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Alberta

Premier Danielle Smith sent this letter to PM Justin Trudeau today

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An alternative to Just Transition: Premier Smith

Alberta Premier Danielle Smith invites Prime Minister Justin Trudeau to work with her to develop “Sustainable Jobs” legislation as an alternative to the proposed “Just Transition” legislation.

Dear Prime Minister:

I am writing to once again raise Alberta’s serious concerns with the proposed federal ‘Just Transition’ legislation. The world needs more Canadian energy, not less. It would be premature and ill-advised to signal the end of a vibrant, thriving industry that has the ability to reduce Canada’s and the world’s emissions through technological innovation and increased exports of LNG and other clean burning fuels the world so desperately needs. It is also critical to the security of our nation and allies to lessen dependence on fuel sources from unstable, undemocratic and dangerous countries with atrocious environmental records.

Simply put, the world needs more Canadian energy and technology, not less, and as the owner of the world’s third largest oil and gas reserves and the most advanced environmental technology on the planet – we need to signal our intention to provide substantially more of both.

According to your government’s own predictions, the federal Just Transition initiative alone will risk a full 25 percent of Alberta’s economy and 187,000 jobs in Alberta, while also causing major disruptions and displacement to 13.5 percent of Canada’s workforce. At a time when Canadians are struggling to afford basic services and goods, Canada’s oil and gas sector offers some of the highest wages in Canada, which translates to strong business and community support across the country. Signalling a move away from these types of high paying jobs, threatens the national economy, and the livelihoods of hundreds of thousands of workers across the country at a time when good jobs are needed the most. It also creates a chilling effect on investors considering large scale investments in the Alberta and Canadian energy sector.

Prime Minister, we are at a crossroads in Alberta’s relationship with the Federal Government. We can continue with the endless court challenges, legislation to protect jurisdictional rights and inflammatory media coverage over our disagreements, or, as is my strong preference, Alberta and Ottawa can work in partnership on a plan that will signal to all Canadians and investors from around the world that our governments have cooperatively designed a series of incentives and initiatives intended to achieve the following objectives:

  1. Substantially decreasing Canada’s and Alberta’s net emissions;
  1. Accelerating private and public investment in projects and infrastructure that utilize and develop Carbon Capture Utilization and Storage (CCUS), Bitumen Beyond Combustion, Geothermal technology, petrochemicals, hydrogen, lithium, helium, zero-emissions vehicles and nuclear technologies;
  1. Attracting and growing a larger skilled workforce to fill positions in both the conventional energy sector as well as emerging industries using the technologies cited above; and
  1. Significantly, and through the lens of global emissions reduction, increasing the export of LNG and other responsibly developed conventional oil and natural gas resources to Europe, Asia and the United States.

Prime Minister, all of the above objectives need to be clearly articulated and integrated into any Federal legislation or policies your government seeks to implement in the coming months, or that legislation will face irrepressible opposition from Alberta. I genuinely do not want to see that happen.

Further, this proposed legislation must be developed through cooperative discussions with affected provinces – namely Alberta. I would therefore invite you to meet with me in February on this matter, after which I would propose we have our appropriate ministers and officials meet repeatedly in the coming months with the goal of coming to a joint agreement on the key items to be included in your contemplated legislation so that it can be introduced and passed by the end of Spring.

Further, I request that you take to heart, and acknowledge publicly, the following items, in an extension of good faith to Albertans:

  1. Immediately drop the verbiage of “Just Transition”. Accordingly, rename the “Just Transition Act” to the “Sustainable Jobs Act”;
  1. Vow that all provisions of any forthcoming legislation will be designed to incentivize investment and job growth in both the conventional energy sector as well as in emerging industries utilizing Carbon Capture Utilization and Storage (CCUS), Bitumen Beyond Combustion, petrochemicals, hydrogen, lithium, helium, geothermal, zero-emissions vehicle and nuclear technologies;
  1. Demonstrate that no provision of the Act will be designed to phase out or reduce Alberta’s conventional oil and natural gas sector and workforce (as we are already experiencing a workforce shortage in this sector);
  1. Commit your Government to actively partnering with Alberta to expand LNG exports to Asia and Europe as part of our nation’s overall emissions reduction strategy; and
  1. Promise that you and your Government will work with Alberta in partnership to set reasonable and meaningful emissions reductions targets and will not unilaterally impose such targets on Alberta’s energy, agriculture and other industrial sectors on a go forward basis.

Investments by Alberta’s oil and natural gas industry are driving the creation of the very clean technologies needed to bring emissions down both in Canada and around the world. Oil and natural gas companies representing the majority of production in Canada are investing $24 billion on projects to help reduce annual GHG emissions from operations by 22 million tonnes by 2030, and have committed to emission neutrality by 2050. Putting an end to or hampering this important work, and continued tepid support for increased LNG export, is the best way for your government to fail in its goal of reducing our nation’s and the world’s emissions. It would be the ultimate example of scoring on our own net.

The Alberta energy sector has grown and thrived through innovation, providing good paying jobs for thousands and contributing billions of dollars in tax revenue for all levels of government.  They will continue to evolve and adapt to new technologies in search of new low to zero-emitting fuel sources like hydrogen and provide new, high-paying skilled jobs for decades to come. It is essential that the federal government stands shoulder to shoulder with Alberta to reduce emissions and continue to develop our oil and natural gas and future energy sources responsibly, while also positioning Canada as the optimal solution to global energy needs and security.

