Alberta
Prominent Alberta Conservative Voice Explains: Why I am voting Yes to End Equalization…
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From Danielle Smith
To me, equalization, the health transfer and the social transfer combined, are a measure of how much the federal government is overtaxing us. The Constitution has a very limited role for the federal government. The federal government likes to use its spending power to meddle in areas that aren’t its jurisdiction. My view is this – if you want to pass policy for health care, long term care, drug plans, day care, welfare – then RUN FOR PROVINCIAL OFFICE. Don’t take money from the provinces, launder it through the federal bureaucracy and then divvy it up unfairly to give back more money to the provinces that you think will vote for you. (Yep – that’s how I see it.)
So let’s analyze the numbers a bit shall we? I have three tables to show you that tell the whole story.
The level of overtaxation (on these three programs alone) is easily quantified. In the 2021-22 fiscal year it will be $83.890 billion. In just 10 years, the federal overtaxation has grown from $60.085 billion – that’s a 40 per cent increase.
Per person Ottawa transfers an average of $2,181. But of course we know, because of equalization, some provinces are more equal than others.
Take a look at Alberta. Our transfers have grown from $3.661 billion to $6.835 billion in the same period, or from $946 per person to $1,523 per person.
Now take a look at Quebec. Their transfers have grown from $17.329 to $26.306 in the same 10 year period, or $2,148 per person to $3,039 per person.
How would an equal per capital model impact the other provinces?…
In my column, I said we should eliminate equalization and instead do equal per person transfers to every province. If we did that, Alberta would receive $9.788 billion this year, a difference of $2.953 billion more. Alberta isn’t the only one getting hosed. Look at the final line in the table below. So are BC and Ontario. Saskatchewan is shortchanged $781 million, and poor Newfoundland and Labrador, which in on the brink of bankruptcy but still doesn’t qualify for equalization, would get $343 million more. If we eliminated equalization and gave everyone the same per person amount, Quebec would receive $18.879 billion or $7.427 billion less than is expected this year. As it should be. Saskatchewan and Newfoundland and Labrador should not be subsidizing Quebec.
There are a couple of things I really like about a per person transfer model.
- It encourages provinces to compete to attract people, because the more people you attract the more dollars you attract.
I understand the Fairness Alberta argument about changing equalization. They suggest a markup to market on the electricity price that hydro rich provinces charge, they want to stop growing equalization with GDP growth, and they want to account for the different cost of services in each province. But in the end, if we create a program that rewards provinces only for attracting people then they have to implement policies that attract people. Like having low rates of taxation, making it easier to start a business, having affordable housing, and so on. There is a lot that is in the power of government. But if we keep giving provinces more money as they adopt policies that reduce their attractiveness it is counterproductive.
- A per person model is going to give a greater benefit to smaller provinces with lower costs of services than larger provinces with a larger cost of service.
Even if making Alberta pay more is the objective of Ottawa, an equal per capita transfer amount still has Alberta paying disproportionately into the pot. Alberta has higher wages, higher workforce participation rates, higher spending so we will stay pay more in personal and corporate income taxes, GST, fuel tax, EI, CPP and other federal taxes, than we receive back in per person federal transfers. This won’t eliminate the net payer status we have; but it will get us on our way to narrowing the gap.
- Once we have established a single per person transfer that is the same across the country we can move to the next step, which is convert the cash transfer into tax points instead.
If Alberta was getting its proper share of transfers – $9.79 billion – we could then move to the next stage of negotiation with Ottawa. Which is to convert the cash to tax points instead. I’ll leave it to the accountants to figure out the precise numbers, but conceptually let’s say it would mean reducing the federal income tax by 5 percentage points across all categories and increasing provincial income tax by 5 percentage points across all categories. The reason to do that is this, as Alberta grows so would it’s share of own-source revenues. Rather than have Ottawa continue to capitalize on our growth, we would.
- Once we have fixed the problems with federal provincial transfers, we can move on to fix CPP and EI next.
