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Alberta Politics

Reform Party of Alberta now officially registered as a political party

In the midst the latest round of unite-the-right chatter, conservative voters in Alberta now have another party to cast their ballots for.

Randy Thorsteinson
Randy Thorsteinson

The Reform Party of Alberta is now officially registered as a political party with Elections Alberta. The party describes itself as “Alberta’s principled, compassionate, socially and fiscally conservative political party.

The drive to register the party was launched in mid-2014 by conservative activist Randy Thorsteinson, who pledged in March 2015 to run a full-slate of candidates in the upcoming election. Unfortunately for Mr. Thorsteinson and his followers, Jim Prentice called the provincial election one year earlier than expected and his party was unable to register with Elections Alberta before the vote.

The party again tried to gain registered status with Elections Alberta in advance of the March 22, 2016 by-election in Calgary-Greenway but they were unable to meet the deadline required to have a candidate listed on the ballot.

I am told the party definitely plans on running a full-slate of candidates in the next provincial election, expected to be held in early 2019.

A party with the same name previously existed from 1989 until 2004 as a place-holder vehicle for the Reform Party of Canada to contest Alberta’s Senator-in-Waiting elections in 1989 and 1998. Although federal party leader Preston Manning is said to have pondered expanding the provincial-wing to challenge the Progressive Conservatives, Reform partisans alternatively found willing supporters in the conservative-wings of the PC and Liberal parties in advance of the 1993 election.

That party should also not be confused with the Alberta Reform Movement, which was founded in 1981 by former PC MLA Tom Sindlinger.

Party leader Mr. Thorsteinson led the Social Credit Party from 1992 to 1999 and the Alberta Alliance Party from 2003 until 2005. He stood as a candidate in the 1993, 1997 elections in Red Deer-South and in Innisfail-Sylvan Lake in 2004.

He participated in the televised leaders debate in 1997 and led the Socreds to earn 6.8 percent of the province-wide vote, the strongest showing by that party since 1979. The Alberta Alliance, which later became the Wildrose Party, earned 8.7 percent of the vote in 2004 while campaigning on the slogan “Blame Ralph,” in reference to then-premier Ralph Klein (his legacy is now lauded by conservatives, but many Albertans forget how unpopular Mr. Klein was starting to become during his final years in office).

In February 2016, Mr. Thorsteinson explained his reasons for forming a new party and not joining the Wildrose Party:

“The challenge I have with the Wildrose is that I am also a Social Conservative. I believe in the traditional Albertan family values, the Wildrose does not. Brian Jean, leader of the Wildrose, just after his victory as Wildrose leader called Social Conservatives “wingnuts” and “nutbars” in newspapers. I obviously can’t support him.

Additionally, the Wildrose Caucus MLAs also joined with all other parties in the Alberta legislature on Dec. 7, 2015 to unanimously vote in favour of Bill 7 the “Alberta Human Rights Amendment Act, 2015”. This is the law that allowed the NDP government to have the legal authority to pronounce the outrageous “Guidelines of Best Practices” that mandates that boys and men have the right to use women’s public washrooms and showers if they “self identify” as a girl or woman. My wife and I have six daughters, we are very concerned there will be a lot of teenage boys who “self identify” as a girl to go into the girls showers. It recently happened at the University of Toronto where male students were videoing female students taking showers in “gender neutral showers” on campus. Progressive/Liberals will call it fear mongering, parents call it outrageous. The guidelines also undermine parents and wants schools to stop using the words mother and father; him and her for something “gender neutral”. For the record for progressive/liberals I am a husband and father, Kathleen is my wife and mother of our children. We are not gender neutral.

All of the Wildrose MLAs unanimously voted for it. As a Social Conservative I can’t support them. It’s not the party I founded, it’s Progressive Conservative lite.”

So there you have it. If you are a conservative who does not believe the other five conservative parties in Alberta are conservative enough, then the Reform Party of Alberta could be a good fit for you.

Note: As noted in the photo caption above, the Reform Party of Alberta logo, shown above, is remarkably similar to the logo used by the American Democratic Party.

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Alberta Politics

In or Out? Jason Kenney could have a rough landing into Alberta politics

CBC reports that after 19 years as a Member of Parliament in Ottawa, former federal cabinet minister Jason Kenney, 48, is considering entering provincial politics in Alberta. Postmedia’s Jen Gerson writes that he will not confirm whether this is true.

It was a prediction first made by Postmedia’s Graham Thomson in January 2016.

Premier Rachel Notley Calgary Stampede Alberta
Rachel Notley

Mr. Kenney is reportedly backed by a cadre of federal Conservative strategists and insiders, including former Reform Party and Wildrose Party campaign strategist Tom Flanagan, who told CBC that the group discussed whether “he could win the PC leadership then negotiate a merger [with Wildrose].

