Alberta
“State of Emergency” in Alberta. Bars, casinos, theatres, closed. Churches, grocery stores, restaurants affected.
From the Province of Alberta
Bars and casinos closed. Weddings and funerals to be cancelled.
Premier Kenney announces tough new rules on public gatherings.
The government will declare a state of public health emergency later today, empowering authorities under the Public Health Act to respond to the COVID-19 pandemic
Alberta’s Provincial Operations Centre has also been elevated from a level 3 to a level 4, the highest level.
Effective immediately and until further notice, the Alberta government is implementing additional measures, including cancelling events that have more than 50 people.
“This is an unprecedented moment in our history and decisive action is needed. We recognize that these measures will have a profound impact on the lives of Albertans, but they are necessary in the face of this growing pandemic.”
“These measures are necessary if we are to limit the spread of COVID-19 in our province. Our intention is to limit opportunities for disease transmission by limiting the amount of time Albertans are spending in large crowds and crowded spaces. All Albertans should take immediate action and follow all recommended public health measures. Protecting the health of Albertans is, and always will be, our top priority.”
The additional measures include:
- Mass gatherings are now limited to no more than 50 attendees. This includes worship gatherings and family events such as weddings. Grocery stores, shopping centres, health-care facilities, airports, the legislature and other essential services are not included.
- To limit the amount of time Albertans are spending in large crowds and crowded spaces, all Albertans are prohibited from attending public recreational facilities and private entertainment facilities, including gyms, swimming pools, arenas, science centres, museums, art galleries, community centres, children’s play centres, casinos, racing entertainment centres, and bingo halls.
- Sit-down restaurants, cafés, coffee shops, food courts and other food-serving facilities, including those with a minors-allowed liquor license, are limited to 50 per cent capacity to a maximum of 50 people. Take-out, delivery or drive-through service is permitted. Licensed facilities will also be permitted to deliver liquor.
- At this time, not-for-profit community kitchens, soup kitchens and religious kitchens are exempt, but sanitization practices are expected to be in place and support will be in place for this practice.
- Until further notice, all Albertans are restricted from attending bars and nightclubs, where minors are prohibited by law.
Municipalities, charitable and non-profit organizations providing social services support will immediately see $60 million to support their COVID-19 response. The funding will be provided to adult homeless shelters, women’s emergency shelters and the Family and Community Support Services (FCSS) program, which supports municipalities and civil society organizations in providing services to vulnerable Albertans.
Albertans are encouraged to visit alberta.ca/COVID19 for the latest information, guidance and resources.
Neil Macdonald asks the most important COVID-19 question of all
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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