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Edmonton’s connection to the defection of Baltimore Orioles’ superstar Jose Iglesias

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Here’s the simplest possible message for all and any who are bothered by the realization that the real world has interfered with the world of sport, so often described with great accuracy as “the world’s playpen” — it has happened before and surely will happen again.

For many, the most dismal example of politics destroying a major sports event is the 1936 Olympics, when Adolf Hitler’s prejudices were on open display. Memory of the brilliant sprinting by Black American Jesse Owens during those Games stands as civilized society’s best-known antidote to such critics of what now is identified as “social justice.”

In some ways Alberta is central to this debate: strong statements were made in support of Black Lives Master by players in the anti-Covid bubble designed to keep them healthy enough in Edmonton to complete the NHL’s first-ever late summer Stanley Cup playoffs at Rexall Place.

The international response, pro and con, will continue for some time, close observers predict.

“…. (Castro) was really angry. He was loud.”

It surprised me during the weekend to recall that a hubbub, but smaller, touched international baseball in 2008, when 18-year-old Cuban infielder Jose Iglesias defected from his national team during the world junior baseball championships in  Edmonton’s North Saskatchewan River Valley. The memory was triggered by coincidence: Iglesias showed on television as a member of the Baltimore Orioles in a series against the Toronto Blue Jays.

That world championship was one of several conducted in Edmonton by a group of volunteers headed by the late alderman, Ron Hayter. There was immediate evidence that the shortstop with excellent defensive skills was important in his nation: Premier Fidel Castro called personally to object..

Longtime Edmonton resident Don Clark of Edmonton has spoken often of the experience. He wound up taking a long-distance call initially intended for Hayter.

“I only got on the phone because Ron wasn’t around,” Clark said. “At first, I didn’t know who I was talking to, but soon it got pretty clear.  There was nothing any of us could do. They were gone.”

Smiling at the discomfort of that distant moment, Clark recalled the sound of Premier Castro’s voice.

“There’s no doubt he was really angry. He was loud.”

Years later, in an interview with a Detroit newspaper, Iglesias explained the departure from team headquarters on the University of Alberta campus. During a stretch of about two hours when the team was not under direct supervision, “We just got up and walked out.”

At the time, Iglesias spoke no English.

“It was tough. Really tough. I had no family. No friends. I just wanted to do what I loved: play baseball.”

He signed a big-league deal with the Boston Red Sox in 2009 and made the all-rookie team before signing his current $3-million one-year deal with Baltimore. He  also played with the Cincinnati Reds and Detroit Tigers. With Detroit, he signed long-term contract for about $6 million a year.

Major League Baseball lists 32 active players as defectors from Cuba, including promising Toronto outfielder Lourdes Gurriel, New York Yankees pitcher Aroldis Chapman and other stars.

Read more of John’s stories here.

 

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Alberta

Alberta Next Panel calls for less Ottawa—and it could pay off

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From the Fraser Institute

By Tegan Hill

Last Friday, less than a week before Christmas, the Smith government quietly released the final report from its Alberta Next Panel, which assessed Alberta’s role in Canada. Among other things, the panel recommends that the federal government transfer some of its tax revenue to provincial governments so they can assume more control over the delivery of provincial services. Based on Canada’s experience in the 1990s, this plan could deliver real benefits for Albertans and all Canadians.

Federations such as Canada typically work best when governments stick to their constitutional lanes. Indeed, one of the benefits of being a federalist country is that different levels of government assume responsibility for programs they’re best suited to deliver. For example, it’s logical that the federal government handle national defence, while provincial governments are typically best positioned to understand and address the unique health-care and education needs of their citizens.

But there’s currently a mismatch between the share of taxes the provinces collect and the cost of delivering provincial responsibilities (e.g. health care, education, childcare, and social services). As such, Ottawa uses transfers—including the Canada Health Transfer (CHT)—to financially support the provinces in their areas of responsibility. But these funds come with conditions.

Consider health care. To receive CHT payments from Ottawa, provinces must abide by the Canada Health Act, which effectively prevents the provinces from experimenting with new ways of delivering and financing health care—including policies that are successful in other universal health-care countries. Given Canada’s health-care system is one of the developed world’s most expensive universal systems, yet Canadians face some of the longest wait times for physicians and worst access to medical technology (e.g. MRIs) and hospital beds, these restrictions limit badly needed innovation and hurt patients.

To give the provinces more flexibility, the Alberta Next Panel suggests the federal government shift tax points (and transfer GST) to the provinces to better align provincial revenues with provincial responsibilities while eliminating “strings” attached to such federal transfers. In other words, Ottawa would transfer a portion of its tax revenues from the federal income tax and federal sales tax to the provincial government so they have funds to experiment with what works best for their citizens, without conditions on how that money can be used.

