Premier of Alberta
Editors note: This letter is useful to understand the areas of contention that have arisen between the Provincial Government of Alberta and the Federal Government of Canada. It further elucidates what specifically those areas are,and how to help rectify them.
October 22, 2019
Right Honourable Justin Trudeau Prime Minister
Office of the Prime Minister Langevin Building
80 Wellington Street OTTAWA, Ontario K1A 0A2
Dear Prime Minister Trudeau:
Congratulations on your party's recent electoral victory.
As you head into your second term as Prime Minister leading
a minority government, 1 would like to take the opportunity to share my deep
concerns about the state of the Canadian federation and Alberta's place within
it.
Albertans joined their fellow Canadians from Saskatchewan
and most of Western Canada in sending a very clear message to your government
in yesterday's election. The Conservative Party of Canada won the largest
electoral mandate of any party in Alberta electoral history. This reflects a
deep frustration felt by Albertans of all regions and backgrounds: an
understanding that we have contributed enormously to the rest of the
federation, but that our province and its key industry has been under attack
Albertans cannot understand why they have been called on to
contribute $20 billion more annually to the Government of Canada then they
receive back in benefits, and yet our ability to develop that wealth is
increasingly blocked through cancelled and killed pipelines and policies like
Bill C-69. We cannot understand why we are expected to contribute massively to
the rest of the federation, and yet you said in a televised debate that you
will "stand up to" the oil industry that generates so much of that
wealth and employs hundreds of thousands of Albertans and Canadians from across
our country.
I am gravely concerned at the potential impact many of the
platform commitments both you and your potential coalition partners made during
the election campaign. Commitments that would make it even harder for Alberta
to produce and export our natural resource products --- some in clear violation
of our Constitution and rule of law by intruding into areas of provincial
jurisdiction - and which would have dire consequences for this country.
Albertans are patriotic Canadians who want to see our great
country succeed. But there is a very real threat to the fabric of our nation
and a deep and abiding feeling of alienation felt across the west, not just in
Alberta. A Liberal minority government that partners, formally or informally,
with political leaders who want to see Alberta's industry falter, or be
disbanded altogether, threatens the unity of our federation. I urge you to
consider the consequences of implementing the more extreme of these commitments
and to make decisions that are in the interests of all Canadians, not just
Central and Eastern Canadians. In particular, Alberta is deeply concerned about
the following policy areas:
Energy Market Access
The Government of Alberta is committed
to expanding our markets and growing the Canadian economy. So are Canadians.
Two thirds of Canadians voted for parties, including your Liberal Party, that
support the completion of the Trans Mountain Expansion project (TMX). These
parties elected 278 of 338 members of parliament. Public opinion polls
consistently show overwhelming support for TMX, both nationally and in British
Columbia. While we acknowledge the federal government's purchase and second
approval of TMX, success of these actions will be measured by one thing and one
thing only: the completion of the pipeline. Delays to the TMX expansion are
costing the country tens of billions of dollars, as Canada is forced to sell
our oil for much less than world market prices. The timely completion of the
TMX and building additional pipeline capacity is critical to grow the national
economy and create good jobs for all Canadians and to fulfill your election
night commitment to "be there to support [us]."
Resource Corridors
On the subject of market access, at this
summer's Council of the Federation meeting in Saskatoon, all thirteen
provincial and territorial premiers supported the concept of
omic corridors to get our respective resources to markets
across Canada and globally, with twelve of those premiers endorsing corridors
to transport natural resources including oil and gas. We hope that your
government hears that message and supports this policy using all of the federal
political and constitutional powers available to it.
Federal Legislation
The Oil Tanker Moratorium Act (C-48) is
a discriminatory bill whose sole purpose is shutting down one of the most
important industries in Alberta. Further, the Impact Assessment Act (C-69) and
Canadian Energy Regulator Act are an attack against Alberta's energy industry
and pose a threat to Alberta's economy and provincial autonomy. These Acts will
have devastating impacts on Alberta and Canada's economies and on our
reputation as a good place to invest. We implore the federal government to
listen to the Senate, including many independent Senators appointed by your
government, who voted against C-48 and to overhaul C-69, and reconsider these
bills. We also encourage you to engage with the provinces and territories, as
equal orders of government, prior to implementing any future legislation that
interferes with provincial autonomy.
Climate Change
Provinces and territories are best positioned
to develop climate change approaches that work for our unique needs and
circumstances. The Government of Alberta will continue with a realistic and
effective approach to greenhouse gas reductions that puts the burden on large
emitters to reduce emissions and which funds innovation and technology to
further reduce emissions here in Alberta and around the world. This is a
serious plan and should be recognized as such by the federal government. A
minimum gesture of conciliation and productive climate change cooperation would
be to give Alberta the credit it deserves for this work and exempt the province
from the Greenhouse Gas Pollution Pricing Act's federal backstop. Finally, the
single most important contribution Alberta, and Canada, can make to fighting
climate change is to build pipelines to get Canadian natural gas to markets in
the developing world to displace higher emission energy sources there, and to get
credit for those emission reductions as envisioned by Article 6 of the Paris
Agreement.
