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Daveberta Podcast

Episode 59: The Fiscal Reckoning and Alberta’s 70-year old Revenue Problems

After a very eventful summer in Alberta politics, Dave and Adam tackle big questions about Alberta’s fiscal challenges (and revenue problems) and Premier Jason Kenney’s promised ” fiscal reckoning,” the mini-cabinet shuffle, Erin O’Toole’s win in the Conservative Party of Canada leadership race, what a return to school during a global pandemic looks like, and more. We also answer some great questions submitted by listeners.

Thank you to everyone who submitted recommendations for the Alberta Politics Summer Reading List. With summer coming to an end, now is time to start thinking about what Alberta politics books you want to read while cozying up next to a warm fire this fall.

The Daveberta Podcast is a member of the Alberta Podcast Network: Locally grown. Community supported. The Alberta Podcast Network includes dozens of great made-in-Alberta podcasts.

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Alberta Politics

Jim Prentice appoints another Pipeline Obsessed Cabinet

Jim Prentice Pipeline Cabinet Oil Sands
Members of the PC cabinet, elected and non-elected, stand preparing to be sworn-in to their new jobs at Government House today.

As he prepared to be sworn-in as the 16th Premier of Alberta at Government House today, Jim Prentice aimed to project the image of a leader who is in command and in control of the situation. And today’s tightly controlled cabinet shuffle achieved that goal. Unlike previous cabinet shuffles, the news around today’s appointments was tightly sealed, with no leaks to the media to spoil Mr. Prentice’s opening day as Premier.

Jim Prentice Alberta PC Party Premier Leader
Jim Prentice

But did Mr. Prentice really give Albertans the change he promised with this cabinet shuffle? There are a few new faces in top positions and two unelected cabinet ministers from outside the Legislative Assembly, but at least fifteen of the twenty cabinet ministers previously served in the cabinets of Premier Alison Redford or Dave Hancock.

Without appointing a larger group of unelected cabinet ministers, he had little choice but to draw on the current pool of PC MLAs. If Albertans really want to see change in their government, they will have to do what people in every other province do from time to time: elect a new party to form government.

Viewed as having the endorsement of Corporate Calgary’s Oil Executives, Mr. Prentice’s choices for cabinet sends a message that the construction and expansion of oil sands pipelines will remain a priority for the Progressive Conservatives.

Frank Oberle MLA Peace River
Frank Oberle

As well as being Premier, Mr. Prentice takes on the role of Aboriginal Affairs and Intergovernmental Affairs, both important roles when dealing with the construction of Enbridge’s proposed Northern Gateway Pipeline through northern British Columbia and the TransCanada Energy East Pipeline to New Brunswick.

The Northern Gateway Pipeline, which would pump raw bitumen from Alberta’s oil sands to the port city of Kitimat, is facing stiff opposition in Alberta’s neighbouring province, especially from First Nations and environmental groups. Before entering the PC Party leadership race, Mr. Prentice worked for Enbridge as an envoy to B.C.’s First Nations communities.

Teresa Woo-Paw, the two-term MLA from north Calgary, is now the Associate Minister for Asia-Pacific Relations, an important position as the proposed pipeline would send Alberta’s raw bitumen to be refined and processed in Asia (likely in the People’s Republic of China).

Teresa Woo Paw MLA
Teresa Woo-Paw

How Mr. Prentice and Ms. Woo-Paw approach Alberta’s trade relations with Asian countries will also seal the fate of former cabinet minister Gary Mar, who was appointed as Alberta’s representative in Hong Kong after he was defeated in the 2011 Progressive Conservative leadership contest.

Expenses related to Mr. Mar’s patronage appointment have been harshly criticized by the opposition parties.

During Ms. Redford’s time as Premier, the Government of Alberta expanded trade operations in Asia, operating offices in China, Taiwan, Japan and South Korea. A new trade office was opened last year in Singapore and another will soon open in Mumbai, India.

Third-term Peace River MLA Frank Oberle is now Alberta’s Energy minister. It is unclear how Mr. Oberle will approach the role differently than his predecessors, but his connections to northern British Columbia may play a role in the government’s focus on Enbridge’s Northern Gateway Pipeline. Mr. Oberle’s father, Frank Oberle Sr. was the Member of Parliament for Prince George-Peace River from 1972 to 1993, serving as Minister of Forestry under Prime Minister Brian Mulroney.

Kyle Fawcett MLA Calgary-Klein
Kyle Fawcett

His past relations with northern Albertans opposed to nuclear development may be an indication to how the new energy minister plans to approach opposition to pipeline expansion.

Serving as the defacto junior energy minister, Calgary MLA Kyle Fawcett was appointed as Environment & Sustainable Resource Development. Prone to embarrassing outbursts, Mr. “Leaky” Fawcett’s appointment suggests that Mr. Prentice might not be serious about tackling climate change and environmental issues linked to natural resource development.

