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Economist: West will suffer the most under Trudeau’s second carbon tax

“While the federal government has supported the construction of the still unfinished Trans Mountain pipeline, most of its policies have made the western oil industry uncompetitive,” wrote Jack Mintz

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The West will be the hardest hit if Justin Trudeau’s Liberal government brings in a second carbon tax, says one of Canada’s top economists.

“This economic cost would be felt most heavily in the Western provinces especially Alberta and Saskatchewan,” wrote University of Calgary economist Jack Mintz wrote in Saturday’s Financial Post.

“Both provinces contribute over $20 billion per year, equivalent to a 10-per-cent tax on their personal income, in fiscal transfers to the rest of Canada through the federal budget.

“Alberta and Saskatchewan will likely continue their outsized contribution to the rest of Canada when the bill for current spending comes due.

“The government’s new agenda is expected to include at least $50 billion in climate spending and subsidies over five years.”

The second carbon tax is to be called the Canadian Fuel Standard, a regulatory regime that will require all supplies of fossil fuel to reduce carbon content, reports John Ivison of the National Post.

Canadians will be hit with higher gas prices and home heating bills because of the new tax, Ivison reports, part of Canada’s plan within the Paris Accord to reduce emissions 30 per cent below 2005 levels by 2030.

Businesses, already reeling because of the COVID-19 pandemic, would be hit with double digit cost increases in energy.

The CFS apparently features an equivalent carbon tax of $350 per tonne – on top of the current $50-per-tonne carbon tax.

Mintz noted Canada’s emissions have been virtually flat at 720 megatonnes (MT) since 2005, so any chance of reaching a 30-per-cent reduction in emissions by 2030, as the Liberals have promised to do, looks highly unrealistic without heavily affecting the oil and gas sector.

“One goal is to push consumers into buying electric vehicles, which so far remain at less than five per cent of auto sales. People still prefer SUVs, and SUVs are where Ontario automakers make their best margins,” wrote Mintz.

“Green jobs don’t generate anywhere close to the value added per working hour produced currently in oil, gas, petrochemical and mining industries. So, any policy that particularly penalizes these industries will certainly undermine economic growth, just as the economy is already facing several years of difficulties as we recover from the current pandemic.

“The issue is whether the Liberal government believes that the oil and gas sector can remain an important part of the future energy transition to ‘net zero’ emissions. Most plans going to net-zero emissions show that oil and natural gas will continue to be important, even if their role is reduced.

“While the federal government has supported the construction of the still unfinished Trans Mountain pipeline, most of its policies have made the western oil industry uncompetitive.”

Ivision reports the Liberals have been planning the CFS since they came to power but the COVID-19 pandemic delayed their plans until the end of September when a Throne Speech will bring Parliament back from prorogue.

Federal environment minister Jonathan Wilkinson told Ivison the CFS will diversify the economy and promote investment in clean solutions.

“It will create opportunities for farmers and companies producing renewable fuels, will encourage investments in energy efficiency to help Canadians save money and will promote faster development of zero emissions vehicles,” he said in a statement.

Ivison reports: “Unlike the carbon tax, the CFS offers no exemptions for large emitters in trade-exposed industries. That’s because the government assumes regulated entities will simply pass on the costs downstream to producers and consumers.

“The cost implications for households and industry are unclear but a study by the Canadian Energy Research Institute in May 2019 estimated the impact of a 20 per cent reduction in carbon intensity. CERI suggested a total fuel decarbonisation cost of $15.3 billion a year, adding $84 or four per cent to household fuel bills; $62 or 2.8 per cent to the cost of gas; and 13 per cent to fuel costs for industry.”

Opposition to the new tax is already at the boiling point.

“It will be a disastrous policy,” said Bob Masterson, president of the Chemical Industry Association of Canada.

“Anyone receiving these fuels is at the mercy of suppliers with no ability to effect the cost of compliance.”

