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Alberta

Referendum will help Albertans kickstart national conversation about unfair Equalization, Danielle Smith

Published

3 years ago

11 minute read

This is an exert from a newsletter by Danielle Smith.  Click here to register to receive Danielle’s future newsletters.

Equalization referendum…

During the Stampede I met a pollster doing some polling on the equalization referendum in the fall. It has me worried. If the vote were held today there would be a lot of undecided. While it would likely still pass, we need the vote to be resounding so there can be no mistake how Albertans feel they are being treated.

For those of us who are diehard activists, voting “Yes” to remove equalization from the Constitution is a no brainer. When Brian Jean first proposed it I thought it was a waste of time. What’s is the point of having the province vote on a federal program? I initially thought.

Then Jean explained it to me in an interview and I thought the strategy was brilliant. By voting yes to delete a section of the Constitution it gets the ball rolling for a bigger conversation about Alberta’s role in Confederation. Under our parliamentary system – advised by court rulings and conventions – constitutional scholars say a “yes” vote will initiate a process that will unroll across the country. The federal government will be obligated to negotiate with Alberta in good faith and the other provincial legislatures will be compelled to consider a similar question in their provincial legislatures.

Here’s how it would work…
 
Here’s what could happen if we have a yes vote.

  1. The other provinces will be compelled to consider and vote on the issue. If there are 7 out of 10 representing 50 per cent of the population it will be removed from the Constitution.

Admittedly, this is an unlikely outcome. I think we could convince AB, BC, SK, ON and NF that we are all being similarly hosed under the existing equalization program, but how would you ever convince net recipients such as QC, NS, PEI, NB and MB? Still, it would get a national conversation going about why the net payers are so frustrated.

  1. If we don’t get others to agree, the principle of equalization stays in the Constitution, but we have a meaningful two-way dialogue about how it should be restructured, and that means designing it so QC no longer receives any money through the program from the rest of us.

I told you I went to the Fairness Alberta breakfast over the Stampede. Executive Director Bill Bewick is doing a terrific job digging into the numbers and explaining how absurd the entire program is.

Consider this: Newfoundland and Labrador is on the brink of bankruptcy and doesn’t qualify for equalization. Quebec has been running surpluses and paying down debt and they receive $10 billion from the program.

If I had my druthers, my starting point would be that only small provinces should be allowed to qualify for equalization. I think PEI has it particularly tough – attempting to run all the provincial programs that are available in other provinces with a population the size of Red Deer. Providing a top up for provinces in this situation is what the program should be all about. I want Islanders to have the same quality of health care, education, social services and infrastructure as we do.

But we need to be frank about this. The equalization formula has been manipulated and massaged mainly so federal politicians can give money to Quebec. Maybe it began with good intentions, as francophones began to assert themselves and their right to operate their businesses primarily in French and needed a hand up to catch up. Maybe it was justified when Quebeckers were sharply divided on whether it was worth it to stay in Canada, as evidenced by the 50-50 referendum result in 1995.

But today, it’s just taking advantage. In fact, it’s bordering on abuse.

Quebec is taking advantage of our goodwill…
 
Last week, Quebec’s Environment Minister Benoit Charette announced that Quebec would be rejecting a $14 billion project that would have seen GNL Quebec bring liquefied natural gas from Western Canada – principally Alberta – to Port Saguenay, Quebec so it could be exported on to Europe and Asia. Charette said it did not meet his standards for the environment:


“The promoter has not succeeded in demonstrating this, on the contrary,” he said, adding that the government is worried it would discourage natural gas buyers in Europe and Asia from moving to cleaner energy sources. “This is a project that has more disadvantages than advantages.”This is truly the last straw for me. If the Quebec government hates our energy industry this much and is actively working to destroy our natural gas industry I’m done with appeasement.

