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Alberta Politics Daveberta Podcast

Episode 51: A new Alberta. Responding to COVID-19 and Oil Crash with Chris Henderson.

Wash your hands, don’t touch your face, stay at home.

The spread of the COVID-19 pandemic and the plummeting price of oil has sent shockwaves through Alberta politics over the past two weeks.

Chris Henderson, Chief Strategist and Partner at Y Station Communications and Research, joins Dave Cournoyer and Adam Rozenhart on the Daveberta Podcast to try to make sense of the rapidly changing political landscape in Alberta and Canada.

Chris reflects on how political leaders Jason Kenney, Justin Trudeau and Donald Trump are responding to the crisis and shares some of the results from Y Station’s recent polling of Albertans on COVID-19 issues.

The Daveberta Podcast is a member of the Alberta Podcast Network, powered by ATB. The Alberta Podcast Network includes more than 30 great made-in-Alberta podcasts.

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Accolades: The Daveberta Podcast is the winner in the Outstanding News & Current Affairs Series category in the 2020 Canadian Podcast Awards. Thanks to everyone who voted for and continues to listen to our made-in-Alberta politics podcast.

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Alberta Politics

COVID-19 overtakes plummeting oil prices as biggest worry in Alberta this week

A week ago, Alberta’s politicians were reeling from another spectacular drop in the international price of oil and debating what that could mean for the province’s budget. Coronavirus, or COVID-19, felt like a distant threat seven days ago, but that is not the case tonight.

The provincial government announced today that all classes at Kindergarten to Grade 12 schools and in-person classes at post-secondary institutions are cancelled until further notice and that daycares and pre-schools would be closed as measures to avoid spreading the virus, which has been confirmed to have infected 56 Albertans.

The closures will certainly send many families scrambling to make childcare arrangements for tomorrow morning, but was likely a necessary decision.

The City of Calgary has declared a local state of emergency, though city manager David Duckworth is quoted as saying that, as of Tuesday, City employees who need to stay home to look after their children will have to use banked time or vacation time. This feels like the kind of unpopular decision that the City will be forced to walk back in the next 48 hours, similar to the public shaming the Calgary Flames received over the weekend.

Working Albertans forced to stay home because they are sick or need to take care of their children because of the school closures should not only be assured their job security, they should be assured their pay.

A period of social distancing is upon us and it is necessary.

The House of Commons and other provincial legislatures have announced plans to suspend their current sittings in order to avoid playing a role in spreading the virus. Sophie Gregoire-Trudeau, the wife of Prime Minister Justin Trudeau, was diagnosed with COVID-19. Edmonton Members of Parliament Michael Cooper and Kerry Diotte recently attended the Conservative Political Action Conference in Washington D.C., where an attendee was later diagnosed with COVID-19.

Political watchers in Alberta will be watching to see if similar measures are taken when our Alberta Legislature reconvenes tomorrow.

The United Conservative Party government of Premier Jason Kenney is in the midst of pushing its budget through the legislative committee process, but the decline in the price of oil, the COVID-19 pandemic and the government’s decision today to pour an additional $500 million into public health care, means the budget tabled by Finance Minister Travis Toews two weeks ago is unrecognizable and unneeded.

The UCP government should completely halt its austerity agenda of cuts and layoffs, which has already resulted in thousands of public sector job cuts, and focus on supporting Alberta’s public sector workers as they play a critical role in facing this global pandemic.

What should Albertans do?

Listen and trust the advice of public health professionals. Alberta’s Chief Medical Officer of Health Dr. Deena Hinshaw continues to do an excellent job presenting her daily public updates in a clear, concise and plain-spoken manner.

It is important for all of us to take this situation seriously.

Practice social distancing, stay home if you are sick, wash your hands, don’t touch your face, clean your phone. Just as importantly, be kind and reach out to friends, family and neighbours who might be having a difficult time. We can get through this.

Also, pick up your phone, call or email your MLA and tell the government to stop picking fights with Alberta’s nurses, doctors, and health care workers – the public sector workers on the frontline of the COVID-19 pandemic.

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Alberta Politics

Alberta Budget 2020: This is no way to run a household.

It will probably be no surprise to readers that I am not a fan of the United Conservative Party’s budget tabled this week in the Legislature by Finance Minister Travis Toews. It includes short-sighted cuts to public health care, public education and public services that will have a detrimental impact on Albertans and lead to thousands of job losses across the province.

But my key criticism of this budget is close to the same I have given to budgets presented by former finance ministers Joe Ceci, Robin Campbell, Doug Horner, Ted Morton and Iris Evans: Alberta needs to stop over-relying on revenues from oil and gas royalties to pay for the daily operations of government.

The budget does not deal with the big financial problems facing Alberta.

Premier Jason Kenney frequently claims that Alberta is “broke,” but the budget documents plainly explain that our provincial government collects the lowest levels of taxes in Canada. We are also the only province without a sales tax, a solution that could relieve some of our government’s over-dependence on oil and gas, a revenue source determined by international prices.

The UCP budget actually increases its projected dependence on oil and gas royalties, growing from 10 percent of revenues to 15 percent by the 2022-2023 budget. When the international price of oil plummeted in 2014, it left an estimated $7 billion hole in the Alberta government’s revenue stream.

Kenney, like premiers Rachel Notley, Jim Prentice, Alison Redford, and Ed Stelmach before him, is praying for the international price of oil to rise and return an economic boom to Alberta.

The international price of oil, and our government’s chronic over-reliance on the oil revenues generated by it, is the source of much of the economic and political malaise we now find ourselves in.

The UCP also cut corporate taxes for the province’s wealthiest corporations, to the tune of $4.7 billion, according to the opposition.

With a single-minded focus on reducing spending, regardless of the jobs lost and the cost to Albertans’ quality of life, it appears highly unlikely that Alberta’s revenue stream will be looked at as long as Kenney, a founding spokesperson for the Canadian Taxpayers Federation, occupies the Premier’s Office.

While responsible investment of public funds is a goal that should transcend party-lines, the UCP government’s hand-picked panel to study Alberta’s finances was expressly limited to recommend changes to spending, not revenue.

Supporters of conservative parties frequently compare government finances to a household budget as justification for cuts to public services. Comparing a government budget to a household budget is a flawed analogy for many reasons, but it is has become a familiar narrative in Canadian politics.

If the Government of Alberta was a household, it’s overdraft and line of credit would partially be the result of someone purposely taking a lower paid job (stable taxation revenue) and instead relying on lottery tickets or inheritance from dead relatives (unpredictable oil and gas revenues) to pay the bills and keep the family fed.

This is no way to run a household.