Alberta
The letter Teck sent: A scathing rebuke of government
The original application from Teck Resources was made 9 years ago. That almost says enough right there. As environmental regulations changed, the company ‘optimized’ the project to ensure it would remain ‘commercially and environmentally viable’. The work with area First Nations communities was considered ‘ground breaking’ by those communities. Teck had already invested well over 1 billion dollars. But in the end, it appears Teck was not prepared to invest billions more in the environment of hostility toward major resource projects which Canada’s federal government has not been able to control.
Here’s the letter sent by the CEO of Teck Resources to Canada’s Minister of Environment and Climate Change. This letter will do more to stir Western Canadian anxiety than any number of “Buffalo Declarations”.
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Letter to Minister Wilkinson
Dear Minister:
I am writing to advise that after careful consideration Teck has made the difficult decision to formally withdraw our regulatory application for the Frontier oil sands project from the federal environmental assessment process.
We are disappointed to have arrived at this point. Teck put forward a socially and environmentally responsible project that was industry leading and had the potential to create significant economic benefits for Canadians. Frontier has unprecedented support from Indigenous communities and was deemed to be in the public interest by a joint federal-provincial review panel following weeks of public hearings and a lengthy regulatory process. Since the original application in 2011 we have, as others in the industry have done, continued to optimize the project to further confirm it is commercially viable.
Teck is extremely proud of the work done on this project and the strong relationships that we have formed with local governments, labour organizations, scientists, researchers and many other stakeholders, as well as with affected Indigenous communities. We believe that our agreements with Indigenous communities on Frontier, and very recently the work undertaken by the Alberta government with Indigenous communities in the region, form an important foundation for the future, and we applaud them for this milestone achievement.
However, global capital markets are changing rapidly and investors and customers are increasingly looking for jurisdictions to have a framework in place that reconciles resource development and climate change, in order to produce the cleanest possible products. This does not yet exist here today and, unfortunately, the growing debate around this issue has placed Frontier and our company squarely at the nexus of much broader issues that need to be resolved. In that context, it is now evident that there is no constructive path forward for the project. Questions about the societal implications of energy development, climate change and Indigenous rights are critically important ones for Canada, its provinces and Indigenous governments to work through.
I want to make clear that we are not merely shying away from controversy. The nature of our business dictates that a vocal minority will almost inevitably oppose specific developments. We are prepared to face that sort of opposition. Frontier, however, has surfaced a broader debate over climate change and Canada’s role in addressing it. It is our hope that withdrawing from the process will allow Canadians to shift to a larger and more positive discussion about the path forward. Ultimately, that should take place without a looming regulatory deadline.
Resource development has been at the heart of the Canadian economy for generations. Resource sectors including the Alberta oil sands create jobs; build roads, schools and hospitals; and contribute to a better standard of living for all Canadians. At the same time, there is an urgent need to reduce global carbon emissions and support action on climate change.
As a proudly Canadian company for over 100 years, we know these two priorities do not have to be in conflict. Our nation is uniquely positioned with abundant natural resources coupled with strong environmental regulations and a deeply engrained culture of social responsibility. We can build on that foundation and be a global provider of sustainable, climate-smart resources to support the world’s transition to a low carbon future. And yes, that can include low-carbon energy produced from the Alberta oil sands from projects like Frontier, using best-in-class technology, which would displace less environmentally and ethically sound oil sources.
At Teck, we believe deeply in the need to address climate change and believe that Canada has an important role to play globally as a responsible supplier of natural resources. We support strong actions to enable the transition to a low carbon future. We are also strong supporters of Canada’s action on carbon pricing and other climate policies such as legislated caps for oil sands emissions.
The promise of Canada’s potential will not be realized until governments can reach agreement around how climate policy considerations will be addressed in the context of future responsible energy sector development. Without clarity on this critical question, the situation that has faced Frontier will be faced by future projects and it will be very difficult to attract future investment, either domestic or foreign.
Teck has not taken this decision lightly. It is our hope that the decision to withdraw will help to create both the space and impetus needed for this critical discussion to take place for the benefit of all Canadians.
Sincerely,
Don Lindsay
President and Chief Executive Officer
Teck Resources Limited
Alberta
Free Alberta Strategy trying to force Trudeau to release the pension calculation
Just over a year ago, Alberta Finance Minister Nate Horner unveiled a report exploring the potential risks and benefits of an Alberta Pension Plan.
The report, prepared by pension analytics firm LifeWorks – formerly known as Morneau Shepell, the same firm once headed by former federal Finance Minister Bill Morneau – used the exit formula outlined in the Canada Pension Plan Act to determine that if the province exits, it would be entitled to a large share of CPP assets.