So, Mr. Kenney, who just this week was appointed to the parliamentary committee studying electoral reform, could be abandoning plans to replace Rona Ambrose as leader of the Conservative Party of Canada and setting his sights on uniting-the-right and challenging Rachel Notley‘s moderate New Democratic Party government in 2019. If Mr. Kenney is going to enter Alberta politics, he will need to decide quick because the Progressive Conservative Party will be choosing its new leader before April 30, 2017.

Jim Prentice Premier Alberta
Jim Prentice

Mr. Kenney is a skilled politician, but he would ominously follow in the footsteps of another former federal Conservative cabinet minister, Jim Prentice, who jumped into provincial politics in 2014 before leading the 44-year old PC government to defeat in May 2015.

New rules approved by the PC Party at its recent annual general meeting could make a leadership bid challenging for an outsider candidate. The PCs replaced the one-member one-vote system that existed from 1992 to 2014 with a new closed delegate system. This will require candidates to build broad support in 87 constituencies across the province, rather than relying on the ability to sign up large groups of voters in concentrated regions.

Sandra Jansen
Sandra Jansen

If federal Conservative MPs decided to back Mr. Kenney’s bid, an orchestrated takeover could be possible, but there is significant animosity among rank and file PC members to a merger with the more hard-line Wildrose Party. And he would undoubtedly face a strong challenge from the moderate wing of the PC Party, most vocally represented by Calgary-North West MLA Sandra Jansen and Vermilion-Lloydminster MLA Richard Starke.

Mr. Kenney’s supporters may have been connected to a recent attempt by a conservative lobby group to hijack the one-MLA Alberta Party. The takeover was thwarted when the party’s executive quickly rescheduled its annual general meeting to an earlier date. It is likely that the marauding band of conservatives were coveting the party’s brand name rather than its moderate-conservative platform.

Brian Jean Wildrose
Brian Jean

A bid for the PC Party or the Alberta Party leadership might seem odd for Mr. Kenney, who is likely more comfortable in the social conservative wing of the Wildrose Party and with his former colleagues at the Canadian Taxpayers Federation. The historical success of the PC Party in Alberta between 1971 and 2015 was not based on adherence to conservative ideology but on the ability of its leaders to build a big blue tent of conservative, moderate and liberal voters.

Despite strong support for sending federal Conservatives to Ottawa, Alberta is now a much more progressive and moderate province than it was 20 years ago, when a young Mr. Kenney was roaming the halls of the Legislature as the spokesperson for the taxpayers federation.

Naheed Nenshi
Naheed Nenshi

Mr. Kenney is not well-known for his conciliatory approach to Alberta politics. In 2015, he argued that “people like” Calgary Mayor Naheed Nenshi were to blame for the politicization of the niqab ban instituted by the federal Conservative government. In 2014, he engaged in a  public spat with Ron Liepert when the former finance minister defeated long-time MP Rob Anders for the Conservative nomination in Calgary-Signal Hill. And in 2012, Mr. Kenney’s true feelings about then-deputy premier Thomas Lukaszuk were made known in a leaked reply-all email.

There is also the inconvenient fact that Alberta’s elections laws make it impossible to actually merge the financial assets of the two political parties. Those laws also make it unlikely that the Wildrose Party could change its name to the Conservative Party of Alberta. This does not mean that there could not be one dominant conservative party to face the NDP in the next election, it just means that any sort of actual merger of parties is unlikely to happen.

It should be noted that the last time an attempt was made to unite-the-right in Alberta, former Reform Party leader Preston Manning (pictured above with Mr. Kenney) was forced to apologize for his role in nudging 9 Wildrose MLAs across the floor to the PCs. That was in December 2014.

There is also the question of how his former federal colleague Brian Jean, now leader of the official opposition Wildrose Party, will feel about Mr. Kenney stealing the spotlight, and potentially his leadership. Despite being constantly undermined by internal party disputes and self-inflicted embarrassment, Mr. Jean deserves credit for leading his party from the brink of extinction to 22 MLAs in 2015. The inconvenient truth that his party still only sits at 35 percent in the latest public opinion poll could add momentum to those pushing to replace the Wildrose leader.

The decision by Mr. Prentice, Mr. Jean and now maybe Mr. Kenney, gives the impression that Conservative party politics in Alberta is becoming a grazing plot for Conservative politicians whose careers in Ottawa have stalled. It was widely believed that Mr. Prentice was using his job as premier to springboard into a future bid for the federal Conservative leadership. I expect the same would be suspected about Mr. Kenney, if he does actually jump into provincial politics in Alberta.

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Alberta Politics

Party Business: Leadership Races and Palace Coups

– The Wildrose Party constituency association in Lac La Biche-St. Paul-Two Hills passed a motion calling for Brian Jean to face a leadership review at the party’s annual meeting in Red Deer on October 28 and 29, 2016. That constituency is represented by MLA Dave Hanson, who was one of the 9 Wildrose MLAs who signed an article comparing carbon pricing to genocide. Postmedia reports that Mr. Hanson was present at the constituency meeting where the motion was debated but did not speak in Mr. Jean’s defence or vote on the resolution. Similar motions are expected to be proposed by a number of other Wildrose constituency associations.

