Alberta
New mandatory province-wide measures to battle COVID will affect every business and family
From the Province of Alberta
New mandatory provincewide measures to protect lives
New mandatory health measures go into effect immediately to protect lives.
Expanded health measures will be in effect provincewide. All Albertans, businesses, organizations and service providers must follow all new health measures. These restrictions will be in place for a minimum of four weeks.
“Alberta has sought to protect both lives and livelihoods from the beginning of the pandemic. The recent surge in COVID-19 hospitalizations will threaten our health-care system and the lives of many vulnerable Albertans unless further action is taken now. With the promise of a vaccine early in 2021, we can see the end of this terrible time. But all Albertans must take this more seriously than ever by staying home whenever possible, and following these new measures.”
“Alberta’s case numbers and hospitalizations have reached a point where we must take stricter measures in order to protect capacity in our health system. These mandatory new health measures are some of the strictest we’ve implemented, but they are absolutely critical to the future of our province.”
“These mandatory measures will help us slow the spread of COVID-19. This will require individual sacrifices that are necessary to protect our province. It’s not just about one person, it’s about doing what we can to protect and save our loved ones, colleagues, neighbours, and even strangers. Following these public health measures is how we as Albertans care for and protect each other.”
New expanded mandatory measures come into effect Dec. 8 for social gatherings and mandatory masking. All others come into effect at 12:01 a.m., Dec. 13.
Social gatherings – immediate
- All indoor and outdoor social gatherings – public and private – are prohibited.
- Close contacts are limited to household members only.
- Individuals who live alone will be allowed up to two close contacts for in-person visiting, with those two people remaining the same for the duration of the restriction period.
- Festivals, parades, events, concerts, exhibitions, competitions, sport and performance remain prohibited.
Masking – immediate
- The mandatory indoor public masking requirement will be extended provincewide.
- Public spaces include locations where a business or entity operates and is applicable to employees, visitors and the general public.
- Applies to all indoor workplaces and facilities outside the home.
- Farm operations are excluded.
- Rental accommodations used solely for the purposes of a private residence are excluded.
Places of worship – starting at 12:01 a.m., Dec. 13
- All places of worship will be limited to 15 per cent of fire code occupancy for in-person attendance.
- Virtual or online services are strongly encouraged.
- Drive-in services where individuals do not leave their vehicles and adhere to guidance will be permissible and are not subject to capacity restrictions.
- Mandatory mask mandate, physical distancing and other guidelines remain in place.
Retail – starting at 12:01 a.m., Dec. 13
- Retail services must reduce customer capacity to 15 per cent of fire code occupancy, with a minimum of five customers permitted.
- Curbside pickup, delivery and online services are encouraged.
- Shopping malls will be limited to 15 per cent of fire code occupancy.
Closures – starting at 12:01 a.m., Dec. 13
- Restaurants, pubs, bars, lounges and cafes will be closed to in-person service.
- Only takeout, curbside pickup and delivery services are permitted.
- Casinos, bingo halls, gaming entertainment centres, racing entertainment centres, horse tracks, raceways, bowling alleys, pool halls, legions, and private clubs will be closed.
- Recreational facilities – fitness centres, recreation centres, pools, spas, gyms, studios, day and overnight camps, indoor rinks and arenas – will be closed.
- Outdoor recreation is permitted, but facilities with indoor spaces except for washrooms will be closed.
- Entertainment businesses and entities – libraries, science centres, interpretive centres, museums, galleries, amusement parks and water parks – will be closed.
- Hotels may remain open but must follow restrictions – no spas, pools or in-person dining. Room services only.
- Personal and wellness services, including hair salons, nail salons, massage, tattoos, and piercing, will be closed.
Health services, including physiotherapy or acupuncture, social or protective services, shelters for vulnerable persons, emergency services, child care, and not-for-profit community kitchens or charitable kitchens will remain open for in-person attendance.
Work from home – starting at 12:01 a.m., Dec. 13
- Mandatory work from home measures will be implemented unless the employer determines that work requires a physical presence for operational effectiveness.
Closures – ongoing from Nov. 27
- Entertainment businesses and entities – community halls and centres, indoor children’s play centres and indoor playgrounds, theatres, auditoriums, concert halls, and community theatres, nightclubs, banquet halls and conference centres, indoor and outdoor festivals, concerts with the exception of drive-in events, tradeshows, and sporting events or competitions, remain closed.
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:
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