Alberta
Free hotel room and food for up to 14 days for Albertans who can not isolate or quarantine at home
From the Province of Alberta
All Albertans are now eligible to receive self-isolation supports to help limit the spread of COVID-19.
Prior to this expansion, only Albertans in Edmonton and Calgary were eligible for the $625 payment when they completed self-isolating in their assigned hotel.
Now, Albertans across the province – including First Nations individuals living both on and off reserve and people living on Metis Settlements who cannot isolate safely in their own home – are eligible.
Upon referral by Alberta Health Services, Albertans who must isolate or quarantine and cannot do so safely at home are eligible for a free-of-charge hotel room stay of up to 14 days, complete with culturally appropriate food and other supports.
COVID Care Teams will continue to provide on-the-ground supports and interventions to limit the spread of the virus. Supports include care packages with masks, sanitizers and information translated in multiple languages. Safe transportation to COVID-19 assessment and testing facilities is also available.
“Today’s expansion builds on the effective outreach efforts of COVID Care Teams. No matter what they earn, what community they live in or what language they speak, all Albertans should be able to isolate safely to protect themselves, their families and their neighbours from COVID-19. Reducing the spread means we can get Alberta’s economy back on track while we protect both lives and livelihoods.”
“Expanding the isolation supports to include people on First Nations and Metis Settlements is the right thing to do. Everyone should have the chance to isolate safely while having the financial support to cover expenses while they recover.”
“Our community needs this kind of support to stop the spread of COVID. Having come from an area that has been particularly hard hit, we are grateful to the province for providing a means for our residents to access a place to isolate safely. Knowing they will be able to cover their bills when sick will make a world of difference for the Samson Cree Nation and all other Indigenous communities.”
Alberta’s government is responding to the COVID-19 pandemic by protecting lives and livelihoods with precise measures to bend the curve, sustain small businesses and protect Alberta’s health-care system.
Quick facts
- The COVID Care Team program launched in December 2020 as an integrated way to reach communities with particularly high levels of COVID-19 spread.
- The Government of Alberta also developed an outreach campaign to communicate important public health information directly to Albertans who may have English language barriers through expanded access to translated materials and other supports.
- Messages are being delivered in 10 languages through radio, television and print advertising, as well as through various social media channels and web platforms.
- Since the launch of the COVID Care Teams and outreach campaign on Dec. 15, more than 850 Albertans have accessed hotel accommodations for self-isolation purposes.
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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