Late last month, pressure from party activists and MLAs inside his caucus forced Mr. Jean to back down from his attempt to suspend Finance Critic Derek Fildebrandt from the Wildrose Caucus.

Mr. Jean received 78 percent support in a leadership review following last year’s provincial election, which appears to mean little now as elements within his party are openly challenging his leadership.

– The Progressive Conservatives will be choosing a new leader before April 30, 2017. Party President Katherine O’Neill will chair the leadership race and former premier Dave Hancock will act as a senior advisor to the Leadership Election Committee. Cynthia Williams and Krista Balsom will co-chair the Delegate Convention & Debates Subcommittee. A motion introduced by Ms. Williams at the PC Party’s recent convention led to the adoption of a delegate system to choose the new leader.

– The Alberta Liberal Party executive board appointed Calgarian Nirmala Naidoo and Edmontonian Kevin Feehan as the co-chairs to oversee their leadership campaign scheduled for 2017 (Mr. Feehan is the brother of Edmonton-Rutherford NDP MLA and Minister of Indigenous Relations Richard Feehan). The next Liberal Party leader will be selected by a system that counts votes through a constituency-based point system. Calgarian Russell Scantlebury appears to be the only candidate openly campaigning for the position.

– The Alberta Party is holding its annual general meeting on June 11 to elect a new board of directors and debate constitutional amendments. One proposed amendment would limit future leadership candidates to those who have been a “member in good standing of the Party for at least one (1) year prior” to the candidate nomination deadline. The amendment would allow the board of directors to waive this requirement by a super-majority vote.

– It is not a leadership change or challenge but this motion might set off some fireworks at this weekend’s New Democratic Party convention in Calgary. Members of the Edmonton-Calder NDP association in the constituency represented by Education Minister David Eggen‘s are expected to introduce the following motion for debate: Be it resolved that the Alberta NDP urges the Provincial Government to discontinue advocacy or promotion of specific pipeline projects while stakeholders such as First Nations communities,Metis settlements, farm owners, and municipalities have expressed objections to a pipeline project being built through or terminating on their land.

Since entering office last year, Premier Rachel Notley has become a strong advocate for oil pipelines and has taken a more diplomatic approach to pipeline advocacy than her predecessors.

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Alberta Politics

A look at some of the new laws passed in Alberta in Spring 2016

The Spring session of the Alberta Legislature ended yesterday after forty-days of debate.

The evacuation of more than 88,000 Albertans sparked by the wildfires in Fort McMurray dominated the attention of our political leaders during this session. In response to the wildfire crisis, Premier Rachel Notley and Wildrose leader Brian Jean briefly put aside politics and demonstrated their strengths as political leaders. It was a refreshing break from the negative rhetoric and hyperbole that has come to dominate Alberta politics.

The legislative session produced ejections, MLA suspensions and other intrigue but amidst the budget debates and political drama the New Democratic Party government pursued a fairly ambitious legislative agenda.

Twenty-one government bill and one two private members’ bills were passed during this session.

Bill 205: Pharmacy and Drug (Pharmaceutical Equipment Control) Amendment Act, a private members’ bill introduced by Calgary-West Progressive Conservative MLA Mike Ellis received unanimous support from MLAs when it was passed in the Legislature. The bill restricts ownership of pill presses in response to the Fentanyl crisis.

Bill 1: Promoting Job Creation and Diversification Act introduced by Economic Development and Trade Minister Deron Bilous gave the minister new powers to create programs focused on broadening the province’s industries and businesses. “Jobs” and “diversification” were key buzzwords used by NDP cabinet ministers this spring as they face an increase in unemployment and decrease in industry investment caused by the decline of the international price of oil.

Bill 4: An Act to Implement a Supreme Court Ruling Governing Essential Services introduced by Labour Minister Christina Gray lifted the ban on strikes by all public sector employees in response to a Supreme Court of Canada ruling in 2015.

Bill 7: Electoral Boundaries Commission Amendment Act introduced by Justice Minister Kathleen Ganley pushed forward the timelines to redraw the electoral boundaries before the provincial election in 2019, which could have an impact on the results of that election. The timelines as they were previously legislated were askew after the Progressive Conservatives called an election one year earlier than Alberta’s fixed-election date law in 2015.

The NDP missed an opportunity to improve the composition of the commissions, which will include five appointees (two appointed by the Government Caucus, two by the Official Opposition and one “neutral” chairperson chosen by the government). The NDP should have amended the legislation to create a non-partisan judicial commission similar to the ones appointed to redraw federal electoral boundaries.

