Alberta
Two Alberta UCP members kicked out of caucus after challenging Kenney’s leadership
EDMONTON — Members of Premier Jason Kenney’s United Conservative Party caucus have voted to turf two of their own for challenging the leader.
Backbencher Todd Loewen was ejected Thursday night after publicly announcing earlier in the day the party is adrift and out of touch under Kenney and that the premier must quit before things spiral further.
Backbencher Drew Barnes had been the most vocal critic of the government’s COVID-19 health restrictions, saying they are of questionable effect and an intolerable infringement on personal freedoms. He was also voted out.
“Members recognize the need for government caucus to remain strong and united behind our leader, Premier Jason Kenney, as we continue to fight through what looks to be the final stages of the COVID-19 pandemic and beyond,” UCP whip Mike Ellis said in a statement.
“There is simply no room in our caucus for those who continually seek to divide our party and undermine government leadership, especially at this critical juncture.”
Kenney’s spokeswoman, Jerrica Goodwin, added in a statement: “The premier is proud to stand with his caucus colleagues and lead Alberta through the greatest health and economic crisis in a century.”
Loewen, representing the northern rural riding of Central Peace-Notley, had been the chair of the UCP caucus. Barnes represents Cypress-Medicine Hat in the south.
Loewen and Barnes join a third backbencher, Pat Rehn, who was expelled earlier this year after his constituents complained he wasn’t doing any work or listening to their concerns.
Weeks of bubbling internal discontent within the caucus boiled over into an open challenge by Loewen in a public letter to Kenney published on Loewen’s Facebook page in the pre-dawn hours Thursday.
In the letter, Loewen called on the premier to resign, saying he no longer sees a commitment to teamwork and party principles.
“We did not unite around blind loyalty to one man. And while you promoted unity, it is clear that unity is falling apart,” writes Loewen.
He accused Kenney and his government of weak dealings with Ottawa, ignoring caucus members, delivering contradictory messages, and botching critical issues such as negotiations with doctors and a controversy over coal mining in the Rocky Mountains.
“Many Albertans, including myself, no longer have confidence in your leadership,” Loewen says in the letter.
“I thank you for your service, but I am asking that you resign so that we can begin to put the province back together again.”
In a radio interview later in the day, Loewen said he wanted to stay in the UCP and that he was not seeking to split the party but save it from looming disaster in the next election.
“The people are upset. They are leaving the party,” Loewen told 630 CHED. “We need to do what it takes to stop the bleeding.
“We need to have our constituency associations strong. We’ve got to quit losing board members.”
Loewen later received a message of support from a second UCP backbencher, Dave Hanson.
Hanson wrote on Facebook: “Todd, I applaud your courage and stand behind your decision.
“I hear the same thing from our supporters in my area. I along with many of our colleagues share in your frustration.”
Hanson, Barnes and Loewen are three of 18 UCP backbench members who broke with the government in early April over restrictions aimed at reducing the spread of COVID-19. The group said the rules were needlessly restrictive and infringed on personal freedoms. Sixteen wrote an open letter expressing those concerns.
Since then Barnes has remained vocal, actively questioning why the regulations are needed in low-infection areas and demanding to see data underlying the health decisions.
Kenney tolerated the open dissension for weeks. He has said he believes in free speech and that backbenchers are not in cabinet and don’t speak for his government. But Loewen was the first to openly challenge Kenney’s leadership.
Kenney’s poll numbers, along with party fundraising contributions, have dropped precipitously during the pandemic while those of Rachel Notley’s NDP have climbed.
Notley said regardless of Kenney’s internal political troubles, Albertans need to see him focus on governing the province.
Alberta has seen in recent weeks some of the highest COVID-19 case rates in North America that threaten to swamp the province’s health system.
“It’s not looking good,” said Notley.
“What we need as a result is for the premier to clean up his house, get his house in order and provide the kind of leadership that Albertans desperately need during one of the most challenging times in our history.”
There were rumours of a widening internal UCP breach two weeks ago when Kenney suspended the legislature’s spring sitting. He said it was to keep staff and legislature members safe from COVID-19.
On Wednesday, the government extended the hiatus for another week.
Political scientist Duane Bratt said Kenney had little choice but to expel Loewen but noted it took several hours of debate among the caucus to get there.
“This is not a good day for Jason Kenney. He is wounded by this. And I don’t think it’s over,” said Bratt with Mount Royal University in Calgary.