According to LifeWorks, Alberta’s younger, predominantly working-class population, combined with higher-than-average income levels, has resulted in the province contributing disproportionately to the CPP.
The analysis pegged Alberta’s share of the CPP account at $334 billion – 53% of the CPP’s total asset pool.
We’ve explained a few times how, while that number might initially sound farfetched, once you understand that Alberta has contributed more than it’s taken out, almost every single year CPP has existed, while other provinces have consistently taken out more than they put in and technically *owe* money, it starts to make more sense.
But, predictably, the usual suspects were outraged.
Media commentators and policy analysts across the country were quick to dismiss the possibility that Alberta could claim such a significant portion. To them, the idea that Alberta workers had been subsidizing the CPP for decades seemed unthinkable.
The uproar prompted an emergency meeting of Canada’s Finance Ministers, led by now-former federal Finance Minister Chrystia Freeland. Alberta pressed for clarity, with Horner requesting a definitive number from the federal government.
Freeland agreed to have the federal Chief Actuary provide an official calculation.
If you think Trudeau should release the pension calculation, click here.
Four months later, the Chief Actuary announced the formation of a panel to “interpret” the CPP’s asset transfer formula – a formula that remains contentious and could drastically impact Alberta’s entitlement.
(Readers will remember that how this formula is interpreted has been the matter of much debate, and could have a significant impact on the amount Alberta is entitled to.)
Once the panel completed its work, the Chief Actuary promised to deliver Alberta’s calculated share by the fall. With December 20th marking the last day of fall, Alberta has finally received a response – but not the one it was waiting for:
“We received their interpretation of the legislation, but it did not contain a number or even a formula for calculating a number,” said Justin Brattinga, Horner’s press secretary.
In other words, the Chief Actuary did the complete opposite of what they were supposed to do.
The Chief Actuary’s job is to calculate each province’s entitlement, based on the formula outlined in the CPP Act.
It is not the Chief Actuary’s job to start making up new interpretations of the formula to suit the federal government’s agenda.
In fact, the idea that the Chief Actuary spent all this time working on the issue, and didn’t even calculate a number is preposterous.
There’s just no way that that’s what happened.
Far more likely is that the Chief Actuary did run the numbers, using the formula in the CPP Act, only for them – and the federal government – to realize that Alberta’s LifeWorks calculation is actually about right.
Cue panic, a rushed attempt to “reinterpret” the formula, and a refusal to provide the number they committed to providing.
In short, we simply don’t believe that the Chief Actuary didn’t, you know, “actuarialize” anything.
For decades, Alberta has contributed disproportionately to the CPP, given its higher incomes and younger population.
Despite all the bluster in the media, this is actually common sense.
A calculation reflecting this reality would not sit well with other provinces, which have benefited from these contributions.
By withholding the actual number, Ottawa confirms the validity of Alberta’s position.
The refusal to release the calculation only adds fuel to the financial firestorm already underway in Ottawa.
Albertans deserve to know the truth about their contributions and entitlements.
We want to see that number.
If you agree, and want to see the federal government’s calculation on what Alberta is owed, sign our petition – Tell Trudeau To Release The Pension Calculation:
Once you’ve signed, send this petition to your friends, family, and all Albertans.
Thank you for your support!
Regards,
The Free Alberta Strategy Team
Alberta
Ford and Trudeau are playing checkers. Trump and Smith are playing chess
By Dan McTeague
Ford’s calls for national unity – “We need to stand united as Canadians!” – in context feels like an endorsement of fellow Electric Vehicle fanatic Trudeau. And you do wonder if that issue has something to do with it. After all, the two have worked together to pump billions in taxpayer dollars into the EV industry.
There’s no doubt about it: Donald Trump’s threat of a blanket 25% tariff on Canadian goods (to be established if the Canadian government fails to take sufficient action to combat drug trafficking and illegal crossings over our southern border) would be catastrophic for our nation’s economy. More than $3 billion in goods move between the U.S. and Canada on a daily basis. If enacted, the Trump tariff would likely result in a full-blown recession.
It falls upon Canada’s leaders to prevent that from happening. That’s why Justin Trudeau flew to Florida two weeks ago to point out to the president-elect that the trade relationship between our countries is mutually beneficial.
This is true, but Trudeau isn’t the best person to make that case to Trump, since he has been trashing the once and future president, and his supporters, both in public and private, for years. He did so again at an appearance just the other day, in which he implied that American voters were sexist for once again failing to elect the nation’s first female president, and said that Trump’s election amounted to an assault on women’s rights.
Consequently, the meeting with Trump didn’t go well.
