Alberta
Equalization payments aren’t just controversial in Alberta anymore! Ontario poll shows overwhelming negative view
News release from Fairness Alberta
POLL: VAST MAJORITY OF ONTARIANS SAY EQUALIZATION PAYMENTS ARE UNFAIR
Fairness Alberta calls for $8 billion rebate for Ontario
Fairness Alberta has released a poll showing 73% of Ontarians believe ever-growing Equalization payments are unfair given the narrowing wealth gap between provinces since 2015.
The poll, from a weighted survey of 1,000 Canadians recently conducted by the Toronto firm One Persuasion Inc. (MoE +/-3.1%), showed a large majority of Ontarians said it is unfair that Equalization payments rose 23% since 2015, making Ontario’s share of funding the program equivalent to roughly $2400 per family of four (see bottom). Opposition to the status quo on Equalization was highest in the 905 region of suburban Toronto.
(To see the full results of the poll click here)
“Ontarians have been funding unfairly high Equalization payments for others while their own provincial government was struggling to pay for services even before COVID-19,” said Fairness Alberta Executive Director Dr. Bill Bewick. “Given the collapse of the wealth gap between provinces, the so-called ‘have’ provinces should get the share of Equalization that came from their taxpayers rebated until we achieve meaningful reforms to federal-provincial funding.”
As Dr. Bewick outlined in the National Post, even a 50% rebate would mean a bump to provincial budgets of $4 billion in Ontario and $1.5 billion being returned to B.C. and Alberta as their provincial responsibilities come under strain.
“The $21 billion-and-growing price tag for Equalization is totally unnecessary and unaffordable given how much more equal provinces have become since 2015,” added Dr. Bewick. “This isn’t just an Alberta problem. Ontario, B.C., Alberta, Saskatchewan, and Newfoundland make up nearly 70% of Canada’s population and it has become obvious that the program is unfair to all of them.”
A recent study by Ben Eisen and Milagros Palacios illustrates the “Great Convergence” in provincial fortunes since the 2015 energy downturn. While the gap between the median ‘have’ and ‘have not’ fell from $5000 per person in 2015 to only $1600 in 2020, Equalization payments grew 23%. With increases tied to national GDP rather than need, a $20.9 billion windfall is going to 5 provinces (with less than 1/3 of the population) in 2021.
About Fairness Alberta:
Fairness Alberta is a grassroots, non-partisan, and non-separatist association of concerned citizens, aiming to increase awareness across the country about Albertans’ disproportionate contributions to Canada, while also providing clear, factual information on unfair federal policies that will further undermine the prosperity of Alberta and other contributing provinces.
Fairness Alberta previously released analysis and recommendations for reforms to Equalization and the Fiscal Stabilization program, with an overview of fiscal federalism as well at www.fairnessalberta.ca.
Previous releases, interviews, columns, and two presentations to the House of Commons Standing Committee on Finance can be found in the NEWS section of our website. For more information on Fairness Alberta, its mandate, and future plans, please visit our website at www.fairnessalberta.ca.
For further information or to arrange interviews, please contact:
Bill Bewick, Ph.D.
Executive Director
Fairness Alberta
Cell: (780) 996-6019
Email: bill.bewick@
*per-province calculations based on provincial contributions to general revenue proportionally applied to the $20.9b spent on Equalization in 2021. Source for per-province shares is this Library of Parliament document: https://lop.parl.ca/sites/
Agriculture
Lacombe meat processor scores $1.2 million dollar provincial tax credit to help expansion
Alberta’s government continues to attract investment and grow the provincial economy.
The province’s inviting and tax-friendly business environment, and abundant agricultural resources, make it one of North America’s best places to do business. In addition, the Agri-Processing Investment Tax Credit helps attract investment that will further diversify Alberta’s agriculture industry.
Beretta Farms is the most recent company to qualify for the tax credit by expanding its existing facility with the potential to significantly increase production capacity. It invested more than $10.9 million in the project that is expected to increase the plant’s processing capacity from 29,583 to 44,688 head of cattle per year. Eleven new employees were hired after the expansion and the company plans to hire ten more. Through the Agri-Processing Investment Tax Credit, Alberta’s government has issued Beretta Farms a tax credit of $1,228,735.
“The Agri-Processing Investment Tax Credit is building on Alberta’s existing competitive advantages for agri-food companies and the primary producers that supply them. This facility expansion will allow Beretta Farms to increase production capacity, which means more Alberta beef across the country, and around the world.”
“This expansion by Beretta Farms is great news for Lacombe and central Alberta. It not only supports local job creation and economic growth but also strengthens Alberta’s global reputation for producing high-quality meat products. I’m proud to see our government supporting agricultural innovation and investment right here in our community.”
The tax credit provides a 12 per cent non-refundable, non-transferable tax credit when businesses invest $10 million or more in a project to build or expand a value-added agri-processing facility in Alberta. The program is open to any food manufacturers and bio processors that add value to commodities like grains or meat or turn agricultural byproducts into new consumer or industrial goods.
Beretta Farms’ facility in Lacombe is a federally registered, European Union-approved harvesting and meat processing facility specializing in the slaughter, processing, packaging and distribution of Canadian and United States cattle and bison meat products to 87 countries worldwide.
“Our recent plant expansion project at our facility in Lacombe has allowed us to increase our processing capacities and add more job opportunities in the central Alberta area. With the support and recognition from the Government of Alberta’s tax credit program, we feel we are in a better position to continue our success and have the confidence to grow our meat brands into the future.”
Alberta’s agri-processing sector is the second-largest manufacturing industry in the province and meat processing plays an important role in the sector, generating millions in annual economic impact and creating thousands of jobs. Alberta continues to be an attractive place for agricultural investment due to its agricultural resources, one of the lowest tax rates in North America, a business-friendly environment and a robust transportation network to connect with international markets.
Quick facts
- Since 2023, there are 16 applicants to the Agri-Processing Investment Tax Credit for projects worth about $1.6 billion total in new investment in Alberta’s agri-processing sector.
- To date, 13 projects have received conditional approval under the program.
- Each applicant must submit progress reports, then apply for a tax credit certificate when the project is complete.
- Beretta Farms has expanded the Lacombe facility by 10,000 square feet to include new warehousing, cooler space and an office building.
- This project has the potential to increase production capacity by 50 per cent, thereby facilitating entry into more European markets.
Related information
From Premier Danielle Smith and Alberta.ca/Next
Let’s talk about an Alberta Pension Plan for a minute.
With our young Alberta workforce paying billions more into the CPP each year than our seniors get back in benefits, it’s time to ask whether we stay with the status quo or create our own Alberta Pension Plan that would guarantee as good or better benefits for seniors and lower premiums for workers.
I want to hear your perspective on this idea and please check out the video. Get the facts. Join the conversation.
Visit Alberta.ca/next
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