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Alberta father irked by charity group (The 3% Project) that targets fossil fuel industry

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David Durda

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PHOTO David Durda at his office with the Three Percent Project handout that was given to his son in school in Airdrie, Alberta, December 5, 2019.

David Durda is normally happy to have his 15-year-old son exposed to as many points of view as possible.

But the Airdrie, Alberta dad was deeply troubled when he learned an environmentally-focused non-profit, the 3% Project, was given the green light by school administrators to deliver what he believes is a misleading presentation to some 400 students at his son’s high school in October.

Some of the educational materials provided as part of the presentation contain what he considered to be misleading or incomplete information, and appear to directly target the fossil fuel industry and Alberta’s oil sands.

In just under two years, the 3% Project, the flagship campaign of the Toronto-based Foundation for Environmental Stewardship, has made presentations in 355 schools in more than 250 communities – from Mangilaluk School in Tuktoyaktuk, NWT, to Holy Heart of Mary High School in St. John’s, Nfld. – delivering the message that students represent “the final generation” who can solve a potentially “apocalyptic future.”

By next year, the project, according to its website, aims to make presentations in 600 high schools and ask 1 million Canadian youth (representing three per cent of Canada’s population) to sign the following pledge:  “I am more certain that climate change is happening right now, that it is mainly caused by human activities, and that we’re the final generation who can solve it.”

In its stated goals, the group says it also aims to “identify and heavily invest in three youth climate leaders,” cultivate a further 20 “youth advocates” to spread its message, and plans to have 200 youth identified by name in local media outlets sharing the group’s message.

After hearing that his son was required to go to what he called a mandatory presentation at his school, Durda, who works for a Calgary oil and gas firm, began digging into the group, founded by a 25-year-old climate activist who, according to the group, attended climate leadership training led by former U.S. vice-president Al Gore.

“They have pretty ambitious plans and I believe the school was misled about what the presentation was about,” Durda said.

“In my mind, they just presented one view.”

Much of the information in the campaign is straight-forward.

But some of the educational materials being provided to children as young as Grade 6 contain questionable information.

A review of the 43-page 3% Project handbook, available through the group’s website, finds several questionable statements and data points:

  • In making its case to battle “climate indifference” over Alberta’s oil sands, the non-profit suggests the International Monetary Fund (IMF) has estimated Canada is subsidizing its fossil fuel industry to the tune of $46 billion annually, which would account for 13 per cent of Canada’s entire 2019 federal budget. Not mentioned in the literature is the fact that that figure came from an IMF working paper, which according to a prominent disclaimer accompanying the report, doesn’t “necessarily represent the view of the IMF.” According to a 2016 study conducted by Canadian climate advocacy group Environmental Defence, annual subsidies from both provincial and federal governments amount to about $3.3 billion annually.
  • The 3% Project also suggests that between 2003 to 2010, the fossil fuel industry “invested $558 million in climate denial groups.” The source of that information, a 2013 study from Drexel University, only reviewed donations from the United States during that period, and of the 140 foundations identified as funding these groups, the “overwhelming majority of the philanthropic support comes from conservative foundations,” while the fossil fuel industry itself barely warrants a mention in the academic paper. The literature provided to students suggests industry fosters campaigns of misinformation, with one of the project’s key rationales suggesting: “Public education for youth influences their parents and is the best weapon against disinformation by the fossil fuel industry.” The document also makes no mention of the millions of dollars invested by U.S.-based environmental charities to help disrupt Canada’s energy industry as well as derailing some critical pipeline projects.
  • The report vilifies Canada for being “one of the most environmentally destructive populations per capita on earth,” citing, in particular, its globally high per capita rate of CO2 emissions. The literature fails to mention the fact Canada is middle of the pack when it comes to G7 countries, according to the World Bank, and its 537,000 kilotons generated are a bare fraction of those produced by the world’s top three emitters: China, the United States and India, which in 2014 contributed about 18 million kilotons between them. As well, Canada is quickly becoming a world leader in cleantech oil and gas development while making significant progress in lowering the intensity of greenhouse gas emissions in Alberta’s oil sands.
  • The literature also talks about “the possible apocalyptic future we may inherit.” While the United Nation’s Intergovernmental Panel on Climate Change’s most recent special report on climate, released in October 2018, highlights several risks associated with climate change, including increasing global temperatures, potential droughts, increased flooding, incremental sea level rising and significant risk to some ecosystems, participating scientists consider many of its predictions to be “medium confidence,” compared to other designations of low and high confidence used by the scientists who make up the panel.

A 3% Project spokesperson, through its website messenger system, declined to make anyone available to comment on any of the concerns raised prior to the publication deadline.

In a statement, the Calgary Catholic School Division said individual school principals are encouraged to invite external groups, and are given guidelines to aid in making those decisions.

“The Calgary Catholic School District recognizes the value of external agencies and organizations to provide information to enhance the curriculum and benefit student learning,” it read.

“Principals are encouraged to invite various external organizations to present information that strengthens the curriculum. Principals are given guidelines to assist their decision-making regarding the circulation of any balanced, approved materials or information at the school level.”