Dave Naylor is the News Editor of the Western Standard
dnaylor@westernstandardonline.com
TWITTER: Twitter.com/nobby7694

Dave Naylor is the News Editor of the Western Standard and the Vice-President: News Division of Western Standard New Media Corp. He has served as the City Editor of the Calgary Sun and has covered Alberta news for nearly 40 years. dnaylor@westernstandardonline.com

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Loophole benching minor hockey in Cochrane

Within hours of sending out the e-mail, Oaten confirmed between 30 and 40 kids had withdrawn from the program.

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Although new restrictions announced this week allow for recreational sports to continue for youth under 18 without proof of vaccination, one minor detail is benching minor hockey players in Cochrane.

Thursday morning, Cochrane Minor Hockey Association (CMHA) President Cory Oaten, was sent an e-mail from Hockey Alberta stating: “…based on Hockey Alberta’s interpretation of current information, minor hockey games and practices can continue, subject to the updated temporary measures that came into effect at 12:01 am this morning.”

However, Friday morning, Oaten was notified by his local facility, Spray Lake Sawmills Family Sports Centre, it would be requiring proof of vaccination for those 12 and older entering the building.

That morning Oaten notified families registered with CMHA of the new requirement and included a provided statement from the facility and assured families the decision was not that of Hockey Alberta or CMHA.

“… all persons entering the Cochrane Arena or SLSFSC (ages 12+) must show proof of full vaccination, proof of a single dose as long as the dose was given more than two weeks ago, a negative test result or a medical doctor approved medical exemption.”

“Tonnes of kids are withdrawing,” Oaten said.

Within hours of sending out the e-mail, Oaten confirmed between 30 and 40 kids had withdrawn from the program.

“I’m not against the vaccines, but I’m pro-choice,” Oaten said.

The Western Standard spoke with one father who pulled his CMHA player as a result of the facility mandates. He requested to remain anonymous.

“Obviously the government is just passing the buck on this and it’s the businesses that are going to take the brunt,” he said.

A father of four children under the age of 12, he was also in line to coach his son’s team, but will not be permitted inside as he is not vaccinated.  

“We’re not the type of parents that are just going to drop our kids off at a facility and leave them unsupervised,” he said, adding those decisions effectively ended his kids’ participation in CMHA’s sports programs.

He said he also has concerns for the liability involved with those businesses being ill-equipped to manage peoples’ sensitive health records.

“Forget the legality of all this. Morally, we just can’t support businesses that take this approach.”

Alberta Country Singer and former health care worker at the Alberta Children’s Hospital, Paul Brandt, took to Facebook on Friday to express his thoughts on the vaccine passport issue.  

Facebook post

“I want to be clear, I am not against vaccines,” his post confirms. “What is troubling to me is this: Why aren’t people who have had COVID and recovered being included in the conversation?”

Brandt’s son is a CMHA player. Both have recovered from COVID-19.

“Why are we not being recognized as people who have adequate immunity?

As of today, my son has also been told by the arena that hosts his hockey association he will not be allowed to participate in sports unless he is vaccinated—even though he has immunity to COVID-19, and is of no greater risk to his peers than anyone else.”

Oaten pointed out that players who have yet to be vaccinated will be eliminated from the important tryouts happening now and, because of wait times between doses and the 14-day waiting period to be considered fully vaccinated, many will miss a chunk of the season.

“It’s about the kids,” said an emotional Oaten.

“What makes me upset is kids are going to have to quit hockey because they don’t want to have to choose a medical procedure in order to play.”

Risdon is a reporter for the Western Standard
mrisdon@westernstandardonline.com

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WS EXCLUSIVE: UCP vice-president calls for emergency meeting to initiate leadership review

“I think we need to carefully consider the option of initiating a leadership review. I believe the future of our party may be at stake.”

