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Alberta

Prominent Alberta Conservative Voice Explains: Why I am voting Yes to End Equalization…

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From Danielle Smith

To me, equalization, the health transfer and the social transfer combined, are a measure of how much the federal government is overtaxing us. The Constitution has a very limited role for the federal government. The federal government likes to use its spending power to meddle in areas that aren’t its jurisdiction. My view is this – if you want to pass policy for health care, long term care, drug plans, day care, welfare – then RUN FOR PROVINCIAL OFFICE. Don’t take money from the provinces, launder it through the federal bureaucracy and then divvy it up unfairly to give back more money to the provinces that you think will vote for you. (Yep – that’s how I see it.)

So let’s analyze the numbers a bit shall we? I have three tables to show you that tell the whole story.

The level of overtaxation (on these three programs alone) is easily quantified. In the 2021-22 fiscal year it will be $83.890 billion. In just 10 years, the federal overtaxation has grown from $60.085 billion – that’s a 40 per cent increase.

Per person Ottawa transfers an average of $2,181. But of course we know, because of equalization, some provinces are more equal than others.

Take a look at Alberta. Our transfers have grown from $3.661 billion to $6.835 billion in the same period, or from $946 per person to $1,523 per person.

Now take a look at Quebec. Their transfers have grown from $17.329 to $26.306 in the same 10 year period, or $2,148 per person to $3,039 per person.

How would an equal per capital model impact the other provinces?…

In my column, I said we should eliminate equalization and instead do equal per person transfers to every province. If we did that, Alberta would receive $9.788 billion this year, a difference of $2.953 billion more. Alberta isn’t the only one getting hosed. Look at the final line in the table below. So are BC and Ontario. Saskatchewan is shortchanged $781 million, and poor Newfoundland and Labrador, which in on the brink of bankruptcy but still doesn’t qualify for equalization, would get $343 million more.  If we eliminated equalization and gave everyone the same per person amount, Quebec would receive $18.879 billion or $7.427 billion less than is expected this year. As it should be. Saskatchewan and Newfoundland and Labrador should not be subsidizing Quebec.

There are a couple of things I really like about a per person transfer model.

  1. It encourages provinces to compete to attract people, because the more people you attract the more dollars you attract.

I understand the Fairness Alberta argument about changing equalization. They suggest a markup to market on the electricity price that hydro rich provinces charge, they want to stop growing equalization with GDP growth, and they want to account for the different cost of services in each province. But in the end, if we create a program that rewards provinces only for attracting people then they have to implement policies that attract people. Like having low rates of taxation, making it easier to start a business, having affordable housing, and so on. There is a lot that is in the power of government. But if we keep giving provinces more money as they adopt policies that reduce their attractiveness it is counterproductive.

  1. A per person model is going to give a greater benefit to smaller provinces with lower costs of services than larger provinces with a larger cost of service.

Even if making Alberta pay more is the objective of Ottawa, an equal per capita transfer amount still has Alberta paying disproportionately into the pot. Alberta has higher wages, higher workforce participation rates, higher spending so we will stay pay more in personal and corporate income taxes, GST, fuel tax, EI, CPP and other federal taxes, than we receive back in per person federal transfers. This won’t eliminate the net payer status we have; but it will get us on our way to narrowing the gap.

  1. Once we have established  a single per person transfer that is the same across the country we can move to the next step, which is convert the cash transfer into tax points instead.

If Alberta was getting its proper share of transfers – $9.79 billion – we could then move to the next stage of negotiation with Ottawa. Which is to convert the cash to tax points instead. I’ll leave it to the accountants to figure out the precise numbers, but conceptually let’s say it would mean reducing the federal income tax by 5 percentage points across all categories and increasing provincial income tax by 5 percentage points across all categories. The reason to do that is this, as Alberta grows so would it’s share of own-source revenues. Rather than have Ottawa continue to capitalize on our growth, we would.

  1. Once we have fixed the problems with federal provincial transfers, we can move on to fix CPP and EI next.

Alberta pays disproportionately into CPP and EI too – we pay roughly 30 per cent of the premiums for CPP and only get back about 10 per cent of the spending. I haven’t done the calculation on EI but I suspect it’s even worse. If we can stop the overtaxation on income tax, these two programs should be next.

Enough is enough…

For too long we have just accepted that this is the way the country works. I think we’ve been bullied into thinking that paying disproportionately into Confederation was our penance for the federal government cancelling the National Energy Program. It’s almost as if we collectively felt that if only we paid off central Canada, they wouldn’t come after our resource wealth again. How wrong we were. Now Quebec is so bloody minded they don’t care if they hurt themselves by killing off our energy industry.

That’s fine. If they don’t want the revenues that come from our energy resources, we should be happy to keep it for ourselves. Let’s start to show them we are serious by strongly voting yes to end equalization on October 18.