Prime Minister, we can and must work together. Operating in political silos, as adversaries on this issue, is getting us nowhere, and I believe all Canadians are tired of seeing it. Canada should be the world’s greatest energy superpower. It can be, if we come together collaboratively in pursuit of that objective. There is no limit to our nation’s potential.

Let’s turn the page starting with a meeting between us next month followed by a dedicated effort to craft “Sustainable Jobs” legislation that a vast majority of Albertans and Canadians will welcome and support. The consequences of missing this opportunity will be dire for the Canadian and Alberta economies, workforce and environment.

I look forward to your prompt reply.

Alberta

Alberta takes big step towards shorter wait times and higher quality health care

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From the Fraser Institute

By Nadeem Esmail

On Monday, the Smith government announced that beginning next year it will change the way it funds surgeries in Alberta. This is a big step towards unlocking the ability of Alberta’s health-care system to provide more, better and faster services for the same or possibly fewer dollars.

To understand the significance of this change, you must understand the consequences of the current (and outdated) approach.

Currently, the Alberta government pays a lump sum of money to hospitals each year. Consequently, hospitals perceive patients as a drain on their budgets. From the hospital’s perspective, there’s little financial incentive to serve more patients, operate more efficiently and provide superior quality services.

Consider what would happen if your local grocery store received a giant bag of money each year to feed people. The number of items would quickly decline to whatever was most convenient for the store to provide. (Have a favourite cereal? Too bad.) Store hours would become less convenient for customers, alongside a general decline in overall service. This type of grocery store, like an Alberta hospital, is actually financially better off (that is, it saves money) if you go elsewhere.

The Smith government plans to flip this entire system on its head, to the benefit of patients and taxpayers. Instead of handing out bags of money each year to providers, the new system—known as “activity-based funding”—will pay health-care providers for each patient they treat, based on the patient’s particular condition and important factors that may add complexity or cost to their care.

This turns patients from a drain on budgets into a source of additional revenue. The result, as has been demonstrated in other universal health-care systems worldwide, is more services delivered using existing health-care infrastructure, lower wait times, improved quality of care, improved access to medical technologies, and less waste.

In other words, Albertans will receive far better value from their health-care system, which is currently among the most expensive in the world. And relief can’t come soon enough—for example, last year in Alberta the median wait time for orthopedic surgeries including hip and knee replacements was 66.8 weeks.

The naysayers argue this approach will undermine the province’s universal system and hurt patients. But by allowing a spectrum of providers to compete for the delivery of quality care, Alberta will follow the lead of other more successful universal health-care systems in countries such as Australia, Germany, the Netherlands and Switzerland and create greater accountability for hospitals and other health-care providers. Taxpayers will get a much better picture of what they’re paying for and how much they pay.

Again, Alberta is not exploring an untested policy. Almost every other developed country with universal health care uses some form of “activity-based funding” for hospital and surgical care. And remember, we already spend more on health care than our counterparts in nearly all of these countries yet endure longer wait times and poorer access to services generally, in part because of how we pay for surgical care.

While the devil is always in the details, and while it’s still possible for the Alberta government to get this wrong, Monday’s announcement is a big step in the right direction. A funding model that puts patients first will get Albertans more of the high-quality health care they already pay for in a timelier fashion. And provide to other provinces an example of bold health-care reform.

Nadeem Esmail

Senior Fellow, Fraser Institute
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Alberta

Alberta’s embrace of activity-based funding is great news for patients

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From the Montreal Economic Institute

Alberta’s move to fund acute care services through activity-based funding follows best practices internationally, points out an MEI researcher following an announcement made by Premier Danielle Smith earlier today.

“For too long, the way hospitals were funded in Alberta incentivized treating fewer patients, contributing to our long wait times,” explains Krystle Wittevrongel, director of research at the MEI. “International experience has shown that, with the proper funding models in place, health systems become more efficient to the benefit of patients.”

Currently, Alberta’s hospitals are financed under a system called “global budgeting.” This involves allocating a pre-set amount of funding to pay for a specific number of services based on previous years’ budgets.

Under the government’s newly proposed funding system, hospitals receive a fixed payment for each treatment delivered.

An Economic Note published by the MEI last year showed that Quebec’s gradual adoption of activity-based funding led to higher productivity and lower costs in the province’s health system.

Notably, the province observed that the per-procedure cost of MRIs fell by four per cent as the number of procedures performed increased by 22 per cent.

In the radiology and oncology sector, it observed productivity increases of 26 per cent while procedure costs decreased by seven per cent.

“Being able to perform more surgeries, at lower costs, and within shorter timelines is exactly what Alberta’s patients need, and Premier Smith understands that,” continued Mrs. Wittevrongel. “Today’s announcement is a good first step, and we look forward to seeing a successful roll-out once appropriate funding levels per procedure are set.”

The governments expects to roll-out this new funding model for select procedures starting in 2026.

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The MEI is an independent public policy think tank with offices in Montreal, Ottawa, and Calgary. Through its publications, media appearances, and advisory services to policymakers, the MEI stimulates public policy debate and reforms based on sound economics and entrepreneurship.

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