Alberta pays disproportionately into CPP and EI too – we pay roughly 30 per cent of the premiums for CPP and only get back about 10 per cent of the spending. I haven’t done the calculation on EI but I suspect it’s even worse. If we can stop the overtaxation on income tax, these two programs should be next.
Enough is enough…
For too long we have just accepted that this is the way the country works. I think we’ve been bullied into thinking that paying disproportionately into Confederation was our penance for the federal government cancelling the National Energy Program. It’s almost as if we collectively felt that if only we paid off central Canada, they wouldn’t come after our resource wealth again. How wrong we were. Now Quebec is so bloody minded they don’t care if they hurt themselves by killing off our energy industry.
That’s fine. If they don’t want the revenues that come from our energy resources, we should be happy to keep it for ourselves. Let’s start to show them we are serious by strongly voting yes to end equalization on October 18.
Alberta
New children’s book demonstrates how the everyday world is connected to natural resources
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From the Canadian Energy Centre
‘Today’s youth have the opportunity to lead us into the future with innovative solutions for environmental challenges’
After a 24-year career in oil sands land reclamation, author Tanya Richens is sharing her knowledge with young minds.
Her new book, From the Earth to Us: Discovering the Origins of Everyday Things, explores the relationship between natural resources and the things we use in everyday life, from computers and water bottles to batteries and solar panels.
“There is a gap in society’s understanding of where things come from. We are a society driven by consumerism and immediate gratification. We order something online, and it arrives on our doorstep the next day. We don’t stop to think about where it really came from or how it was made,” Richens says.
“There’s an ever-increasing societal position that mining is bad, and oil is even worse… But there’s a simple hypocrisy in those beliefs, since so many things in our lives are made from the raw materials that come from mining and oil and natural gas,” she says.
The book, illustrated by reclamation artist Shannon Carla King, follows young Hennessy Rose and her Cavalier King Charles Spaniel Riley on a trip to a children’s summer camp.
Hennessy’s mom is a guest speaker on the origin of everyday items and the relationship between humans and the earth. Through detailed explanations of items surrounding her, Hennessy’s mom teaches the kids how rocks, minerals, oil and gas from the earth are used to power and aid our lives, creating items such as building supplies, food and hair products, camping and sports equipment, and cell phones.
Author Tanya Richens poses with her two books for children about natural resources. Photo for Canadian Energy Centre
“I thought a simple and fun book explaining the raw materials needed to make everyday items would be valuable for all ages,” Richens says.
“When people feel personally connected to natural resources, they are more likely to promote sustainable practices. Today’s youth will have the opportunity to lead us into the future with innovative solutions for environmental challenges.”
Richens‘ career began with Alberta Environment, where she was a coordinator of reclamation approvals in the oil sands. She oversaw technical reviews of oil sands reclamation applications, communicated with statement of concern filers, coordinated public hearings and provided support for legislative changes.
She moved from government to Suncor Energy, ensuring the company’s compliance on reclamation projects and led initiatives to obtain reclamation certificates. She now works as an independent consultant.
Drawing on her wealth of experience in the field, Richens’ first book, Adventures in Land Reclamation: Exploring Jobs for a Greener Future, seeks to excite kids aged 9-12 years about jobs related to the environment and land reclamation.
Hoping to get From the Earth to Us into the hands of teachers, Richens is heading to the Edmonton Teachers Convention in late February. She says the book supports multiple learning outcomes in Alberta’s new science curriculum for grades 3, 4, 5 and 6.
“Ultimately, I’d like people to understand and acknowledge their individual part in the need for mining and oil and natural gas development. Until the naivety and hypocrisy in the world is addressed, I’m not sure that real environmental change is possible.”
Richens’ books can be purchased on her website at tcrenvironmental.com.
Alberta
Open letter to Ottawa from Alberta strongly urging National Economic Corridor
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Canada’s wealth is based on its success as a trading nation. Canada is blessed with immense resources spread across a vast country. It has succeeded as a small, open economy with an enviable standard of living that has been able to provide what the world needs.
