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Alberta Politics

Alberta politics takes a negative turn online.

An unflattering photo of Danielle Smith in an image released online by the Premier's Communications Office.
An image released online by the Premier’s Communications Office.

MLA pay remains an uncomfortable issue for Alberta’s political leaders. Yesterday, MLA’s sitting on the Member Services Committee voted to freeze the annual cost-of-living increase to their salary and housing allowance ahead of provincial budget release on March 7, 2013.

“The rationale is clearly we want to lead by example,” Edmonton-Riverview Tory MLA Steve Young told the Edmonton Journal.

The decision to freeze MLA pay happens as rhetoric about politician and doctor pay has reached an all-time high (though the conflict is really about control).

A Wildrose image picturing Premier Alison Redford in a less than flattering light.
A Wildrose image picturing Premier Alison Redford in a less than flattering light.

Yesterday’s pay vote also resulted in more online mudslinging on Twitter’s #ableg hashtag, though this time from an unexpected source.

The Twitter account operated by Premier Alison Redford‘s Communications Staff  – @ABPremierComms – tweeted an image featuring an incredibly unflattering photo of Wildrose leader Danielle Smith with a quote she made at a meeting on June 7, 2012 (see image at the top of this post).

While distasteful, the reaction from the Premier’s Office is not unprovoked.

Over the past year, the official opposition Wildrose Caucus has released numerous images and info-graphics on Twitter and Facebook filled with harsh criticisms and unflattering photos of Premier Redford.

The harsh negative politics and aggressive use of images and info-graphics has helped the Wildrose Party cultivate a significant online following, who have helped spread their message through social media.

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Alberta Politics

Two rookies turfed from Tory cabinet.

New Tourism Minister Richard Starke, and departing cabinet ministers Stephen Khan and Christine Cusanelli.
New Tourism Minister Richard Starke, and departing cabinet ministers Stephen Khan and Christine Cusanelli.

In an unexpected move, Premier Alison Redford shuffled two rookie cabinet ministers out of her cabinet yesterday morning. Advanced Education & Enterprise Minister Stephen Khan (MLA St. Albert) and Tourism Minister Christine Cusanelli (MLA Calgary-Currie) were both appointed to cabinet in May 2012.

Deputy Premier Thomas Lukaszuk
Deputy Premier Thomas Lukaszuk

Mr. Khan’s time in cabinet was largely seen as reserved and underwhelming. Ms. Cusanelli caused an unwelcome stir when she was forced to repay the government $10,600 for expenses made in her first five months in office, including $4,000 in airfare to have her daughter and mother join her at the 2012 Summer Olympics in London, United Kingdom. She was also given the unenviable task of defending the government’s large line of hospitality expenses at the London Games.

Ms. Cusanelli’s ministerial office was recently shuffled with the hiring of Chief of Staff Tammy Forbes, who previously served as the Premier’s media liaison, and press secretary Andrew Fisher, who previously served as Chief of Staff.

Replacing Mr. Khan is Deputy Premier Thomas Lukaszuk, who has been operating without an official cabinet portfolio since before last year’s election. First-term MLA Richard Starke, representing Vermilion-Lloydminster, has been tapped to replace Ms. Cusanelli as Minister of Tourism.

——

Minister Starke’s constituency has a long history of electing MLAs who later served as cabinet ministers.

First to the Tory cabinet was Lloydminster MLA Bud Miller served as the Minister of Public Lands and Wildlife in Premier Peter Lougheed‘s cabinet from 1979 to 1982.

Directly preceding Minister Starke was Lloyd Snelgrove, who was MLA from 2001 to 2012 and served in a number of portfolios during Premier Ed Stelmach‘s time in office, including a period of Minister of Finance. Citing irreconcilable differences, Mr. Snelgrove left the PC caucus to sit as an Independent MLA following Premier Redford’s successful leadership bid.

Preceding Mr. Snelgrove was Steve West, who served as the constituency’s MLA from 1986 to 2001 and served in a number of cabinet portfolios during Premier Ralph Klein‘s time in office, including Minister of Finance.

(Judging from historical trends, you might think there is a good chance that Minister Starke could one day be Minister of Finance).

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Alberta Politics

New poll shows Redford Tories in the lead.

One month before Alberta’s Legislative Assembly reconvenes to deal with this year’s provincial budget, Leger Marketing has released a new survey of political party support in our province.

