Tag Archives: Little Bow

Finance Minister Joe Ceci presents the Alberta NDP's first budget.

Sky does not fall as Alberta NDP presents its first budget

When Finance Minister Joe Ceci stood in the Legislature on Oct. 27 to deliver the Alberta NDP’s first budget, it marked the first time since 1972 that the budget was not tabled by a Progressive Conservative finance minister.

Rachel Notley Alberta NDP leader

Rachel Notley

The first budget of Premier Rachel Notley‘s NDP government includes a 15 percent increase in capital spending over the next five years, with a goal to create jobs and tackle the province’s aging and neglected hospitals, schools, roads and other public infrastructure.

The NDP budget includes modest increases and projected stable funding for health care, education, advanced education and human services – core services that Albertans depend on. This was a key component of the election platform that helped propel the NDP into government on May 5. The job creation and economic stimulus elements of the budget followed last week’s creation of an Economic Development and Trade portfolio, led by Edmonton MLA Deron Bilous.

Deron Bilous Edmonton Alberta MLA Minister

Deron Bilous Edmonton Alberta MLA Minister

A projected $6.1 billion deficit in the NDP budget is larger than the $5 billion deficit presented in the Tory spring budget, which was tabled but never passed. But the Alberta government’s eighth consecutive deficit budget is “…hardly sky is falling territory,” wrote University of Calgary economist Trevor Tombe in Maclean’s Magazine this week.

While not trivial, obviously, it is completely manageable. Alberta is fully able to handle it and no one need panic. It represents 1.8 per cent of the province’s GDP, which is fairly small, as far as some deficits go,” Dr. Tombe wrote.

The NDP government will borrow to pay for parts of its operations budget starting next year, which will hopefully be a short-term move. Decades of bad financial management and poor long-term planning by the previous conservative government has exacerbated the provincial government’s current fiscal situation. The PCs simply became too comfortable and dependent on unreliable revenue from natural resource royalties to fund the province’s operations budget.

Jim Prentice Alberta Premier

Jim Prentice

Mr. Ceci also announced that the government would legislate a debt ceiling of 15 percent debt-to-GDP in order to hold off a risk of credit downgrades and higher debt service costs.

Former premier Jim Prentice was correct last year when he warned about getting “off the royalty roller coaster.” The Alberta government faces serious revenue problems and moving Alberta away from its over dependence on resource revenue will be a significant test of Ms. Notley’s first term in government.

Any plan to deal with the revenue problem will likely come after the government receives a much anticipated report from the royalty review panel chaired by ATB President and CEO Dave Mowat. The panel is expected to finalize its recommendations by the end of the year. But it will not be enough to simply wait for the international price of oil to rise again. Albertans need to have a serious conversation about revenue and taxation, including the potential introduction of a provincial sales tax.

Derek Fildebrandt Alberta Taxpayers

Derek Fildebrandt

To no ones surprise, Wildrose Party leader Brian Jean and finance critic Derek Fildebrandt responded to the NDP budget with outrage and a message filled with apocalyptic rhetoric.

Mr. Jean’s post-budget press conference was somewhat overshadowed by Mr. Fildebrandt’s bizarre decision to refuse to answer a question from Globe & Mail reporter Carrie Tait (see the ~8:50 mark in this video). Mr. Fildebrandt is sour from a recent interview Ms. Tait published in which she quotes him as claiming the NDP duped Alberta voters by actually implementing promises made during the election (and he later referred to Ms. Tait as a b-list reporter and accused her of auditioning for a job in the Premier’s Office – a comment he later retracted).

Brian Jean Wildrose

Brian Jean

A joint opinion-editorial written by Wildrose MLAs Rick Strankman (Drumheller-Stettler), Grant Hunter (Cardston-Taber-Warner), and Don MacIntyre (Innisfail-Sylvan Lake) and Dave Schneider (Little Bow) and circulated to rural weekly newspapers in September 2015 provides some sense of how that party would approach provincial budgeting if elected to government:

“When governments borrow and spend, there’s no marketable asset. There’s only debt. It’s like using a credit card to buy pizza. Even when governments borrow to spend on bridges and highways rather than programs, the debt is still not connected to a marketable asset. It’s a liability. Mortgages can be liquidated. Houses can be sold. Who buys used government bridges and worn-out highways?”

This is a crude ideological approach to public governance. Using capital financing to pay for the construction and maintenance of public infrastructure like hospitals, schools, bridges and roads is nothing like using a credit card to buy a pizza.

The Alberta NDP’s first provincial budget is sensible and reflects the thoughtful approach that has defined the first six months of Ms. Notley’s tenure as Alberta’s Premier. Rather than follow a disastrous road taken by some of her predecessors, and slash funding to government services while the price of oil is low, the NDP government is taking an opportunity to invest in much needed public infrastructure when the economy is slow and the price is right. It’s not a brand new approach in Alberta politics, but it is refreshing to see a government focus on building rather than tearing down.