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Alberta

First test production of plastic a milestone for Heartland Petrochemical Complex

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CALGARY — The $4.3-billion Heartland Petrochemical Complex, which has been under construction northeast of Edmonton since 2018, has produced its first plastic pellets.

Owner and operator Inter Pipeline Ltd. said Tuesday the newly commissioned facility has been producing test pellets steadily since late June, an important milestone en route to the expected start of full commercial operation sometime this fall.

The Heartland Petrochemical Complex will convert Alberta propane into 525,000 tonnes per year of polypropylene beads, an easily transported form of plastic that is used in the manufacturing of a wide range of finished products.

Steven Noble, spokesman for Calgary-based Inter Pipeline, said the facility will be the first integrated propane dehydrogenation and polypropylene production facility in North America. He said approximately 70 per cent of Heartland’s total production capacity has been already contracted out to long-term customers.

“Through the duration of the project’s construction, we’ve seen demand for polypropylene increase significantly … including at one point hitting an all-time record (market price),” Noble said in an interview. “The demand that we initially forecast certainly hasn’t gone away.”

The Heartland facility is being built with the support of a $408-million grant from Alberta’s provincial government. The cash grant, part of an incentive program aimed at growing the province’s petrochemicals sector, is to be paid to Inter Pipeline in equal instalments over three years once the complex is operational.

Noble said by creating a new market for propane, the Heartland facility is an example of how natural resource development in Alberta is diversifying.

“The fact that we’re now looking at our raw resources in a different way, and figuring out different ways to get value out of them and create other refined products right here at home … is really the part of the story that everyone here is excited about,” he said.

The Heartland Petrochemical Complex is expected to employ 300 people once fully operational.

The polypropylene produced at the facility will be branded as Heartland Polymers.

This report by The Canadian Press was first published July 5, 2022.

Amanda Stephenson, The Canadian Press

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Alberta

Edmonton council to ask province to support new centre to fight downtown crime

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By Fakiha Baig in Edmonton

City council has voted unanimously to ask the government of Alberta to support the creation of a hub in Edmonton’s Chinatown where social workers, firefighters and peace officers could work together to reduce crime.

City administration submitted a report to council Monday that describes the proposed Healthy Streets Operations Centre.

David Jones, who is with the city and presented the report, told councillors it would not be a traditional police station.

“The people who will see the benefits of this include Chinatown residents and businesses, but also people who are on the streets who are vulnerable and being preyed on by some of the criminal element,” Jones said.

The creation of the centre is one of several actions the city has promised to address a spike in violent crime downtown, in nearby Chinatown and on the transit system.

Edmonton police officers have already increased their presence in problem areas.

In May, Justice Minister Tyler Shandro used his ministerial power to demand a report from the city on what is being done to get crime under control.

Mayor Amarjeet Sohi said during Monday’s council meeting that the city has delivered with its plan for the centre and now it is time for the province to step up.

“Edmonton gets the lowest per-capita funding to support ending homelessness compared to seven other cities (in Alberta). I think it’s really important that we ask the people whose inaction has caused harm to the community to be stepping up,” Sohi said.

“Most of the violence in Chinatown is related to houselessness … and addictions causing a lot of harm to the community and to individuals. We’re asking city taxpayers to pick up the pieces or pay for the consequences of lack of investment in health and lack of investment in housing.”

Sohi added he gets the sense the province wants to help.

The provincial government did not immediately respond to a request for comment.

The report says the centre will operate seven days a week, 21 hours a day, and could cost up to $18.1 million over the next four years.

The city and Edmonton Police Service could partially support the centre and Jones said there have also been offers from different businesses in Chinatown to provide a building for the hub at no cost.

But council voted in favour of asking the provincial government to determine how it can provide mental health, housing and shelter support.

Sohi said he plans to engage with the province and will report back to council on Aug. 15.

Jones said to get the centre up and running by next summer, the city aims to hire four peace officer sergeants, 16 community peace officers, two community safety liaisons and three firefighters or fire prevention officers.

The report said community members asked for increased security in problem areas and that building a centre in “hot spots” can effectively reduce crime. Research cited in the report has also shown it wont displace violence to other areas.

“Studies have consistently found no noticeable displacement and, in some cases, a diffusion effect, meaning that hot-spot policing reduces crime in the areas adjacent to the hot spots as well.”

Dr. Temitope Oriola, a criminology professor at the University of Alberta, said the hub model has been around for at least a decade in Canada and the centre is a good start.

“The real test is to ensure it is not too heavily tilted toward and reliant on policing,” he said in a email.

“The approach needs to have law enforcement as one of several critical components with people, community revitalization and customized social service at the epicentre.”

Oriola added the centre would be most effective in reducing crime if it also goes hand-in-hand with other initiatives in the city that address addictions issues and homelessness.

“Employment created should also focus on those most directly connected to Chinatown,” he said.

This report by The Canadian Press was first published on July 4, 2022.

This story was produced with the financial assistance of the Meta and Canadian Press News Fellowship.

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