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Referendum will help Albertans kickstart national conversation about unfair Equalization, Danielle Smith

Published

4 years ago

11 minute read

This is an exert from a newsletter by Danielle Smith.  Click here to register to receive Danielle’s future newsletters.

Equalization referendum…

During the Stampede I met a pollster doing some polling on the equalization referendum in the fall. It has me worried. If the vote were held today there would be a lot of undecided. While it would likely still pass, we need the vote to be resounding so there can be no mistake how Albertans feel they are being treated.

For those of us who are diehard activists, voting “Yes” to remove equalization from the Constitution is a no brainer. When Brian Jean first proposed it I thought it was a waste of time. What’s is the point of having the province vote on a federal program? I initially thought.

Then Jean explained it to me in an interview and I thought the strategy was brilliant. By voting yes to delete a section of the Constitution it gets the ball rolling for a bigger conversation about Alberta’s role in Confederation. Under our parliamentary system – advised by court rulings and conventions – constitutional scholars say a “yes” vote will initiate a process that will unroll across the country. The federal government will be obligated to negotiate with Alberta in good faith and the other provincial legislatures will be compelled to consider a similar question in their provincial legislatures.

Here’s how it would work…
 
Here’s what could happen if we have a yes vote.

  1. The other provinces will be compelled to consider and vote on the issue. If there are 7 out of 10 representing 50 per cent of the population it will be removed from the Constitution.

Admittedly, this is an unlikely outcome. I think we could convince AB, BC, SK, ON and NF that we are all being similarly hosed under the existing equalization program, but how would you ever convince net recipients such as QC, NS, PEI, NB and MB? Still, it would get a national conversation going about why the net payers are so frustrated.

  1. If we don’t get others to agree, the principle of equalization stays in the Constitution, but we have a meaningful two-way dialogue about how it should be restructured, and that means designing it so QC no longer receives any money through the program from the rest of us.

I told you I went to the Fairness Alberta breakfast over the Stampede. Executive Director Bill Bewick is doing a terrific job digging into the numbers and explaining how absurd the entire program is.

Consider this: Newfoundland and Labrador is on the brink of bankruptcy and doesn’t qualify for equalization. Quebec has been running surpluses and paying down debt and they receive $10 billion from the program.

If I had my druthers, my starting point would be that only small provinces should be allowed to qualify for equalization. I think PEI has it particularly tough – attempting to run all the provincial programs that are available in other provinces with a population the size of Red Deer. Providing a top up for provinces in this situation is what the program should be all about. I want Islanders to have the same quality of health care, education, social services and infrastructure as we do.

But we need to be frank about this. The equalization formula has been manipulated and massaged mainly so federal politicians can give money to Quebec. Maybe it began with good intentions, as francophones began to assert themselves and their right to operate their businesses primarily in French and needed a hand up to catch up. Maybe it was justified when Quebeckers were sharply divided on whether it was worth it to stay in Canada, as evidenced by the 50-50 referendum result in 1995.

But today, it’s just taking advantage. In fact, it’s bordering on abuse.

Quebec is taking advantage of our goodwill…
 
Last week, Quebec’s Environment Minister Benoit Charette announced that Quebec would be rejecting a $14 billion project that would have seen GNL Quebec bring liquefied natural gas from Western Canada – principally Alberta – to Port Saguenay, Quebec so it could be exported on to Europe and Asia. Charette said it did not meet his standards for the environment:


“The promoter has not succeeded in demonstrating this, on the contrary,” he said, adding that the government is worried it would discourage natural gas buyers in Europe and Asia from moving to cleaner energy sources. “This is a project that has more disadvantages than advantages.”This is truly the last straw for me. If the Quebec government hates our energy industry this much and is actively working to destroy our natural gas industry I’m done with appeasement.

On the contrary, Minister…

Liquefied natural gas offers the best opportunity to reduce greenhouse gas emissions around the world. It is already “the cleaner burning fuel” as the ads used to say when I was growing up. It can easily replace coal in power plants and reduce greenhouse gas emissions in both China and India (which are adding coal-fired powerplants at a rate that dramatically exceeds the addition of wind and solar power everywhere in the world). Coupled with carbon capture and storage (underground) or utilization (for useful products including carbon nanofibre, concrete, industrial minerals, alcohol and ethylene) the greenhouse gas emissions problem can be solved. It is also going to be the base fuel for the new and emerging hydrogen economy, which will power all the heavy transportation we need to continue operating our global trade economy – marine vessels, trucks, trains, maybe even airplanes one day.

