Categories
Alberta Politics

Remember “Albexit?” Economist and political pundit Jack Mintz to lead UCP economic advisory panel

With the international price of oil taking another nose-dive this week, Premier Jason Kenney announced at a press conference this afternoon that Jack Mintz, a fellow at the School of Public Policy at the University of Calgary and board member of Imperial Oil Limited and Morneau Shepell, will lead the latest in a series of expert panels appointed by the United Conservative Party government.

Mintz’s panel will be tasked with providing economic advice to the government in light of the recent drop in oil prices. Mintz tweeted the idea about 5 hours before Kenney announced it, leaving political observers to wonder which came first: the tweet or the appointment?

The challenges facing Alberta has been clear for a long time: the Alberta government is over-reliant on revenues from unreliable oil and gas royalties to fund the daily operations of government. This has been the case for decades, including all the previous times the international price of oil has collapsed, leaving the province in an economic crisis.

The need to find alternative revenue streams is something the UCP and previous governments have been unable to accept or accomplish.

Kenney has already said a provincial sales tax is off the table, so a major solution favoured by many economist is likely a non-starter.

Mintz’s views about government spending and economics are no secret in Alberta, nor are they to Conservative politicians and political leaders who he has lent his advice to in the past. While it might be unfair to prejudge Mintz’s yet-to-be-named panel, it would be a great surprise if a strong dose of austerity, privatization, or a version of Janice MacKinnon’s Report on steroids were not included in its advice.

As one of the province’s most prominent conservative economists his appointment to lead this panel is probably predictable, but it is his political views that make the choice more interesting.

For years, Mintz has moonlighted as a political pundit in the pages of the Postmedia-owned Financial Post, penning a regular opinion column that has included some fairly cringeworthy claims targeting Prime Minister Justin Trudeau‘s federal Liberal government, Alberta’s former New Democratic Party government and, more recently, providing fuel for supporters of Wexit and Alberta’s separation from Canada.

A column published in June 2015 aimed at the newly elected government of then-premier Rachel Notley claimed at “Alberta is not yet Greece, but it’s heading along that path,” in reference to the Greek economic crisis of the mid-2010s.

In “Alberta has better reasons to Albexit than Britain did for Brexit,” published in December 2018, claimed that “if Brexit happened, then Albexit is just as possible” and “[w]hatever negatives Alberta would face are easily swamped by the positives that would come with separation.”

And a recent column following Mintz’s participation at a right-wing political conference focused on Alberta separatism touted a “nuclear option” and ended with the claim that “…Albertans are looking for the shackles to be taken off.”

While the advice given by Mintz’s panel will certainly be of interest to many Albertans, how his own political views are reflected in the recommendations might be just as interesting, and concerning, to watch.

Categories
Alberta Politics

What the heck is a Wexit?

It’s a silly name and a bad idea, but that isn’t stopping the latest version of Alberta’s separatist movement: Wexit.

Apparently inspired by Brexit, Grexit, Albexit, and a long list of other “-exit” suffix terms that have entered our daily conversations over the past few years, Wexit (Western-exit, I assume) has been holding meetings across the province promoting an agenda for an independent Alberta to “Enhance economic, military, and geo-political cooperation with the United States of America” and for a “Head of state to be an elected President of Alberta with an appointed cabinet.”

Peter Downing Wexit leader
Peter Downing

The Wexit Alberta group appears to be part of something called the “Prairie Freedom Movement,” a group who’s website promotes near identically branded “Wexit Saskatchewan”, Wexit Manitoba, and “Saskatchewan Fights Back” groups.

The Wexit group’s Alberta-branch is led by past Christian Heritage Party candidate Peter Downing, who is also the executive director of Alberta Fights Back, a third party political advertiser responsible for billboards that ask if Canada is headed for a civil war and a recent clash with Edmonton’s nude cyclist community.

One of the largest donors to Alberta Fights Back during Alberta’s 2019 election was Sharon Maclise, a former Wildrose Party candidate and interim leader of the Alberta Freedom Alliance, an unregistered political party promoting Alberta’s separation from Canada.

The Wexit group’s main grievances appear to revolve mainly around Justin Trudeau being Prime Minister, the carbon tax, unemployment levels, and the delay in construction of the Trans-Mountain Pipeline expansion (which is now owned by the Government of Canada). But the grievances are broader among some of the group’s supporters, including one guest speaker at a recent Wexit meeting in Red Deer who named American billionaire George Soros and Antifa as enemies of Alberta.

