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Finance Minister Nate Horner says Alberta on track to $2.4 billion surplus

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Q1 update: Continued fiscal growth

Alberta’s strong fiscal management continues to secure Alberta’s future.

Alberta is on course to record a $2.4-billion surplus at the end of 2023-24, despite an unprecedented wildfire season and ongoing economic volatility. This is $94 million higher than forecast in Budget 2023.

Strong and prudent fiscal management will help Alberta remain the economic engine of Canada. The government’s new fiscal framework requires the government to use at least half of available surplus cash to pay down debt, freeing up money that can support the needs of Alberta families now and for decades to come. Based on the first quarter update, Alberta plans to eliminate $2.6 billion in taxpayer-supported debt this fiscal year.

“Alberta’s finances remain strong, and thanks to our new fiscal framework, Alberta’s fiscal position is poised to become even stronger. Our continued priorities of paying down debt and saving for the future will ensure we have the capacity to meet Albertans’ needs both today and well into the future.”

Nate Horner, President of Treasury Board and Minister of Finance

After the required 50 per cent of projected available surplus cash is used to pay off maturing debt, remaining surplus cash will be allocated to the Alberta Fund, where it can be used for additional debt repayment, contributions to the Alberta Heritage Savings Trust Fund and one-time initiatives that do not lead to a permanent increase in government spending. A projected $2.6 billion will be set aside in the Alberta Fund in 2023-24.

Revenue

Revenue for 2023-24 is forecast at $71.1 billion, a $491-million increase from Budget 2023.

Alberta’s robust business environment is attracting investment and people from around the country, driving a projected $1.5-billion increase in corporate and personal income tax revenue.

The corporate income tax revenue forecast has increased by $889 million, following a record-high year in 2022-23. At eight per cent, Alberta’s general corporate income tax rate is the lowest in the country. Alberta’s low taxes remain one reason investors choose Alberta.

Keeping life affordable is a key priority for Alberta’s government, which is why it paused the provincial fuel tax on gasoline and diesel in January. Extending the pause to the end of 2023 will save Albertans and Alberta businesses 13 cents per litre on gasoline and diesel for the rest of the calendar year. As a result, fuel tax revenue is forecast to be reduced by $532 million – money that is going directly back into the pockets of Albertans every time they fill up their vehicle.

Between April 1 and June 30, the price of West Texas Intermediate (WTI) oil averaged US$74 per barrel. It is now forecast to average $US75 per barrel over the course of the fiscal year, $4 lower than the Budget 2023 forecast. The resulting impact on Alberta’s revenue is being offset by a narrower light-heavy oil price differential, which is now forecast to average US$15 per barrel, $5 narrower than at budget.

Bitumen royalties are projected to increase by $515 million in 2023-24; however, overall resource revenue is projected to decrease by $694 million from the budget forecast. Lower natural gas royalties account for most of the projected decrease due to weaker prices, robust North American production and the impact of wildfires on production in Alberta.

Expense

Expense for 2023-24 is forecast at $68.7 billion, a $397-million increase from Budget 2023. The expense increase before the forecast contingency allocation is $1.6 billion. Of this, $397 million is funded by dedicated revenue and $1.2 billion is set aside as a preliminary allocation from the contingency, leaving $323 million unallocated.

The unprecedented wildfire season in the province prompted Alberta’s government to act swiftly and responsibly to ensure the safety of Albertans in affected areas. To date, the government has allocated $750 million for fighting wildfires in the province this year, along with $175 million for uninsurable losses, $75 million of which is expected to be covered by the federal government, and $55 million, mainly for emergency evacuation payments. Alberta’s government will continue to support Albertans during difficult situations like natural disasters.

The operating expense forecast has increased by $179 million, mainly due to a $214-million increase in Health funding that is being fully offset by federal bilateral agreement revenue. Capital grant increases of $170 million are mainly for re-profiling projects from the 2022-23 fiscal year.

Debt servicing costs are forecast to increase $245 million from budget, mainly due to higher interest rates – reiterating the importance of government’s commitment to paying down debt.

