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Alberta VS Ottawa? These are the approaches of four leading candidates

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21 minute read

No matter who wins the UCP Leadership race, you can count on a turbulent relationship with Ottawa.  Albertans have long had issues with how the Liberal government stifles the critical Oil and Gas industry.  Now Alberta’s farmers are finding out what that feels like, as the federal government is introducing measures to reduce the amount of nitrogen fertilizer they use.

To add to the level of animosity between the two governments, a growing number of Alberta UCP supporters are voicing dissatisfaction over Covid restrictions and mandates.  This group is active politically, and seems to be rallying behind frontrunner Daniel Smith and likeminded Todd Loewen.  The idea is to avoid future restrictions and mandates provincially, and stand up against any federal measures.

It’s no coincidence then, that the leading candidates in the UCP race all have strong platform initiatives to stand up to Ottawa.  Here’s what they look like, beginning with Danielle Smith’s “Alberta Sovereignty Act.

Danielle Smith – Alberta Sovereignty Act

It is clear that my proposed Alberta Sovereignty Act has thus far been the central issue of the UCP leadership campaign. Tens of thousands of Albertans have embraced the idea of actually standing up to Ottawa’s attacks against us, rather than usual ineffective letter writing campaigns and complaining.

It’s been both exciting and heartwarming to see hope restored to so many in our Province, and I want them to know how much their faith and confidence in this initiative strengthen my personal resolve to see it through.

Unsurprisingly, many in the media and establishment do not support the Alberta Sovereignty Act and have turned to the tried and tested methods of fearmongering and disinformation to discredit the idea. Unfortunately, some of my fellow UCP candidates may have fallen into their trap.

My hope in releasing this FAQ sheet on the Alberta Sovereignty Act, is that more Albertans and MLAs will take a thoughtful look at this policy, and join the growing majority of Albertans who want to see us stand up to Ottawa, restore our constitutional rights, and take control of our future in this manner.

I am sincerely looking forward to implementing this critically important piece of legislation together.

– Danielle Smith

What is the Alberta Sovereignty Act?

A proposed provincial law that would affirm the authority of the Provincial Legislature to refuse enforcement of any Federal law or policy that violates the jurisdictional rights of Alberta under Sections 92 – 95 of the Constitution or that breaches the Charter Rights of Albertans.

How will it be used?

When the Federal Government institutes a law or policy that appears to violate the constitution or Charter, the Government of Alberta may introduce a Special Motion for a free vote of all MLAs in the Legislature. The Special Motion would include the following:

1. Identification of the Federal law or policy that it deems to be in violation of the Constitution

2. An Outline of the specific harms that violation of the Constitution imposes on the citizens of Alberta

3. Description of the specific actions the Province will take to refuse the enforcement of that Federal law or policy in Alberta

4. A Declaration that by authority of the Alberta Sovereignty Act and notwithstanding the specific Federal law or policy in question, it shall not be enforced by the Provincial Government within Alberta in the manner outlined by the Special Motion

5. Imposition a specific time frame (no more than 24 months) by which the Special Motion will be reviewed in the Legislature

Will a Premier or Governing Party be able to refuse enforcement of any Federal Law or Policy they don’t like?

No, the Alberta Sovereignty Act may not be used unless specifically authorized by way of a free vote of all elected MLAs in the Alberta Legislature, as explained above.

What examples of Federal Laws will the Alberta Sovereignty Act be applied to?

Examples could include:

– Federal mandatory vaccination policies – Charter violation

– Use of Emergencies Act to jail & freeze accounts of peaceful protesters – Charter violation

– Bill C-69 ‘No New Pipelines’ Law – found unconstitutional by Alberta Court of Appeal

– Mandatory cuts to fertilizer use by Alberta Farmers – violation of s.95

– Mandatory emissions and production cuts to Alberta energy projects – violation of s.92A

– Federal gun grabs – violation of s.92(13)

Is the Alberta Sovereignty Act about Separation from Canada?

No, the entire objective of the Alberta Sovereignty Act is to assert Alberta’s Constitutional Rights within Canada to the furthest extent possible by effectively governing itself as a Nation within a Nation, just as Quebec has done for decades and as Saskatchewan is also now considering.

If anything, the restoration of provincial rights and autonomy of every province from the destructive overreach of Ottawa is likely the only viable way for Canada to survive and flourish into the future. Ottawa’s “divide, control and conquer’ policies have Canada on a path of division and disunity. Alberta can and must lead on this issue going forward.