Fiscal Fairness
Federal fiscal transfers must be fair. The
Government of Alberta is committed to working with the federal government, and
all provinces and territories, in a review of the major federal transfers to
ensure that these transfers do not discriminate against any one jurisdiction.
One example, among many, of this unfairness is the
decades-old $60 per capita limit on Fiscal Stabilization Program (FSP) payments
to provinces that suffer significant annual reductions in revenue. This
outdated limit must be removed to ensure that Alberta is protected from major
shocks and not penalized for the severity of these shocks. If the cap did not
exist, Alberta would have received $1.6 billion in 2015-16 instead of the $250
million we did receive. Under other recent proposals to reform the FSP from
University of Calgary economist Dr. Bev Dahlby, Alberta would have received
between $2.1 billion and $3.2 billion. There is no cap on equalization, which
is funded disproportionately by Albertans, so why should there be a cap on the
FSP, which is designed to offset massive revenue declines in the
"have" provinces who fund equalization?
In a similar vein, we request that the federal government
reform Canada's Employment Insurance program so that Albertans who lose their
jobs are not treated worse than employees in other provinces.
Equalization
Our government reiterates our strong insistence
that the federal government reform the current equalization formula by
excluding non-renewable resources revenues from the calculation, which unfairly
rewards provinces whose policies artificially reduce their fiscal capacity, and
by imposing a hard cap on equalization transfers to stop the absurd situation
of some provinces guaranteed almost constant increases, while refusing to
develop their own resources.
CMHC Stress Test
I would like to repeat my request that the
Canada Mortgage and Home Corporation (CMHC) stress tests be removed for Alberta
residents. As I explained in our in-person meeting in Ottawa in May of this
year, the CMHC stress tests were imposed to deal with housing issues in other
provinces and make no sense in our province's struggling housing market.
Trade
Free flow of goods and services, as well as access to
capital is critical to the Canadian economy. The Government of Alberta has led
good work on reducing internal trade barriers, removing 80% of our exceptions
to the Canada Free Trade Agreement (CFTA), but more work is needed on this
file. The federal government must follow Alberta's leadership on this file by
using its constitutional authority over trade and commerce to radically reduce
and/or eliminate barriers to internal trade, including those imposed by the federal
government.
Federal actions could include:
- Removing federal exceptions to the CFTA;
- Advancing direct-to-consumer alcohol sales across the country;
- Removing federal prohibitions on the interprovincial movement of provincially inspected meat.
It is essential for the long-term prosperity and health of
the Canadian economy that internal trade is increased and kept as free as
possible.
New international markets are needed for Canadian products
beyond the United States and China. The Government of Alberta supports the
federal government's commitment to expand and diversify Canada's international
trade partnerships. Alberta wants to be fully engaged in the negotiation,
implementation and management of important international trade agreements where
they affect provincial jurisdiction.
Health Care
Health care costs are skyrocketing and provinces
and territories are shouldering these expanding costs. Each province and
territory faces unique health challenges, and as such, an equal distribution of
federal health transfers is the only equitable way to address these health
challenges.
We also implore you to immediately reverse the decision to
unilaterally cuts for delivering health care to Canadian Armed Forces
members in Alberta and across Canada. Cutting these rates puts quality
healthcare for our veterans and service members at risk while straining already
tight health care budgets. It is an insult to our veterans and to the provinces
alike.
Indigenous Opportunity
Alberta believes our government must
be a true partner in helping Indigenous peoples address economic and social
issues and we have committed to be a true partner in pursuit of reconciliation,
inclusion and opportunity.
As the federal government pursues a renewed relationship with
Indigenous peoples, Alberta wants the federal government to respect our
existing relationships with and commitments to the Indigenous groups in
Alberta.
State of the Federation
There is a need for provinces,
territories and the federal government to work collaboratively to guarantee the
best possible outcomes for Canadians. A key part of a successful collaborative
relationship stems from respecting the principles of federalism.
Alberta is committed to respecting the division of powers in
the federation and acknowledging the equal relationship between the orders of
government. We call on your government to join us in this commitment and move
forward in creating a stronger federation for all Canadians.
Again, a strong Alberta ensures a stronger Canada. I look
forward to working with your government on issues that affect Albertans and all
Canadians.
Sincerely,
Hon Jason Kenny PC
Premier of Alberta
Minister of Intergovernmental Relations
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