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Alberta

Province announces $11 million investment to train Albertans to work in aviation industry

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Helping Alberta become Canada’s next aviation hub

The Ministry of Advanced Education is supporting Alberta’s growing aviation industry by investing more than $11 million over three years in Budget 2023.

Alberta continues to be the economic engine of Canada, and Alberta’s government is focused on even more job creation and diversification. Last fall, Alberta’s government signed a memorandum of understanding with WestJet Airlines, recognizing the importance of Alberta’s aviation industry and its contributions to the economy.

Part of the framework of the MOU included a commitment to address critical skilled labour shortages currently faced by the aviation industry. Alberta is home to the second-largest Canadian airline, which operates almost 800 flights carrying 70,000 passengers daily. These numbers are expected to double over the coming years.

That’s why Alberta’s government is committed to growing and diversifying its aerospace, aviation and logistics sectors. This new investment of $11 million includes:

  • $6 million over three years to help Mount Royal University establish a bachelor of aviation management program
  • $4.5 million over three years for an air access bursary for students in high-demand aviation programs
  • $500,000 to support planning of an aviation centre of excellence

“These investments will help ensure Alberta’s air industry has the resources and workforce it needs to succeed, further supporting the growth and vitality of Alberta’s aviation industry, the diversifying of our economy and leading more students to successful careers.”

Demetrios Nicolaides, Minister of Advanced Education

Supporting new seats in aviation education

Mount Royal University’s bachelor of aviation management program will add 120 seats over four years and be the first of its kind in Alberta. Unlike the aviation diploma, students seeking admission do not have to have a private pilot’s licence.

“We thank the Government of Alberta for this support of Mount Royal’s aviation program and the future pilots it educates. With the demand for pilots continuing to grow, this announcement speaks to the strength of the program, the vital role of education in advancing the aviation sector and its importance to the economy of Alberta.”
Tim Rahilly, president and vice-chancellor, Mount Royal University

The proposed program is a standard 120-credit degree. While there is only a generalized major, aviation management, the institution is offering the program with two different six-course concentrations.

One concentration in flight crew operations offers a commercial pilot and multi-engine instrument rating course to prepare students for a role as a pilot as well as other courses designed to prepare them for management opportunities as their flying career develops. The other concentration in aviation operations focuses on a greater development of management skills and specific aviation business content.

New bursary for aviation students

The new air access bursary provides $10,000 in non-repayable support for aviation students at Alberta post-secondary institutions. A total of $4.5 million will support up to 450 students over three years.

“Aviation is a growing field and the demand for pilots continues to soar. We thank the Government of Alberta for their financial support for students like me in the aviation program at Mount Royal University.”

Ethan Best, president, aviation student executive, Mount Royal University

Creating a hub for excellence

Alberta’s government is working across multiple ministries to support its air access expansion strategy as part of the memorandum of understanding with WestJet Airlines. Through this strategy, Alberta’s government is looking to boost the provincial economy by more than 1,000 direct jobs in Alberta and tens of thousands of other new jobs and billions in new economic activity. Pending approval, $500,000 will support planning for the centre of excellence for aviation training.

“The memorandum of understanding between the Government of Alberta and WestJet sets a foundation to support aviation-related post-secondary programs and improve skilled labour in the industry. This announcement strengthens these commitments and WestJet applauds the Government of Alberta for this funding that will further support WestJet’s Center of Excellence for advanced aviation training right here in Alberta.”

Jennifer Bue, interim chief financial officer, WestJet Group

Alberta is proving to be Canada’s next aviation hub and Alberta’s government continues to build and create new partnerships with the aviation industry and Alberta’s post-secondary institutions. Another key partnership in the province’s aviation industry exists between De Havilland and SAIT, focusing on aircraft manufacturing.

“This investment in critical skills and training comes at a time when our company is actively growing our Alberta footprint to advance our mission of manufacturing great Canadian aircraft that serve communities, transport passengers and save lives around the world. We look forward to continuing to work with the Government of Alberta to ensure we have the trained staff we need to deliver a new aerospace sector in the province.”

Brian Chafe, president and CEO, De Havilland Aircraft of Canada

Budget 2023 secures Alberta’s future by transforming the health-care system to meet people’s needs, supporting Albertans with the high cost of living, keeping our communities safe and driving the economy with more jobs, quality education and continued diversification.

Quick facts

  • Alberta’s aviation, aerospace and logistics industries employ more than 75,000 people (2021, Statistics Canada).
  • This investment expands on the October 2022 announcement that invested more than $8 million over three years to expand several key facilities and added 40 seats per year to Mount Royal University’s aviation diploma program.
  • A 2018 report from the Canadian Council for Aviation and Aerospace found that Canada’s aviation industry will need as many as 7,300 more pilots by 2025.

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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