Alberta
Province offers alberta.ca/bizconnect – information hub for businesses about to open during pandemic
From the Province of Alberta
Supporting Alberta’s businesses through relaunch
To support businesses reopening during stage one of Alberta’s phased relaunch, government is launching a new resource to help them keep their staff and customers safer.
The new alberta.ca/bizconnect webpage will provide business owners with information on health and safety guidelines for general workplaces and sector-specific guidelines for those able to open in stage one of relaunch to ensure businesses can reopen safely during the COVID-19 pandemic.
“As businesses reopen, we’re committed to making sure they have the information they need to operate during the pandemic and get people back to work. We expect businesses to follow these safety measures so that we can continue to reopen our economy while protecting the health and safety of all Albertans.”
As part of government’s commitment to support businesses as they reopen and to eliminate red tape, alberta.ca/bizconnect will include a red tape reduction submission form so business owners can share their ideas on modernizing regulations and reducing red tape, especially as they respond to COVID-19.
“We know that Alberta businesses are dealing with a whole new reality because of the COVID-19 pandemic. We want business owners to continue to let us know how we can help make their lives easier so we can reduce unneeded regulatory barriers to their success and get Albertans back to work.”
“Throughout the COVID-19 pandemic, restaurants have provided their communities with safe and reliable meal options and this will continue to be their priority as they reopen their doors to diners. Restaurants Canada looks forward to continuing to work closely with the Alberta government on efforts to help foodservice businesses get ready to reopen their dining rooms and ramp up operations. We appreciate the guidance that the government has provided to help restaurants prepare to resume on-premise dining services as early as May 14.”
“Businesses who are planning to reopen want to ensure they do so safely while following all proper guidelines. A single website with resources will provide small businesses the information they need to reopen and continue their operations while protecting the health and safety of their staff and customers.”
The launch of alberta.ca/bizconnect is part of Alberta’s comprehensive response to COVID-19, which includes measures to enhance physical distancing, screening and testing. Financial supports are helping Alberta families and businesses.
Quick facts
- The website includes guidance documents for sectors currently allowed to operate under public health orders:
- Disability service providers
- Farmers markets
- Golf course operators
- Health non-essential services
- Health sector PPE guidelines
- Homeless shelters
- Industrial work camps
- Private/municipal campgrounds
- Planning documents to prepare businesses for stage one relaunch are posted for:
- Day camps
- Daycare and out-of-school care
- Hair salons and barbershops
- Museums and art galleries
- Outdoor recreation
- Places of worship
- Restaurants
- Retail
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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