Alberta's Legislature

Alberta Election 2015 By The Numbers

Date of Alberta’s 2015 election: May 5, 2015
Date of Alberta’s 2016 fixed-election:
Between March 1 and May 31, 2016
Total number of votes cast in the 2015 election (unofficial results)
: 1,486,877
Total number of votes cast in the 2012 election (unofficial results): 1,290,223
Constituency with highest voter turnout: 68.07% in Drayton Valley-Devon
Constituency with lowest voter turnout: 40.8% in Fort McMurray-Wood Buffalo
Total number of re-elected MLAs: 13*
Total number of new MLAs: 74*
Newly elected MLAs in the Government Caucus: 49
Newly elected MLAs in the Opposition: 20 (18 Wildrose, 1 PC and 1 Alberta Party)
Number of women in the Government Caucus: 25* out of 53 MLAs (47% of the NDP Caucus)
Number of women in the Opposition Caucuses: 3*
Number of MLA resignations since May 5, 2015: 1 (Jim Prentice in Calgary-Foothills)
Number of tied races: 1 (*Calgary-Glenmore, pending a recount)
Most votes for a candidate: 15,350 for the NDP’s Marlin Schmidt in Edmonton-Gold Bar
Highest percentage of votes for a candidate: 82.4% for Rachel Notley in Edmonton-Strathcona
Longest serving re-elected MLA: Brian Mason, NDP MLA for Edmonton-Highlands-Norwood first elected in 2000.
Closest race that is not a tie: Little Bow with a margin of 12 votes (recount pending)
Youngest elected MLA: Thomas Dang, 20 years old, was elected in Edmonton-South West.
Total vote for the NDP in 2015603,461
Total vote for the NDP in 2012126,752
Total vote for the Wildrose Party in 2015
360,101
Total vote for the Wildrose Party in 2012
442,429
Total vote for the PC Party in 2015:
412,955
Total vote for the PC Party in 2012:
567,312
Total vote for the Liberal Party in 2015: 
62,171
Total vote for the Liberal Party in 2012: 
127,645
Total vote for the Alberta Party in 2015: 33,867
Total vote for the Alberta Party in 2012:
16,959

As 2 more Wildrose MLAs leave, can Danielle Smith’s leadership survive?

Alberta Wildrose Caucus MLA

After three departures in the past month, the Wildrose Caucus is now down to 14 MLAs,

Last week, the wheels were falling off the Wildrose bus. This week, the passengers have flung open the emergency exits and started leaping out into traffic.

The Wildrose Official Opposition started the month of November with 17 MLAs and might be ending it with only fourteen. Today, Progressive Conservative leader Jim Prentice, flanked by Little Bow MLA Ian Donovan and Innisfail-Sylvan Lake MLA Kerry Towle, announced at an afternoon press conference that the two Wildrose MLAs were joining the PC Government Caucus.

Ian Donovan David Eggen MLA

Ian Donovan and NDP MLA David Eggen protesting the closure of the Little Bow Health Centre at a rally in front of Alison Redford’s constituency office on August 14, 2012.

Even though he led the fight against the closure of the Little Bow Health Centre in Carmangay in 2012, Mr. Donovan’s departure did not come as a complete surprise (as was noted in my previous post). Ms. Towle’s departure was tougher to predict, as she had been one of the loudest Wildrose critics of the PC Party since she unseated cabinet minister Luke Ouellette in the 2012 election.

The floor-crossings come at the end of a tumultuous month for Danielle Smith’s Wildrose Party, which began with the sting of defeat in four by-elections and the departure of Rimbey-Rocky Mountain House-Sundre MLA Joe Anglin, who now sits as an Independent MLA.

Kerry Towle

Kerry Towle

Ms. Smith tried to demonstrate her party had modernized at its recent annual meeting but was sideswiped by angry conservative activists, who voted down a motion recognizing equality for specific minority groups and then blamed the media for the party’s poor reputation.

The loss of three MLAs in such a short period of time raises questions about Ms. Smith’s future as leader. As the party’s most recognizable face, she is one of her party’s strongest assets. But if more MLAs decide to leave her caucus and the internal turmoil continues, will her leadership survive until the next general election?

Jim Prentice Premier Alberta

Jim Prentice

Since becoming PC Party leader in September, Mr. Prentice has strived to distance his party from the toxic memory of Alison Redford and Ed Stelmach. He has skillfully robbed the Wildrose of its strongest talking points by proposing the repeal of unpopular property rights laws, stalling the closure of the Michener Centre, announcing the sale of the government’s fleet of airplanes, firing cabinet ministers too closely associated with the previous leader and a handful of other lightening rod issues.

