Alberta
Federal Election Response: One Albertan’s Thoughts
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.
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.
Alberta
Your towing rights! AMA unveils measures to help fight predatory towing
From the Alberta Motor Association
Know Before the Tow: Towing Rights in Alberta
Predatory towing is a growing concern in major cities across the province. The Alberta Motor
Association (AMA), in partnership with the Calgary Police Service and Calgary Fire Department,
wants to ensure Albertans are not only aware of this emerging issue but also know how to stop
it.
Today, AMA launches Know Before the Tow—a new, provincewide awareness campaign that
empowers Albertans with the knowledge needed to stay confident and in control when faced with
a tow scam. The campaign features a list of five key towing rights that every Alberta driver should
know:
1. You have the right to refuse unsolicited towing services.
2. You have the right to choose who tows your vehicle, and where, unless
otherwise directed by police.
3. You have the right to access your vehicle to retrieve personal items during a
storage facility’s business hours.
4. You have the right to ask if the towing company receives a kickback for taking
your vehicle to a particular storage facility or repair shop.
5. You have the right to a quote prior to service, and an itemized invoice prior to
making payment.
“Being in a collision or broken down at the roadside is stressful enough; the last thing any Albertan
needs is high pressure from an unscrupulous tower,” says Jeff Kasbrick, Vice-President,
Advocacy and Operations, AMA. “These towing rights are clear and remind every Albertan that
they’re in the driver’s seat when it comes to who they choose to tow their vehicle.”
Edmonton and Calgary in particular are seeing increasing reports of predatory towing. Unethical
operators will arrive at a collision or breakdown scene uninvited, create a false sense of urgency
to remove the vehicle, and ultimately leave drivers facing huge fees.
Starting today, Albertans can visit ama.ab.ca/KnowBeforeTheTow to download a digital copy of
their towing rights, helping them feel confident if faced with a tow scam. And soon, all AMA centres
will offer free print versions, which are small enough to tuck in a glovebox.
“Alberta’s towing industry is still highly reputable, with the vast majority of operators committed
to fair and professional service. In fact, AMA and our roadside assistance network is proud to
represent 80% of all private-passenger tows in the province, so our members can be confident
that we’ll always protect them—just as we have for nearly 100 years,” says Kasbrick.
“By knowing your rights and choosing trusted providers like AMA, you can avoid unnecessary
stress, costs, and uncertainty. Because the road to recovery after a collision shouldn’t have to
include fighting for your vehicle.”
Sergeant Brad Norman, Calgary Police Service Traffic Section, says law enforcement continues
to work diligently with first responders and community partners like AMA to put the brakes on
predatory towers, who “are showing up at collision sites and pressuring overwhelmed and
frightened victims into paying high towing rates.”
“Our priority is to ensure the safety of collision victims, the public, and first responders at
collision sites. Part of this effort is educating motorists about their rights so that they Know
Before the Tow that they can say no to unsolicited towing services and choose a reputable
tower of their choice instead,” says Norman. “No one deserves to be taken advantage of after
being involved in a collision.”
To learn more, and to view an expanded version of Alberta towing rights, visit
ama.ab.ca/KnowBeforeTheTow
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