I am tired of placating the fantasy that our modern industrial economy is going to be powered by wind and solar and nothing else. Yes, hydrogen now offers a meaningful way for wind and solar to store the energy they produce, finally moving them towards being a reliable source of energy for our power grid. But once you’ve generated hydrogen at a wind or solar site, how do you transport it anywhere so it can be used for other purposes? The natural gas business can move it in pipelines. You can’t move hydrogen on powerlines.

But wind and solar are also not carbon neutral until concrete, steel, fibre glass, rare earth materials and transportation are carbon neutral. Wind and solar are not more environmentally friendly until they stop killing migratory birds and bats. Wind and solar are not environmentally neutral until we find a way to recycle them at the end of use (rather than dumping everything in a landfill).

If Quebec wants to interfere with the development of our resources, damage our economy and cost us jobs, I refuse to send them any more of our money. We cannot continue being economically hobbled by Quebec and damaged by federal government policy and expected to keep on shipping out dollars to Quebec. I would be delighted to see a financially independent, strong Quebec paying for their subsidized day care all on their own.

If they want to stand on their own two feet, bravo, let’s help them out. Let’s cut off the money pipeline.

Let’s help Quebec become financially independent…

Fairness Alberta has said three simple changes could cut the cost of the program in half and make sure Quebec is cut off almost entirely.

  1. Stop adjusting the program to increase expenditures with GDP growth. This just makes logical sense. As provinces get wealthier and develop more own-source revenue they should need fewer federal transfers.
  2. Adjust the payments to take into account inflation and different costs of delivering services in different provinces. It’s a lot more expensive to hire a nurse in Alberta than in PEI, for instance.
  3. Add four cents to Quebec hydro. Quebec subsidizes electricity rates which lowers the amount of revenues available to government. Imagine if Alberta sold oil and natural gas below market value and then asked Ottawa to make up the shortfall. It’s bananas.

None of this negotiation can happen unless Albertans send a strong message that they have had it with the status quo.

Voting yes in the referendum means you are voting to eliminate or renegotiate. Voting no means you are happy being treated as the doormat of Confederation. Vote yes and make sure to tell your neighbours and friends to also.

Because as Bill points out on his Fairness Alberta website, this particular program is only one way that extra money gets transferred out of Alberta. As of 2019, Alberta has transferred nearly $325 billion to the rest of the country. We have to start changing this. Equalization is just the start.

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Alberta

Cross-Canada NGL corridor will stretch from B.C. to Ontario

Published on July 12, 2025

By

Keyera Corp.’s natural gas liquids facilities in Fort Saskatchewan. Photo courtesy Keyera Corp.

From the Canadian Energy Centre

By Will Gibson

Keyera ‘Canadianizes’ natural gas liquids with $5.15 billion acquisition

Sarnia, Ont., which sits on the southern tip of Lake Huron and peers across the St. Clair River to Michigan, is a crucial energy hub for much of the eastern half of Canada and parts of the United States.

With more than 60 industrial facilities including refineries and chemical plants that produce everything from petroleum, resins, synthetic rubber, plastics, lubricants, paint, cosmetics and food additives in the southwestern Ontario city, Mayor Mike Bradley admits the ongoing dialogue about tariffs with Canada’s southern neighbour hits close to home.

So Bradley welcomed the announcement that Calgary-based Keyera Corp. will acquire the majority of Plains American Pipelines LLP’s Canadian natural gas liquids (NGL) business, creating a cross-Canada NGL corridor that includes a storage hub in Sarnia.

“As a border city, we’ve been on the frontline of the tariff wars, so we support anything that helps enhance Canadian sovereignty and jobs,” says the long-time mayor, who was first elected in 1988.

The assets in Sarnia are a key piece of the $5.15 billion transaction, which will connect natural gas liquids from the growing Montney and Duvernay plays in B.C. and Alberta to markets in central Canada and the eastern U.S. seaboard.

Map courtesy Keyera Corp.

NGLs are hydrocarbons found within natural gas streams including ethane, propane and pentanes. They are important energy sources and used to produce a wide range of everyday items, from plastics and clothing to fuels.

Keyera CEO Dean Setoguchi cast the proposed acquisition as an act of repatriation.

“This transaction brings key NGL infrastructure under Canadian ownership, enhancing domestic energy capabilities and reinforcing Canada’s economic resilience by keeping value and decision-making closer to home,” Setoguchi told analysts in a June 17 call.