Progressive Conservative: 40%
Wildrose: 28%
NDP: 13%
Liberal: 12%

This is only one survey and all political polls should be taken with a grain of salt, but the results will be a tad discouraging for Alberta’s opposition parties. While the survey shows the governing PCs dropping in support from 44% in last year’s provincial election, the opposition Wildrose has dropped from 34% in the 2012 election and the two other opposition parties have only marginally increased their support.

According to the Calgary Herald, the survey of 900 Albertans was conducted January 14 to 20 as part of the PwC Business and Consumer Confidence Index. The survey has a margin of error of plus or minus 3.3 percentage points, 19 times out of 20.

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Alberta Politics

What the Heck? Tory tied to donation controversy now head of Alberta Economic Development Authority.

Via the Edmonton Journal:

Conservative linked to Katz donation named chairman of the Alberta Economic Development Authority

BY KAREN KLEISS, EDMONTON JOURNAL JANUARY 30, 2013

EDMONTON – Premier Alison Redford has given a provincial political appointment to a veteran Conservative insider who allegedly brokered a $430,000 donation from Oilers owner and billionaire Daryl Katz.

Media reports quoting unnamed sources suggested Wednesday that Calgary businessman Barry Heck is the party fundraiser who persuaded Katz to make the donation now under investigation by Alberta’s Chief Electoral Officer.

Redford has named Heck chairman of the Alberta Economic Development Authority.

Heck has declined to comment on the allegations, citing the ongoing investigation.

On another election finance related note, Progressive Conservative President Jim McCormick has also asked Chief Electoral Officer O. Brian Fjeldheim to reverse orders mandating that the party repay thousands of dollars in illegal donations tied to post-secondary institutions and local governments

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Alberta Politics

Alberta Economic Summit to be held in ten days.

Alberta Economic Summit
Leading thinkers, key industry, non-profit and academic leaders, MLAs, and passionate citizens prepare for the Alberta Economic Summit.

Bitumen bubbles and the unpredictable price of oil mentioned in last week’s televised address have led Premier Alison Redford‘s Tory government to hastily called a one-day “Alberta Economic Summit” to continue a “conservation” about our province’s current fiscal woes and potential fiscal future.

The summit will bring together ‘leading thinkers, key industry, non-profit and academic leaders, Members of the Legislative Assembly and passionate citizens” for a day of panel discussions at Mount Royal University on February 9, 2013 (yes, that is ten days from now).

Premier Alison Redford
Premier Alison Redford

Despite the talk of “continuing the conversation” with Albertans, it is easy to be suspicious that the conference is a public relations exercise and a tool for the Tories to direct the public debate towards a certain direction. It seems difficult to image that any meaningful discussion about such complex issues could occur in such a short-period of time.

The government says it just wants to look at its options, which was a reoccurring theme in a discussion I had with Premier Redford last week. One option already off the table are tax increases, which despite growing public debate, the Premier says will not be in this year’s budget.

“It has got to be about economic diversification and what we want our fiscal framework to look like,” said Premier Redford when I asked her about what she would like to see come from the summit. “We want to engage people who give a lot of thought about these issues but don’t always have a chance to spend time together,” she said.

I asked the Premier if the Alberta Economic Summit was just a way for the government to deflect the public discussion away from taxes and toward a pre-determined answer. “We are not looking to deflect anything,” she said.

“As we move ahead it would be folly to say that every decision we make without consulting with Albertans would be the right decision. We want to make sure we are talking to Albertans and making decisions that reflect Albertans values.” – Premier Redford, January 25, 2013

Premier Ralph Klein
Premier Ralph Klein

If all this talk of a big summit about Alberta’s economic future triggers hints of deja vu, you are probably not alone.

Eleven years ago almost to the day that the”Alberta Economic Summit” will be held, Premier Ralph Klein and Revenue Minister Greg Melchin held the “Alberta Future Summit” in Red Deer. The February 4, 2002 conference brought together 260 delegates to draft “strategic directions and ideas for action” for several areas identified as priorities – including the economy and fiscal responsibility.

