Alberta
The Awed Couple: Can Ottawa Force Alberta To Stay In Its Lane?
Fact: Alberta and Saskatchewan were to enter Confederation in 1905 as a province named Buffalo. But Sir Wilfrid Laurier feared a landmass that big would threaten the domination of Quebec and Ontario in Canada. And so Buffalo was split into the two provinces we know today.
Of all the riddles that make up Canada’s current prime minister one of the most intriguing is how the grandson of a man, Charles-Émile Trudeau, who made his fortune in Montreal gas stations is now hellbent on destroying the same industry.
In this obsession to end fossil fuels, Trudeau does have the company of many other heirs to fortunes created by oil and its products. The ranks of Green NGOs and political movements are thick with names like Rockefeller, Getty, Morgan, Flagler and more, heirs with a guilty conscience about perceived climate-change destruction.
But while most of these families have chosen discreet roles in their quest, Trudeau’s climate infatuation has propelled him to prime minister of Canada since 2015. In that time “Sunny Ways” Justin has obsessively pursued his goal of transitioning Canada from the fossil-fuel giant to an imagined Shangri-la of gentle breezes and warm sunshine.
Nothing can shake him of his messianic role as saviour of the Frozen North. Likewise, no public disgrace or controversy can shake his loyal supporters who supported his father in the same manner. Buttressed by the lapdog NDP caucus he spouts buckets of enviro-nonsense to a docile media (which he has bribed to stay quiet).
Because subtlety is not a strong suit he even named a former Greenpeace zealot and convicted felon as his Environment minister. Which has naturally put him directly at odds with that portion of the country that exploits fossil fuels and (don’t tell anybody) floats the boat of federal budgets.
So when Justin proposed a Canadian Sustainable Jobs Act to turn energy workers into code writers and social workers by 2035 there was a degree of pushback amongst those who would lose their livelihoods. That plan was revealed last week by EnerCan (who makes up this dreck?) minister Jonathan Wilkinson.
Promising to convert Calgary’s public transit to all-electric, Wilkinson (former leader of the New Democratic Party‘s youth wing in Saskatchewan) proposed the ‘Sustainable Jobs Act’ advisory council that will provide the federal government with recommendations on how to support the Canadian workforce during transition to a ‘net-zero economy.” You can guess who’ll be on the advisory council, but don’t count on any Ford F-150 drivers.
Enter Danielle Smith, newly re-elected premier of Alberta. Smith and her advisors have declared as unworkable the federal government’s unilateral prescription for a carbon-neutral society by 2050. While they recognize the need for transition the Alberta solution is predictably less draconian than Trudeau’s Pol Pot prescription for moving the population back to a more bucolic lifestyle.
Specifically, Alberta wants “to achieve a carbon-neutral energy economy by 2050, primarily through investment in emissions-reduction technologies and the increased export of Alberta LNG to replace higher-emitting fuels internationally.” (Presumably Alberta will be joined by Saskatchewan in this pushback.)
Then came the hammer. “As the development of Alberta’s natural resources and the regulation of our energy sector workforce are constitutional rights and the responsibility of Alberta, any recommendations provided by this new federal advisory council must align with Alberta’s Emissions Reduction and Energy Development Plan.”
Translation: Federal legislation has to be in synch with provincial plans, not the other way around. In short, try to impose some Michael Mann fantasy on the province and it’s a no-go. Don’t like it? See you in court. In Alberta. Not Ottawa.
Will this constitutional gambit work? While Smith’s mandate from the recent election is hardly rock-solid, she does have the benefit of time in her four-year term. Trudeau has no such luxury, and launching a court case in Alberta would likely stretch past his mandate ending next year. Yes, the impertinence of Alberta would play well with his base in the 514/613/416. But let’s be honest, they are voting Trudeau even if he (in the words of Donald Trump) grabs them by the privates.
One thing you can be assured of when it comes to the PM. He will not be forcing any Canadian Sustainable Jobs Act on the Ontario auto industry to aid its transition to EV vehicles. There will be no helpful suggestions on the death of the automobile for the new mutlti-billion dollar VW battery plants cashing federal cheques in Windsor. He knows his voting base won’t buy it. But those Alberta saps?
The telling impact of this jurisdictional fight will be where Trudeau’s rival, Pierre Poilievre, comes down on the transition issue. With his election depending on the swaths of voters in the GTA shoulder ridings— where Trudeau’s mooting about crybaby Alberta will get a full airing— does he lend his support to Smith’s pushback?
Put simply, is backing Alberta sovereignty in the oil patch a vote-loser for a party still looking past “Hate Trudeau” as an election platform? You could see Poilievre rationalizing that he’ll get the seats in the West no matter what, so why not leave Trudeau to wrassle the Alberta bear alone?
Risky for sure. But if he gets the PMO seat in 2024 Poilievre can always play kiss-and-make-up later with Smith and her government. Can’t wait.
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Bruce Dowbiggin @dowbboy is the editor of Not The Public Broadcaster A two-time winner of the Gemini Award as Canada’s top television sports broadcaster, he’s a regular contributor to Sirius XM Canada Talks Ch. 167. Inexact Science: The Six Most Compelling Draft Years In NHL History, his new book with his son Evan, was voted the seventh-best professional hockey book of all time by bookauthority.org . His 2004 book Money Players was voted sixth best on the same list, and is available via http://brucedowbigginbooks.ca/book-personalaccount.aspx
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:
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.”
“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.”
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.”
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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