On the contrary, Minister…

Liquefied natural gas offers the best opportunity to reduce greenhouse gas emissions around the world. It is already “the cleaner burning fuel” as the ads used to say when I was growing up. It can easily replace coal in power plants and reduce greenhouse gas emissions in both China and India (which are adding coal-fired powerplants at a rate that dramatically exceeds the addition of wind and solar power everywhere in the world). Coupled with carbon capture and storage (underground) or utilization (for useful products including carbon nanofibre, concrete, industrial minerals, alcohol and ethylene) the greenhouse gas emissions problem can be solved. It is also going to be the base fuel for the new and emerging hydrogen economy, which will power all the heavy transportation we need to continue operating our global trade economy – marine vessels, trucks, trains, maybe even airplanes one day.

I am tired of placating the fantasy that our modern industrial economy is going to be powered by wind and solar and nothing else. Yes, hydrogen now offers a meaningful way for wind and solar to store the energy they produce, finally moving them towards being a reliable source of energy for our power grid. But once you’ve generated hydrogen at a wind or solar site, how do you transport it anywhere so it can be used for other purposes? The natural gas business can move it in pipelines. You can’t move hydrogen on powerlines.

But wind and solar are also not carbon neutral until concrete, steel, fibre glass, rare earth materials and transportation are carbon neutral. Wind and solar are not more environmentally friendly until they stop killing migratory birds and bats. Wind and solar are not environmentally neutral until we find a way to recycle them at the end of use (rather than dumping everything in a landfill).

If Quebec wants to interfere with the development of our resources, damage our economy and cost us jobs, I refuse to send them any more of our money. We cannot continue being economically hobbled by Quebec and damaged by federal government policy and expected to keep on shipping out dollars to Quebec. I would be delighted to see a financially independent, strong Quebec paying for their subsidized day care all on their own.

If they want to stand on their own two feet, bravo, let’s help them out. Let’s cut off the money pipeline.

Let’s help Quebec become financially independent…

Fairness Alberta has said three simple changes could cut the cost of the program in half and make sure Quebec is cut off almost entirely.

  1. Stop adjusting the program to increase expenditures with GDP growth. This just makes logical sense. As provinces get wealthier and develop more own-source revenue they should need fewer federal transfers.
  2. Adjust the payments to take into account inflation and different costs of delivering services in different provinces. It’s a lot more expensive to hire a nurse in Alberta than in PEI, for instance.
  3. Add four cents to Quebec hydro. Quebec subsidizes electricity rates which lowers the amount of revenues available to government. Imagine if Alberta sold oil and natural gas below market value and then asked Ottawa to make up the shortfall. It’s bananas.

None of this negotiation can happen unless Albertans send a strong message that they have had it with the status quo.

Voting yes in the referendum means you are voting to eliminate or renegotiate. Voting no means you are happy being treated as the doormat of Confederation. Vote yes and make sure to tell your neighbours and friends to also.

Because as Bill points out on his Fairness Alberta website, this particular program is only one way that extra money gets transferred out of Alberta. As of 2019, Alberta has transferred nearly $325 billion to the rest of the country. We have to start changing this. Equalization is just the start.

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Former senior financial advisor charged with embezzling millions from Red Deer area residents

Alberta

Former senior financial advisor charged with embezzling millions from Red Deer area residents

Published on April 26, 2024

By

News release from Alberta RCMP

Former senior financial advisor charged for misappropriating nearly $5 million from clients

On April 4, 2024, the RCMP’s Provincial Financial Crime Team charged a Calgary resident for fraud-related offences after embezzling millions of dollars from his clients while serving as a senior financial advisor.

Following a thorough investigation, the accused is alleged to have fraudulently withdrawn funds from client accounts and deposited them into bank accounts he personally controlled. A total of sixteen victims were identified in the Red Deer area and suffered a combined loss of nearly $5 million.

Marc St. Pierre, 52, a resident of Calgary, was arrested and charged with:

  • Fraud over $5,000 contrary to section 380(1)(a) of the Criminal Code; and,
  • Theft over $5,000 contrary to section 344(a) of the Criminal Code.

St. Pierre is scheduled to appear in Red Deer Provincial Court on May 14, 2024.