The final report generated from the Future Summit included the following observation, which will sound familiar to anyone who tuned in to watch Premier Redford’s televised address last week:

Despite rapid growth in manufacturing and services exports over the past 10 years, Alberta continues to rely heavily on primary resource exports (such as oil, gas, grains and oil seeds) and intermediate commodities (such as lumber, pulp and petrochemicals). Alberta’s reliance on primary and intermediate resource exports makes the economy vulnerable. Economic and market diversification are key to future prosperity. – Alberta Future Summit 2002 final report

While I hope next month’s Alberta Economic Summit succeeds in generating a meaningful conversation between Albertans and their government, I cannot help but think this summit is a partially a result of the Tories failing to act on some of the advice they heard at their last big summit in 2002.

——

Today, the government launched a online build your own budget tool budgetchoice.ca, which allows Albertans to cut and raise taxes, and see a simplified version of how the provincial ledgers balance.

Curiously, participants are not given the option of raising royalties on natural resources and some Tory pet projects are not included in the tool or partially protected, including the controversial Carbon Capture and Storage Fund (CCS). The CCS Fund, intiated by Premier Ed Stelmach in 2010, directed $2 billion towards research with the private sector into the unproven technology that some large energy companies have abandoned. Of the more than $200 million expected to be budgeted for CCS in this year’s budget, only $60 million is available to be cut in the online budget scenario tool.

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Alberta Politics

Redford versus Rutherford on Twitter.

High-drama took place on Twitter’s #ableg hashtag yesterday morning as Premier Alison Redford‘s online communications team took aim at QR77 talk radio host Dave Rutherford. In response to a tweet from Innisfail-Sylvan Lake Wildrose MLA Kerry Towle congratulating Mr. Rutherford on the 30th anniversary of the show, the Premier’s Communications staff tweeted that the show was “Wildrose Radio.”

The popular radio talk show host has become a vocal critic of the provincial Tories and is seen as a tacit supporter of Wildrose leader Danielle Smith, who is a frequent guest on his show.

While it might not seem smart to attack a radio program with a large audience across the province, it is not as if the Premier was receiving rave reviews on the Rutherford Show anyway. After being pummelled in the media by the opposition parties in last year’s fall sitting of the Assembly, this could be the beginning of a new and more aggressive communications strategy from the Premier’s office.

Any observer of the #ableg hashtag will have become accustomed almost daily Twitter battles between hyper-partisan Wildrose Caucus staffers and increasingly-partisan Ministerial Press Secretaries, who are now free from the non-partisan veneer of the Public Affairs Bureau.

——-

During a telephone town-hall to Progressive Conservative Party members last night, Premier Redford took a shot at the Wildrose, claiming that “if another political party had been elected, there would be NO building in this province.”

This comment follows comments by Wildrose critic Rob Anderson about the government’s four-year project to renovate the historic Federal Building in downtown Edmonton.

In fairness to the Wildrose Party, with some high-profile exceptions, its platform in the last election would have would have rolled back spending and stretched out infrastructure projects over a longer period (but not cancel it altogether). – h/t Josh Wingrove

——-

Last week, I had an opportunity to speak with Premier Redford over the phone for a few minutes following her televised address. I will have some notes about the interview posted on the blog over the next few days.

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Alberta Politics

Despite bitumen bubble, Alberta is a steady star in turbulent waters, says Redford.

Premier Alison Redford
Premier Alison Redford

Short on specifics, Premier Alison Redford‘s much-hyped televised address may have ended up leaving more question unanswered.

1) Referring to a “bitumen bubble”, the Premier announced that the provincial government’s revenue shortfall is now projected to be six billion, up from the three billion budget deficit recently projected by Finance Minister Doug Horner. This is a result of lower than predicted oil prices, which historically cycle from high to low.

It is positive news that the Premier does not intend to “take an axe to government spending across the board,” but this reinforces the need for Albertans to talk about taxes.

2) During her address, the Premier praised the construction of new pipelines as a way to increase the price of Alberta’s oil, and government revenue. While this is be positive, it still does not solve the problem that our government relies heavily on an unstable stream of revenue determined by international markets. Another reason why Albertans need to talk about taxes.

3) At the conclusion of her address, the Premier announced that she will be holding an “Alberta Economic Summit.” The Premier explained that the Summit will bring together “industry experts, business and not-for-profit sector leaders and academics from our colleges and universities” to continue the “conversation” about Alberta’s finances.

Premier Redford will need to work hard to ensure that this will not be a government-sponsored public relations exercise designed to produce a pre-determined result.