Introduced by Finance Minister Joe Ceci, Bill 10: Fiscal Statutes Amendment Act removed the 15 per cent debt-to-nominal-GDP cap implemented by the NDP in the fall session of 2015. This was a classic example of a government walking back on a law which they probably should not have passed in the first place. The Alberta government’s net-debt levels remain low enough that Albertans should not immediately be worried. But as our provincial credit ratings have been downgraded, it will be important for the current and future governments to implement policies that will actually address the government’s significant revenue shortfall and growing budget deficit.

Bill 11: Alberta Research and Innovation Amendment Act reorganized Alberta’s four “Innovates” branded research and development agencies into one agency governed by a single board and CEO. Bill 18: An Act to Ensure Independent Environmental Monitoring dissolved the Alberta Environmental Monitoring Evaluation and Reporting Agency and brought its responsibilities into the Department of Environment and Parks. Bill 11 also established the position of Chief Scientist.

Bill 15: An Act to End Predatory Lending introduced by Service Alberta Minister Stephanie McLean targeted the payday loan industry, bringing down the amounts paid on payday loans from $23 per $100 borrowed down to $15 per $100. Ms. McLean announced that the government is working with credit unions to offer short-term loans as an alternative to predatory loans.

Bill 19: Reform of Agencies, Boards and Commissions Compensation Act injected transparency into Alberta’s byzantine system of appointed agencies, boards and commissions that had become a safe-haven for PC Party loyalists, patrons and retired MLAs during the previous government’s 44 years in power.

A long-time coming, Bill 21: Modernized Municipal Government Act, was in the works for years, but even so it was surprising that the NDP has been able to introduce it so early in their mandate. Bill 21 overhauls and updates sections of the province’s second largest piece of legislation. Municipal Affairs Minister Danielle Larivee, a rising-star in the NDP, will travel across the province this summer to consult with municipal leaders about the changes proposed in this bill, which only passed first reading during this session.

Bill 21 sets the ground for the creation of Big City Charters in the Act’s regulations, as advocated for by Edmonton Mayor Don Iveson and Calgary Mayor Naheed Nenshi. The Charters are expected to be drafted by Spring 2017 and enacted by Summer 2017.

The NDP government’s flag ship piece of legislation of spring 2016 was Bill 20: Climate Leadership Implementation ActPart of the much-lauded Climate Leadership Plan, Bill 20 implements the Carbon levy and rebate program. In what is becoming a signature move of the NDP government, Environment and Parks Minister Shannon Phillips assembled an impressive coalition of municipal, industry and environmental leaders in support of the new law.

While there are legitimate criticism of the bill, including whether the carbon levy is actually “revenue neutral,” the Wildrose Opposition failed to offer any alternative plan. The Official Opposition was knee-capped by a serious self-inflicted wound when an article signed by nine Wildrose MLAs compared carbon pricing to Holodomor, the genocide that killed an estimated 2.5–7.5 million Ukrainians in the Soviet Union from 1932 to 1933. Lac La Biche-St. Paul-Two Hills MLA Dave Hanson apologized for the comment but the nine MLAs avoided answering questions about the genocide comparison when asked by the media.

Alberta’s Legislative Assembly is expected to reconvene on October 31, 2016 and sit until December 1, 2016.

[Note: This was just a brief description of some of the bills debated and passed during the spring session. A full list of bills debated in this session can be found here]

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Alberta Politics

A Timeline of Derek Fildebrandt’s bizarre “suspension” from Wildrose

The Wildrose Party was not one big happy family this week. Albertans might be confused about what exactly happened between Wildrose Party leader Brian Jean and Finance critic Derek Fildebrandt.

It might be one of the most bizarre political stories of 2016.

Brian Jean
Brian Jean

Mr. Fildebrandt’s “suspension” and quick return to the Official Opposition Wildrose Caucus is being spun by party strategists as a reaction to a social media faux-pas but it is widely interpreted by political watchers as an internal power play to neutralize a potential challenger to Mr. Jean’s leadership of the party.

An outspoken critic and a fierce partisan, Mr. Fildebrandt has been a opponent of nearly everything the New Democratic Party government has proposed since it formed government in 2015. But the second highest profile MLA in the opposition benches has also attracted his share of controversy.

Here’s the timeline of what has become a fascinating internal struggle for power inside Alberta’s Wildrose Party:

Thursday, May 26, 2016

As Ontario Premier Kathleen Wynne was a guest at Alberta’s Legislative Assembly, Official Opposition Finance critic Mr. Fildebrandt attacked her record as premier as she sat in the Speaker’s Gallery. In reference to Saskatchewan Premier Brad Wall,  Mr. Fildebrandt shouted “Invite Premier Wall here! Invite Premier Wall at Premier Rachel Notley as she tried to answer a question during Question Period. Ms. Wynne was in Edmonton to meet with Ms. Notley to discuss climate change and her potential support for the TransCanada Corporation’s Energy East Pipeline from Alberta to New Brunswick.