“The ability for financial advisors to leverage their position to conduct frauds and investment scams represents a significant risk to the integrity of Alberta’s financial institutions. The investigation serves as an important reminder for all banking clients to regularly check their accounts for any suspicious activity and to report it to their bank’s fraud prevention team.”

  • Sgt. John Lamming, Provincial Financial Crime Team

The Provincial Financial Crime Team is a specialized unit that conducts investigations relating to multi-jurisdictional serious fraud, investments scams and corruption.

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Alberta

Political parties will be part of municipal elections in Edmonton and Calgary pilot projects

Published on April 25, 2024

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Strengthening Alberta’s local elections

Alberta’s government is introducing legislation to ensure Albertans can rely on transparent, free and fair elections, and municipally-elected officials have clearer accountability measures.

In a democratic society, Albertans expect their local elections to be free and fair, and their elected officials to be held to account by clear rules that govern their local councils. The Municipal Affairs Statutes Amendment Act proposes amendments to the Local Authorities Election Act (LAEA) and the Municipal Government Act (MGA) to add greater transparency to local election processes and ensure local councils and elected officials continue to remain accountable to the citizens who elected them.

“Our government is committed to strengthening Albertans’ trust in their local governments and the democratic process that elects local leaders. The changes we are making increase transparency for Alberta voters and provide surety their votes will be counted accurately. We know how important local democracy is to Albertans, and we will work with local authorities to protect and enhance the integrity of local elections.”

Ric McIver, Minister of Municipal Affairs

Local Authorities Election Act

Albertans expect free and fair elections and that’s why it’s important we strengthen the rules that govern local elections. To strengthen public trust in local elections, Alberta’s government will eliminate the use of electronic tabulators and other automated voting machines. All Albertans should be able to trust the methods and results of local elections; requiring all ballots to be counted by hand, clarifying rules and streamlining processes for scrutineers will provide voters greater assurance in the integrity of the results.

All eligible Albertans should be able to vote in local elections without impediment. Alberta’s government will limit the barriers for eligible voters to cast a ballot by expanding the use of special ballots. Currently, special ballots can only be requested for very specific reasons, including physical disability, absence from the municipality, or for municipal election workers. By expanding the use of special ballots, the government is encouraging more voter participation.

Amendments in the Municipal Affairs Statutes Amendment Act would increase transparency in local elections by enabling political parties at the local level. Political parties would be enabled in a pilot project for Edmonton and Calgary. The act will not require candidates to join a political party in order to run for a local or municipal office, but will create the opportunity to do so.

In addition, proposed changes to the Local Authorities Election Act would allow municipalities the option to require criminal record checks for local candidates, thus increasing transparency and trust in candidates who may go on to become elected officials.

Municipal Government Act

The role of an elected official is one with tremendous responsibility and expectations. Changes proposed to the Municipal Government Act (MGA) will strengthen the accountability of locally elected officials and councils. These include requiring mandatory orientation training for councillors, allowing elected officials to recuse themselves for real or perceived conflicts of interest without third-party review and requiring a councillor’s seat to become vacant upon disqualification.

If passed, the Municipal Affairs Statutes Amendment Act will also unlock new tools to build affordable and attainable housing across Alberta. Proposed amendments under the MGA would also create more options for municipalities to accelerate housing developments in their communities. Options include:

  • Exempting non-profit, subsidized affordable housing from both municipal and education property taxes;
  • Requiring municipalities to offer digital participation for public hearings about planning and development, and restricting municipalities from holding extra public hearings that are not already required by legislation; and
  • Enabling municipalities to offer multi-year residential property tax exemptions.

Municipal Affairs will engage municipalities and other partners over the coming months to hear perspectives and gather feedback to help develop regulations.

Quick facts

  • The LAEA establishes the framework for the conduct of elections in Alberta municipalities, school divisions, irrigation districts and Metis Settlements.
  • The MGA establishes the rules governing the conduct of local elected officials once on council, as well as the overall administration and operation of municipal authorities in Alberta, including any policy those authorities may wish to implement.

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