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Alberta Politics

Will Premier Redford’s TV message address Alberta’s tax dilemma?

“Our party was elected to keep building Alberta — to focus our spending on the priorities that you told me were important, and that is exactly what
we’ll do.” – Premier Alison Redford in an email to Progressive Conservative Party supporters on January 23, 2013

Premier Alison Redford will star in a pre-recorded television message tonight following the 6pm news hour on CTV in Calgary and Edmonton. The Premier is expected to use the 8-minute address as part of the government’s ongoing exercise of managing public expectations about the upcoming provincial budget.

The budget is expected to include a projected $3 billion deficit, largely influenced by a lower price of oil than  including a drop in the price of oil. The promise of “no new taxes, no service cuts” has put Alberta’s Tories in an unenviable political bind and set the tone for this year’s provincial budget debate.

Despite the cries of fiscal hawks wanting to slash and burn the province’s public services, as I wrote earlier this month, Alberta’s revenue problem has already become the defining issue the 2013 budget debate.

Raising the levels of natural resources royalties or reasonably increasing taxes are not issues the Premier is expected to touch on during tonight’s television appearance, but raising taxes is an issue that a handful of former politicians have recently delved into. Former Premier Ed Stelmach, former Finance Minister Shirley McClellan, former Deputy Prime Minister Anne McLellan, and former provincial Liberal leader Kevin Taft tackled the tax dilemma facing Alberta’s finances last weekend at the University of Alberta.

According to economist Bob Ascah, who was at the weekend event, a one-per cent sales tax could raise $750 million in revenue for the province.

And as reported on David Climenhaga‘s Alberta Diary Blog, Glen Hodgson, the chief economist of the Conference Board of Canada has also weighed in on Alberta’s tax dilemma:

“Not having a provincial consumption or sales tax is highly popular and has been great politics, but it denies the provincial government a steady and stable source of revenue through the business cycle.”

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Alberta Politics

Where in the world are Tory cabinet ministers?

Brussels, Bucharest, and Juneau are three international destinations where Tory MLAs were scheduled to visit during Government of Alberta sponsored trips today.

Environment and Sustainable Resources Minister Diana McQueen and Intergovernmental and International Relations Minister Cal Dallas have embarked on a pan-European tour, meeting with business and government leaders in a handful of continental counties. Backbench Tory MLA Richard Starke, from Vermilion-Lloydminster, is on government business in Juneau, Alaska.

On Wednesday, Health Minister Fred Horne is scheduled to depart for a trip that will take him to Ireland, the United Kingdom, and Belgium.

On October 1, 2012, I published a Google Map, tracking the travel of Alberta’s Tory cabinet minister and MLAs on government business. Here is an updated map, which includes all published scheduled government of Alberta travel by cabinet ministers and MLAs from November 2011 to February 2013.


View Alberta Cabinet Minister and MLA Travel November 2011-February 2013 in a larger map

Trips added since November 2012 include Middle-Eastern travel by Minister Dallas, trips to the United States by Calgary-Bow MLA Alana DeLong, Calgary-Foothills MLA Len Webber, and Strathcona-Sherwood Park MLA Dave Quest, a trip to Chicago by Premier Alison Redford and the four trips mentioned at the beginning of this post.

As I wrote in October, I understand the value of sending cabinet ministers on these trips to promote our province abroad and I generally believe it is in our best interest, but there reaches a certain point when return on investment needs to be demonstrated.

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Alberta Politics

Big turnover in Premier’s communications office.

After staff departures, former Ontario-based political operatives hold two top roles in Alberta Premier’s Office.

Last week it was announced that Jay O’Neill is departing his job as Director Communications under Premier Alison Redford‘s. Although Mr. O’Neill only joined the Premier’s office in late 2011, it is not uncommon for individuals to only fill these types positions for a short period of time.

The Tories were hit with a handful of embarrassing scandals in the closing months of 2012 and were caught unprepared, having to spend the fall sitting of the Assembly playing defence against an aggressive Wildrose Party opposition. The Spring sitting of the Assembly will begin on March 5, 2013.

Premier Alison Redford
Premier Alison Redford

Four other staff left or announced their departures from Premier Redford’s communications office over the past few months, perhaps a result of internal pressure to change direction and take a more aggressive approach towards political communications in 2013.

