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Alberta

Writer opposing Free Alberta Strategy in national article confuses chartered banks with financial institutions

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From the Free Alberta Strategy Team

In a new article published in the federal-government-funded “The Conversation” publication, Robert L. Ascah, a researcher at the also-federal-government-funded Parkland Institute, attempts to lay the hatchet to the Free Alberta Strategy.

In his piece, entitled “What the Free Alberta Strategy gets wrong about Canada’s banking system,” Mr. Ascah argues that the Alberta Independent Banking Act that is proposed in the Free Alberta Strategy report is unconstitutional because banking is an entirely federal area of jurisdiction.

Here is the key quote from Mr. Ascah:

“The Free Alberta Strategy, however, purports to allow Alberta to incorporate and regulate banks, which is clearly unconstitutional. There’s no mention that this proposal is beyond the powers of the provincial legislature.”

But, as so often seems to happen, this latest Free Alberta Strategy critic clearly doesn’t appear to have read – or taken the time to understand – what the Free Alberta Strategy is actually proposing.

While it’s true that “chartered banks” are federally regulated, that doesn’t mean that any type or form of “banking”, as the term is colloquially used, must be federally regulated.

Credit unions, for example, offer “banking” services, while not being “chartered banks” that are federally regulated.

This definition, while technical, is the crux of the issue.

And while we admit that this is very technical, when you’re talking about writing laws, technicalities matter a lot.

To be clear, here is the exact proposal from the Free Alberta Strategy report itself:

1. Expanding the number of provincially regulated financial institutions and credit unions;

2. Promoting private ownership of these new financial institutions; and

3. Mandating that all provincially regulated financial institutions and credit unions (including ATB) remain compliant with the Alberta Sovereignty Act as it relates to the non-enforcement of federal laws and court decisions deemed to infringe unduly on Alberta’s provincial jurisdiction.

You will note, very clearly, that this proposal in our Free Alberta Strategy report talks about “provincially regulated financial institutions” not “chartered banks”.

This is because the authors of the strategy understand (unlike Mr. Ascah, apparently) that while “chartered banks” must be regulated by the federal government, “financial institutions” can be regulated by the provincial government.

This is exactly why our Free Alberta Strategy report suggests modelling any new “banks” in Alberta on ATB Financial (previously known as Alberta Treasury Branches), which is a long-standing Alberta financial institution.

(Note: Although ATB is a crown corporation, our proposal envisages privately owned and operated financial institutions, not more government-owned and operated financial institutions. Just in case anyone was worried we were suddenly advocating for bigger government!)

Just as Alberta’s credit unions are not “chartered banks” and so are not federally regulated, ATB Financial is not a “chartered bank”, and so it is not regulated by the federal government.

ATB Financial is a “financial institution” that is provincially regulated by the Alberta government under the ATB Financial Act.

This is precisely what the Free Alberta Strategy report proposes – an increase in the number of provincially regulated financial institutions in Alberta.

We can clearly see then that, despite the claim by Mr. Ascah that provincial regulation of banking is unconstitutional, the mere existence of ATB is proof that our proposal is, in fact, constitutional.

The remainder of Mr. Ascah’s article goes on to argue that if Alberta unconstitutionally incorporated its own new “chartered banks”, the federal government would cut those banks off from being able to transfer funds to other banks in Canada, making them impractical for the public to use.

Maybe it’s true that the federal government would cut off any unauthorized provincial “chartered banks” from payment mechanisms.

But, given no one is proposing Alberta incorporate its own new “chartered banks”, this entire second half of the article is an irrelevant straw man argument.

Again, the Free Alberta Strategy proposes to incorporate new provincially regulated financial institutions, like ATB.

And, in case you haven’t noticed, ATB has not been cut off from being able to transfer funds to other banks by the federal government, because – shock – the existence of ATB is perfectly constitutional.

The real question then, is whether or not the first half of Mr. Ascah’s article, where he claims we are proposing to do something unconstitutional, is simply a misunderstanding, or a deliberately misleading diatribe.

