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Alberta

Saskatchewan landowners fight against illegal drainage washing out land, roads

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WAWOTA, Sask. — Lane Mountney spreads a map over his kitchen table at his farmhouse in southeast Saskatchewan, pointing to yellow and orange arrows slithering across the document. 

Many of the arrows represent existing channels and ditches, moving across fields and out of wetlands to drain water. The arrows eventually make their way to a creek, causing what he describes as a deluge of problems downstream. 

“All these years, guys have gotten away with draining water and the next guy figures he can get away withit,” Mountney said in an interview at his farm near Wawota, Sask., about 200 kilometres southeast of Regina. 

“If this keeps going like it has, I don’t know what Saskatchewan’s going to look like in 10 years.”

Mountney’s map depicts what’s called the Wawken Drainage Project, a plan developed by the local watershed group that has since been taken over by the Water Security Agency, which is responsible for overseeing drainage in Saskatchewan. 

The project is nearly 14 square kilometres and contains 880 wetlands of various sizes representing a total of 2.4 square kilometres of water. 

A project document indicates that 88 per cent of these wetlands have been drained, partially drained or farmed. About 12 per cent remain intact.

Most of this water is supposed to flow into a creek that runs through a parcel of Mountney’s land. 

The plan developers believe the creek can handle the flows, but Mountney is not convinced. 

Last year, he and his wife, Sandra Mountney, dealt with flooding ontheir horses’ pasture. They decided not to use their well water at the time because it was yellow. 

“They were very excited to tell us that nobody inside the project area is going to lose acres, but they haven’t even looked at who’s going to lose acres miles down the line.” Sandra Mountney said. 

Brent Fry, who farms grain and livestock, said it’s common for his land to flood for three days when people upstream get 50 millimetres of rain. 

He said it has caused roads and access points to erode.

“There are about four farms out there and all they’re doing is draining whether they’ve got permission or not,” Fry said. “I don’t even know what to do because the government’s not doing anything — they’re siding with the big guys.”

Farmers have drained water in Saskatchewan for generations and many have done so illegally by digging ditches without permits.  

Most producers drain because it allows them to grow more crops, helping them pay for land that has become increasingly expensive. However, it has caused yearly flooding for people downstream. Roads also wash out and habitat gets lost.

At the Saskatchewan Association of Rural Municipalities convention in February, reeves passed a resolution asking the Water Security Agency to require those who are illegally draining to remediate their unapproved works. 

Saskatchewan legislation requires upstream landowners to receive permission from those downstream when they want to drain, but many say that’s not happening. 

Sandra Mountney said the Water Security Agency hasn’t been taking concerns seriously.

“It’s hard to know who’s really protecting our waterways,” she said.

The Wawken project began about three years ago but hasn’t been completed. It’s among many drainage projects underway.

Daniel Phalen, a watershed planner, worked on the project as technician before he left for another job. 

He said landowners had been draining water with no permits before the plan. His job was to determine how many wetlands were drained and what works had already been done. 

Phalen said the plan was to put in structures that would slow down the drainage to reduce problems downstream. 

It’s unclear what work had been done on the Wawken project to mitigate flows since Phalen left. The Water Security Agency did not respond to a request for comment.

Phalen said projects can get held up if affected landowners don’t come to an agreement. Expropriation is allowed but it’s rare, he said.  

Another nearby drainage plan, known as the Martin project, has stalled because of landowner concerns.

Researchers have estimated Saskatchewan has lost half of its total wetlands over time for crop production. 

Phalen, who also worked on the Martin plan, said it was concerning to see the number of wetlands sucked out. 

“The Water Security Agency doesn’t have the manpower to do much about it,” Phalen said. “There’s such low enforcement already that if they had any policies in place, people would just drain anyways. It’s kind of a scary problem to be in.”

Sandra Mountney said she’s worried about losing wetlands because they help recharge groundwater supplies and filter contaminants — particularly important when it’s dry. 

The Water Security Agency has released a drainage management framework that aims to prevent flooding and ensure Saskatchewan retains a “sufficient” number of wetlands. 

Leah Clark, the Interim Executive Director of Agriculture Water Management, told attendees at a Saskatchewan Farm Stewardship Association meeting earlier this year that 43 per cent of wetlands are retained within approved projects. She added the province has “thriving” wildlife populations.

However, she said under the policy, landowners would be able to select which wetlands to retain.

“It will achieve a working landscape for landowners to continue to use their land for farming and ranching. This approach will allow for new development while retaining current drainage,” she said. 

Phalen said Saskatchewan could look to Manitoba for solutions to retain wetlands. 

Manitoba has historically drained most of its wetlands in the agricultural regions, he said, but the province has since developed a policy where landowners are paid for retaining them. 

“You know, $100 an acre is not a ton of money, but it’s another incentive to help producers,” he said. “It’s such a complex problem where you got this huge financial incentive to drain.”

Lane Mountney said regulations just need to be enforced. 

“It’s almost too late,” he said. “They should have been out there checking stuff before we got this point.” 

This report by The Canadian Press was first published June 4, 2023.

Jeremy Simes, The Canadian Press

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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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