Alberta
Alberta Ombudsman can’t do anything about City of Red Deer complaint about 9-11 Dispatch
Ombudsman Responds to Municipalities’ Complaint About Ambulance Dispatch
Marianne Ryan, Alberta’s Ombudsman took the unusual step of publicly commenting on a complaint received involving Alberta Health Services.
The City of Red Deer, along with the municipalities of Calgary, Lethbridge and the Regional Municipality of Wood Buffalo filed a complaint to the Ombudsman regarding Alberta Health Services’ consolidation of ambulance emergency dispatch services.
The Ombudsman Act authorizes the Ombudsman to investigate administrative decisions of government ministries and many related bodies, but the Act specifically prohibits her from investigating decisions of Alberta Health Services (AHS).
“My office thoroughly analyzed the complaint and confirmed that the decision to consolidate ambulance dispatch services was indeed made by AHS. While many government-related bodies fall under my jurisdiction, AHS is not one of them,” stated Marianne Ryan, Alberta’s Ombudsman. “In fact, the Ombudsman Act specifically states that my powers of investigation do not apply to health authorities. My ability to investigate AHS decisions would require a change in legislation. While the issue being complained about clearly affects many Albertans, I am bound by my governing legislation to only investigate matters that are clearly within my jurisdiction.”
Investigations by the Ombudsman are conducted in confidence, and it is the Ombudsman’s general practice not to comment publicly on complaints, especially ones that are not being investigated.
“Given the substance of the complaint has been widely reported in the media and that it relates to an issue affecting a great many Albertans, I advised the mayors that I would be making a public statement.”
Alberta
Alberta government should eliminate corporate welfare to generate benefits for Albertans
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:
Alberta
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