However, correspondence from the school’s principal to Durda included an apology for how the presentation came to be, suggesting it wasn’t thoroughly vetted beforehand.

“I did … apologize and agreed with you that we learned from this, that we need to vet the presentation more thoroughly, but also shared the 3% presentation wasn’t one we would bring back because it didn’t hit home with the kids,” read an email, in part, sent to Durda following the presentation.

Durda said he had recommended a separate presentation from Modern Resources CEO Chris Slubicki, who has emerged as a measured voice from industry touting the innovations and benefits of Canadian energy, which could educate students on the positive improvements that continue to be made, including a 30 per cent reduction in greenhouse gas emission intensity of oilsands crude since 1990, and producing increasingly cleaner burning natural gas.

However, he was told such a presentation should be initiated by his son and like-minded peers, and would only be in front of a much smaller assembly of students who showed an interest in attending, which Durda feared would put his son in an unfair position.

According to documents from Revenue Canada, as a registered charity, the Foundation for Environmental Stewardship received some $545,000 from other registered charities in 2018. Among their sponsors are the Butterfield Family Foundation, Lush Cosmetics, the City of Vancouver and Service Canada.

In the group’s handbook, its authors suggest children are not being given all the facts about climate change and the fossil fuels industry. And it aims to mobilize kids as a conduit to influence their elders.

“Children engaging their own parents and grandparents most effectively cultivates behavioural change. Parents start taking action on climate out of love for their children, not of principle,” the handbook reads.

“And they can’t be lied to. Public education must engage youth with the facts before they are thoroughly confused with climate disinformation.”

For Durda, the fact the group was able to get into his son’s school has left him concerned about how many other Canadian students will be influenced by the 3% Project’s message.

“They only presented one view and I thought that view was pretty misleading.”

After 15 years as a TV reporter with Global and CBC and as news director of RDTV in Red Deer, Duane set out on his own 2008 as a visual storyteller. During this period, he became fascinated with a burgeoning online world and how it could better serve local communities. This fascination led to Todayville, launched in 2016.

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Alberta

Alberta’s new diagnostic policy appears to meet standard for Canada Health Act compliance

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From the Fraser Institute

By Nadeem Esmail, Mackenzie Moir and Lauren Asaad

In October, Alberta’s provincial government announced forthcoming legislative changes that will allow patients to pay out-of-pocket for any diagnostic test they want, and without a physician referral. The policy, according to the Smith government, is designed to help improve the availability of preventative care and increase testing capacity by attracting additional private sector investment in diagnostic technology and facilities.

Unsurprisingly, the policy has attracted Ottawa’s attention, with discussions now taking place around the details of the proposed changes and whether this proposal is deemed to be in line with the Canada Health Act (CHA) and the federal government’s interpretations. A determination that it is not, will have both political consequences by being labeled “non-compliant” and financial consequences for the province through reductions to its Canada Health Transfer (CHT) in coming years.

This raises an interesting question: While the ultimate decision rests with Ottawa, does the Smith government’s new policy comply with the literal text of the CHA and the revised rules released in written federal interpretations?

According to the CHA, when a patient pays out of pocket for a medically necessary and insured physician or hospital (including diagnostic procedures) service, the federal health minister shall reduce the CHT on a dollar-for-dollar basis matching the amount charged to patients. In 2018, Ottawa introduced the Diagnostic Services Policy (DSP), which clarified that the insured status of a diagnostic service does not change when it’s offered inside a private clinic as opposed to a hospital. As a result, any levying of patient charges for medically necessary diagnostic tests are considered a violation of the CHA.

Ottawa has been no slouch in wielding this new policy, deducting some $76.5 million from transfers to seven provinces in 2023 and another $72.4 million in 2024. Deductions for Alberta, based on Health Canada’s estimates of patient charges, totaled some $34 million over those two years.

Alberta has been paid back some of those dollars under the new Reimbursement Program introduced in 2018, which created a pathway for provinces to be paid back some or all of the transfers previously withheld on a dollar-for-dollar basis by Ottawa for CHA infractions. The Reimbursement Program requires provinces to resolve the circumstances which led to patient charges for medically necessary services, including filing a Reimbursement Action Plan for doing so developed in concert with Health Canada. In total, Alberta was reimbursed $20.5 million after Health Canada determined the provincial government had “successfully” implemented elements of its approved plan.

Perhaps in response to the risk of further deductions, or taking a lesson from the Reimbursement Action Plan accepted by Health Canada, the province has gone out of its way to make clear that these new privately funded scans will be self-referred, that any patient paying for tests privately will be reimbursed if that test reveals a serious or life-threatening condition, and that physician referred tests will continue to be provided within the public system and be given priority in both public and private facilities.

Indeed, the provincial government has stated they do not expect to lose additional federal health care transfers under this new policy, based on their success in arguing back previous deductions.

This is where language matters: Health Canada in their latest CHA annual report specifically states the “medical necessity” of any diagnostic test is “determined when a patient receives a referral or requisition from a medical practitioner.” According to the logic of Ottawa’s own stated policy, an unreferred test should, in theory, be no longer considered one that is medically necessary or needs to be insured and thus could be paid for privately.