Pollster Janet Brown said the open dissension magnifies Kenney’s leadership woes. Brown said a premier relies on three pillars of support: party fundraising, caucus support and support in the popularity polls. Any one of those three can help offset crises somewhere else.
But Kenney, said Brown, doesn’t have support in any area right now.
“If you’re down in the polls, if you don’t have the confidence of your caucus and your donors are keeping their hands in their pockets, what’s your justification for continuing?” said Brown.
“It seems like he’s failing with all three audiences.”
This report by The Canadian Press was first published May 13, 2021.
Dean Bennett, The Canadian Press
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
Alberta maintains a balanced budget while ensuring pressures from population growth are being addressed.
Alberta faces rising risks, including ongoing resource volatility, geopolitical instability and rising pressures at home. With more than 450,000 people moving to Alberta in the last three years, the province has allocated hundreds of millions of dollars to address these pressures and ensure Albertans continue to be supported. Alberta’s government is determined to make every dollar go further with targeted and responsible spending on the priorities of Albertans.
The province is forecasting a $4.6 billion surplus at the end of 2024-25, up from the $2.9 billion first quarter forecast and $355 million from budget, due mainly to higher revenue from personal income taxes and non-renewable resources.
Given the current significant uncertainty in global geopolitics and energy markets, Alberta’s government must continue to make prudent choices to meet its responsibilities, including ongoing bargaining for thousands of public sector workers, fast-tracking school construction, cutting personal income taxes and ensuring Alberta’s surging population has access to high-quality health care, education and other public services.
“These are challenging times, but I believe Alberta is up to the challenge. By being intentional with every dollar, we can boost our prosperity and quality of life now and in the future.”
Midway through 2024-25, the province has stepped up to boost support to Albertans this fiscal year through key investments, including:
- $716 million to Health for physician compensation incentives and to help Alberta Health Services provide services to a growing and aging population.
- $125 million to address enrollment growth pressures in Alberta schools.
- $847 million for disaster and emergency assistance, including:
- $647 million to fight the Jasper wildfires
- $163 million for the Wildfire Disaster Recovery Program
- $5 million to support the municipality of Jasper (half to help with tourism recovery)
- $12 million to match donations to the Canadian Red Cross
- $20 million for emergency evacuation payments to evacuees in communities impacted by wildfires
- $240 million more for Seniors, Community and Social Services to support social support programs.
Looking forward, the province has adjusted its forecast for the price of oil to US$74 per barrel of West Texas Intermediate. It expects to earn more for its crude oil, with a narrowing of the light-heavy differential around US$14 per barrel, higher demand for heavier crude grades and a growing export capacity through the Trans Mountain pipeline. Despite these changes, Alberta still risks running a deficit in the coming fiscal year should oil prices continue to drop below $70 per barrel.
After a 4.4 per cent surge in the 2024 census year, Alberta’s population growth is expected to slow to 2.5 per cent in 2025, lower than the first quarter forecast of 3.2 per cent growth because of reduced immigration and non-permanent residents targets by the federal government.
Revenue
Revenue for 2024-25 is forecast at $77.9 billion, an increase of $4.4 billion from Budget 2024, including:
- $16.6 billion forecast from personal income taxes, up from $15.6 billion at budget.
- $20.3 billion forecast from non-renewable resource revenue, up from $17.3 billion at budget.
Expense
Expense for 2024-25 is forecast at $73.3 billion, an increase of $143 million from Budget 2024.
Surplus cash
After calculations and adjustments, $2.9 billion in surplus cash is forecast.
- $1.4 billion or half will pay debt coming due.
- The other half, or $1.4 billion, will be put into the Alberta Fund, which can be spent on further debt repayment, deposited into the Alberta Heritage Savings Trust Fund and/or spent on one-time initiatives.
Contingency
Of the $2 billion contingency included in Budget 2024, a preliminary allocation of $1.7 billion is forecast.
Alberta Heritage Savings Trust Fund
The Alberta Heritage Savings Trust Fund grew in the second quarter to a market value of $24.3 billion as of Sept. 30, 2024, up from $23.4 billion at the end of the first quarter.
- The fund earned a 3.7 per cent return from July to September with a net investment income of $616 million, up from the 2.1 per cent return during the first quarter.
Debt
Taxpayer-supported debt is forecast at $84 billion as of March 31, 2025, $3.8 billion less than estimated in the budget because the higher surplus has lowered borrowing requirements.
- Debt servicing costs are forecast at $3.2 billion, down $216 million from budget.
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