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Alberta

Calgary Stampede a calculated risk, potential example for post-COVID behaviour: mayor

Published

3 years ago

6 minute read

EDMONTON — The Calgary Stampede, increasingly touted by Alberta Premier Jason Kenney as the brass ring for defeating COVID-19, won’t look like the whoop-up of years past if it goes ahead, says the city’s mayor.

Naheed Nenshi says there would still be distancing rules and other changes to keep people healthy and safe at what could be the first major Canadian post-COVID-19 festival.

“We really do have a chance to be world leaders in showing people how you can move forward with a bit of a return to normalcy, but still being very safe,” Nenshi, who also sits on the Stampede board, said Thursday.

“Certainly, this decision would be a lot easier, and this discussion would be a lot easier, if the Stampede were in August,” he added.

“(But) as long as the (COVID) numbers keep on the trajectories they’re on now, then the reward outweighs the risk.”

The world-renowned rodeo and fair is to open July 9.

Stampede spokeswoman Kristina Barnes said plans are for a scaled-down event with a priority on safety. Some indoor events could be moved outdoors.

She said talks continue on how the trademark Stampede parade could look.

The signature event, the chuckwagon races, will not go ahead for safety reasons, said Barnes. Chuckwagon racers have been on a lengthy layoff due to COVID-19.

“It would be extremely difficult to step from practice straight to a high-stakes championship,” said Barnes. “For the long-term health of the sport, it was a decision we had to make.”

The Stampede is Alberta’s signature summer event, famous for rodeos, chuckwagon races, pancake breakfasts, midway rides and alcoholic overindulgence.

In recent weeks, it has taken on political significance.

Kenney has frequently used the Stampede to symbolize a return to happier times should Albertans continue to get vaccinated and observe health restrictions.

He referenced the Stampede multiple times on Wednesday as he outlined a three-stage plan to reopen the economy and expand public gatherings — based on vaccination rates and hospitalizations.

Almost 60 per cent of Albertans 12 and older have received at least one shot.

Kenney said almost all restrictions will be lifted once 70 per cent of those eligible have had at least one vaccine dose. He said that could come as early as June 28.

Comparable provinces, including Ontario, British Columbia and Quebec, have similar phased reopening strategies, but not until later in the summer or into September

Just a month ago, Kenney’s United Conservative government was facing COVID-19 case rates that were the highest in North America.

Kenney said he might try to pull together the traditional premier’s Stampede pancake breakfast. A vaccination site on the Stampede grounds is also being explored.

Opposition NDP Leader Rachel Notley questioned whether Kenney is following science or risking public health with a speedy reopening for political reasons.

Kenney has faced plunging popularity numbers during the pandemic as well as a backlash from rural supporters and some of his UCP backbenchers over health restrictions they deem heavy-handed and punitive.

Political scientist Duane Bratt said it’s hard not to believe that the Stampede is driving Kenney’s timeline. The premier runs a huge risk if cases surge again or if the Stampede were perceived as a failure, he said.

“Everything has to go right for this. This is the most aggressive reopening of any place in Canada,” said Bratt of Mount Royal University in Calgary.

“Nothing would symbolize back to normal (better) than a Stampede.”

The event is not only an international tourist attraction, but also the unofficial start of a summer of political schmoozing, glad-handing and deal-making.

Political scientist Chaldeans Mensah said Kenney needs a popularity boost, not to mention the opportunity to meet face to face with supporters and to mend fences as required.

“That has hurt him politically. That inability to connect (one-on-one during COVID-19) has been very negative,” said Mensah with MacEwan University in Edmonton.

“He has not been able to quell some of the internal challenges that he’s faced. Stampede would offer him that opportunity.”

Political scientist Lori Williams said Kenney will still have to deal with the anger of those who lost loved ones during the pandemic or who feel he mishandled restrictions and economic supports.

On top of that, there is still a public fight with Alberta’s doctors and vocal concerns about a proposed new school curriculum, said Williams, also with Mount Royal University.

“The depth and breadth of the anger with this government is going to be a huge challenge to overcome.”

This report by The Canadian Press was first published May 27, 2021.

Dean Bennett, The Canadian Press

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Alberta

Alberta government should eliminate corporate welfare to generate benefits for Albertans

Published on May 2, 2024

By

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
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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

By

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.
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