Tammy Forbes left her job as the Premier’s Communications Liaison Manager to become Chief of Staff to embattled Tourism Parks and Recreation Minister Christine Cusanelli. Minister Cusanelli faced harsh criticism before the Christmas break when she was forced to repay the government $10,600 for expenses racked up in her first five months in office, including a $4,000 airfare charge to have her daughter and mother fly with her to the 2012 Summer Olympics in London, United Kingdom.

Before joining the Premier’s office in 2011, Ms. Forbes was director of communications in the Department of Transportation.

Two other departing staff have jumped from their political jobs to roles in the public service. Tracy Balash has left the Premier’s Communications Office to become the Executive Director of Communications Planning in the Public Affairs Bureau (PAB). As noted in a recent Globe & Mail article, the PAB is in a period of transition after the retirement of Kathy Lazowski, its executive director of strategic communications.

Stefan Baranski
Stefan Baranski

The Premier’s Issues Manager Nikki Booth is now the Acting Issues Manager (Communications) in the Department of Environment and Sustainable Resource Development.

Kim Misik, the Premier’s press secretary, also announced that she will be leaving her position.

Social Media Manager Mike Jenkinson remains the longest serving member of the Premier’s team, having started in the office during Ed Stelmach‘s premiership.

The new Director of Communications is Stefan Baranski, who joined the Premier’s office as Director of Strategic Communications in September 2012 after leaving his job with the Toronto-based Counsel Public Affairs firm. In Ontario, he served as senior advisor to PC Party leaders Tim Hudak and John Tory, and Premier Ernie Eves.

Mr. Baranski is not the only former Ontario-based political operative in the Premier’s office. While originally from Alberta, Director of Operations Darren Cunningham is a veteran of Ottawa’s political scene, having served in Chief of Staff and communications roles for Prime Minister Stephen Harper and various Conservative cabinet ministers. He started working for the Premier’s office in June 2012. Another Ottawa insider, Lee Richardson left his job as a Member of Parliament to become the Premier’s Principal Secretary in May 2012.

It is suspected that not all of these vacant positions in the Communications office will be filled. Some sources suggest that the Premier’s office may increase their reliance on consultants from outside political and communications companies to fill the gap.

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Alberta Politics

Rogue party activists to discuss ‘collaboration, and cooperation.’

Can Alberta's centre-left parties "work together?"
Can Alberta’s centre-left parties “work together?”

The latest episode of Alberta’s ongoing “cooperation on the centre-left” saga will continue on January 23, when rogue activists from the Liberalberta Party, the New Democratic Party, and the Alberta Party will host a “Soapbox, Suds, and Wings” night in Edmonton.

The event, which is being organized by Edmonton-Mill Creek NDP president Stephen Anderson, Alberta Party president William Munsey, and 2011 Liberal candidate Mike Butler, promotes “citizen engagement, collaboration, and cooperation” as the way of the future for Alberta politics.

In a December guest post on this blogCalgary-Buffalo Liberal MLA Kent Hehr restarted the latest debate about cross-party cooperation and was stunningly, and strangely, rebutted by Liberalberta Party president Todd Van Vliet in a media release. Liberal leader Raj Sherman remained suspiciously silent during the very public rebuke, leading political observers to believe he sanctioned Mr. Van Vliet’s ill-advised response.

Edit: On January 8, Mr. Van Vliet announced that merger ideas would be debated at his party’s annual convention, scheduled for June 2013.

NDP leader Brian Mason has also spoken out against any formal electoral cooperation or merger with the other non-conservative opposition parties.

The main centre-left opposition parties (the Liberals, NDP, and Alberta Party) earned a combined 21% of the popular vote in the 2012 provincial election, down from 34% in the 2008 election and 39% in the 2004 election. In 2012, the three parties were pushed aside by a reinvigorated moderate Progressive Conservative Party led by Alison Redford and an aggressive conservative Wildrose Party led by Danielle Smith.

Mr. Hehr and Edmonton-Centre Liberal MLA Laurie Blakeman have confirmed their attendance on the “Soapbox, Suds, and Wings” Facebook event page, as have 2012 Green Party Senate candidate Elizabeth Johannson and 2008 federal NDP candidate Dave Burkhart.

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Alberta Politics

Alison Redford’s revenue problem will define 2013 budget fight.