Friday, May 27, 2016

Nathan Cooper
Nathan Cooper

Wildrose Caucus House leader Nathan Cooper held a press conference defending his party’s decision to criticize Ms. Wynne and suggested the Wildrose MLAs might not have known she was actually in the Assembly gallery at the time. The move was almost universally seen as being in bad taste and led Postmedia columnist Graham Thomson to refer to the Wildrose as “Team Petulant.”

A screen shot of a Facebook message began circulating on social media early Friday evening showing a comment from a supporter on Mr. Fildebrandt’s Facebook page referring to Ms. Wynne as “Mr. Wynne or whatever the hell she identifies as” – an apparent reference to the fact Ms. Wynne is openly gay. The author of the comment added that he was “proud to have you as my MLA,” and Mr. Fildebrandt initially responded, “Proud to have constituents like you!”  Mr. Fildebrandt quickly apologized online, responding that he did not fully read the comment and that it was totally inappropriate.

Mr. Jean issued a public statement around 11:30 p.m. announcing the suspension of Mr. Fildebrandt from the Wildrose Caucus because of the comments he made on social media: ‘This evening, Mr. Fildebrandt made an unacceptable comment on social media that does not represent the values of the Wildrose Caucus.’ This was seen a very serious and unexpected move by Mr. Jean, who was in Vancouver attending the Conservative Party of Canada national convention at the time.

Saturday, May 28, 2016

Kathleen Wynne
Kathleen Wynne

Mr. Jean faced criticism from a massive mob of party supporters online who were opposed to the suspension.

Ms. Wynne accepted Mr. Fildebrandt’s apology for the Facebook comment. “But, you know, I think it was an interesting confluence of things. There’s a woman premier in Alberta, I’m there as a woman, we’re talking about climate change. And I think the attack, the viciousness of the attack, had a particular quality to it. So, I will just say we need to pay attention to that,” Ms. Wynne told the Canadian Press.

Sunday, May 29, 2016

Ronda Klemmensen, President of Mr.Fildebrandt’s Strathmore-Brooks Wildrose constituency association spoke out against the suspension. Ms. Klemmensen was backed by the Drumheller-Stettler Wildrose constituency association and at least five other associations that wrote letters in support of Mr. Fildebrandt. Lakeland Conservative MP Shannon Stubbs posts a comment on Facebook in support of Mr. Fildebrandt.

Monday, May 30, 2016

Calgary-Shepard Conservative MP Tom Kmeic tweeted his support for Mr. Fildebrandt.

CBC journalist Kim Trynacity reported that Legislative Assembly Speaker Bob Wanner‘s office had never received official notice informing them that Mr. Fildebrandt was suspended, meaning he had remained a Wildrose MLA even though Mr. Jean’s statement claimed he was suspended.

Mr. Jean held a press conference announcing that Mr. Fildebrandt could return to the Wildrose Caucus if he took actions to behave himself on social media and met a list of secret conditions.

The five secret conditions were not secret for long. They were first reported on daveberta.ca and soon after by Postmedia. The conditions were: 1) He is suspended from the Wildrose Official Opposition Caucus until the end of the current Legislative Session. 2) He will be on probation until September 1, 2016. 3) He has to commit to personal improvement and personal development. 4) He would be prohibited from doing any media interviews except with local media in his Strathmore-Brooks constituency. 5) He will not be reappointed as Finance critic when he returns to the Wildrose Caucus.

Tuesday, May 31, 2016

The Wildrose Caucus released a statement announcing Mr. Fildebrandt had been fully reinstated in the Official Opposition and had retained his post as Finance critic. The five secret conditions given to Mr. Fildebrandt on May 30 appeared to had been dropped and the only condition of his return was that he hire a staffer to manage his social media accounts. The Wildrose statement claimed five secret conditions reported in media were “not accurate” but sources close to Mr. Fildebrandt confirm the five secret conditions did indeed exist.

Speaking in Calgary, Ms. Notley saidwith respect to the waffling back and forth in terms of whether Mr. Fildebrandt is in or out, or on side, or whatever it is today, I think we see a party that’s in a bit of disarray.”

AlbertaPolitics.ca blogger David Climenhaga suggested that Mr. Jean may have violated the Wildrose Party constitution by how Mr. Fildebrandt was suspended.

Wednesday, June 1, 2016

A close advisor of Mr. Fildebrandt’s, Jordan Katz, confirmed to Postmedia columnist Rick Bell that the secret conditions did exist and he questioned whether a quote endorsing Mr. Jean’s leadership in the Wildrose statement issued on May 31 was actually approved by Mr. Fildebrandt.