But Trudeau isn’t Canada’s only politician, and in recent days we’ve seen some contrasting approaches to this serious matter from our provincial leaders.
First up was Doug Ford, who followed up a phone call with Trudeau earlier this week by saying that Canadians have to prepare for a trade war. “Folks, this is coming, it’s not ‘if,’ it is — it’s coming… and we need to be prepared.”
Ford said that he’s working with Liberal Finance Minister Chrystia Freeland to put together a retaliatory tariff list. Spokesmen for his government floated the idea of banning the LCBO from buying American alcohol, and restricting the export of critical minerals needed for electric vehicle batteries (I’m sure Trump is terrified about that last one).
But Ford’s most dramatic threat was his announcement that Ontario is prepared to shut down energy exports to the U.S., specifically to Michigan, New York, Wisconsin, and Minnesota, if Trump follows through with his plan. “We’re sending a message to the U.S. You come and attack Ontario, you attack the livelihoods of Ontario and Canadians, we’re going to use every tool in our toolbox to defend Ontarians and Canadians across the border,” Ford said.
Now, unfortunately, all of this chest-thumping rings hollow. Ontario does almost $500 billion per year in trade with the U.S., and the province’s supply chains are highly integrated with America’s. The idea of just cutting off the power, as if you could just flip a switch, is actually impossible. It’s a bluff, and Trump has already called him on it. When told about Ford’s threat by a reporter this week, Trump replied “That’s okay if he does that. That’s fine.”
And Ford’s calls for national unity – “We need to stand united as Canadians!” – in context feels like an endorsement of fellow Electric Vehicle fanatic Trudeau. And you do wonder if that issue has something to do with it. After all, the two have worked together to pump billions in taxpayer dollars into the EV industry. Just over the past year Ford and Trudeau have been seen side by side announcing their $5 billion commitment to Honda, or their $28.2 billion in subsidies for new Stellantis and Volkswagen electric vehicle battery plants.
Their assumption was that the U.S. would be a major market for Canadian EVs. Remember that “vehicles are the second largest Canadian export by value, at $51 billion in 2023 of which 93% was exported to the U.S.,”according to the Canadian Vehicle Manufacturers Association, and “Auto is Ontario’s top export at 28.9% of all exports (2023).”
But Trump ran on abolishing the Biden administration’s de facto EV mandate. Now that he’s back in the White House, the market for those EVs that Trudeau and Ford invested in so heavily is going to be much softer. Perhaps they’d like to be able to blame Trump’s tariffs for the coming downturn rather than their own misjudgment.
In any event, Ford’s tactic stands in stark contrast to the response from Alberta, Canada’s true energy superpower. Premier Danielle Smith made it clear that her province “will not support cutting off our Alberta energy exports to the U.S., nor will we support a tariff war with our largest trading partner and closest ally.”
Smith spoke about this topic at length at an event announcing a new $29-million border patrol team charged with combatting drug trafficking, at which said that Trudeau’s criticisms of the president-elect were, “not helpful.” Her deputy premier Mike Ellis was quoted as saying, “The concerns that president-elect Trump has expressed regarding fentanyl are, quite frankly, the same concerns that I and the premier have had.” Smith and Ellis also criticized Ottawa’s progressively lenient approach to drug crimes.
(For what it’s worth, a recent Léger poll found that “Just 29 per cent of [Canadians] believe Trump’s concerns about illegal immigration and drug trafficking from Canada to the U.S. are unwarranted.” Perhaps that’s why some recent polls have found that Trudeau is currently less popular in Canada than Trump at the moment.)
Smith said that Trudeau’s criticisms of the president-elect were, “not helpful.” And on X/Twitter she said, “Now is the time to… reach out to our friends and allies in the U.S. to remind them just how much Americans and Canadians mutually benefit from our trade relationship – and what we can do to grow that partnership further,” adding, “Tariffs just hurt Americans and Canadians on both sides of the border. Let’s make sure they don’t happen.”
This is exactly the right approach. Smith knows there is a lot at stake in this fight, and is not willing to step into the ring in a fight that Canada simply can’t win, and will cause a great deal of hardship for all involved along the way.
While Trudeau indulges in virtue signaling and Ford in sabre rattling, Danielle Smith is engaging in true statesmanship. That’s something that is in short supply in our country these days.
As I’ve written before, Trump is playing chess while Justin Trudeau and Doug Ford are playing checkers. They should take note of Smith’s strategy. Honey will attract more than vinegar, and if the long history of our two countries tell us anything, it’s that diplomacy is more effective than idle threats.
Dan McTeague is President of Canadians for Affordable Energy.
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