The Auditor General reported in July that the Alberta Government has not been monitored its climate change targets and that its expensive carbon capture program is nowhere near meeting its targets for emission reductions. I sincerely hope that Mr. Fawcett sees his role as environment minister as more than a public relations activity for the government’s oil sands and pipeline expansion agenda.

On the environment and energy file, actions will speak louder than cabinet appointments.

Unelected Cabinet Ministers

Stephen Mandel Edmonton
Stephen Mandel

Mr. Prentice handed the helm of two very important ministries to individuals who have never been elected to the Alberta Legislature. Former Edmonton Mayor Stephen Mandel, 69, and former Saskatchewan cabinet minister Gordon Dirks, 67, were appointed to cabinet as Minister of Health and Minister of Education.

Mr. Mandel remains popular among many Edmontonians, and is expected to run in a by-election in Edmonton-Whitemud, the southwest Edmonton constituency made vacant following Mr. Hancock’s resignation last week. His tendency to show thin-skin when he does not get his way may prove challenging when having to compromise with his new cabinet and caucus colleagues, or his political opponents.

Mr. Dirks’ affiliations with a socially conservative evangelical church have raised the ire of his critics, who worry these views may impact his support of secular public education in Alberta. The appointment of the former Calgary Board of Education trustee and 1980s Saskatchewan politician was unexpected, to say the least.

It is suspected that Mr. Dirks will run for the PC Party nomination in the impending Calgary-Elbow by-election, triggered by Ms. Redford’s departure from political life. The nomination is also being contested by long-time PC Party activist Pat Walsh.

Who’s not welcome in Prentice’s cabinet?

Thomas Lukaszuk Alberta Edmonton MLA PC Leadership
Thomas Lukaszuk

Thomas Lukaszuk, Fred Horne, Doug Griffiths, Ken Hughes, Sandra Jansen are all names that many Albertans have become familiar with over the past few years. These former senior cabinet ministers will now occupy seats in the backbenches (and have their offices relocated from prime real estate in the Legislature Building to the aging and stuffy Legislature Annex).

Also demoted were former Finance minister Doug Horner, who will take on the role of “trade advisor” for the Premier and former International Affairs minister Cal Dallas, who will now serve as a “Legislative Secretary” for intergovernmental relations.

The resignation of Mr. Hancock last week took many political watchers by surprise. I am told by sources in the PC Party that Premier Hancock was informed by his party’s new leader that he would not be appointed to cabinet if he chose to remain as an MLA.

Categories
Alberta Politics

Alberta rep in USA pitched climate change strategy – days before AG ripped it apart

South Portland Maine Alberta Canada Oil Sands Crude
The Seal of South Portland, Maine.

What’s going on in South Portland, Maine? Elected officials in the port city are on the verge of banning crude oil from Canada’s tar sands from entering their port. With a large and busy port, South Portland is the home of the Portland-Montreal Pipe Line, which pumps millions of barrels of oil each year.

According to PressHerald.com, the proposal to “ban tar sands oil from coming into the city won the Planning Board’s endorsement.. The board voted 6-1 to recommend that the City Council approve the proposal…

The proposal would prohibit loading crude oil, including oil sands, in bulk onto tankers and block construction or expansion of port terminals for that purpose.

A public hearing on the ban held on on July 9 attracted more than 500 people, including Alberta’s Representative in Washington D.C., former Canadian Association of Petroleum Producers President David Manning. Standing at the microphone, Mr. Manning defended Alberta’s oil sands, citing the Alberta government’s climate change and carbon capture strategies (see video above).

While Mr. Manning was likely just sticking to government’s standard talking points memo, the examples he cited were unfortunately timed.

Last week, Alberta’s Auditor General ripped into the provincial government, claiming he found no evidence the Department of Environment and Sustainable Resource Development properly monitored the performance the provincial government’s six year old climate change strategy. The Auditor General also criticized Alberta’s carbon capture program, saying that “with only two carbon capture and storage projects planned, the total emissions reductions are expected to be less than 10% of what was originally anticipated.”

As stewards of the land in which the oil sands are located, Canadians need to approach this debate intelligently and ensure that our politicians put the best interests of current and future citizens as priority. As the long-governing Progressive Conservative Party is expected to coronate Jim Prentice as Alberta’s next premier, Albertans should pray that our new leader looks to the wisdom of former Premier Peter Lougheed, rather than blindly preaching the status-quo of bad planning and limitless export.

Canada’s oil sands have become a lightning rod in American politics, and not just in regions impacted by controversial pipeline projects like the Keystone XL pipeline. Over the past months, protests and petitions against oil sands crude have made headlines across the New England states.

While there is no doubt that oil sands exploitation continues to produce significant environmental impacts, there are natural resources that cause a much larger impact – like dirty coal.

It is unclear whether there were ever any plans to ship crude oil from Canada’s oil sands to South Portland or whether the municipal ban would actually stop any shipment. But with the debate around Canada’s oil sands expected to be a hot-button issue in the American mid-term election season, expect there to be more debates like the one being held in South Portland, Maine.