The low price of oil and natural gas and an election promise of “no new taxes, no service cuts” has put Alberta’s Tories in an unenviable political bind and set the tone for this year’s provincial budget debate.

Premier Alison Redford Alberta
Premier Alison Redford

This week, Lee Richardson, Principal Secretary to Premier Alison Redford, released a trial balloon suggesting the government is looking at all revenue options, including tax increases, to fund the provincial operating budget.

On the capital side of the provincial budget, Premier Redford and Finance Minister Doug Horner have talked about taking an adult approach to long-term financing of capital projects and maintenance of public infrastructure.

After decades of aggressive messaging and lobbying from interest groups like Americans for Tax Reform in the United States and its the Canadian Taxpayers Federation and the Fraser Institute in Canada, our political culture has been shaped to include a gag reflex to the concept of increasing tax revenue.

The averse public reactions to tax increases are inevitable and is also strengthened with the increasingly prominent belief that government is inefficient and wasting public funds.

Danielle Smith Wildrose Party Alberta Election 2012
Danielle Smith

This perception has essentially robbed government of its ability to increase its most easily accessible and more reliable source of revenue. Alberta currently has some of the lowest tax rates in Canada. Alberta’s corporate tax rates have remained low even as profits of corporations in the province have climbed more than 300%. We could afford to raise corporate taxes and remain the most competitive jurisdiction in Canada.

In the recent provincial election, the Tories pledged they would not raise taxes, Danielle Smith‘s Wildrose are ideologically inclined to cut taxes (and cut services), and Raj Sherman‘s Liberalbertans have differentiated themselves by calling for increased taxes. Brian Mason‘s New Democrats largely shied away from tax talk, but remained steadfast that natural resources revenues should increase (in Norway, a $600 billion oil fund was created from resource revenues collected and invested by the government).

If you asked most Albertans whether they would support cuts to essential services like health care, education, and public infrastructure maintenance, most would overwhelmingly disagree with the cuts. Alberta is just beginning to recover from the decade-long turmoil caused by short-sighted budget cuts and public sector layoffs made by Premier Ralph Klein‘s government in the mid-1990s.

Albertans have a strong economy and good quality of life that is boosted by strong government programs that improve our health, education, and community services. With a growing population and a booming economy, long-term planning and stable funding, not cuts to government services, are critical to preserving and increasing our quality of life.

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Worth listening to: A recent recording of the popular This American Life radio show highlighted the debate and some of the affects that “austerity policies” have had south of the border.

————

As noted in yesterday’s post, Premier Redford’s Director of Communications, Jay O’Neill, announced that he will be leaving his position at the Legislature. Stefan Baranski, a communications adviser to the Premier and formerly an Ontario-based consultant, will serve as the new Director of Communications.

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Alberta Politics

Three investigations kick-off 2013 in Alberta politics.

Despite winning a large majority in last spring’s provincial election, Alberta’s long-governing Progressive Conservatives had a rough ride in the media and on the floor of the Assembly last year. If Tory MLAs hoped for a reprieve in 2013, they may be disappointed.

Starting off the year are three investigations that are direct results of political scandals and controversies from 2012:

Queue-Jumping Investigation

After a disappointing start late last year, the Health Services Preferential Access Inquiry continued this week with testimony from former Capital Health CEO Sheila Weatherill.

Fred-Horne-Alberta
Fred Horne

Today, former Capital Health Board Chair Neil Wilkinson (now Alberta’s Ethics Commissioner) and Health Minister Fred Horne will be questioned. On Friday, Calgary Flames team doctor Jim Thorne and former Alberta Health Services chairman Ken Hughes (now an MLA and Energy Minister) will be appear as witnesses before the inquiry.

Anyone looking for a Watergate-type scandal that directly connects politically-influenced queue-jumping to the Premier’s office will likely be disappointed.

Elections Alberta investigates billionaire’s donations to PC Party

Global Edmonton:

“…retired Court of Queen’s Bench Justice Ernest Marshall has been appointed Director of the investigation, and Don Vander Graaf and Dave Davies have been retained as independent investigators.”

Daryl-Katz
Daryl Katz

Elections Alberta will investigate a large donation allegedly made by pharmaceutical industry billionaire Daryl Katz, owner of the Edmonton Oilers, to the Progressive Conservative Party during the 2012 election. Mr. Katz is alleged to have made a $430,000 donation to the PC Party by funnelling funds through his family and employees. Under Alberta’s elections finance laws, maximum individual donations during an election period are limited to $30,000.

