Alberta
Court orders Whistle Stop Cafe to shut down
Thousands of business owners across Alberta are following the very public tilt between a Central Alberta restaurant and Alberta Health Services. Wednesday afternoon the owner of the Whistle Stop Cafe at Mirror was notified a judge has granted AHS’s emergency closure application. Although the Whistle Stop Cafe has been ordered to close, owner Chris Scott has shared on facebook page “We are open and awaiting police response.”
Like restaurants across Alberta, the Whistle Stop Cafe closed in mid December as ordered by the Provincial Government. The Cafe remained closed for 4 weeks but when the province announced an indefinite extension to the closure orders, Scott decided he could not afford to remain closed any longer. On January 21st the Cafe reopened with limited seating for social distancing, asking customers and staff to wear masks while moving about. Since defying the closure order the Whistle Stop has been visited by the RCMP and then by AHS.
Despite significant community support, Scott is now facing the very difficult choice to close or to fight for his right to make a living for himself and his staff members. This recent Facebook post offers a glimpse into the heart wrenching decisions being faced by many Albertans.
From the Facebook page of Whistle Stop Cafe, owner Chris Scott
As many of you know, AHS served me with court documents Monday to appear before the court. AHS has asked the Court of Queen’s Bench to order my dining room closed until an officer of Alberta health services rescinds the order. Now I have a serious decision to make. If I lose tomorrow, and an order is granted which it likely will be, do I accept the courts ruling, (legal or not,) and give the government complete control over my cafe, or do I stand on principle and openly defy that ruling and get arrested for contempt of court? I’m not a criminal. I have a family that needs me, a community that I wish to support, I like to travel. All of these would be impacted because I want to allow people to enjoy a meal sitting in a cozy cafe. I thought being a Canadian citizen meant something. I’m not a COVID denier and I haven’t once failed to ensure my staff and customers are safe. Alberta Health Services wants to force me to close tomorrow, using our justice system even though they are “allowing,” dine in service in 6 days!! (Maybe.)
What do I do?
Who’s with me?
What about all the other restaurants that are opening against the irresponsible rules? Will those owners be encouraged and remain open, with more following suit? Or will they be scared and discouraged over the infinite power of a government that doesn’t seem to listen to us?
As I sit here talking with lawyers and reporters I can hear the trucker salutes as they drive by on hwy 21. There are thousands of people who support what we’re doing here! Thousands of Albertans have spoken out against what AHS is doing to us and they’re not listening. This is a problem. I even reached out to Health Minister Tyler Shandro today with the hopes of speaking man to man about this with no response. The UCP wants us to think that they’re throwing us a bone by “allowing,” us to open on the 8th. The oppressors have some people convinced that giving them back some of their freedoms is some kind of a favor. Isn’t that ridiculous?
Premier Kenney may have slowed this thing down by announcing possible reopening on the 8th, but the problem still exists that we’re only ALLOWED to be open by our government. This fight is far from over.
-Chris”
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
Official statement from Premier Danielle Smith and Energy Minister Brian Jean on the start-up of the Trans Mountain Pipeline
-
Alberta1 day ago
Official statement from Premier Danielle Smith and Energy Minister Brian Jean on the start-up of the Trans Mountain Pipeline
-
Canadian Energy Centre2 days ago
North America LNG project cost competitiveness
-
conflict2 days ago
Columbia on Lockdown After pro-Palestinian Protesters Take Over Building, Hold Janitors Hostage
-
Economy1 day ago
Today’s federal government—massive spending growth and epic betting
-
Economy1 day ago
Young Canadians are putting off having a family due to rising cost of living, survey finds
-
COVID-191 day ago
Canada’s COVID vaccine injury program has paid out just 6% of claims so far
-
International1 day ago
NYPD storms protest-occupied Columbia building, several arrested
-
International22 hours ago
U.S. birth rate hit record low last year, signaling surge in childlessness