Thursday, June 2, 2016

Mr. Fildebrandt returns to the Legislative Assembly for the first time since his “suspension” on Friday, May 27. “There’s always going to be hurt feelings. I’m sitting down with people, talking one on one, face to face. And I think at the end of the day, we’re all going to come out of this stronger as a caucus and ready to go forward,” Mr. Fildebrandt told the CBC.

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Alberta Politics

The 5 conditions Derek Fildebrandt must meet to return to the Wildrose Caucus

The Fildebrandt Saga continues as Brian Jean backtracks, kind of…

Just over forty-eight hours after he suspended Finance critic Derek Fildebrandt from the Official Opposition Caucus, Wildrose Party leader Brian Jean appears to be backtracking on his decision. At a press conference held this morning, Mr. Jean told reporters that Mr. Fildebrandt’s “suspension” may actually end within a few days.

The Wildrose leader’s change of heart may have been a result of the overwhelming outpouring of support for Mr. Fildebrandt by his supporters on social media. Mr. Jean’s Facebook page was overflowing this weekend with comments from Wildrose supporters denouncing his decision to remove Mr. Fildebrandt from the Official Opposition Caucus and the Strathmore-Brooks constituency association called for his return to the caucus. The quick reversal by Mr. Jean certainly raises the question of how much control he actually has over his party as leader. It really appeared as though he has been making it up on the fly.

Mr. Jean said one of the conditions for the suspended MLA’s return to caucus was that he change the way he uses social media. The rest of the conditions for Mr. Fildebrant’s return were to be kept secret, but a source in the Wildrose Party has shared Mr. Jean’s ultimatum:

  1. He is suspended from the Wildrose Official Opposition Caucus until the end of the current Legislative Session.
  2. He will be on probation until September 1, 2016.
  3. He has to commit to personal improvement and personal development.
  4. He would be prohibited from doing any media interviews except with local media in his Strathmore-Brooks constituency.
  5. He will not be reappointed as Finance critic when he returns to the Wildrose Caucus

Mr. Fildebrandt now has some choices ahead of him.

He could meet the conditions presented to him and rejoin the Wildrose Caucus. His now-cemented popularity among a vocal cadre of conservative activists could give him considerable authority in the party and caucus. But giving up the Finance critic role and the ability to speak to the provincial media would greatly diminish his public role as a leader in Alberta’s conservative movement. I doubt he would get much satisfaction playing the role of Official Opposition critic for Tourism and License Plates.

He could become an Independent MLA and be an even more fierce critic of the New Democratic Party government (and Mr. Jean, if he so chooses) outside the bounds of a party whip. He could hold as many media conferences and plan as many publicity stunts as he wished to.

Or he could form or join another political party. I hear the unregistered Reform Party of Alberta is looking for a new leader


Update: The Wildrose Party’s constituency association in Drumheller-Stettler has penned a letter to the party’s MLAs in support of Mr. Fildebrandt.

Drumheller-Stettler-Wildrose

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Alberta Politics

For Wildrose, “Mr. Wynne” Facebook comment was last straw for Derek Fildebrandt

A statement released late on Friday night announced that Wildrose Party leader Brian Jean had suspended Strathmore-Brooks MLA Derek Fildebrandt from the Official Opposition Caucus.

As AlbertaPolitics.ca author David Climenhaga wrote on Friday night:

A screen shot of a Facebook message posted earlier Friday evening by Mr. Fildebrandt and shows the message referred to Ontario Premier Kathleen Wynne as “Mr. Wynne or whatever the hell she identifies as” – an apparent reference to the fact Ms. Wynne is openly gay. The author of the comment adds to Mr. Fildebrandt, “proud to have you as my MLA,” and Mr. Fildebrandt initially responded, “Proud to have constituents like you!”

Mr. Fildebrandt quickly apologized but the flippant Facebook comment about Kathleen Wynne’s sexuality too clearly crossed the line. Remember that it was only four short years ago that a statement claiming gays and lesbians would burn in a Lake of Fire cost the Wildrose a shot at forming government in Alberta. Since then the rural-based party has done its best to avoid discussing social issues that could hurt its public image.

Ms. Wynne accepted Mr. Fildebrandt’s apology, but wondered whether a man would have faced the same kind of vicious attack.

Mr. Fildebrandt made headlines last week after he took to the floor of the Assembly to attack Ms. Wynne’s record as premier as she sat as a guest in the Speaker’s Gallery in the Alberta’s Legislative Assembly. The move was almost universally seen as being in bad taste and led Postmedia columnist Graham Thomson to refer to the Wildrose as “Team Petulant.”

Ms. Wynne was in Edmonton to meet with Premier Rachel Notley to discuss climate change and her potential support for the TransCanada Corporation’s Energy East Pipeline from Alberta to New Brunswick. As unabashed advocates for oil pipelines in all directions, the timing of the Wildrose critic’s hyper-partisan rant was baffling.

