Alberta
First shipment of children’s medication arrives
Deputy Premier Nathan Neudorf, Myron Keehn, CEO of Edmonton International Airport and Minister of Health Jason Copping meet the flight carrying the first shipment of children’s pain medication at the Edmonton International Airport.
Alberta’s first shipment of children’s liquid acetaminophen has arrived and will be distributed to hospitals across the province immediately.
This shipment of 250,000 bottles will bolster supply to hospitals in the province, making sure access to medication is not delayed and children who are being treated on site can get the pain and fever relief they need.
“This is a great first step and I am so pleased that we have been able to secure additional children’s medicine for our hospitals. But we cannot and will not rest with this first shipment. We need approval of the rest of the medication so parents can use them at home. We’re in the midst of an exceptionally difficult winter, made more stressful for parents by the shortage of basic medications. Kids and families are waiting for these medications and we need Health Canada to approve them without further delay.”
“I’d like to thank our dedicated health professionals for providing the very best of care to our children during these challenging times. This much-needed supply will help Alberta’s hospitals manage pain and fevers for children across the province.”
In order to receive Health Canada approval, the manufacturer was required to submit a proposal outlining information on the medicine’s quality, safety and product packaging. Health Canada reviewed the proposal and requested additional information as well as a number of changes to meet Canada’s regulatory requirements. One of these changes was the need to add child-resistant caps to the bottles for the retail use supply.
In the interim, an initial shipment was approved for hospital use only, as child-resistant caps are not a regulatory requirement when medicine is administered by medical professionals in a hospital. As a result, rather than wait for the total shipment, Alberta’s government opted to receive a first shipment with medicines for hospital use.
“AHS is grateful for this supply, which provides assurance, long-term, for our stock of acetaminophen in AHS facilities. As drug shortages continue to occur globally, substantial supply of routine medicines is a proactive step that will help our ability to deliver care. We are grateful to all the teams that have helped secure this additional medication.”
The final requirement for child-proof caps has been addressed and the manufacturer has provided all information requested by Health Canada. Alberta’s government is now awaiting Health Canada’s approval of the remaining 4.75 million bottles for retail sale across the province, as are Alberta parents and guardians.
Once received, the medications will be provided to pharmacies for sale at prices in line with the usual retail price. The government is paying a small premium over the expected retail price to secure these medications at a time when there have been global shortages. The full cost will be released when the medication is approved by Health Canada.
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
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