It would appear then that allowing private purchase of services not referred by physicians does pass the written standard for CHA compliance, including compliance with the latest federal interpretation for diagnostic services.

But of course, there is no actual certainty here. The federal government of the day maintains sole and final authority for interpretation of the CHA and is free to revise and adjust interpretations at any time it sees fit in response to provincial health policy innovations. So while the letter of the CHA appears to have been met, there is still a very real possibility that Alberta will be found to have violated the Act and its interpretations regardless.

In the end, no one really knows with any certainty if a policy change will be deemed by Ottawa to run afoul of the CHA. On the one hand, the provincial government seems to have set the rules around private purchase deliberately and narrowly to avoid a clear violation of federal requirements as they are currently written. On the other hand, Health Canada’s attention has been aroused and they are now “engaging” with officials from Alberta to “better understand” the new policy, leaving open the possibility that the rules of the game may change once again. And even then, a decision that the policy is permissible today is not permanent and can be reversed by the federal government tomorrow if its interpretive whims shift again.

The sad reality of the provincial-federal health-care relationship in Canada is that it has no fixed rules. Indeed, it may be pointless to ask whether a policy will be CHA compliant before Ottawa decides whether or not it is. But it can be said, at least for now, that the Smith government’s new privately paid diagnostic testing policy appears to have met the currently written standard for CHA compliance.

Nadeem Esmail

Director, Health Policy, Fraser Institute

Mackenzie Moir

Senior Policy Analyst, Fraser Institute
Lauren Asaad

Lauren Asaad

Policy Analyst, Fraser Institute
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Alberta

Alberta Next Panel calls to reform how Canada works

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From the Fraser Institute

By Tegan Hill

The Alberta Next Panel, tasked with advising the Smith government on how the province can better protect its interests and defend its economy, has officially released its report. Two of its key recommendations—to hold a referendum on Alberta leaving the Canada Pension Plan, and to create a commission to review programs like equalization—could lead to meaningful changes to Canada’s system of fiscal federalism (i.e. the financial relationship between Ottawa and the provinces).

The panel stemmed from a growing sense of unfairness in Alberta. From 2007 to 2022, Albertans’ net contribution to federal finances (total federal taxes paid by Albertans minus federal money spent or transferred to Albertans) was $244.6 billion—more than five times the net contribution from British Columbians or Ontarians (the only other two net contributors). This money from Albertans helps keep taxes lower and fund government services in other provinces. Yet Ottawa continues to impose federal regulations, which disproportionately and negatively impact Alberta’s energy industry.

Albertans were growing tired of this unbalanced relationship. According to a poll by the Angus Reid Institute, nearly half of Albertans believe they get a “raw deal”—that is, they give more than they get—being part of Canada. The Alberta Next Panel survey found that 59 per cent of Albertans believe the federal transfer and equalization system is unfair to Alberta. And a ThinkHQ survey found that more than seven in 10 Albertans feel that federal policies over the past several years hurt their quality of life.

As part of an effort to increase provincial autonomy, amid these frustrations, the panel recommends the Alberta government hold a referendum on leaving the Canada Pension Plan (CPP) and establishing its own provincial pension plan.

Albertans typically have higher average incomes and a younger population than the rest of the country, which means they could pay a lower contribution rate under a provincial pension plan while receiving the same level of benefits as the CPP. (These demographic and economic factors are also why Albertans currently make such a large net contribution to the CPP).

The savings from paying a lower contribution rate could result in materially higher income during retirement for Albertans if they’re invested in a private account. One report found that if a typical Albertan invested the savings from paying a lower contribution rate to a provincial pension plan, they could benefit from $189,773 (pre-tax) in additional retirement income.

Clearly, Albertans could see a financial benefit from leaving the CPP, but there are many factors to consider. The government plans to present a detailed report including how the funds would be managed, contribution rates, and implementation plan prior to a referendum.

Then there’s equalization—a program fraught with flaws. The goal of equalization is to ensure provinces can provide reasonably comparable public services at reasonably comparable tax rates. Ottawa collects taxes from Canadians across the country and then redistributes that money to “have not” provinces. In 2026/27, equalization payments is expected to total $27.2 billion with all provinces except Alberta, British Columbia and Saskatchewan receiving payments.

Reasonable people can disagree on whether or not they support the principle of the program, but again, it has major flaws that just don’t make sense. Consider the fixed growth rate rule, which mandates that total equalization payments grow each year even when the income differences between recipient and non-recipient provinces narrows. That means Albertans continue paying for a growing program, even when such growth isn’t required to meet the program’s stated objective. The panel recommends that Alberta take a leading role in working with other provinces and the federal government to reform equalization and set up a new Canada Fiscal Commission to review fiscal federalism more broadly.

The Alberta Next Panel is calling for changes to fiscal federalism. Reforms to equalization are clearly needed—and it’s worth exploring the potential of an Alberta pension plan. Indeed, both of these changes could deliver benefits.

Tegan Hill

Director, Alberta Policy, Fraser Institute
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