The former Canadian Taxpayers Federation spokesperson fit naturally into his role as the Wildrose Party’s chief attack dog but his antics sometimes attracted more attention than his party’s actual message.

As the Official Opposition Finance critic and chair of the Public Accounts Committee, Mr. Fildebrandt was one of the most high profile opposition MLAs and the New Democratic Party government’s most uncompromising and unrelenting critic. He will now sit as an Independent MLA.

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Alberta Politics

Notley NDP make pigs fly again with support for Climate Leadership Plan

When the Alberta government released its Climate Leadership plan in November 2015, I said that Premier Rachel Notley and Environment and Parks Minister Shannon Phillips had made pigs fly by uniting a coalition of industry leaders and environmental leaders in our province.

Defying expectations, or making pigs fly, might be a strength of Ms. Phillips. Today she brought together another impressive coalition of municipal, industry and environmental leaders to support Bill 20: The Climate Leadership Implementation Act (see list below).

Bill 20 would legislate Alberta’s carbon levy and carbon levy rebate, ensure revenue from the carbon levy is invested in addressing climate change, and establish Energy Efficiency Alberta. As economist and Climate Change Panel chairman Andrew Leach pointed out on Twitter today, carbon pricing has wide support from economists from N. Gregory Mankiw to Paul Krugman.

Since the Climate Leadership Plan was released last year, we have seen groups like Norquest College and non-profits like Iron & Earth step up to help with the transition to renewable energy.

After years of inaction by the old Progressive Conservative government, it is refreshing to have a government that believes in climate change and has actually presented a policy to address it.

The Alberta NDP’s climate change plan defies supporters of the much-maligned LEAP Manifesto, which was spearheaded by more radical elements of the federal NDP at that party’s recent convention in Edmonton. By defying the LEAPers, Ms. Phillips and Ms. Notley are demonstrating a clear difference between an NDP government that takes action and an NDP opposition that just talks big.

Bill 20 will spark some interesting debate on the floor of the Alberta Legislature.

Ms. Notley has fended off the radical environmentalists in her party and presented a sensible policy and bill. How will the opposition respond?

Alberta Party leader Greg Clark responded with a list of questions that I expect he will ask Ms. Phillips during debate.

Wildrose Party finance critic Derek Fildebrandt fell into predictable Canadian Taxpayer Federation hysteria, describing the carbon levy as “an assault on taxpayers and families.”

Wildrose MLAs will likely focus their energy attacking the carbon levy and calling for more oil pipelines, but will the official opposition defy the radical climate change deniers in their own ranks and present a policy alternative to the NDP’s Climate Leadership Plan? Will Brian Jean‘s Wildrose Party join the debate with a policy alternative beyond ‘we will repeal whatever the NDP does on climate change‘?

The NDP have told their radicals to take a hike. Can the Wildrose do the same?


List of supporters of Bill 20: The Climate Leadership Implementation Act

•Karen Sorensen, Mayor, Town of Banff

•John Borrowman, Mayor, Town of Canmore

•Don Iveson, Mayor, City of Edmonton

•Jesse Row, Executive Director, Alberta Energy Efficiency Alliance

•Mark Ramsankar, President, Alberta Teachers’ Association

•Scott Thon, President and CEO, AltaLink

•Peter Tertzakian, Chief Energy Economist & Managing Director, ARC Financial Corporation

•Grant Arnold, President and CEO, BluEarth Renewables

•Joe Vipond, Physician, Canadian Association of Physicians for the Environment

•Robert Hornung, President, Canadian Wind Energy Association

•Michael McSweeney, President and CEO, Cement Association of Canada

•Brian Ferguson, President and CEO, Cenovus

•Kathy Bardswick, President and CEO, The Co-Operators

•Ross Hornby, Vice-President, Government Affairs and Policy, GE Canada

•Cory Basil, Vice-President of Development, EDF EN Canada Inc.

•Kevin Lecht, Business Manager, The International Association of Heat and Frost Insulators and Allied Workers local 110 (Alberta)

•Robert Walker Vice-President, ESG Services & Ethical Funds, NEI Investments

•Ed Whittingham, Executive Director, Pembina Institute

•Rob Harlan, Executive Director, Solar Energy Society of Alberta

•Sean Collins, Co-Founder, Student Energy

•Steve Williams, Chief Executive Officer, Suncor

Categories
Alberta Politics

Why there is unlikely to be a Conservative Party of Alberta anytime soon

As prospects of a merger of Alberta’s two estranged conservative parties appear more and more unlikely, Wildrose Party leader Brian Jean has suggested that his party may consider rebranding with a name change before the 2019 election.

Postmedia has reported that Mr. Jean’s party has registered the names Alberta Conservative Party Association and Conservative Party of Alberta Association with the province’s societies registrar.

