Red Deer – Lacombe MP Blaine Calkins sets the record straight on Pipelines

From a Facebook submission by Red Deer – Lacombe MP Blaine Calkins

I don’t know about you, Alberta, but I’ve had it “up to here” with Liberals attacking our energy sector. Since 2015 they have gone out of their way to cancel already approved pipelines, put a tanker ban on the West coast (while conveniently ignoring the importation of foreign oil on east coast) and creating a regulatory quagmire that makes building a pipeline in this country next to impossible. This means billions of dollars in investment have been chased out of Canada and hundreds of thousands of jobs have been lost.

“But the Conservatives under Harper never built a pipeline” is the cry offered by Liberals and those trying hard to defend them! Baloney!

The Libs have tried to sell this false bill of goods since 2016, and it didn’t stand up then, but since so many people like to continue to repeat this nonsense, I think it’s time to set the record straight on pipelines once again.

Fact: 4 major Pipelines Were Built in Canada between 2006 and 2015.

1. Enbridge Alberta Clipper – 1607km. Applied 2007, approved 2008, built in 2010 and transports 450,000 barrels per day. (https://www.reuters.com/…/update-1-enbridge-begins…)

2. Trans Canada Keystone. 1247km (in Canada). Applied 2006, approved 2007, built 2010, and transports 435,000 barrels per day. (https://www.tcenergy.com/…/2010-06-30keystone-pipeline…/)

3. Enbridge Line 9B Reversal. 639km (affected) Applied 2012, approved 2014, operational in 2015, and transports 300,000 barrels per day. (https://www.enbridge.com/ECRAI.aspx)

4. Kinder Morgan Anchor Loop. 160km. Approved in 2006, Built 2008, and transports 40,000 barrels per day. (https://www.jwnenergy.com/…/kinder-morgan-marks-tenth…/)

It is noteworthy that between the years of 2006-2011 Prime Minister Harper had two minority governments, which hampered the ability of the government of the day to change the laws and regulations that would streamline the large project application process.

After forming a majority government in 2011, former Finance Minister, the late Jim Flaherty, tabled Bill C-38, the Jobs, Growth and Prosperity Act, which among other things, created a predictable, thorough and streamlined approach to issuing certificates for major pipelines. It did not remove environmental regulations but instead, established time limits for regulatory reviews and created a predictable timeline for energy companies who wanted to invest in Canada. I was honoured to chair the sub-committee of Finance tasked to review Bill C-38, which was passed in 2012.

For the next three years of the Conservative majority mandate, and based on signals of support for the industry, Alberta jobs flourished, and we had near full-employment numbers through most of Prime Minister Harper’s tenure as Prime Minister.

In 2015 the Trudeau Liberals inherited billions of dollars in energy projects that were either fully approved or progressing well towards approval. Unfortunately, many of these projects were either killed by the Prime Minister directly or made unviable by the Liberal’s disastrous anti-energy policies and Bills like C-48 (Tanker Ban) and C-69 (No More Pipelines) that created economic uncertainty that caused investments to flee our country, along with good paying jobs:

Energy East – applied in August 2013, cancelled by then TransCanada in 2017, citing “existing and likely future delays resulting from the regulatory process, (more like heaping on red tape and environmental requirements that even imported oil doesn’t have to comply with) the associated cost implications and the increasingly challenging issues and obstacles.” Project Value – $15.7B https://www.cbc.ca/…/transcanada-energy-east-1.4338227

Northern Gateway – applied in May 2010, approved by the Conservative Government in June 2014. Despite support from industry and indigenous communities, Justin Trudeau made good on an election promise and cancels this pipeline in November 2016. Project value – $7B

https://financialpost.com/…/we-are-very-disappointed…

Keystone XL – applied in June 2005, Canadian portion approved by the Conservative Government in 2007. The US portion of the project was rejected by President Obama in 2015, re-approved by President Trump in 2017 (which was reaffirmed in 2019) and most recently cancelled by President Biden in January 2021. Despite billions of dollars invested by the province of Alberta on this project, Trudeau only indicated his disappointment in the decision. Project Value – $8B https://pm.gc.ca/…/statement-prime-minister-canada…

Trans Mountain Pipeline – applied in 2013, this project was a privately funded venture with the support of no less than 12 energy companies. By 2018, after changing the rules for this project almost daily, the Liberal government was forced to purchase the old pipeline from Kinder Morgan at a cost of $4.5B, and is now on the hook for new construction with a Project Value – $12.5B (a $5.2B increase since 2013) https://www.reuters.com/…/us-canada-pipeline…

Today, the Liberal Government is facing new pipeline issues as Enbridge Line 5 could be shutdown by the Governor of Michigan – Enbridge’s Line 5 pipeline carries Canadian oil east, running through Wisconsin and Michigan, supplying about half of the oil needs of Ontario and Quebec. In addition, the Enbridge Line 3 Replacement project is at risk as there are rising calls in the US to pull a water permit necessary for the project. To date, the Liberals remain silent on their plans to deal with these pressing matters.

It is worth mentioning that unemployment rates in Alberta from 2005 – 2015 averaged 2% lower than the rest of Canada. Since December 2015, the first full month the Liberals formed government, unemployment rates in Alberta rose to and have remained higher than the national average. (https://economicdashboard.alberta.ca/Unemployment…)

So, let’s set the record straight. Conservatives build pipelines, cut red tape, create jobs and the entire nation prospers. Liberals cancel lucrative energy projects, create unemployment, foment uncertainty and only create a toxic investment climate. The only thing more damaging to the economy of Alberta than a Liberal government is a Trudeau Liberal government.

Thankfully Erin O’Toole has a plan to get the Liberals out of office and get Albertans and all Canadians back to work.

We will highlight the excellent environmental record of our energy sector, which is improving every day. I expect the NDP and Greens to twist the facts against Alberta energy, but Liberals ought to have learned long ago the risk of messing with the Alberta energy sector, not furthering the misinformation of the Greens and NDP.

Related Topics:#BlaineCalkins #RedDeerLacombeMP #SettingtheRecordStraightonPipelines feature

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

Published on November 21, 2024

Todayville

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:

Tegan Hill

Alberta

Premier Smith says Auto Insurance reforms may still result in a publicly owned system

Published on November 21, 2024

Government of Alberta

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