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Federal Election Response: One Albertan’s Thoughts

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The wholly predictable results of yesterday’s election are tantamount to a deafening sucker punch to Alberta and the West – and things are not about to get better for us under this minority Liberal government, because Justin Trudeau is effectually tone deaf to our deep and growing alienation.

Or worse, perhaps he just doesn’t care. He says he will support Alberta, but he also said he would balance the federal budget by 2019 and told an Ontario town hall gathering two years ago that: “We can’t shut down the oilsands tomorrow. We need to phase them out.” So how supported do Albertans feel right now? Not very.

Bills C-48 and C-69 speak loudly his intentions with respect to Alberta and the West. The fact that his minority government will now have to rely on NDP or Bloc support in the House almost certainly means no social license for Alberta’s “dirty oil” going forward – notwithstanding we have the cleanest, most ethically produced, environmentally sensitive, human & employee rights protected oil and gas industry in the world.

It’s truly a sad day for Albertans and the West generally. As a proud, hard-working, industrious people, we must now rally together and send a clear message to the federal government and the rest of Canada that we will not concede to second-class citizen status any longer.

We cannot continue to generate net billions in transfer payments (even through the most painfully protracted recession in collective memory), while the main industry responsible for that wealth is under targeted attack on several fronts, and while provinces like Quebec (and Ontario between 2009 and 2018) continue to reap the benefits of collecting net billions: $11.7 and $13.1 billion transferred to Quebec in 2018 and 2019 fiscal years respectively – in a time of fiscal surplus for Quebec to the tune of 2.5 to 3 billion dollars.

Meanwhile in July 2017, the Fraser Institute reported that Alberta contributed 221.4 billion more in revenue than it received in federal transfer payments and grants between the years 2007 and 2015 – contributing more money to the federal purse than any other province in Canada. Last year alone, Alberta paid net 21.8 billion more in taxes to the federal government than we got back in grants – notwithstanding our economy is still mired in recession with shuttered businesses on every corner – and we’ve not received a federal transfer payment since 1965.

Premier Jason Kenney noted that “Since equalization was created [in 1957], Alberta has received 0.02% of all payments, the last of which was in 1964-1965. In contrast, Quebec has received equalization money every year of the program, totalling 221 billion dollars or 51 per cent of all payments.”

Part of the injustice of this program stems from the systemic inequity in how provincial revenue capacity is calculated under the federal equalization formula. Here’s a quick case study:

Between 2005 and 2010, Quebec received 42.5 billion in equalization payments. Had transfer payment rules treated Quebec’s hydro-electric revenue the same as they treat Alberta’s oil and gas revenue in the calculation of revenue capacity, those payments would have been reduced to 28.1 billion over that same period – meaning that Quebec was overpaid by 14.4 billion dollars (or 34 per cent) during that time, because the rules are designed to favour Quebec in the calculation of provincial revenue under the federal formula.

In the wake of yesterday’s federal election, it’s hard to see a path where Premier Kenney won’t be putting the question of equalization equity to Albertans by way of an upcoming referendum, since he promised that:

“If the federal government continues its attacks through the National Energy Board (NEB) and the federal carbon tax, then Alberta should take a common-sense approach and hold a referendum demanding the removal of non-renewable resource revenues from the equalization formula … [to] massively reduce Alberta’s contribution to equalization.”

Moreover, Section 88 of the Supreme Court’s decision in Reference re Secession of Quebec, [1998] 2 S.C.R. 217 seems to pave a clear path for the democratic will of any province to express itself, by referendum or otherwise, to the rest of the country by renegotiating the terms of its participation:

“The clear repudiation by the people of [Alberta] of the existing constitutional order would confer legitimacy on demands for [fiscal equity], and place an obligation on the other provinces and the federal government to acknowledge and respect that expression of democratic will by entering into negotiations and conducting them in accordance with the underlying constitutional principles already discussed.” [Edited from the original text: people of Quebec and demands for secession to reflect Alberta’s aspirations for equity].

Finally, no substantive review of this Albertan’s response to yesterday’s election would be complete without reference to the submission published in the National Post on January 24, 2001, headlined “An open letter to Ralph Klein” wherein we read:

“… We believe the time has come for Albertans to take greater charge of our own future. This means resuming control of the powers that we possess under the constitution of Canada but that we have allowed the federal government to exercise. Intelligent use of these powers will help Alberta build a prosperous future in spite of a misguided and increasingly hostile government in Ottawa. …

All of these steps can be taken using the constitutional powers that Alberta now possesses. In addition, we believe it is imperative for you to take all possible political and legal measures to reduce the financial drain on Alberta caused by Canada’s tax-and-transfer system. …

Starting to act now will secure the future for all Albertans. It is imperative to take the initiative, to build firewalls around Alberta, to limit the extent to which an aggressive and hostile federal government can encroach upon legitimate provincial jurisdiction. …

The precondition for the success of this Alberta Agenda is the exercise of all our legitimate provincial jurisdictions under the constitution of Canada.”