Is the Alberta Sovereignty Act illegal or does it run contrary to the rule of law?

No, just the opposite.

Over the last several years the Federal Government has triggered a constitutional crisis through repeated lawless attacks on provincial constitutional rights and the Charter.

The Trudeau Government has effectively imposed economic sanctions against Alberta (and parts of Saskatchewan and BC) that have resulted in economic chaos.

Hundreds of billions in investment and tax revenues, and hundreds of thousands of jobs, have been lost to these sanctions as investors around the world find it too risky to do business in Alberta’s energy industry. In fact, no new major development of our world class oil sands has been commenced in almost 20 years as a result.

The idea expressed by some UCP leadership candidates that the Alberta Sovereignty Act would “cause chaos” in the markets is naive in the extreme. The “chaos” is already here and has been caused by both Ottawa’s unlawful policies and an utter lack of provincial leadership on effectively pushing back against those attacks.

The fact is the Alberta Sovereignty Act reimposes constitutional rule of law on a lawless Ottawa by reaffirming the critical import of respecting the powers and jurisdiction of the Provinces under the Canadian Constitution.

 

Brian Jean – Autonomy For Albertans Act

I started with policies designed to change how Alberta reacts to the federal government and Canada. I want us to stop being defensive and go on the offensive. We have to stop covering up and we have to take the fight to Canada. 

The five sets of actions that will protect and enhance Alberta’s Autonomy Within Canada are:

  1. Serve legal notice invoking section 46 of the Constitution and force Trudeau and the Premiers into negotiations.
  2. Stipulate that Alberta government-funded groups will not be able to participate in the WEF.
  3. Use the courts to challenge the tanker ban, the proposed oil production caps, and the fertilizer caps.
  4. Demand the Quebec government stop taking the assets of Alberta energy companies in Quebec and get their attention by acting against SNC Lavalin.
  5. Demand that Alberta be given Canada’s seat on important international energy institutions, just like Quebec gets Canada’s seat at UN cultural institutions.
These actions and this approach is very different than how Alberta has traditionally acted. This is very different from what the other leadership candidates are proposing. First this is about acting, about doing something. The “Alberta Sovereignty Act” proposal is purely defensive and reactive. Instead of saying to Canada “we won’t enforce your rules if you come after us,” I am saying that we need to take the initiative.
The Constitution has not been opened in 30 years.
My proposals are about taking ACTION and going on the offense. Danielle Smith proposes a purely defensive strategy that surrenders on past fights. Travis Toews has no strategy at all in this area — he wants to continue Jason Kenney’s practice of writing stern and meaningless letters whenever we get stepped on.
When we open the Constitution, we can deal with the issues of: pipelines and right-of-ways, access to tidewater, stopping provinces and the federal government from landlocking provinces, and democratic under-representation. Taking the fight to the rest of Canada is the way to actually get results and reverse the damage.
Passing an unconstitutional “Sovereignty Act” that only kicks in the next time we are punched doesn’t change anything. It will likely encourage Trudeau to hit Alberta harder.
Fighting the efforts of the World Economic Forum to change our society is something Alberta should have been doing all along.
No $$ to WEF
As is using the courts intelligently including as a way to get expert testimony into the record in important legal debates. 
Fight the tanker ban, the production caps, and the fertilizer caps
Fighting back against the insults of Quebec and the federal government should have always been our policy. Instead under Jason Kenney we too often gave away things hoping that other provinces would return the favour. They did not.
We play tit for tat with Quebec.
Finally, we should learn from Quebec and have our position in the world recognized by Canada. Alberta is an energy superpower and it should own Canada’s seat at the global table whenever energy issues are discussed. 
We get the Energy seat.

Travis Toews – Toews’ Strategy to Strengthen Alberta

I’m running to ensure our children and grandchildren have the same kind of opportunities and freedoms that Kim and I have been blessed with.

We must strengthen Alberta’s place in Canada and win meaningful reforms. Threats and sternly worded letters aren’t enough, and radical actions that create chaos will only set us back.

I have a real plan that uses our economic and fiscal strength to our advantage. A plan that is strategic. A plan that will get us results.