While to election finance laws introduced last year by Justice Minister Jonathan Denis allow for more disclosure of donors, the new laws did not further restrict the amount that an individual or corporation can donate to a political party.

Ethics Commissioner investigates tobacco conflict allegations

Premier Alison Redford Alberta
Premier Alison Redford

Ethics Commissioner Mr. Wilkinson will investigate alleged conflict-of-interest in a decision by the government to award a lucrative tobacco lawsuit contract to a firm where Premier Alison Redford‘s ex-husband works as a lawyer.

The official decision to choose the firm was made after the Premier had resigned as Justice Minister in 2012, but the recommendation of which law firm to choose was made during her tenure in the position.

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Communications shift

Jay O’Neill, Director of Communications for Premier Redford is leaving his position. Globe  & Mail journalist Josh Wingrove noted on Twitter yesterday that over the last few months, along with Mr. O’Neill, four other staff have departed from Premier Redford’s communications office at the Assembly (Mr. O’Neill, Nikki Booth, Kim Misik, Tammy Forbes, Tracy Balash).

While it is difficult to speculate whether these departures were voluntary or not, it does appear that the Premier’s office may be taking steps to improve its communications and issues management strategy (especially in light of the investigations noted above).

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Alberta Politics

Wildrose KENO-Arena lottery gambles with future of charities and non-profits.

Wildrose Keno Alberta
Alberta’s new Wildrose lottery.

Wildrose Official Opposition leader Danielle Smith re-injected herself into the latest round of news coverage about how to fund the Katz Group’s on-again, off-again arena north of Edmonton’s downtown.

At a press conference this afternoon, Ms. Smith proposed that the provincial government should examine using the “KENO gambling model” to generate revenue for the proposed downtown arena in Edmonton and a future new hockey arena in Calgary.

The Wildrose press release states that KENO gambling “raised just over $3.1 million in revenue last year in Alberta where it is featured in 88 bingo halls, casinos and gaming rooms.” The release notes that in British Columbia, “the gambling model generated nearly $235 million in revenue last year and is played in about 4,000 locations, including sports bars and pubs.”

A big question about the Wildrose’s proposed idea is whether the expansion of a KENO gambling model will dilute funds generated through already existing lotteries. Many Alberta charities, volunteer groups, and not-for-profits depend on already existing lottery funds to operate and, under a KENO-Arena gambling model, might have to compete with a lottery created to subsidize the funding of a new hockey arena for a privately-owned professional sports team.

Through the Alberta Lottery Fund in 2011-2012, the provincial government allocated $1.44 billion to public initiatives, foundations and grant programs across the province. In British Columbia, even with an expanded KENO gambling model, total government revenues from gaming were about $1.11 billion. The cost estimates for the construction of the proposed Katz Group arena has been estimated to be $450 million.

Finance Minister Doug Horner responded to the Wildrose proposal and let slip news of a potential government lottery plan:

Horner said Premier Alison Redford’s government is looking at another proposal to pool lottery money that could be used by all municipalities to help fund what he called cultural and recreational infrastructure projects.

“The problem with Keno is that it doesn’t raise as much money as would be required to fund that kind of infrastructure,” he said.

Horner said the government is considering a lottery that would allow people to bet on teams such as the Edmonton Oilers and put the proceeds in a separate fund for building projects, but he cautioned that work on the idea is still very preliminary.

While Edmonton Mayor Stephen Mandel has repeatedly be quoted in the media telling of oncoming provincial funds, Premier Alison Redford, Minister Horner, and Municipal Affairs Minister Doug Griffiths had previously denied any intention to fill the $100 million gap in the (now-formerly agreed upon) funding formula between the Katz Group and the City of Edmonton.

——

According to the Keno entry on Wikipedia, the odds of a full-payout for someone playing Keno are slim:

The probability of a player hitting all 20 numbers on a 20 spot ticket is approximately 1 in 3.5 quintillion (1 in 3,535,316,142,212,180,000 to be exact). If every person now alive played one keno game every single second of their lives, there would be about one solid 20 jackpot-winning ticket to date. If all these possible keno tickets were laid end to end, they would span the Milky Way galaxy—and only one of them would be a winner. To this day, there are no reports of a keno player lucky enough to match all 20 numbers.

