Red Deer Recovery Community will offer hope for residents from Central Alberta and around the world

Central Albertans won’t be the only ones paying close attention to the official opening of the Red Deer Recovery Community next month. According to Marshall Smith, Chief of Staff to Premier Danielle Smith, jurisdictions from across North America will be looking to the Red Deer Recovery Community for potential answers to their own issues. Red Deer Recovery Community will be the first of 11 the province is opening over the coming months.

Cities across North America and beyond have been battling an addictions crisis, and losing. As the number of homeless people and the number of fatal overdoses continues to rise, cities are looking for new solutions. After years of slipping further behind, Alberta has decided on a new approach to recovery and Marshall Smith has been leading the charge.

Smith is a recovering addict himself. A political organizer from BC, he once worked for former Premier Gordon Campbell. His own crisis started with alcohol, then moved to cocaine dependency before he eventually succumbed to methamphetamine use. The successful political operative found himself without work and living on the street for over four years. Eventually he benefited from a 35 day stay in a publicly funded recovery centre in BC.

Former Alberta Premier Jason Kenney brought Smith to Alberta to head up the UCP’s addictions and recovery file. His personal experiences and incredible comeback story are at the heart of Alberta’s new approach.

While the success of recovery programs vary, Marshall Smith and Dr. Christina Basedow of the Edgewood Health Network (operators of Red Deer Recovery Community) say with the right treatment and the right amount of time, they expect a very high rate of successful recoveries. Smith says the province won’t give up on patients, even if some have to go through more than once.

The Recovery Community is central to this new approach, but patients who will be able to stay for up to a year, will need somewhere to go when they leave. This week the province also announced the Bridge Healing Transitional Accommodation Program in Edmonton. This “second stage” housing will ensure former addicts have a place to stay upon leaving addiction treatment centres. This will be their home in the critical days following treatment when they need to reestablish their lives by finding work or educational opportunities.

Red Deer Mayor Ken Johnston feels the 75 bed Recovery Community will be transformation for Central Alberta. Mayor Johnston says all Central Albertans will play an important role in helping former addicts when they leave the Recovery Community.

Construction of the Red Deer Recovery Community is all but complete.

Thursday, municipal and provincial politicians toured the facility and were introduced to the operators of the new facility. Dr Christina Basedow, Western VP of Edgewood Health Network teamed up with Nicholas Milliken, Alberta’s Mental Health and Addiction Minister, to take questions about operations.

Red Deer South MLA Jason Stephan, Red Deer Mayor Ken Johnston, Dr. Christina Basedow, Minister Nicholas Milliken, Red Deer North MLA Adriana LaGrange

Premier Danielle Smith made the trip to Central Alberta to offer support for the project and see the facility first hand.

Red Deer Mayor Ken Johnston and Premier Danielle Smith listen to Chief of Staff Marshall Smith

Marshall Smith explains aspects of the Recovery Community to Premier Danielle Smith, Red Deer Mayor Ken Johnston and Red Deer MLA’s Adriana LaGrange and Jason Stephan

In the days leading up to an official opening expected in February, Edgewood Health Network is finalizing the admission process which will see the first batch of up to 75 people suffering addictions moving into single and double occupied rooms.

Typical double occupancy room at Red Deer Recovery Community

The new 75-bed facility, will begin accepting residents battling addictions in February. Those residents will stay for up to a full year accessing medications, programming and developing life skills.

In the meantime the province expects a recovery industry will be developing in Red Deer including second stage housing opportunities and counselling.

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Alberta

Alberta government should eliminate corporate welfare to generate benefits for Albertans

Published on May 2, 2024

Todayville

From the Fraser Institute

By Spencer Gudewill and Tegan Hill

Last November, Premier Danielle Smith announced that her government will give up to $1.8 billion in subsidies to Dow Chemicals, which plans to expand a petrochemical project northeast of Edmonton. In other words, $1.8 billion in corporate welfare.

And this is just one example of corporate welfare paid for by Albertans.

According to a recent study published by the Fraser Institute, from 2007 to 2021, the latest year of available data, the Alberta government spent $31.0 billion (inflation-adjusted) on subsidies (a.k.a. corporate welfare) to select firms and businesses, purportedly to help Albertans. And this number excludes other forms of government handouts such as loan guarantees, direct investment and regulatory or tax privileges for particular firms and industries. So the total cost of corporate welfare in Alberta is likely much higher.

