times for every single patient.

With Acute Care Alberta now fully operational, Alberta’s government is implementing reforms to acute care funding through a patient-focused funding (PFF) model, also known as activity-based funding, which pays hospitals based on the services they provide.

“The current global budgeting model has no incentives to increase volume, no accountability and no cost predictability for taxpayers. By switching to an activity-based funding model, our health care system will have built-in incentives to increase volume with high quality, cost predictability for taxpayers and accountability for all providers. This approach will increase transparency, lower wait times and attract more surgeons – helping deliver better health care for all Albertans, when and where they need it.”

Danielle Smith, Premier

Activity-based funding is based on the number and type of patients treated and the complexity of their care, incentivizing efficiency and ensuring that funding is tied to the actual care provided to patients. This funding model improves transparency, ensuring care is delivered at the right time and place as multiple organizations begin providing health services across the province.

“Exploring innovative ways to allocate funding within our health care system will ensure that Albertans receive the care they need, when they need it most. I am excited to see how this new approach will enhance the delivery of health care in Alberta.”

Adriana LaGrange, Minister of Health

Patient-focused, or activity-based, funding has been successfully implemented in Australia and many European nations, including Sweden and Norway, to address wait times and access to health care services, and is currently used in both British Columbia and Ontario in various ways.

“It is clear that we need a new approach to manage the costs of delivering health care while ensuring Albertans receive the care they expect and deserve. Patient-focused funding will bring greater accountability to how health care dollars are being spent while also providing an incentive for quality care.”

Dr. Chris Eagle, interim president and CEO, Acute Care Alberta

This transition is part of Acute Care Alberta’s mandate to oversee and arrange for the delivery of acute care services such as surgeries, a role that was historically performed by AHS. With Alberta’s government funding more surgeries than ever, setting a record with 304,595 surgeries completed in 2023-24 and with 310,000 surgeries expected to have been completed in 2024-25, it is crucial that funding models evolve to keep pace with the growing demand and complexity of services.

“With AHS transitioning to a hospital-based services provider, it’s time we are bold and begin to explore how to make our health care system more efficient and manage the cost of care on a per patient basis. The transition to a PFF model will align funding with patient care needs, based on actual service demand and patient needs, reflecting the communities they serve.”

Andre Tremblay, interim president and CEO, AHS

“Covenant Health welcomes a patient-focused approach to acute care funding that drives efficiency, accountability and performance while delivering the highest quality of care and services for all Albertans. As a trusted acute care provider, this model better aligns funding with outcomes and supports our unwavering commitment to patients.”

Patrick Dumelie, CEO, Covenant Health

“Patient-focused hospital financing ties funding to activity. Hospitals are paid for the services they deliver. Efficiency may improve and surgical wait times may decrease. Further, hospital managers may be more accountable towards hospital spending patterns. These features ensure that patients receive quality care of the highest value.”

Dr. Glen Sumner, clinical associate professor, University of Calgary

Leadership at Alberta Health and Acute Care Alberta will review relevant research and the experience of other jurisdictions, engage stakeholders and define and customize patient-focused funding in the Alberta context. This working group will also identify and run a pilot to determine where and how this approach can best be applied and implemented this fiscal year.

Final recommendations will be provided to the minister of health later this year, with implementation of patient-focused funding for select procedures across the system in 2026.

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Alberta

Is Canada’s Federation Fair?

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The Audit David Clinton

Contrasting the principle of equalization with the execution

Quebec – as an example – happens to be sitting on its own significant untapped oil and gas reserves. Those potential opportunities include the Utica Shale formation, the Anticosti Island basin, and the Gaspé Peninsula (along with some offshore potential in the Gulf of St. Lawrence).

So Quebec is effectively being paid billions of dollars a year to not exploit their natural resources. That places their ostensibly principled stand against energy resource exploitation in a very different light.

You’ll need to search long and hard to find a Canadian unwilling to help those less fortunate. And, so long as we identify as members of one nation¹, that feeling stretches from coast to coast.

So the basic principle of Canada’s equalization payments – where poorer provinces receive billions of dollars in special federal payments – is easy to understand. But as you can imagine, it’s not easy to apply the principle in a way that’s fair, and the current methodology has arguably lead to a very strange set of incentives.

According to Department of Finance Canada, eligibility for payments is determined based on your province’s fiscal capacity. Fiscal capacity is a measure of the taxes (income, business, property, and consumption) that a province could raise (based on national average rates) along with revenues from natural resources. The idea, I suppose, is that you’re creating a realistic proxy for a province’s higher personal earnings and consumption and, with greater natural resources revenues, a reduced need to increase income tax rates.

But the devil is in the details, and I think there are some questions worth asking:

  • Whichever way you measure fiscal capacity there’ll be both winners and losers, so who gets to decide?
  • Should a province that effectively funds more than its “share” get proportionately greater representation for national policy² – or at least not see its policy preferences consistently overruled by its beneficiary provinces?

The problem, of course, is that the decisions that defined equalization were – because of long-standing political conditions – dominated by the region that ended up receiving the most. Had the formula been the best one possible, there would have been little room to complain. But was it?

For example, attaching so much weight to natural resource revenues is just one of many possible approaches – and far from the most obvious. Consider how the profits from natural resources already mostly show up in higher income and corporate tax revenues (including income tax paid by provincial government workers employed by energy-related ministries)?

And who said that such calculations had to be population-based, which clearly benefits Quebec (nine million residents vs around $5 billion in resource income) over Newfoundland (545,000 people vs $1.6 billion) or Alberta (4.2 million people vs $19 billion). While Alberta’s average market income is 20 percent or so higher than Quebec’s, Quebec’s is quite a bit higher than Newfoundland’s. So why should Newfoundland receive only minimal equalization payments?

To illustrate all that, here’s the most recent payment breakdown when measured per-capita:

Equalization 2025-26 – Government of Canada

For clarification, the latest per-capita payments to poorer provinces ranged from $3,936 to PEI, $1,553 to Quebec, and $36 to Ontario. Only Saskatchewan, Alberta, and BC received nothing.

And here’s how the total equalization payments (in millions of dollars) have played out over the past decade:

Is energy wealth the right differentiating factor because it’s there through simple dumb luck, morally compelling the fortunate provinces to share their fortune? That would be a really difficult argument to make. For one thing because Quebec – as an example – happens to be sitting on its own significant untapped oil and gas reserves. Those potential opportunities include the Utica Shale formation, the Anticosti Island basin, and the Gaspé Peninsula (along with some offshore potential in the Gulf of St. Lawrence).

So Quebec is effectively being paid billions of dollars a year to not exploit their natural resources. That places their ostensibly principled stand against energy resource exploitation in a very different light. Perhaps that stand is correct or perhaps it isn’t. But it’s a stand they probably couldn’t have afforded to take had the equalization calculation been different.

Of course, no formula could possibly please everyone, but punishing the losers with ongoing attacks on the very source of their contributions is guaranteed to inspire resentment. And that could lead to very dark places.

Note: I know this post sounds like it came from a grumpy Albertan. But I assure you that I’ve never even visited the province, instead spending most of my life in Ontario.

1

Which has admittedly been challenging since the former primer minister infamously described us as a post-national state without an identity.

2

This isn’t nearly as crazy as it sounds. After all, there are already formal mechanisms through which Indigenous communities get more than a one-person-one-vote voice.

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