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Alberta Politics

Scandal, controversy, and electoral fortunes? What does 2013 hold for Alberta politics?

Alberta Politics in 2013
Alberta Politics in 2013

What does 2013 hold for Alberta’s political leaders? Do their performances in 2012 shed any light on how the next year will play out?

Saved from defeat by controversial comments made by social conservative elements of the Wildrose Party, Premier Alison Redford led the Progressive Conservative Party to its 12th consecutive electoral victory since 1971. Under her leadership, the Tories have sent signals suggesting their intention to build a new electoral coalition centred around moderate conservatives and liberals, a response to the loss of their hard-conservative base to the Wildrose Party.

As I wrote earlier this month, the Redford Tories have been consistently slow in responding to emerging political crises and scandals, giving the opposition Wildrose Party the opportunity to define the media narrative each time. The Tories will need to shed their geriatric reflexes and become quicker at managing crisis communications less they be defined as old, tired, and corrupt over the next three years.

On the horizon, an expected sixth consecutive provincial budget deficit and tension with Doctors’ and Teachers’ unions could be the defining political issues of the next few months. The election of an NDP government in British Columbia could also reopen discussions around the development of the Northern Gateway Pipeline from Bruderheim to Kitimat.

Old and corrupt is exactly what Wildrose Party leader Danielle Smith wants the Tories to look like in 2013.

In advance of the April 2012 election, the Wildrose was at its strongest in the public opinion polls when the newspaper headlines trumpeted tales of Tory corruption. Her new 17 MLA caucus, which has now faced against the Tories on the floor of the Assembly,  is battle ready to continue its permanent negative campaign against the Tories in 2013.

The question is whether the Wildrose Party can transform itself into more than just a conservative political war machine. Can the Wildrose Party led by Ms. Smith transform itself into a government-in-waiting?

Optimists in the Liberal Party will tell you that the fact their party won any seats in the 2012 election is proof that Raj Sherman has earned the right to remain party leader. The Liberals did survive the election with five MLAs, but the former Tory MLA led the party to its worst electoral showing in more than twenty-five years.

Deprived of its long-held official opposition status, the newly rebranded Liberalberta Party now faces the difficult challenge of figuring out where it fits in Alberta’s new political landscape. Popular Calgary MLA Kent Hehr and party president Todd Van Vliet clashed earlier this month over what the future direction of the Liberal Party should be. The next year will show indications whether Dr. Sherman’s rag-tag caucus can survive the three years until the next election.

New Democrat leader Brian Mason wants to build a bigger tent. The NDP, electorally stuck within Edmonton city limits for the past twenty-years, is hoping to take advantage of the electoral decline of the Liberal Party to expand his own party’s base of support. While the NDP is expected to form government in British Columbia and is on an electoral upswing in Ontario, Alberta has historically not been fertile soil for even moderate versions of the social democratic party.

Currently the longest-serving party leader, Mr. Mason told the Calgary Herald in a year-end interview that he plans to lead his party into the next election in 2016. The next election would be Mr. Mason’s fourth election as party leader and will mark his twenty-seventh year as an elected politician.

While experience is important, and sometimes irreplaceable, party supporters will need to ask themselves whether Mr. Mason is the leader who can bring the NDP to the next level in Alberta. With a newly expanded and younger caucus, New Democrats will be forgiven if they look to Rachel Notley, David Eggen, or rising star Deron Bilous, to be a fresh face for their party in the next election. An inspiring leadership race with a new generation of candidates could give the NDP a significant boost in Conservative-dominated Alberta.

The next 365 days could be interesting for Alberta’s political scene.

Happy New Year!

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There is little doubt in my mind that the title for story-maker of the year on Alberta’s political scene in 2012 is held by CBC investigative reporter Charles Rusnell. A serious investigative journalist, Mr. Rusnell uncovered some of the defining political stories of the year from Allaudin Meralli‘s and Lynn Redford‘s expense claims to the unfortunately named “Tobaccogate“. These stories shaped the political debate in Alberta at critical moments in 2012. (EDIT: I mistakenly gave credit to Mr. Rusnell for uncovering the controversial payments to MLAs for serving on a committee that rarely met. Credit for this story belongs to Scott Hennig).