Here’s my plan to strengthen Alberta:

1. REFORM EQUALIZATION AND FISCAL STABILIZATION.

  • The Fiscal Stabilization program supports provinces experiencing a sudden drop in revenue. These stabilization payments are capped at a low level. As Finance Minister, I led negotiations to raise the cap by $500 million for Albertans. I will continue working to increase this cap.
  • The equalization formula expires in 2024 and I’ll fight to ensure it is renegotiated for fairness, rather than simply being renewed like it was in 2014 and 2019.

2. LAY THE GROUNDWORK AND BUILD SUPPORT AMONG ALBERTANS TO OPT-IN TO AN ALBERTA PENSION PLAN.

  • I’ve always believed that an Alberta Pension Plan holds great promise for Albertans. As Finance Minister, this file was on my desk and I’m convinced an Alberta Pension Plan is an incredible opportunity for the province. If we’re going to win on this critical opportunity, it must be handled strategically in methodology, approach, and timing. We can’t afford to lose, and if this is not done right, we could lose this transformative opportunity for future generations.
  • I will make the case with Albertans for a provincial pension plan. I’m confident we will see this is a transformative opportunity for us to gain autonomy, lower premiums, increase pension benefits, boost our financial sector, and have a more reliable pension long-term.

3. SHIFT TAX POWER FROM THE FEDERAL GOVERNMENT TO PROVINCIAL GOVERNMENTS. 

  • I’ll work with other Premiers to shift the tax power from the federal government to provincial governments. This allows provinces to have the tax capacity to deliver services like childcare, pharma care, and dental care. It would provide Albertans with more autonomy, and make it easier for us to deliver high quality services to all Albertans while balancing the budget.

4. DEFEND AND ADVANCE ALBERTA’S KEY ECONOMIC SECTORS LIKE ENERGY AND AGRICULTURE.

  • Energy and agriculture are the lifeblood of many Alberta communities. My wife Kim and I know this well from our ranching operation and oilfield service company.
  • To back Alberta’s energy and agricultural sectors against Ottawa’s targeted attacks, as Premier I would:
    • Pass enabling legislation so that when Ottawa attacks Alberta’s economy we have a potential suite of targeted levies on goods and contracts we can begin to apply and escalate as needed.
    • Use my experience as an international trade negotiator to lead on the energy file by engaging American and foreign leaders directly.
    • Continue supporting the ongoing legal challenge against C-69 the “No more pipelines act”.
    • Work with Saskatchewan and Manitoba to expand the Port of Churchill to get our energy and agriculture products to world markets.
    • Ensure Ottawa’s climate policies treat all heavy emitters equally instead of targeting Albertans. We can be environmental leaders without impoverishing our future.
    • Enhance the Alberta Indigenous Opportunities Corporation so that more Indigenous communities can be full partners in responsible prosperity.

5. EXPLORE AN ALBERTA PROVINCIAL POLICE SERVICE WITH RURAL ALBERTANS AND MUNICIPAL LEADERS.

  • Kim and I have experienced multiple thefts in our businesses over the years. I know rural crime is a large problem. I am committed to increasing safety for all Albertans by improving policing services.
  • I have deep respect for the RCMP and the work they do to provide safety to Albertans. I also believe there is merit in exploring a provincial police service. This could reduce bureaucracy and lead to an improved culture in the policing service.
  • This is not a policy I would implement on day one. Before moving forward, I would ensure rural Albertans and municipal leaders ultimately support the decision.

 

Rebecca Schulz – 100 DAY PROVINCIAL RIGHTS STRATEGY

A Schulz government would immediately start the 100 Day Provincial Rights Action Plan, with clear steps – and a timeline – to fight, negotiate, partner, and strengthen Alberta’s position with Confederation.

No more letters, no more panels, and no more empty threats – Albertans want action and results when it comes to defending our rights in confederation and seeing our province reach its full potential.” – Rebecca Schulz 

Within the first 10 days, a Schulz government will appoint a Deputy Premier and team with the primary focus to act as Alberta’s lead negotiators in strengthening Alberta’s position in Canada.

This will include:

  1. Presenting the federation with a package of common sense reforms on equalization, fiscal stabilization, and greater provincial control over programs through tax points
  2. Presenting the federation with a list of federal, provincial overlap in regulations/policy and begin negotiations on disentanglement
  3. Pursuing an Alberta Pension Plan, Alberta Employment Insurance and an Alberta Revenue Agency

Within the first 50 days, Schulz and the Deputy Premier would present a Provincial Rights

Framework, to identify every legal and constitutional measure possible to stand up against Ottawa’s continued attacks on provincial jurisdiction.

