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Alberta

“All talk, no action”. Alberta government not nearly aggressive enough against Ottawa – Project Confederation

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This article is submitted by Josh Andrus, Executive Director of Project Confederation

The Alberta Legislature finished for the year on Tuesday and the theme of the session might as well have been “all talk, no action”.

Despite wave after wave of relentless attacks from a hostile federal government in Ottawa, precious little progress has been made to stand up for Alberta.

Given Prime Minister Justin Trudeau and the Liberal government have their foot on the throat of our energy sector, a strong response from the provincial government should be expected, right?

Well, so far we haven’t seen one.

Maybe Alberta’s response is still being worked on, but why the delay?

It’s not like this was unexpected…

The fall federal election gave us an early taste of what was in store.

All five major parties effectively campaigned to end new energy development in Canada and transition to a net-zero future.

Perhaps the most telling moment was when even the Conservatives refused to show their support for Alberta’s oil and gas industry.

During the English language debate, Bloc Quebecois leader Yves-François Blanchet forced Conservative leader Erin O’Toole to reiterate a promise he’d made at the French debate – that, if elected, the Conservatives would not allow a pipeline to be built through Quebec.

The statement from O’Toole was simple: “We’re not going to let that happen.”

Now re-elected to what barely passes for a mandate – 32.3% of the vote with just a 62.3% turnout – the federal Liberal government is preparing to entirely dismantle Canada’s energy sector.

The Alberta government did finally hold their long-promised referendum on equalization – something that more than two years ago, we suggested should have been held immediately.

Alberta has lost a net $600 billion dollars since 1957, with over $240 billion of that leaving Alberta in just the past 13 years, and 61.7% of voters voted in favour of removing the principle of equalization from the constitution of Canada.

The provincial government then introduced a motion in the Legislature to recognize the result of the referendum, a necessary.

But they seemed to treat it as more of a marketing opportunity than the first step to kick off negotiations with Ottawa, timing the passage of the motion to coincide with Premier Kenney’s speech at the UCP AGM, rather than when it would have made the most waves in the media and in Ottawa.

Trudeau, therefore, was able to easily dismiss the referendum out of hand and his flippant response to Albertans’ clear frustration was just the first slight from Trudeau.

As the Alberta government held a press conference to announce the official referendum results, Trudeau rolled out his cabinet, installing radical environmentalist Steven Guilbeault as the new Minister of Environment and Climate Change.

Let’s be clear, none of this is about reducing emissions or responding to climate change.

This is about power.

This is about wealth and this is about kneecapping a region of the country that refuses to get on board with the Liberal’s radical tax-and-spend agenda.

The Liberals’ contingent at the COP26 Glasgow Climate Change summit made it clear that Western Canada’s energy industry will be maimed – all for the noble cause of “saving the world.”

Trudeau and his team upped the ante by announcing that Canada would cap oil and gas emissions and put Canada on a path to net-zero by 2050.

Former Parti Quebecois leader Jean-François Lisée made this point clear when he decided it was high time to publish an op-ed entitled “What Alberta Owes Us,” wherein he declared that Alberta doesn’t pay Quebec enough!

If Ottawa were honest about their intentions to save the climate, they would also be pointing their guns at Canada’s other heavily emitting industries.

“Ottawa will cap emissions from the oil and gas sector,” said Guilbeault upon his appointment.

“We’re not doing that with any other sectors — not steel, not the auto industry, forestry, cement,” he added.

That’s right, he didn’t just single out oil and gas in the regulations, he also actually bragged about it.

Not concrete. Not the auto industry. Not forestry. Not cement. Just oil and gas.

Premier Kenney had a brief moment where he came to the defence of Alberta, after David Suzuki warned at an Extinction Rebellion rally that “there are going to be pipelines blown up if our leaders don’t pay attention to what’s going on.

Kenney’s response was well-put, so let’s give credit where credit is due:

“Regrettably, we know that there are people to whom he is speaking who believe that the end of, in their view, saving the planet justifies virtually any means, including violence. We do know. I mean, the term ‘eco terrorism’ is not some kind of a conservative talking point – it’s a reflection of a philosophy and real actions that have really taken lives.”

But again, it’s words, not action.

A couple of strongly-worded statements and/or motions in the Legislature won’t cut it in the face of a series of major political attacks from Ottawa.

When the Legislature returns, we need action.

Action on a provincial police force, action on equalization, action on pensions, action on pipelines.

Albertans want action and Project Confederation is ready to take action.

In the new year, we’ll be returning to organizing in-person meetings and events across the province, to build up teams of activists and volunteers who are ready to push for real action.

If you’re ready to get involved, please click here to sign up to volunteer.

If you can help fund these events, and our ongoing activism work, please click here to make a donation.

 

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Alberta

Alberta government should eliminate corporate welfare to generate benefits for Albertans

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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.

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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

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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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