Either way, such a fundamental error really makes you wonder why the Parkland Institute would allow the article to be published at all!

Are Parkland Institute staff no longer expected to read the thing they are publicly criticizing anymore?

Are The Conversation editors no longer expected to check whether their authors have their facts straight?

Perhaps the oddest part of this whole situation is that the Parkland Institute, where Mr. Ascah works, has previously written about the benefits of having an Alberta-based, Alberta-regulated financial institution!

They did so in a report that goes into detail explaining the difference between federally regulated chartered banks and provincially regulated financial institutions!

Even stranger still – which Parkland Institute researcher do you think it was who wrote this report?

Yes, you guessed it, it was Robert L. Ascah!

It gets worse…

Once upon a time, Mr. Ascah worked at Alberta Treasury, the government department that is responsible for regulating ATB.

Then, after he worked at Alberta Treasury, Mr. Ascah went to work at ATB itself, where he was responsible for government relations, strategic planning, and economic research.

That’s right folks…

Our Free Alberta Strategy critic, who attacked us by claiming that provincially regulated financial institutions are unconstitutional, actually worked as a senior executive at both the organization he claims is unconstitutional, and the organization that is supposed to regulate the thing that he claims is unconstitutional.

We must either believe, then:

  • That Mr. Ascah, who has written about the benefits of provincially-regulated financial institutions, has worked for a provincially-regulated financial institution, and has worked for the organization that regulates provincially-regulated financial institutions, is somehow entirely unaware that provincially-regulated financial institutions are legal.

Or, we must believe:

  • That Mr. Ascah perfectly understands that provincially-regulated financial institutions are legal and that that is how ATB is established, but that it’s somehow, all of a sudden, now beneficial for him to pretend that he doesn’t, and that anyone suggesting other financial institutions be regulated in that way is suggesting something “unconstitutional”.

How could it possibly be beneficial for Mr. Ascah to pretend that this idea is unconstitutional all of a sudden, I hear you ask?

Well, the answer to that question is actually the least confusing part of his article.

Contained right at the bottom of the article, under “Disclosure statement” (and conveniently excluded from most re-publications of the piece by the media) are 9 little words:

“Robert (Bob) L. Ascah is affiliated with Alberta NDP.”

Of course, affiliated with is a little bit of an understatement in this case.

Mr. Ascah has donated thousands of dollars to the Alberta NDP for many years, while several of his Parkland Institute colleagues are actually running as Alberta NDP candidates in the 2023 Alberta election!

Now, as a non-partisan organization, we generally try to avoid pointing out the political affiliations of individual people.

As an organization, we base our support for ideas on whether the ideas are good or not, rather than on who is proposing them.

But, in this case, we’re not criticizing the person proposing the ideas, but the lack of independence and the conflict of interest inherent in a situation where federal-government-funded researchers are published by federal-government-funded websites and re-printed by federal-government-funded newspapers.

Unfortunately, in a world where government-funded academics get government funding to write government propaganda published in government-funded media, there’s really no incentive to cover the truth anymore.

As to why the federal government would want to fund researchers to write propaganda for them, and fund media outlets to publish it for them, we’ll leave that one to you to answer!

In the end, this is exactly why we need more independent research and independent distribution of ideas in our society.

The Free Alberta Strategy jealously guards our independence.

That’s why we never accept any money or resources from any government, regardless of political stripe.

But that’s also why we need your help.

We need your help so that we can continue to do research and analysis on ways in which Alberta can fight back, such as the Sovereignty Act.

We need your help to further our work to protect Alberta’s interests from a hostile and divisive federal government in Ottawa.

We need your help to grow our supporter, activist, and volunteer network across our great province.

We need your help to share our work with like-minded friends and family in order to get the word out to as many members of the public as possible.

If you’re ready to help, click here:

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Alberta

Ford and Trudeau are playing checkers. Trump and Smith are playing chess

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CAE Logo

 

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.

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Alberta

Your towing rights! AMA unveils measures to help fight predatory towing

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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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