Alberta Heritage Savings Trust Fund

The Alberta Heritage Savings Trust Fund is Alberta’s long-term savings account, and the government remains committed to growing it. The fund performed well during the 2023-24 first quarter, earning a two per cent return with a net investment income of $739 million. Its fair value of net assets on June 30 was $21.6 billion, an increase from the $21.2 billion recorded at the end of the previous fiscal year.

Over five years, the fund returned 6.4 per cent, which is 0.6 per cent above the return of its passive benchmark.

Economic outlook

By continuing to grow and diversify Alberta’s economy, Alberta’s government is continuing to exceed expectations. Alberta’s real gross domestic product is now expected to rise three per cent in 2023, up 0.2 percentage points from Budget 2023. Projections by private forecasters show the province is expected to lead the country in economic growth this year.

Robust population growth is supporting Alberta’s labour market and generating demand and activity in Alberta’s economy, ultimately boosting the province’s economic outlook. Although risks and uncertainty persist due to rising interest rates, high consumer prices and other factors, Alberta’s economy remains well-positioned to withstand any challenges that arise.

Quick facts

  • The amount of surplus cash available for debt repayment and the Alberta Fund is calculated after several necessary cash adjustments are made.
    • In 2023-24, the total amount available for allocation is forecast at $5.2 billion, which includes $5.1 billion carried over from the 2022-23 final results.

 

This is a news release from the Government of Alberta.

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Alberta

Canada’s postal service refuses to help with Trudeau’s gun ban buyback program: report

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From LifeSiteNews

By Anthony Murdoch

According to a report, Canada’s mail service notified the Trudeau government via a letter that it would not participate in the buyback scheme, citing safety concerns for its employees.

Canadian Prime Minister Justin Trudeau’s federal government crackdown on legal gun owners through a buyback scheme has hit a major roadblock after Canada Post, a federal-run institution, signaled it will refuse to participate in scooping up thousands of legally purchased firearms at the bequest of the government.

According to government sources in a recent Radio-Canada report, the Trudeau Liberals were hoping Canada Post would help collect approximately 144,000 “assault” and “military-style” firearms that were recently banned by the government. Canada Post currently delivers guns via mail that are legally purchased to those with firearms licenses.

The inside source, who chose not to be named, noted that Canada Post notified the Trudeau government via a letter that it would not participate in the buyback scheme, citing safety concerns for its employees.

According to the source, Canada Post is still talking with the federal government, with one idea being to allow it to transport guns but not oversee getting them from their legal owners.

“It’s a challenge, but we do not think this jeopardizes our timetable or the government’s desire to move forward,” said one source, adding, “We want the discussions to continue.”

As for the Trudeau federal government, it continues to say that having Canada Post be involved in the gun buyback is the “most efficient” as well as “least costly” way to get the guns back from owners.

Trudeau’s gun grab was first announced after a deadly mass shooting in Nova Scotia in May 2020 in which he banned over 1,500 “military-style assault firearms” with a plan to begin buying them back from owners.

Late last year, the Trudeau government extended the amnesty deadline for legal gun owners until October 30, 2025. It should be noted that this is around the same time a federal election will take place.

The Canadian government’s controversial gun grab Bill C-21, which bans many types of guns, including handguns, and mandates a buyback program became law on December 14, 2023, after senators voted 60-24 in favor of the bill.

Alberta and other provinces promise to fight Trudeau’s gun grab tooth and nail

On the same day news broke that Canada Post said it would not participate in Trudeau’s gun buyback, Alberta chief firearms officer Teri Bryant last Wednesday issued a statement saying, “We urge the federal government to abandon this ill-advised program and meaningfully consult the provinces as we work to address the actual causes of firearms crime.”

“Canadians are still waiting for concrete details about the federal firearms confiscation program that has been in the works since 2020, and Canada Post’s refusal to participate in the federal government’s firearms ‘buy-back’ program is just one more example of how little forethought or engagement has gone into implementation of this program,” Bryant said.