He also has deep roots in Canada’s Conservative establishment, serving as a federal cabinet minister in Ottawa and as a bank executive on Bay Street. And the PCs are using Mr. Prentice’s Tory credibility to invite former Tory supporters in the Wildrose party back under their big tent.

Mr. Prentice has started strong and still has plenty of time to stumble, especially with the prospect of declining natural resource revenues, which leads me to believe a provincial election may come sooner than the fixed date of Spring 2016.

Ken Boessenkool

Ken Boessenkool

The temptation to take advantage of a crumbling official opposition, which could lead to a lack of vote splitting among conservative voters might be too appealing to resist (a bad sign for the NDP, Alberta Party and Liberals). If there is one thing that is true of Alberta politics, it is that the PC Party knows how to consolidate and preserve its own power.

As Ms. Smith’s party struggles through a tough month, they need to figure out what fundementally differentiates them from the PC Party led by Mr. Prentice. One conservative strategist – Ken Boessenkool – has once again raised the idea of a potential merger of the two parties to create the “Conservative Party of Alberta.”

Despite its bleak prospects in the immediate future, political fortunes can shift quickly. But if the party’s fortunes do not improve soon, more MLA floor-crossings may follow.

Wildrose knows about floor-crossing

Danielle Smith Rob Anderson Heather Forsyth Wildrose

Wildrose leader Danielle Smith (centre) with MLAs Heather Forsyth and Rob Anderson in 2010.

Floor-crossing is a familiar activity for the Wildrose Party, but they are used to it going the other way. In 2010, the Wildrose received a big boost when then-PC MLAs Rob Anderson and Heather Forsyth left Mr. Stelmach’s PC Party to join Ms. Smith’s upstart party. Not long afterward, they were joined by former PC MLA Guy Boutilier, who had been sitting as an Independent MLA.

Over the course of its 43 years of uninterrupted power, one of the great successes of the PC Party has been its ability to build a big tent that includes individuals of all sorts of political persuasions. The two former Wildrose MLAs will now find themselves in the same caucus as two former Liberal MLAs who also crossed the floor to the PCs – Speaker Gene Zwozdesky and Lethbridge-East MLA Bridget Pastoor.

Over the past 25 years, there have been a total of six Liberal MLAs, one Representative Party MLA and one New Democrat MLA who have crossed the floor to the PCs. The lone NDP floor-crosser, Stony Plain MLA Stan Woloshyn, made himself comfortable in the Tory Party ranks as a Ralph Klein-era cabinet minister.

Should floor-crossing be illegal?

Thomas Lukaszuk

Thomas Lukaszuk

In 2010, following Mr. Anderson and Ms. Forsyth’s departure from the PC Caucus, Edmonton-Castle Downs PC MLA Thomas Lukaszuk declared that floor crossing should be banned. PC MLA Jonathan Denis responded to the defections by telling Sun Media that “[t]he Wildrose talks about parliamentary recall — why not initiate that and run in a byelection?”

Manitoba is the only province that currently prohibits MLAs from crossing the floor. If an MLA wishes to leave their party, they must step down and run in a by-election or sit as an Independent MLA until the next election.

Are the wheels falling off the Wildrose bus?

Danielle Smith Wildrose Alberta

Danielle Smith

A short few months ago, it almost felt inevitable that the Wildrose Party would sweep into a majority government at the next election. Their support in the polls was skyrocketing and the 43-year governing Progressive Conservatives looked corrupt, broken and battered. But over the past few weeks, it appears the Official Opposition is stumbling into disarray.

Leader Danielle Smith’s plans to reenergize her party after its four recent by-election loses were sabotaged by social conservative party activists who rallied to reject a motion in support of equality at the party’s recent annual meeting. The defeated motion would have pledged the Wildrose to defend the rights of all people, “regardless of race, religious belief, colour, gender, physical disability, mental disability, age, ancestry, place of origin, marital status, source of income, family status or sexual orientation of that person or class of persons.” The vote has cast a shadow over the party.

After spending two years trying to distance herself from the “Lake of Fire” comments that cost the Wildrose its chance of winning the last election, it appears that Ms. Smith is back to square one.

Chris Bataluk Wildrose Edmonton Decore

Chris Bataluk

The defeat of the motion led Terrence Lo, the party’s vice-president in Calgary-Glenmore, to publicly resign.

“This vote confirmed to me that the misguided angry beliefs of a minority of the rank and file holds actual sway in party policy,” Mr. Lo wrote on his blog.

Lawyer Chris Bataluk, who ran for the Wildrose in Edmonton-Decore in the 2012 election, posted a stinging critique of his now former party on Facebook today.

“At this point I feel that the Wildrose Party was a noble but failed experiment,” Mr. Bataluk wrote. “It is of little joy to participate in a party that allows itself to be branded as the party of backward homophobes.”