According to the Alberta Next Panel poll, at least in Alberta, a majority of citizens support this type of provincial autonomy in delivering provincial programs—and again, it’s paid off before.

In the 1990s, amid a fiscal crisis (greater in scale, but not dissimilar to the one Ottawa faces today), the federal government reduced welfare and social assistance transfers to the provinces while simultaneously removing most of the “strings” attached to these dollars. These reforms allowed the provinces to introduce work incentives, for example, which would have previously triggered a reduction in federal transfers. The change to federal transfers sparked a wave of reforms as the provinces experimented with new ways to improve their welfare programs, and ultimately led to significant innovation that reduced welfare dependency from a high of 3.1 million in 1994 to a low of 1.6 million in 2008, while also reducing government spending on social assistance.

The Smith government’s Alberta Next Panel wants the federal government to transfer some of its tax revenues to the provinces and reduce restrictions on provincial program delivery. As Canada’s experience in the 1990s shows, this could spur real innovation that ultimately improves services for Albertans and all Canadians.

Tegan Hill

Director, Alberta Policy, Fraser Institute
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Alberta

Alberta Next Panel calls to reform how Canada works

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From the Fraser Institute

By Tegan Hill

The Alberta Next Panel, tasked with advising the Smith government on how the province can better protect its interests and defend its economy, has officially released its report. Two of its key recommendations—to hold a referendum on Alberta leaving the Canada Pension Plan, and to create a commission to review programs like equalization—could lead to meaningful changes to Canada’s system of fiscal federalism (i.e. the financial relationship between Ottawa and the provinces).

The panel stemmed from a growing sense of unfairness in Alberta. From 2007 to 2022, Albertans’ net contribution to federal finances (total federal taxes paid by Albertans minus federal money spent or transferred to Albertans) was $244.6 billion—more than five times the net contribution from British Columbians or Ontarians (the only other two net contributors). This money from Albertans helps keep taxes lower and fund government services in other provinces. Yet Ottawa continues to impose federal regulations, which disproportionately and negatively impact Alberta’s energy industry.

Albertans were growing tired of this unbalanced relationship. According to a poll by the Angus Reid Institute, nearly half of Albertans believe they get a “raw deal”—that is, they give more than they get—being part of Canada. The Alberta Next Panel survey found that 59 per cent of Albertans believe the federal transfer and equalization system is unfair to Alberta. And a ThinkHQ survey found that more than seven in 10 Albertans feel that federal policies over the past several years hurt their quality of life.

As part of an effort to increase provincial autonomy, amid these frustrations, the panel recommends the Alberta government hold a referendum on leaving the Canada Pension Plan (CPP) and establishing its own provincial pension plan.

Albertans typically have higher average incomes and a younger population than the rest of the country, which means they could pay a lower contribution rate under a provincial pension plan while receiving the same level of benefits as the CPP. (These demographic and economic factors are also why Albertans currently make such a large net contribution to the CPP).

The savings from paying a lower contribution rate could result in materially higher income during retirement for Albertans if they’re invested in a private account. One report found that if a typical Albertan invested the savings from paying a lower contribution rate to a provincial pension plan, they could benefit from $189,773 (pre-tax) in additional retirement income.

Clearly, Albertans could see a financial benefit from leaving the CPP, but there are many factors to consider. The government plans to present a detailed report including how the funds would be managed, contribution rates, and implementation plan prior to a referendum.

Then there’s equalization—a program fraught with flaws. The goal of equalization is to ensure provinces can provide reasonably comparable public services at reasonably comparable tax rates. Ottawa collects taxes from Canadians across the country and then redistributes that money to “have not” provinces. In 2026/27, equalization payments is expected to total $27.2 billion with all provinces except Alberta, British Columbia and Saskatchewan receiving payments.

Reasonable people can disagree on whether or not they support the principle of the program, but again, it has major flaws that just don’t make sense. Consider the fixed growth rate rule, which mandates that total equalization payments grow each year even when the income differences between recipient and non-recipient provinces narrows. That means Albertans continue paying for a growing program, even when such growth isn’t required to meet the program’s stated objective. The panel recommends that Alberta take a leading role in working with other provinces and the federal government to reform equalization and set up a new Canada Fiscal Commission to review fiscal federalism more broadly.

The Alberta Next Panel is calling for changes to fiscal federalism. Reforms to equalization are clearly needed—and it’s worth exploring the potential of an Alberta pension plan. Indeed, both of these changes could deliver benefits.

Tegan Hill

Director, Alberta Policy, Fraser Institute
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