Why should Albertans care?

First off, there’s little evidence that corporate welfare generates widespread economic growth or jobs. In fact, evidence suggests the contrary—that subsidies result in a net loss to the economy by shifting resources to less productive sectors or locations (what economists call the “substitution effect”) and/or by keeping businesses alive that are otherwise economically unviable (i.e. “zombie companies”). This misallocation of resources leads to a less efficient, less productive and less prosperous Alberta.
And there are other costs to corporate welfare.

For example, between 2007 and 2019 (the latest year of pre-COVID data), every year on average the Alberta government spent 35 cents (out of every dollar of business income tax revenue it collected) on corporate welfare. Given that workers bear the burden of more than half of any business income tax indirectly through lower wages, if the government reduced business income taxes rather than spend money on corporate welfare, workers could benefit.

Moreover, Premier Smith failed in last month’s provincial budget to provide promised personal income tax relief and create a lower tax bracket for incomes below $60,000 to provide $760 in annual savings for Albertans (on average). But in 2019, after adjusting for inflation, the Alberta government spent $2.4 billion on corporate welfare—equivalent to $1,034 per tax filer. Clearly, instead of subsidizing select businesses, the Smith government could have kept its promise to lower personal income taxes.

Finally, there’s the Heritage Fund, which the Alberta government created almost 50 years ago to save a share of the province’s resource wealth for the future.

In her 2024 budget, Premier Smith earmarked $2.0 billion for the Heritage Fund this fiscal year—almost the exact amount spent on corporate welfare each year (on average) between 2007 and 2019. Put another way, the Alberta government could save twice as much in the Heritage Fund in 2024/25 if it ended corporate welfare, which would help Premier Smith keep her promise to build up the Heritage Fund to between $250 billion and $400 billion by 2050.

By eliminating corporate welfare, the Smith government can create fiscal room to reduce personal and business income taxes, or save more in the Heritage Fund. Any of these options will benefit Albertans far more than wasteful billion-dollar subsidies to favoured firms.

Authors:

Spencer Gudewill

Policy Analyst, Fraser Institute

and

Tegan Hill

Associate Director, Alberta Policy, Fraser Institute

Alberta

Official statement from Premier Danielle Smith and Energy Minister Brian Jean on the start-up of the Trans Mountain Pipeline

Published on May 1, 2024

Government of Alberta

Alberta is celebrating an important achievement for the energy industry – the start-up of the twinned Trans Mountain pipeline. It’s great news Albertans and Canadians as this will welcome a new era of prosperity and economic growth. The completion of TMX is monumental for Alberta, since this will significantly increase our province’s output. It will triple the capacity of the original pipeline to now carry 890,000 barrels per day of crude oil from Alberta’s oil sands to British Columbia’s Pacific Coast.

We are excited that Canada’s biggest and newest oil pipeline in more than a decade, can now bring oil from Edmonton to tide water in B.C. This will allow us to get our energy resources to Pacific markets, including Washington State and California, and Asian markets like Japan, South Korea, China, and India. Alberta now has new energy customers and tankers with Alberta oil will be unloading in China and India in the next few months.

For Alberta this is a game-changer, the world needs more reliably and sustainably sourced Alberta energy, not less. World demand for oil and gas resources will continue in the decades ahead and the new pipeline expansion will give us the opportunity to meet global energy demands and increase North American and global energy security and help remove the issues of energy poverty in other parts of the world.

Analysts are predicting the price differential on Canadian crude oil will narrow resulting in many millions of extra government revenues, which will help fund important programs like health, education, and social services – the things Albertans rely on. TMX will also result in billions of dollars of economic prosperity for Albertans, Indigenous communities and Canadians and create well-paying jobs throughout Canada.

Our province wants to congratulate the Trans Mountain Corporation for its tenacity to have completed this long awaited and much needed energy infrastructure, and to thank the more than 30,000 dedicated, skilled workers whose efforts made this extraordinary project a reality. The province also wants to thank the Federal Government for seeing this project through. This is a great example of an area where the provincial and federal government can cooperate and work together for the benefit of Albertans and all Canadians.