This will include:

  1. Calling for a Protecting Provincial Rights Summit to bring provinces to the table and identify every measure to stand up for jurisdictional rights against federal interference
  2. Continuing the fight against the Tanker Ban (C-48) and Trudeau’s No-More Pipelines legislation (C-69), alongside all 10 provinces
  3. Taking every proactive legal measure possible against Trudeau’s federal emissions and fertilizer caps.

Within the first 100 days, Schulz and the Deputy Premier would present a new Market Access Plan to create political and economic incentives for federal and provincial governments to negotiate with Alberta in good faith for improved trade and market access.

This will include:

  1. Identifying strategic actions to deter other provinces or levels of government from limiting Alberta’s market access and trade
  2. Developing criteria for when Alberta will Turn off the Taps through the Preserving Canada’s Economic Prosperity Act.

“You don’t need to spend weeks on the campaign trail to understand how frustrated Albertans are of being pushed around. The emissions and fertilizer caps are just two of the most recent examples of governments interfering with our provincial trade and prosperity. It’s about time Albertans were presented with a real plan to take action.” – Rebecca Schulz

 

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 government should create flat 8% personal and business income tax rate in Alberta

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From the Fraser Institute

By Tegan Hill

If the Smith government reversed the 2015 personal income tax rate increases and instituted a flat 8 per cent tax rate, it would help restore Alberta’s position as one of the lowest tax jurisdictions in North America

Over the past decade, Alberta has gone from one of the most competitive tax jurisdictions in North America to one of the least competitive. And while the Smith government has promised to create a new 8 per cent tax bracket on personal income below $60,000, it simply isn’t enough to restore Alberta’s tax competitiveness. Instead, the government should institute a flat 8 per cent personal and business income tax rate.

Back in 2014, Alberta had a single 10 per cent personal and business income tax rate. As a result, it had the lowest top combined (federal and provincial/state) personal income tax rate and business income tax rate in North America. This was a powerful advantage that made Alberta an attractive place to start a business, work and invest.

In 2015, however, the provincial NDP government replaced the single personal income tax rate of 10 percent with a five-bracket system including a top rate of 15 per cent, so today Alberta has the 10th-highest personal income tax rate in North America. The government also increased Alberta’s 10 per cent business income tax rate to 12 per cent (although in 2019 the Kenney government began reducing the rate to today’s 8 per cent).

If the Smith government reversed the 2015 personal income tax rate increases and instituted a flat 8 per cent tax rate, it would help restore Alberta’s position as one of the lowest tax jurisdictions in North America, all while saving Alberta taxpayers $1,573 (on average) annually.

And a truly integrated flat tax system would not only apply a uniform tax 8 per cent rate to all sources of income (including personal and business), it would eliminate tax credits, deductions and exemptions, which reduce the cost of investments in certain areas, increasing the relative cost of investment in others. As a result, resources may go to areas where they are not most productive, leading to a less efficient allocation of resources than if these tax incentives did not exist.

Put differently, tax incentives can artificially change the relative attractiveness of goods and services leading to sub-optimal allocation. A flat tax system would not only improve tax efficiency by reducing these tax-based economic distortions, it would also reduce administration costs (expenses incurred by governments due to tax collection and enforcement regulations) and compliance costs (expenses incurred by individuals and businesses to comply with tax regulations).

Finally, a flat tax system would also help avoid negative incentives that come with a progressive marginal tax system. Currently, Albertans are taxed at higher rates as their income increases, which can discourage additional work, savings and investment. A flat tax system would maintain “progressivity” as the proportion of taxes paid would still increase with income, but minimize the disincentive to work more and earn more (increasing savings and investment) because Albertans would face the same tax rate regardless of how their income increases. In sum, flat tax systems encourage stronger economic growth, higher tax revenues and a more robust economy.

To stimulate strong economic growth and leave more money in the pockets of Albertans, the Smith government should go beyond its current commitment to create a new tax bracket on income under $60,000 and institute a flat 8 per cent personal and business income tax rate.

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Alberta

Province to stop municipalities overcharging on utility bills

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Making utility bills more affordable

Alberta’s government is taking action to protect Alberta’s ratepayers by introducing legislation to lower and stabilize local access fees.

