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

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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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Alberta

Emissions Reduction Alberta offering financial boost for the next transformative drilling idea

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From the Canadian Energy Centre

$35-million Alberta challenge targets next-gen drilling opportunities

‘All transformative ideas are really eligible’

Forget the old image of a straight vertical oil and gas well.

In Western Canada, engineers now steer wells for kilometres underground with remarkable precision, tapping vast energy resources from a single spot on the surface.

The sector is continually evolving as operators pursue next-generation drilling technologies that lower costs while opening new opportunities and reducing environmental impacts.

But many promising innovations never reach the market because of high development costs and limited opportunities for real-world testing, according to Emissions Reduction Alberta (ERA).

That’s why ERA is launching the Drilling Technology Challenge, which will invest up to $35 million to advance new drilling and subsurface technologies.

“The focus isn’t just on drilling, it’s about building our future economy, helping reduce emissions, creating new industries and making sure we remain a responsible leader in energy development for decades to come,” said ERA CEO Justin Riemer.

And it’s not just about oil and gas. ERA says emerging technologies can unlock new resource opportunities such as geothermal energy, deep geological CO₂ storage and critical minerals extraction.

“Alberta’s wealth comes from our natural resources, most of which are extracted through drilling and other subsurface technologies,” said Gurpreet Lail, CEO of Enserva, which represents energy service companies.

ERA funding for the challenge will range from $250,000 to $8 million per project.

Eligible technologies include advanced drilling systems, downhole tools and sensors; AI-enabled automation and optimization; low-impact rigs and fluids; geothermal and critical mineral drilling applications; and supporting infrastructure like mobile labs and simulation platforms.

“All transformative ideas are really eligible for this call,” Riemer said, noting that AI-based technologies are likely to play a growing role.

“I think what we’re seeing is that the wells of the future are going to be guided by smart sensors and real-time data. You’re going to have a lot of AI-driven controls that help operators make instant decisions and avoid problems.”

Applications for the Drilling Technology Challenge close January 29, 2026.

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Alberta

New era of police accountability

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The Police Review Commission (PRC) is now fully operational, giving Albertans a single, independent process to file policing complaints and ensure accountability.

Alberta’s government is putting the province at the forefront of police oversight in Canada with the creation of the PRC. This new commission replaces the current patchwork of police investigating police with one independent body responsible for receiving complaints, conducting investigations and overseeing disciplinary hearings. By centralizing these functions within a single, independent agency, Alberta is ensuring complaints are handled fairly and consistently.

“The Police Review Commission represents a new era in how Alberta addresses policing complaints. These changes are part of a broader paradigm shift where police are no longer seen as an arm of the state, but rather an extension and a reflection of the community they serve. As an independent agency, it is committed to fairness, accountability and public trust, ensuring every complaint is investigated impartially and resolved openly.”

Mike Ellis, Minister of Public Safety and Emergency Services

The Police Amendment Act, 2022 laid the groundwork for this new model, establishing a modern approach to oversight built on accountability, consistency and public confidence. The PRC will manage the full complaints process from receiving and assessing, to investigating and resolving complaints related to police conduct, including serious incidents and statutory offences.

“The Alberta Association of Chiefs of Police welcomes the launch of the Police Review Commission as a meaningful step toward enhanced oversight and greater transparency in policing. By ensuring complaints are reviewed fairly and impartially, the Commission will help strengthen accountability and reinforce public trust in Alberta’s police agencies. Police leaders across the province are committed to working with the Commission and our communities to ensure every Albertan has confidence in the integrity of our police services.”

Al Murphy, president, Alberta Association of Chiefs of Police                                                                                                  

A timely and transparent complaint resolution process is essential for both the public and police. That is why the PRC must complete investigations within 180 days, and if more time is needed, the chief executive officer must publicly report on delays and provide justification. This ensures clarity, predictability and accountability throughout the process. The commission will be arm’s length from government and police services, meaning people can have greater confidence that their complaints will be investigated and resolved impartially.

“Our goal is to build trust in policing by delivering timely resolutions and fair, consistent outcomes that put people first. Every complaint will be reviewed thoroughly and handled with the transparency and respect Albertans expect and deserve.”

Michael Ewenson, interim chief executive officer, Police Review Commission

The PRC can also initiate systemic reviews related to police conduct or emerging trends without the need for a public complaint, and these reviews must be made public. Together, these measures create a clear, accountable process that strengthens transparency, supports continuous improvement and enhances trust in how police oversight is carried out across Alberta.

“Public safety and the confidence the public has in our police services and service members are incumbent for effective and responsible service delivery. The PRC has been developed so that Albertans may have a responsible and impartial mechanism to voice concerns regarding delivery of policing services in Alberta. I am confident that the PRC will be an inclusive and diverse representation of the communities, so we may better understand the most appropriate and effective way to respond to concerns regarding police services. I look forward to the positive outcomes for the community.”

Teddy Manywounds, justice and public safety director, G4 Stoney Nakoda Tsuut’ina First Nations

The commission’s design was informed by engagement with Indigenous communities, law enforcement partners, municipal officials and community organizations, ensuring its structure and training reflect Alberta’s diversity and values.

Quick facts

  • The PRC will handle complaints in three categories:
    • Level 1: Death, serious injury and serious or sensitive allegations involving all police services in Alberta, as well as peace officer agencies.
    • Level 2: Allegations of criminal and other statutory offences involving all police services in Alberta.
    • Level 3: Complaints about non-criminal misconduct involving officers employed by municipal and First Nations police services.
  • Complaints that fall outside the three categories will be referred to the appropriate bodies or agencies for review.
  • The Alberta Serious Incident Response Team (ASIRT) will now operate under the PRC.
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