Elements of this Alberta Agenda identified in the now famous “Firewall” letter include:

  • Withdraw from Canada Pension Plan to create an Alberta Pension Plan.
  • Collect our own revenue from personal income tax.
  • Create our own Alberta Provincial Police Force.
  • Resume Provincial responsibility for health care policy.
  • Advocate for meaningful senate reform.
  • Reduce the drain on Alberta caused by transfer payments.

Whether by a Firewall, Wexit arrangement, or otherwise, Alberta and the West now need to circle the wagons, so to speak, and formulate a strategy that makes the rest of Canada stand up and take notice. And by take notice, I mean effect meaningful change to level the playing field of Confederation.

It’s been so shamefully, undemocratically, inexcusably unlevel for so long, that the West can no longer abide our current configuration in Canada. We can no longer stand to be second-class citizens of this great nation. Some iteration of change is inexorably forthcoming, because the West deserves – and must demand – justice.

Retired lawyer, current Red Deer City Councillor, happy wife and proud mother of five great kids.

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Alberta

Owner sells gas for 80 cents per litre to show Albertans how low prices ‘could’ be

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Undoubtedly some of the motorists driving past The Whistle Stop Cafe at Mirror on Tuesday morning thought it was an April Fools prank.  It wasn’t.

Chris Scott, owner of the gas station at The Whistle Stop Cafe offered a one day promotion on April 1st. Scott sold 8000 litres of regular gasoline for $0.80/ litre.

The promotion was funded by Scott and the Alberta Prosperity Project.  In this video posted to his social media, Chris Scott explains why they did it.

www.albertaprosperityproject.com

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Alberta

The beauty of economic corridors: Inside Alberta’s work to link products with new markets

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From the Canadian Energy Centre

Q&A with Devin Dreeshen, Minister of Transport and Economic Corridors

Devin Dreeshen, Alberta’s Minister of Transportation
and Economic Corridors.

CEC: How have recent developments impacted Alberta’s ability to expand trade routes and access new markets for energy and natural resources?

Dreeshen: With the U.S. trade dispute going on right now, it’s great to see that other provinces and the federal government are taking an interest in our east, west and northern trade routes, something that we in Alberta have been advocating for a long time.

We signed agreements with Saskatchewan and Manitoba to have an economic corridor to stretch across the prairies, as well as a recent agreement with the Northwest Territories to go north. With the leadership of Premier Danielle Smith, she’s been working on a BC, prairie and three northern territories economic corridor agreement with pretty much the entire western and northern block of Canada.

There has been a tremendous amount of work trying to get Alberta products to market and to make sure we can build big projects in Canada again.

CEC: Which infrastructure projects, whether pipeline, rail or port expansions, do you see as the most viable for improving Alberta’s global market access?

Dreeshen: We look at everything. Obviously, pipelines are the safest way to transport oil and gas, but also rail is part of the mix of getting over four million barrels per day to markets around the world.

The beauty of economic corridors is that it’s a swath of land that can have any type of utility in it, whether it be a roadway, railway, pipeline or a utility line. When you have all the environmental permits that are approved in a timely manner, and you have that designated swath of land, it politically de-risks any type of project.

CEC: A key focus of your ministry has been expanding trade corridors, including an agreement with Saskatchewan and Manitoba to explore access to Hudson’s Bay. Is there any interest from industry in developing this corridor further?

Dreeshen: There’s been lots of talk [about] Hudson Bay, a trade corridor with rail and port access. We’ve seen some improvements to go to Churchill, but also an interest in the Nelson River.

We’re starting to see more confidence in the private sector and industry wanting to build these projects. It’s great that governments can get together and work on a common goal to build things here in Canada.

CEC: What is your vision for Alberta’s future as a leader in global trade, and how do economic corridors fit into that strategy?

Dreeshen: Premier Smith has talked about C-69 being repealed by the federal government [and] the reversal of the West Coast tanker ban, which targets Alberta energy going west out of the Pacific.

There’s a lot of work that needs to be done on the federal side. Alberta has been doing a lot of the heavy lifting when it comes to economic corridors.

We’ve asked the federal government if they could develop an economic corridor agency. We want to make sure that the federal government can come to the table, work with provinces [and] work with First Nations across this country to make sure that we can see these projects being built again here in Canada.

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