It is not clear how many people have actually attended the Wexit meetings, but it is not difficult to understand why separatists in western Canada feel emboldened these days.

Heated political rhetoric coming from Alberta Premier Jason Kenney and his cabinet ministers about the threat posed to Alberta by Trudeau, socialists, Quebec, equalization, and nefarious foreign-funded environmental groups adds fuel to the flames of those who feel Alberta has no place in Canada or would actively campaign for separation. Kenney quickly tried to rebuke any criticism that he is anything but a dedicated federalist, but it is clear that he is stoking regional grievances in order to achieve his short-term political goal of defeating Trudeau’s Liberals in October’s federal election.

Jay Hill (photo credit: Jake Wright)

The Wexit groups also have the support of some of Kenney’s former Ottawa colleagues, including former British Columbia Member of Parliament and former Jim Prentice confidant Jay Hill, who appears to have relaunched his political career as an advocate of Alberta separatism, and former Saskatchewan MP and MLA Allan Kerpan. Hill and Kerpan are the keynote speakers at a pro-separatist event scheduled to be held in Lloydminster on August 24, 2019.

With the exception of a single by-election win for the Western Canada Concept in February 1982, separatist groups like the Independent Alberta Association, West-Fed, Western Canada Party, Western Independence Party, Alberta First Party, Separation Party of Alberta, Alberta Advantage Party, Alberta Independence Party and the Freedom Conservative Party have firmly occupied the right-wing fringes of Alberta politics.

Downing has announced his plans to run for the leadership of the Alberta Independence Party, which ran 63 candidates in the 2019 election and earned 0.7 per cent of the vote. In a post on Facebook, Downing wrote that he has spoken with Freedom Conservative Party president Stephen Burry about a merger of the two parties. The FCP was known as the Separation Party of Alberta and the Alberta First Party before former UCP MLA Derek Fildebrandt led it into the 2019 election to earn 0.5 per cent of the vote. 

At this point, the total lack of a viable political party, legitimate plan for separation, and any real electoral support from Albertans for the separatist agenda is a big challenge for those who dream of one-day creating a landlocked prairie petro-republic.

Categories
Alberta Politics

Alberta Separatism is the political equivalent of a toddler’s temper tantrum. It’s embarrassing and a bad idea.

Reading the pages of the Postmedia newspapers or the #ableg hashtag on Twitter you might believe that Albertans from roughneck Fort McMurray to trendy Kensington are calling for Independence and rising up in arms against their political overlords in Ottawa. 

Nope.

A flurry of recent opinion-editorials and columns in the pages of Canada’s Postmedia newspapers have been fanning the flames of discontent and frustration in Alberta. The discontent and perennial alienation from Ottawa is mostly a result of the economic slump and a delay in the expansion of the Trans Mountain Pipeline, but it is difficult to believe that there is any real appetite for Albertans to leave Canada, and the consequences that would follow.

University of Calgary economist Jack Mintz wrote in the Financial Post newspapers this week that an “Albexit” could draw inspiration from the United Kingdom’s disastrous “Brexit” from the European Union. Mintz drew inspiration from another European dumpster fire in 2015 when he penned another cringeworthy Financial Post op-ed predicting that “Alberta is not yet Greece, but it’s heading along that path.”

Three years later, Alberta is not Greece and probably should not be looking to Brexit for inspiration.

The arguments for Alberta’s separation from Canada are so weak and the concept of forming an Alberta Republic is so ridiculous that even the thought of writing this article made me cringe. It is the political equivalent of a toddler’s temper tantrum. But because I am a sucker for punishment, here I go.

Among the many of the disastrous consequences of Alberta leaving Canada would be that it would become virtually impossible to get any new pipelines constructed to the deep water ports that pipeline proponents argue the province’s oil industry needs. 

If you believe it has already been acrimonious to get the Trans Mountain Pipeline expansion built in two provinces, just imagine how difficult it would be to negotiate a pipeline project with a suddenly hostile foreign government, whether it be the prime minister of Canada in Ottawa or the president of the Pacific Republic of British Columbia in Victoria. Not to mention the inconvenient fact that the Government of Canada actually owns said pipeline and its expansion project.