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The Western Standard has obtained an email from the vice-president (policy) of Alberta’s United Conservative Party (UCP) calling for an emergency meeting of the province-wide board of directors to discuss a leadership review of Alberta Premier Jason Kenney.

Joel Mullan e-mailed the party’s board of directors at 8:33 pm MST September 17, under the subject line “Leadership review—request for meeting.”

“In light of events this past week, I believe we should meet and therefore request a meeting,” wrote Mullan.

“Specifically, I think we need to carefully consider the option of initiating a leadership review. I believe the future of our party may be at stake.”

The Western Standard spoke to a member of the party’s board of directors who received the e-mail who said—on condition of anonymity—a timely review of Kenney’s leadership has “become inevitable.”

As of publishing it’s not known if the request for an emergency meeting has been accepted by party president Ryan Becker or the board at large.

One day before, the Western Standard reported the UCP constituency association (CA) in Olds-Didsbury-Three Hills voted almost unanimously to trigger a prompt leadership review of Kenney.

The party currently has a review scheduled for late 2022, but that could be within six months of the next election, and for local CA president Robert Smith, that’s not good enough.

By a vote of 27-1, the CA’s board voted to send a letter to the party demanding a review before that as soon as possible, but before next March, said Smith.

“We would love for it to happen tomorrow,” Smith told the Western Standard.

“In talking to people, mainly rural people, it’s fair to say we have no confidence in the premier.”

While the letter was sent on the heels of controversial new COVID-19 lockdown restrictions introduced by Kenney—including the imposition of a vaccine passport—Smith stressed the letter wasn’t as a result of that, but had been brewing for months.

But he said those restrictions could help the momentum to reach the mark of 22 ridings needed to spark a leadership review.

Smith said he gets a sense in talking to other constituency association leaders “critical mass of 22 ridings could have been reached now.

“I feel confident in saying that target can now be met. I’m surprised it hasn’t been met before,” he said.

Clockwise, Jason Nixon, Tyler Shandro, Jason Kenney, Travis Toews, and an unidentified guest on the rooftop patio of the “Sky Palace”

One of the biggest concerns for the board was when the now infamous pictures f Kenney holding an outdoor dinner on the balcony of the “Sky Palace”—in contravention of the government’s of laws, regulations, and guidelines—were published.

“The entitlement and the double standard incensed the board,” said Smith.

In April, a UCP MLA told the Western Standard they are “100% certain” Kenney will be the subject of an early party leadership review.

“Caucus is in total chaos,” said the MLA, who spoke with the Western Standard on the condition of anonymity.

The Western Standard reported earlier there are at least eight ridings now on board for a review.

Even earlier this week there were signs of dissension with the UCP Caucus.

During a tense meeting of caucus Tuesday, three MLAs told Kenney they had “no confidence” in his continued premiership of the province and leadership of the party, multiple sources told the Western Standard.

Sources inside of the caucus told the Western Standard the emergency meeting saw sharp polarization around the issues of putting the province under another lockdown, a potential mandatory vaccine passport, and firing healthcare workers who did not agree to be vaccinated.

According to the MLAs who attended the caucus meeting, three MLAs openly told Kenney they had “no confidence” in him, and several others implied as much using softer language.

The sources all gave the same three names, but none of the three MLAs responded to request for comment or confirmation from the Western Standard.

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THOMSON: An Alberta solution to the drug poisoning crisis

A regulated drug supply is the best deal on offer to shrink public health costs and enforcement budgets and repossess the drug market from organized crime syndicates, while creating good jobs and preserving the lives of thousands of working-age Albertans.

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Dr. Euan Thomson is an entrepreneur, scientist and director of EACH+EVERY, a coalition of over 100 Alberta businesses calling for policy action to end the overdose crisis.

Drug poisoning is the leading cause of death among working-age Albertans, claiming more than 1,800 Albertan lives since the beginning of 2020. Almost all of these people were between the ages of 15 and 60, and people in the trades are vastly overrepresented.