“Plains’ portfolio forms a fully integrated cross Canada NGL system connecting Western Canada supply to key demand centres across the Prairie provinces, Ontario and eastern U.S.,” he said.

“The system includes strategic hubs like Empress, Fort Saskatchewan and Sarnia – which provide a reliable source of Canadian NGL supply to extensive fractionation, storage, pipeline and logistics infrastructure.”

Martin King, RBN Energy’s managing director of North America Energy Market Analysis, sees Keyera’s ability to “Canadianize” its NGL infrastructure as improving the company’s growth prospects.

“It allows them to tap into the Duvernay and Montney, which are the fastest growing NGL plays in North America and gives them some key assets throughout the country,” said the Calgary-based analyst.

“The crown assets are probably the straddle plants in Empress, which help strip out the butane, ethane and other liquids for condensate. It also positions them well to serve the eastern half of the country.”

And that’s something welcomed in Sarnia.

“Having a Canadian source for natural gas would be our preference so we see Keyera’s acquisition as strengthening our region as an energy hub,” Bradley said.

“We are optimistic this will be good for our region in the long run.”

The acquisition is expected to close in the first quarter of 2026, pending regulatory approvals.

Meanwhile, the governments of Ontario and Alberta are joining forces to strengthen the economies of both regions, and the country, by advancing major infrastructure projects including pipelines, ports and rail.

A joint feasibility study is expected this year on how to move major private sector-led investments forward.

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Alberta

Alberta school boards required to meet new standards for school library materials with regard to sexual content

Published on July 10, 2025

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Alberta’s government has introduced new standards to ensure school library materials are age-appropriate.

School libraries should be safe and supportive places where students can learn and explore without being exposed to inappropriate sexual content. However, in the absence of a consistent standard for selecting age-appropriate library materials, school boards have taken different approaches, leading to concerns about safeguards in place.

In response to these concerns, and informed by feedback from education partners and the public, Alberta’s government has created standards to provide school boards with clear direction on the selection, availability and access to school library materials, such as books.

“Our actions to ensure that materials in school libraries don’t expose children to sexual content were never about banning books. These new standards are to ensure that school boards have clear guidance to ensure age-appropriate access to school library materials, while reflecting the values and priorities of Albertans.”

Demetrios Nicolaides, Minister of Education and Childcare

The new standards set clear expectations for school library materials with regard to sexual content and require school boards to implement policies to support these standards.

Standards for school library materials

Under the new standards, school libraries are not permitted to include library materials containing explicit sexual content. Non-explicit sexual content may be accessible to students in Grade 10 and above, provided it is age-appropriate.

“Protecting kids from explicit content is common sense. LGBTQ youth, like all children, deserve to see themselves in stories that are age-appropriate, supportive and affirming – not in material that sexualizes or confuses them.”

Blaine Badiuk, education and LGBTQ advocate

School boards must also regularly review their school library collections, publish a full list of available materials and ensure that a staff member supervises students’ access to school library materials. School boards will have to remove any materials with explicit sexual content from their school libraries by October 1.

School board policies and procedures

All school boards must have publicly available policies that align with the new standards for selecting and managing library materials by January 1, 2026. School boards can either create new policies or update existing ones to meet these requirements.

These policies must outline how school library materials are selected and reviewed, how staff supervise students’ access throughout the school day, and how a student, parent, school board employee or other member of the school community can request a review or removal of materials in the school library. School boards are also required to clearly communicate these policies to employees, students and parents before January 2026.

“A robust, grade- and age-appropriate library catalogue is vital for student success. We welcome the ministry’s initiative to establish consistent standards and appreciate the ongoing consultation to help craft a plan that will serve our families and communities well.”

Holly Bilton, trustee, Chinook’s Edge School Division

“Red Deer Public Schools welcomes the new provincial standards for school library materials. Our division is committed to maintaining welcoming, respectful learning spaces where students can grow and thrive. Under the new standards for school libraries, we remain dedicated to providing learning resources that reflect our values and support student success.”

Nicole Buchanan, chair, Red Deer Public Schools

Quick facts

  • The new standards will apply to public, separate, francophone, charter and independent schools.
  • The ministerial order does not apply to municipal libraries located within schools or materials selected for use by teachers as learning and teaching resources.
  • From May 26 to June 6, almost 80,000 people completed an online survey to provide feedback on the creation of consistent standards to ensure the age-appropriateness of materials available to students in school libraries.

Related information

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