Alberta
The Awed Couple: Can Ottawa Force Alberta To Stay In Its Lane?
Fact: Alberta and Saskatchewan were to enter Confederation in 1905 as a province named Buffalo. But Sir Wilfrid Laurier feared a landmass that big would threaten the domination of Quebec and Ontario in Canada. And so Buffalo was split into the two provinces we know today.
Of all the riddles that make up Canada’s current prime minister one of the most intriguing is how the grandson of a man, Charles-Émile Trudeau, who made his fortune in Montreal gas stations is now hellbent on destroying the same industry.
In this obsession to end fossil fuels, Trudeau does have the company of many other heirs to fortunes created by oil and its products. The ranks of Green NGOs and political movements are thick with names like Rockefeller, Getty, Morgan, Flagler and more, heirs with a guilty conscience about perceived climate-change destruction.
But while most of these families have chosen discreet roles in their quest, Trudeau’s climate infatuation has propelled him to prime minister of Canada since 2015. In that time “Sunny Ways” Justin has obsessively pursued his goal of transitioning Canada from the fossil-fuel giant to an imagined Shangri-la of gentle breezes and warm sunshine.
Nothing can shake him of his messianic role as saviour of the Frozen North. Likewise, no public disgrace or controversy can shake his loyal supporters who supported his father in the same manner. Buttressed by the lapdog NDP caucus he spouts buckets of enviro-nonsense to a docile media (which he has bribed to stay quiet).
Because subtlety is not a strong suit he even named a former Greenpeace zealot and convicted felon as his Environment minister. Which has naturally put him directly at odds with that portion of the country that exploits fossil fuels and (don’t tell anybody) floats the boat of federal budgets.
So when Justin proposed a Canadian Sustainable Jobs Act to turn energy workers into code writers and social workers by 2035 there was a degree of pushback amongst those who would lose their livelihoods. That plan was revealed last week by EnerCan (who makes up this dreck?) minister Jonathan Wilkinson.
Promising to convert Calgary’s public transit to all-electric, Wilkinson (former leader of the New Democratic Party‘s youth wing in Saskatchewan) proposed the ‘Sustainable Jobs Act’ advisory council that will provide the federal government with recommendations on how to support the Canadian workforce during transition to a ‘net-zero economy.” You can guess who’ll be on the advisory council, but don’t count on any Ford F-150 drivers.
Enter Danielle Smith, newly re-elected premier of Alberta. Smith and her advisors have declared as unworkable the federal government’s unilateral prescription for a carbon-neutral society by 2050. While they recognize the need for transition the Alberta solution is predictably less draconian than Trudeau’s Pol Pot prescription for moving the population back to a more bucolic lifestyle.
Specifically, Alberta wants “to achieve a carbon-neutral energy economy by 2050, primarily through investment in emissions-reduction technologies and the increased export of Alberta LNG to replace higher-emitting fuels internationally.” (Presumably Alberta will be joined by Saskatchewan in this pushback.)
Then came the hammer. “As the development of Alberta’s natural resources and the regulation of our energy sector workforce are constitutional rights and the responsibility of Alberta, any recommendations provided by this new federal advisory council must align with Alberta’s Emissions Reduction and Energy Development Plan.”
Translation: Federal legislation has to be in synch with provincial plans, not the other way around. In short, try to impose some Michael Mann fantasy on the province and it’s a no-go. Don’t like it? See you in court. In Alberta. Not Ottawa.
Will this constitutional gambit work? While Smith’s mandate from the recent election is hardly rock-solid, she does have the benefit of time in her four-year term. Trudeau has no such luxury, and launching a court case in Alberta would likely stretch past his mandate ending next year. Yes, the impertinence of Alberta would play well with his base in the 514/613/416. But let’s be honest, they are voting Trudeau even if he (in the words of Donald Trump) grabs them by the privates.
One thing you can be assured of when it comes to the PM. He will not be forcing any Canadian Sustainable Jobs Act on the Ontario auto industry to aid its transition to EV vehicles. There will be no helpful suggestions on the death of the automobile for the new mutlti-billion dollar VW battery plants cashing federal cheques in Windsor. He knows his voting base won’t buy it. But those Alberta saps?
The telling impact of this jurisdictional fight will be where Trudeau’s rival, Pierre Poilievre, comes down on the transition issue. With his election depending on the swaths of voters in the GTA shoulder ridings— where Trudeau’s mooting about crybaby Alberta will get a full airing— does he lend his support to Smith’s pushback?
Put simply, is backing Alberta sovereignty in the oil patch a vote-loser for a party still looking past “Hate Trudeau” as an election platform? You could see Poilievre rationalizing that he’ll get the seats in the West no matter what, so why not leave Trudeau to wrassle the Alberta bear alone?
Risky for sure. But if he gets the PMO seat in 2024 Poilievre can always play kiss-and-make-up later with Smith and her government. Can’t wait.
