Alberta
Ottawa’s next phase of ‘plastics’ war will increase cost of fruits and vegetables
From the Fraser Institute
For decades, nutrition advocates have exhorted Canadians to eat more fresh fruits and vegetables. Canada’s Food Guide suggests that half of our meals should be fruits and veggies. Why then does the Trudeau government plan to increase fruit and vegetable waste—and increase their costs?
It’s all about the government’s war on plastics, specifically its agenda to eliminate plastic waste by 2030. Having already banned single-use plastic items such as drinking straws, stir sticks and plastic cutlery, the government plans to target plastic food packaging. And that’s going to hit consumers in the pocket.
According to a new study from the Canadian Produce Marketing Association (CPMA), under the new reduced-plastic packaging regime, food loss and waste will potentially increase 495,000 tonnes above current levels, incurring financial losses valued at $3.4 billion. These losses, at least in significant part, will ultimately be passed onto consumers. In a report by CTV, reporter Kevin Gallagher suggests that increased costs to consumers might reach 30 per cent.
The study authors suggest this estimate should be considered conservative, because it does not include the potential for single-use plastic bans causing a “complete disruption to some sectors of the fresh produce industry, and the anticipated 17.5 per cent increase in operating costs voiced by respondents that industry would incur.” And 17.5 per cent is the median—cost increases ranged from 11 per cent to 25 per cent. Assuming these increased costs are passed onto consumers, Canadians will see the price of fruits and veggies take yet another jump.
And for what reason? The Trudeau government has foolishly committed Canada to a “Zero Plastic Waste by 2030” crusade. But as I showed in a 2022 study published by the Fraser Institute, Canada does not have a significant plastic waste problem. Less than 1 per cent of plastics used in Canada end up as waste in the environment, and 99 per cent is safely buried in landfills, recycled or incinerated. Canada does not contribute a measurable part of the world’s plastic pollution.
And the government’s own analysis suggests that pursuing this war on plastics will ultimately lead to greater waste of alternative materials, which is already raising concerns among the environmentally-minded. In a separate CTV report Melanie Nagy quotes Nicole Rycroft, founder of Canopy, a forest conservation NGO, who said we should “shift away from using plastics as much as we do, but trading in plastic pollution for deforestation and forest degradation is not the answer” and we must “make sure we do not create another environmental disaster.” Rycroft added that “more than three billion trees—many of which are old-growth and endangered—are logged every year to make paper-based products like bags, straws and food containers.”
The Trudeau government’s zero plastic waste crusade was unsound policy from inception, and its own analysis showed the plan’s costs would outstrip its benefits and that it would create more waste, not less. And that most of that increased waste would come from increased consumption of wood and paper products.
Now, the government plans to ratchet up this harmful program, raising already painfully expensive produce in Canada to more painful levels. Ottawa must halt its “Zero Plastic Waste” agenda and take the entire concept back to the drawing board. It’s simply bad policy—bad for Canadian families, bad for our food sector, and as the Canopy tree people observe, bad for the environment.
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
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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