Some will argue that the United States of America would open its borders to Alberta or even welcome it as the 51st State, but it seems unlikely that the American government would want to antagonize Ottawa by dealing with a landlocked rogue nation and cause trouble on it’s northern borders.

American corporations already dominate our economy, which saves the US government the messy business of having to govern us. And the likelihood that most Albertans would be inclined to vote for the Democratic Party would also make the statehood route less appealing for many in America’s political establishment.

The Canadian Government saved Trans Mountain by purchasing the pipeline and the expansion project just as Texas-based Kinder Morgan Inc. was preparing to withdraw their application for expansion. The government of Liberal Prime Minister Justin Trudeau paid $4.5 billion for the pipeline and project, and it is expected Ottawa could spend another $7 billion on the project after it meets the necessary conditions set by the Federal Court of Appeal. 

The Federal Court of Appeal ordered a stop to the project in August 2018 after the National Energy Board and federal government failed to conduct a proper environmental impact assessment of the increase of marine traffic and failed to properly consult First Nations communities along the route in the final phase of the approval process. 

While Trudeau clearly sees the pipeline expansion as a national priority worth spending serious political and real financial capital on, it is unlikely to bring him positive electoral returns in Alberta in 2019. Despite purchasing the pipeline, ensuring it will be built, and announcing $1.6 billion in loans and financial support to the oil and gas industry, support for Trudeau in Alberta has dropped like a lead balloon.

We didn’t ask for the opportunity to go further into debt as a means of addressing this problem,” Alberta Premier Rachel Notley said in response to the federal government’s bailout package.

It is unclear what Alberta’s politicians want to be done in the meantime. Many are calling the pipeline the only solution to Alberta’s economic problems. The big problem with that argument, if you believe pipelines are the solution, is that even if the Trans Mountain expansion project meets the conditions set by the Federal Court of Appeal in 2019 it might not actually be finished construction until 2022 or 2023. And even if other failed pipeline projects are resurrected, they might take even longer to complete.

That a Prime Minister named Trudeau is not popular in Alberta is no shock. The ingrained hatred for Trudeau and his father in the minds of many Albertans ensures that no matter what the Liberal government in Ottawa does to support our province, it will be seen as either a failure or a hostile attack.

While separatist sentiments bubble up in Alberta politics every decade or so, the last serious political push happened more than 35 years ago, when Western Canada Concept candidate Gordon Kesler won a February 17, 1982 by-election in the former Social Credit fortress of Olds-Didsbury.

The separatist MLA said at his swearing-in ceremony that he had “a lot of responsibility to those who believe in freedom and free enterprise,” but then spent the next few months in the Assembly railing against the metric system and official bilingualism. He and his party were crushed by Peter Lougheed’s Progressive Conservative juggernaut in the November 1982 general election.

Other separatist parties have come and gone since, but they have all faded in the right-wing fringes of Alberta politics.

And with provincial and federal general elections expected to be held in the next 10 months, Conservative Party leader Jason Kenney and federal opposition leader Andrew Scheer are only too happy to stoke the flames or western alienation and resentment over pipelines, equalization payments, and new energy regulations included in Bill C-69: An Act to enact the Impact Assessment Act and the Canadian Energy Regulator Act, to amend the Navigation Protection Act and to make consequential amendments to other Acts.

Meanwhile, outside of the margins of conservative opinion writers and anonymous twitter accounts, two recent polls show that while Albertans might be a little angrier, support for separation remains consistently low.

A recent poll conducted by the research company Ipsos found that “Albertans are a little angrier at the moment, but across the west there is little interest in separation and most measures of connection to Canada are consistent with prior polls taken conducted as long ago as 1997.

The level of support for the idea of an independent Alberta is roughly the same as it was in surveys conducted in 2014 and 2016,” said Mario Canseco, President of Research Co. “Four years ago, with a Progressive Conservative government in Edmonton and a Conservative government in Ottawa, the findings were similar to what is observed in 2018.”

The vast majority of Albertans remain proud Canadians regardless of which party has been elected to run the government in Ottawa. The frustration felt by many Albertans towards Ottawa over pipelines construction delays and the low international price of oil should not be ignored, but let’s not pretend that separating from Canada is a viable solution to our economic problems, because it’s not.