Canada has been stuck in a situation where it cannot complete nation‑building projects like the Canadian Pacific Railway that was completed in 1885, or the Trans Canada Highway that was completed in the 1960s. With the uncertainty of U.S. tariffs looming over our country and province, Canada needs to take bold action to revitalize the productivity and competitiveness of its economy – going east to west and not always relying on north-south trade. There’s no better time than right now to politically de-risk these projects.
A lack of leadership from the federal government has led to the following:
- Inadequate federal funding for trade infrastructure.
- A lack of investment is stifling the infrastructure capacity we need to diversify our exports. This is despite federally commissioned reports like the 2022 report by the National Supply Chain Task Force indicating the investment need will be trillions over the next 50 years.
- Federal red tape, like the Impact Assessment Act.
- Burdensome regulation has added major costs and significant delays to projects, like the Roberts Bank Terminal 2 project, a proposed container facility at Vancouver, which spent more than a decade under federal review.
- Opaque funding programs, like the National Trade Corridors Fund (NTCF).
- Which offers a pattern of unclear criteria for decisions and lack of response. This program has not funded any provincial highway projects in Alberta, despite the many applications put forward by the Government of Alberta. In fact, we’ve gone nearly 3 years without decisions on some project applications.
- Ineffective policies that limit economic activity.
- Measures that pit environmental and economic objectives in stark opposition to one another instead of seeking innovative win-win solutions hinder Canada’s overall productivity and investment climate. One example is the moratorium on shipping crude through northern B.C. waters, which effectively ended Enbridge’s Northern Gateway proposal and has limited Alberta’s ability to ship its oil to Asian markets.
In a federal leadership vacuum, Alberta has worked to advance economic corridors across Canada. In April 2023, Alberta, Saskatchewan and Manitoba signed an agreement to collaborate on joint infrastructure networks meant to boost trade and economic growth across the Prairies. Alberta also signed a similar economic corridor agreement with the Northwest Territories in July 2024. Additionally, Alberta would like to see an agreement among all 7 western provinces and territories, and eventually the entire country, to collaborate on economic corridors.
Through our collaboration with neighbouring jurisdictions, we will spur the development of economic corridors by reducing regulatory delays and attracting investment. We recognize the importance of working with Indigenous communities on the development of major infrastructure projects, which will be key to our success in these endeavours.
However, provinces and territories cannot do this alone. The federal government must play its part to advance our country’s economic corridors that we need from coast to coast to coast to support our economic future. It is time for immediate action.
Alberta recommends the federal government take the following steps to strengthen Canada’s economic corridors and supply chains by:
- Creating an Economic Corridor Agency to identify and maintain economic corridors across provincial boundaries, with meaningful consultation with both Indigenous groups and industry.
- Increasing federal funding for trade-enabling infrastructure, such as roads, rail, ports, in-land ports, airports and more.
- Streamlining regulations regarding trade-related infrastructure and interprovincial trade, especially within economic corridors. This would include repealing or amending the Impact Assessment Act and other legislation to remove the uncertainty and ensure regulatory provisions are proportionate to the specific risk of the project.
- Adjusting the policy levers that that support productivity and competitiveness. This would include revisiting how the federal government supports airports, especially in the less-populated regions of Canada.
To move forward expeditiously on the items above, I propose the establishment of a federal/provincial/territorial working group. This working group would be tasked with creating a common position on addressing the economic threats facing Canada, and the need for mitigating trade and trade-enabling infrastructure. The group should identify appropriate governance to ensure these items are presented in a timely fashion by relative priority and urgency.
Alberta will continue to be proactive and tackle trade issues within its own jurisdiction. From collaborative memorandums of understanding with the Prairies and the North, to reducing interprovincial trade barriers, to fostering innovative partnerships with Indigenous groups, Alberta is working within its jurisdiction, much like its provincial and territorial colleagues.
We ask the federal government to join us in a new approach to infrastructure development that ensures Canada is productive and competitive for generations to come and generates the wealth that ensures our quality of life is second to none.
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Devin Dreeshen
Devin Dreeshen was sworn in as Minister of Transportation and Economic Corridors on October 24, 2022.
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