These tragedies are more accurately called poisonings because people typically cannot be certain what they’re taking when they consume illegal drugs. Surviving through an unregulated drug supply is its own small miracle, particularly as elephant-strength synthetic opioids like carfentanil now slip through our sieve-like borders.

Let’s face it: synthetic opioids have extinguished any hope of “winning” the war on drugs, given the entire 2016 American fentanyl supply could fit into a dozen oil drums.

Albertans are free thinkers, and this crisis calls for a made-in-Alberta solution that centres personal autonomy, free enterprise, fiscal responsibility, and a healthy irreverence toward federal power. A century into drug prohibition with nothing to show but accelerating body counts, it is time to regain control through a regulated market.

The idea that in a regulated market, we would walk into corner stores and find crystal meth between the Mentos and Tic Tacs would be laughable if it wasn’t so widely cited. For experimenting adolescents, alcohol is at least as hard to obtain as illegal drugs precisely because its access is controlled—a distinction that also encourages open conversations and harm reduction measures. We can implement regulatory barriers as needed to keep kids safe, but only once we control the supply. For adults, the question is much simpler: shouldn’t we be allowed to put what we want in our bodies?

Decriminalization is the first step toward a legal market. Since decriminalizing drugs 20 years ago, Portugal has among the lowest youth drug use rates in Europe and effectively left its drug poisoning crisis behind. Our federal parties are short on details around their vision for ending Canada’s crisis, but the Western Standard Editorial Board recently gave the federal NDP’s platform section on drug policy the only A-grade for endorsing decriminalization and other measures emphasizing personal autonomy and freedom from harassment by authorities. (For the record, it was one of the only high-scoring parts of the NDP platform from the Western Standard.)

It turns out, people across the political spectrum agree after a hundred years, criminalization has failed to even slow down drug use, let alone end it.

While personal autonomy and market philosophy are intuitive drug policy cornerstones, the fiscal argument is at least as compelling. The Cato Institute reports ending the War on Drugs would eliminate $27 billion USD a year from American enforcement budgets and siphon $40 billion a year from organized crime. For Canada, this translates to billions cut from our enforcement, judicial and incarceration balance sheet and billions added to taxable sales. Meanwhile, reducing hospital visits due to drug poisonings could single-handedly solve the chronic ambulance shortages squeezing our emergency response capacity.

A regulated drug supply is the best deal on offer to shrink public health costs and enforcement budgets and repossess the drug market from organized crime syndicates, while creating good jobs and preserving the lives of thousands of working-age Albertans.

How can we propel this plan against the drag of federal inaction?

First, set up a province-wide exemption from Section 56 of the federal Controlled Drugs and Substances Act to abolish police enforcement of drug possession laws.

Next, support Albertan pilot projects to prescribe safe supply options to encourage more widespread access and choke off the demand for a street supply. Non-profit compassion clubs would cover those who cannot afford their prescriptions, as we saw during cannabis prohibition.

Finally, establish the first provincial Section 55 exemption to allow for drug manufacturing and distribution here at home, a move that would instantly benefit a Lethbridge-based operation and their partners in the nearby Blood Tribe. Alberta Gaming, Liquor & Cannabis already looks after compliance for legal drugs; we can apply similar stringency around labelling on the new products so people know what they’re taking.

Then watch as other provinces struggling with the same crisis adopt this updated, evidence-based Alberta Model; one that aligns compassion for people who use drugs with core values shared by so many in this province: personal autonomy, free enterprise, and fiscal responsibility.

While we’re at it, we can thumb our collective nose at a century of bad federal policy—all together, on brand for Alberta.

Tell your local federal and municipal candidates, as well as your provincial MLA, you want to see your values reflected in our drug policies.

Dr. Euan Thomson is an entrepreneur, scientist and director of EACH+EVERY, a coalition of over 100 Alberta businesses calling for policy action to end the overdose crisis.


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