Mr. Bataluk also noted that he did not renewed his party membership when it expired in August 2014.

Ian Donovan Wildrose

Ian Donovan

Mr. Bataluk’s Facebook post was notably “liked” by Little Bow Wildrose MLA Ian Donovan. Mr. Donovan’s colleague, Joe Anglin, recently left the Wildrose Caucus to sit as an Independent MLA, citing an internal civil war.

The opposition party’s sudden turn is an important reminder of how quickly a party, or a leader’s, political fortunes can turn from good to worse.

Ms. Smith still has time to turn her party’s fortunes around, but the Wildrose Party is increasingly beginning to look like a flash in the pan. The party has a dedicated base of supporters and has shown its ability to raise significant amounts of money, but it now struggles to find relevance in a post-Alison Redford political environment. Can the Wildrose Party be more than a protest party?

Joe Anglin MLA Wildrose Rocky Mountain House Rimbey Sundre

Joe Anglin

While PC Premier Jim Prentice is still surrounded by many of the MLAs and party activists who stood loyally with Ms. Redford until her spectacular end, he has skillfully distanced himself from his predecessor’s legacy. The PC Party is once again masterfully attempting to reinvent itself in the image of its new leader.

After 43 years in power, it seems that anytime an opposition party gets close to defeating the PCs, they soon get knocked out. Not long after Laurence Decore led the Liberal Party to near victory in 1993, infighting and floor crossing destroyed any opportunity of a second chance at unseating the PCs.

Perhaps a sign of the PC Party’s versatility are two key players from Mr. Decore’s 1993 surge who now sit comfortably in the government ranks. Former Liberal MLA Mike Percy is now Mr. Prentice’s Chief of Staff and Gene Zwozdesky, first elected as a Liberal MLA, is now a PC MLA and the Speaker of the Assembly.

While the Wildrose Party has proven itself to be a tough and aggressive opposition, it is very much a party of disgruntled former PC supporters. While the party’s roots can be traced back to Alberta Alliance formed by former Social Credit leader Randy Thorsteinson in 2002, the Wildrose Party did not begin to gain real support until it started attracting former PC members like Ms. Smith, Shayne Saskiw, Shannon Stubbs, Rob Anderson, Guy Boutilier, and Heather Forsyth.

Those disenchanted Tories took a big political risk when they stepped out of line with Alberta’s Natural Governing Party to help start the Wildrose. The dangerous question for Ms. Smith is whether they are beginning to regret making that choice?

A closer look at PC constituency-level fundraising

Alberta Progressive Conservative PC Party Fundraising Assets 2013

Progressive Conservative Association of Alberta, Fundraising and Assets in 2013 (click to enlarge).

After 43-years in government, Alberta’s Progressive Conservative Party now faces serious competition in the fundraising field from the Wildrose Party.

Raising only $2.86 million in 2013, the PC Party ran a $136,000 deficit and owed $1.1 million on a line of credit. This shaky financial situation is unheard of for a natural governing party that is usually flush with cash.

The PC Party is are also facing criticism over a secret trust fund – the TAPCAL fund – which is a holdover from before changes were made to Alberta’s elections laws 36 years ago.

At the local-level, PC constituency associations raised more than $1.4 million in 2013. While most of the 87 PC associations reported  revenue in the thousands of dollars in the post-election year, a sharp gap in fundraising amounts has highlighted wealthy and poorer constituency associations in the PC Party.

More than $650,000 of the $1.4 million were raised by eleven local PC associations. In former premier Alison Redford‘s Calgary-Elbow constituency, the local PC association claimed more than $119,000 in revenue in 2013. In Calgary-Hays, represented by Infrastructure minister Ric McIver, the local PC association raised more than $95,000 last year. Most of the other nine associations are located in constituencies represented by cabinet ministers.

Meanwhile, PC associations in opposition held constituencies mostly reported low or insignificant levels of revenue in 2013. Many of these areas are now represented by Wildrose MLAs and had been represented by PC MLAs since the 1970s.

Last year, formerly powerful PC constituency associations in Innisfail-Sylvan Lake, Medicine Hat reported zero revenue in 2013. PC associations in Cypress-Medicine Hat, Little Bow, Fort McMurray-Wood Buffalo, Calgary-McCall, and Edmonton-Mill Woods reported less than $1,000 in revenue in 2013.

These low numbers suggest that some Tories may be having a difficult time adjusting to business without a local MLA to boost their fundraising initiatives.

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It appears as though Randy Thorsteinson is attempting to resurrect the Reform Party of Alberta. Mr. Thorsteinson, the former leader of the Social Credit Party and the Alberta Alliance Party, has launched a Facebook page advocating for the recreation of the party that was dissolved in 2004.