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Bruce Dowbiggin @dowbboy is the editor of Not The Public Broadcaster A two-time winner of the Gemini Award as Canada’s top television sports broadcaster, he’s a regular contributor to Sirius XM Canada Talks Ch. 167. Inexact Science: The Six Most Compelling Draft Years In NHL History, his new book with his son Evan, was voted the seventh-best professional hockey book of all time by bookauthority.org . His 2004 book Money Players was voted sixth best on the same list, and is available via http://brucedowbigginbooks.ca/book-personalaccount.aspx
From the Fraser Institute
On Monday, the Smith government announced that beginning next year it will change the way it funds surgeries in Alberta. This is a big step towards unlocking the ability of Alberta’s health-care system to provide more, better and faster services for the same or possibly fewer dollars.
To understand the significance of this change, you must understand the consequences of the current (and outdated) approach.
Currently, the Alberta government pays a lump sum of money to hospitals each year. Consequently, hospitals perceive patients as a drain on their budgets. From the hospital’s perspective, there’s little financial incentive to serve more patients, operate more efficiently and provide superior quality services.
Consider what would happen if your local grocery store received a giant bag of money each year to feed people. The number of items would quickly decline to whatever was most convenient for the store to provide. (Have a favourite cereal? Too bad.) Store hours would become less convenient for customers, alongside a general decline in overall service. This type of grocery store, like an Alberta hospital, is actually financially better off (that is, it saves money) if you go elsewhere.
The Smith government plans to flip this entire system on its head, to the benefit of patients and taxpayers. Instead of handing out bags of money each year to providers, the new system—known as “activity-based funding”—will pay health-care providers for each patient they treat, based on the patient’s particular condition and important factors that may add complexity or cost to their care.
This turns patients from a drain on budgets into a source of additional revenue. The result, as has been demonstrated in other universal health-care systems worldwide, is more services delivered using existing health-care infrastructure, lower wait times, improved quality of care, improved access to medical technologies, and less waste.
In other words, Albertans will receive far better value from their health-care system, which is currently among the most expensive in the world. And relief can’t come soon enough—for example, last year in Alberta the median wait time for orthopedic surgeries including hip and knee replacements was 66.8 weeks.
The naysayers argue this approach will undermine the province’s universal system and hurt patients. But by allowing a spectrum of providers to compete for the delivery of quality care, Alberta will follow the lead of other more successful universal health-care systems in countries such as Australia, Germany, the Netherlands and Switzerland and create greater accountability for hospitals and other health-care providers. Taxpayers will get a much better picture of what they’re paying for and how much they pay.
Again, Alberta is not exploring an untested policy. Almost every other developed country with universal health care uses some form of “activity-based funding” for hospital and surgical care. And remember, we already spend more on health care than our counterparts in nearly all of these countries yet endure longer wait times and poorer access to services generally, in part because of how we pay for surgical care.
While the devil is always in the details, and while it’s still possible for the Alberta government to get this wrong, Monday’s announcement is a big step in the right direction. A funding model that puts patients first will get Albertans more of the high-quality health care they already pay for in a timelier fashion. And provide to other provinces an example of bold health-care reform.
Nadeem Esmail
Senior Fellow, Fraser Institute
From the Montreal Economic Institute
Alberta’s move to fund acute care services through activity-based funding follows best practices internationally, points out an MEI researcher following an announcement made by Premier Danielle Smith earlier today.
“For too long, the way hospitals were funded in Alberta incentivized treating fewer patients, contributing to our long wait times,” explains Krystle Wittevrongel, director of research at the MEI. “International experience has shown that, with the proper funding models in place, health systems become more efficient to the benefit of patients.”
Currently, Alberta’s hospitals are financed under a system called “global budgeting.” This involves allocating a pre-set amount of funding to pay for a specific number of services based on previous years’ budgets.
Under the government’s newly proposed funding system, hospitals receive a fixed payment for each treatment delivered.
An Economic Note published by the MEI last year showed that Quebec’s gradual adoption of activity-based funding led to higher productivity and lower costs in the province’s health system.
Notably, the province observed that the per-procedure cost of MRIs fell by four per cent as the number of procedures performed increased by 22 per cent.
In the radiology and oncology sector, it observed productivity increases of 26 per cent while procedure costs decreased by seven per cent.
“Being able to perform more surgeries, at lower costs, and within shorter timelines is exactly what Alberta’s patients need, and Premier Smith understands that,” continued Mrs. Wittevrongel. “Today’s announcement is a good first step, and we look forward to seeing a successful roll-out once appropriate funding levels per procedure are set.”
The governments expects to roll-out this new funding model for select procedures starting in 2026.
* * *
The MEI is an independent public policy think tank with offices in Montreal, Ottawa, and Calgary. Through its publications, media appearances, and advisory services to policymakers, the MEI stimulates public policy debate and reforms based on sound economics and entrepreneurship.
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