Bryant noted that the buyback will not “significantly improve public safety” because it does not target those “involved in criminal activity and gun violence, and Albertans can be assured that our government will continue to advocate for our law-abiding firearms community.”

“We believe in a principled and informed approach to firearms policy that preserves public safety and recognizes the immense responsibility that comes with firearms ownership,” she noted.

Bryant observed that the federal confiscation program is not only causing uncertainty for many firearms businesses, but it is also “pulling attention and resources away from programs and initiatives that would help address public safety.”

“It is also undermining public confidence in the fairness of our entire firearms regulatory scheme,” she added.

Indeed, LifeSiteNews reported in February that despite Trudeau’s crackdown on legal gun owners, Statistics Canada data shows that most violent gun crimes in the country last year were not committed at the hands of legal gun owners but by those who obtained the weapons illegally.

Alberta Premier Danielle Smith, along with premiers from no less than four additional provinces, are opposed to C- 21.

Late last year, Smith promised she would strengthen the gun rights of Albertans because of Trudeau’s gun grab.

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Alberta

Alberta threatens to fight Trudeau government restrictions on Canada’s plastics industry

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From LifeSiteNews

By Clare Marie Merkowsky

“If the federal government refuses to abide by the constitution, we will take them to court again to defend our jurisdiction and the thousands of Albertans who work in the petrochemical sector”

Alberta has rejected the Liberal government’s “unconstitutional” federal plastics registry and production limit.

In an April 25 press release, Alberta’s Environment Minister Rebecca Schulz promised to take Liberal Minister of Environment and Climate Change Steven Guilbeault to court over his proposal to create a plastics registry, mandating companies to report their plastic production and implementation.

“If the federal government refuses to abide by the constitution, we will take them to court again to defend our jurisdiction and the thousands of Albertans who work in the petrochemical sector,” Schulz declared.

“This unilateral announcement is a slap in the face to Alberta and our province’s petrochemical industry, and the thousands of Albertans who work in it,” she continued.

Guilbeault’s plan, set to be implemented in September 2025, would mandate that businesses record how much plastic they place on the market in addition to the amount of plastic waste generated on their commercial, industrial, and institutional premises.

Companies would then report that amount to the federal government. The plan exempts small businesses which produce less than one tonne of plastic each year.

However, Schulz explained that the registry would negatively affect Alberta, as “plastics production is a growing part of Alberta’s economy, and we are positioned to lead the world for decades to come in the production of carbon neutral plastics.”

“Minister Guilbeault’s proposal would throw all of that into jeopardy and risk billions of dollars in investments. This includes projects like Dow Chemical’s net-zero petrochemical plant in Fort Saskatchewan, a $9-billion project that will create thousands of jobs,” she warned.

“If the federal government limits plastic production in Canada, other countries like China will just produce more. The only outcome that this federal government will achieve will be fewer jobs in Canada,” she explained.

Schulz’s statement comes after the November decision by the Federal Court to rule in favor of Alberta and Saskatchewan, declaring that Prime Minister Justin Trudeau’s government overstepped its authority by classifying plastic as “toxic” and banning all single-use plastic items, like straws.

Essentially, the ruling overturned Trudeau’s 2022 law which outlawed manufacturing or importing plastic straws, cutlery, and checkout bags on the grounds of government claims that plastic was having a negative effect on the oceans. In reality, most plastic pollution in the oceans comes from a few countries, like India and China, which dump waste directly on beaches or in rivers.

The November ruling was only one of two recent court rulings that have dealt a blow to Trudeau’s environmental laws.

The second ruling came after Canada’s Supreme Court recently sided in favor of provincial autonomy when it comes to natural resources. The Supreme Court recently ruled that Trudeau’s law C-69, dubbed the “no-more pipelines” bill, is “mostly unconstitutional.” This was a huge win for Alberta and Saskatchewan, which challenged the law in court. The decision returned authority over the pipelines to provincial governments, meaning oil and gas projects headed up by the provinces should be allowed to proceed without federal intrusion.

The Trudeau government, however, seems insistent on defying the recent rulings by pushing forward with its various regulations.

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