Affordability is a top priority for Alberta’s government, with the cost of utilities being a large focus. By introducing legislation to help reduce the cost of utility bills, the government is continuing to follow through on its commitment to make life more affordable for Albertans. This is in addition to the new short-term measures to prevent spikes in electricity prices and will help ensure long-term affordability for Albertans’ basic household expenses.

“Albertans need relief from high electricity costs and we can provide that relief by bringing in fairness on local access fees. We will not allow municipalities – including the city of Calgary – to profit off of unpredictable spikes in electricity costs while families struggle to make ends meet. We will protect Alberta families from the extreme swings of electricity costs by standardizing the calculations of local access fees across the province.”

Danielle Smith, Premier

Local access fees are functioning as a regressive municipal tax that consumers pay on their utility bills. It is unacceptable for municipalities to be raking in hundreds of millions in surplus revenue off the backs of Alberta’s ratepayers and cause their utility bills to be unpredictable costs by tying their fees to a variable rate. Calgarians paid $240 in local access fees on average in 2023, compared to the $75 on average in Edmonton, thanks to Calgary’s formula relying on a variable rate. This led to $186 million more in fees being collected by the City of Calgary than expected.

“Albertans deserve to have fair and predictable utility bills. Our government is listening to Albertans and taking action to address unaffordable fees on power bills. By introducing this legislation, we are taking yet another step towards ensuring our electricity grid is affordable, reliable, and sustainable for generations to come.”

Nathan Neudorf, Minister of Affordability and Utilities

To protect Alberta’s ratepayers, the Government of Alberta is introducing the Utilities Affordability Statutes Amendment Act, 2024. If passed, this legislation would promote long-term affordability and predictability for utility bills by prohibiting the use of variable rates when calculating municipalities’ local access fees.

Variable rates are highly volatile, which results in wildly fluctuating electricity bills. When municipalities use this rate to calculate their local access fees, it results in higher bills for Albertans and less certainty in families’ budgets. These proposed changes would standardize how municipal fees are calculated across the province, and align with most municipalities’ current formulas.

“Over the last couple of years many consumers have been frustrated with volatile Regulated Rate Option (RRO) prices which dramatically impacted their utility bills. In some cases, these impacts were further amplified by local access fees that relied upon calculations that included those same volatile RRO prices. These proposed changes provide more clarity and stability for consumers, protecting them from volatility in electricity markets.”

Chris Hunt, Utilities Consumer Advocate

If passed, the Utilities Affordability Statutes Amendment Act, 2024 would prevent municipalities from attempting to take advantage of Alberta’s ratepayers in the future. It would amend sections of the Electric Utilities Act and Gas Utilities Act to ensure that the Alberta Utilities Commission has stronger regulatory oversight on how these municipal fees are calculated and applied, ensuring Alberta ratepayer’s best interests are protected.

“Addressing high, unpredictable fees on utility bills is an important step in making life more affordable for Albertans. This legislation will protect Alberta’s ratepayers from spikes in electricity prices and ensures fairness in local access fees.”

Chantelle de Jonge, Parliamentary Secretary for Affordability and Utilities

If passed, this legislation would also amend sections of the Alberta Utilities Commission Act, the Electric Utilities ActGovernment Organizations Act and the Regulated Rate Option Stability Act to replace the terms “Regulated Rate Option”, “RRO”, and “Regulated Rate Provider” with “Rate of Last Resort” and “Rate of Last Resort Provider” as applicable.

Quick facts

  • Local access fees are essentially taxes that are charged to electricity distributors by municipalities. These fees are then passed on to all of the distributor’s customers in the municipality, and appear as a line item on their utility bills.
    • The Municipal Government Act grants municipalities the authority to charge, amend, or cap franchise and local access fees.
  • Linear taxes and franchise fees are usually combined together on consumers’ power bills in one line item as the local access fee.
    • The linear tax is charged to the utility for the right to use the municipality’s property for the construction, operation, and extension of the utility.
    • The franchise fee is the charge paid by the utility to the municipality for the exclusive right to provide service in the municipality.
  • Local access fees are usually calculated in one of two ways:
    • (1) A percentage of transmission and distribution (delivery) costs, typically 10-15 per cent.
    • (2) A fixed, cents per kilowatt-hour of consumed power charge (City of Edmonton).
  • Calgary is the only municipality that employs a two-part fee calculation formula:
    • 11.11 per cent of transmission and distribution charges plus 11.11 per cent of the Regulated Rate Option multiplied by the consumed megawatt hours.

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