While these names could help the Wildrose Party further align with the Conservative Party of Canada in the eyes of Albertans, there is a possibility the name change could be denied by the Chief Elections Officer because the new name could likely be confused with the other conservative party, the Progressive Conservative Association of Alberta.

Section 7 (3.1) of the Election Finances and Contributions Disclosure Act states that:

If a registered party changes its name, the Chief Electoral Officer shall not vary the register accordingly if, in the Chief Electoral Officer’s opinion,

(a) the proposed name or the abbreviation of the name so nearly resembles the name or abbreviation of the name of a registered party as to be likely to be confused with the name or abbreviation of that registered party,

(b) the proposed name was the name of a registered party whose registration was cancelled or whose name was changed since the last general election, or

(c) the proposed name or abbreviation is unacceptable to the Chief Electoral Officer for any other reason.

Barring the dissolution of the current PC Party, it might be unlikely that a separate Conservative Party would be allowed to register with Elections Alberta.


The PC Party was officially registered as the Provincial Conservative Association of Alberta until when it added “Progressive” to its name in 1959, to conform with a similar change made by the federal party in 1942.

The Wildrose Party was known as the Alberta Alliance Party (a nod to the Canadian Alliance) from 2002 until 2008 when it became the Wildrose Alliance Party after merging with a group of disgruntled Alberta Alliance members who had formed the Wildrose Party of Alberta in 2007 (the first version of the Wildrose Party was never officially registered with Elections Alberta). According to Elections Alberta, the party’s name was formally changed to the Wildrose Party effective February 3, 2015.

Categories
Alberta Politics

Fort McMurray provides a humanizing break from hyper-partisan politics in Alberta

One year ago, the Edmonton Journal published a letter written by Greg Stevens, in which the former cabinet minister sent Alberta’s newly elected New Democratic Party best wishes at the start of its term as government. Mr. Stevens, who served in the Assembly  from 1979 to 1989 wrote that “Albertans have weathered storms before and they will rise to this change and continue to lead Canadians ahead.”

The learning curve has been steep for the new government over the past year, but Rachel Notley has faced the largest storm of her premiership this past week.

Ms. Notley has been a calm and commanding presence as the wildfires damaged the community of Fort McMurray. The Premier, Agriculture and Forestry Minister Oneil Carlier and Municipal Affairs Minister Danielle Larivee, a registered nurse from Slave Lake who has served as a key communicator during this crisis, have been factual and compassionate in their communications with Albertans.

Clear communication has been key to the success of Ms. Notley’s daily press conferences with fire and safety officials. Ms. Notley is doing what she needs to be doing as premier: being a strong and compassionate leader for Albertans through this disaster.

Facing the wildfires that have devastated his community, including the loss of his own home, Wildrose opposition leader Brian Jean has abandoned his normally adversarial tone and has been reasonable in his support of the government’s response to the wildfire. Faced with these losses, I cannot begin to imagine what he must be going through on a personal level. Not many of us can fathom what it feels like to lose our home and much of our community to a natural disaster.

Whatever his plans for the future as leader of the opposition, Mr. Jean would be smart to recognize that the collaborative and less confrontational tone looks good on him.

Similar reflections on leadership can be made about the strengths of other elected leaders who have stepped up to help during these wildfires, including Edmonton Mayor Don Iveson, whose city has opened its doors as a refuge for tens of thousands of Fort McMurray evacuees. We continue to witness a refreshing dose of humanity in our country as people from all walks of life have stepped up to help those who have fled the wildfires.

The break in hyperpartisanship is, unfortunately, not universal. Nasty Internet memes and conspiracy theories have been promoted on social media spinning wild untrue accusations against the NDP, environmentalists and ISIL.

Not unlike other natural disasters, politicians from all sides of the political spectrum have put aside their partisan differences for a moment in order to rally for Fort McMurray. It has taken a tragic event to provide a humanizing break from the increasingly hyper-partisan and polarized daily politics in Alberta.

As we move past the disaster and closer toward cleaning up and rebuilding the community, it is inevitable that the cordial feelings will break and partisanship will return, but our leaders have an opportunity to define what tone post-wildfire politics will look and feel like.

Categories
Alberta Politics

One year ago today the NDP won in Alberta. The next day hell froze over.

The attention of most Albertans this week is rightfully focused on the wildfires that are raging through northern Alberta and the more than 80,000 residents of Fort McMurray who have fled to safer ground in the south. It is a testament to our resilience as Canadians that a mandatory evacuation order could be carried out in a community of 80,000 people without any violence or resistance.

Rachel Notley Alberta NDP leader
Rachel Notley

Overshadowed by the wildfires, and rightfully so, is today’s anniversary of the major political earthquake that reshaped our province over the past year. On May 5, 2015, Albertans turned their backs on the Progressive Conservative regime that had governed since Peter Lougheed won in 1971 and replaced the old guard with a choice that would have been unbelievable in previous elections, the New Democratic Party.

It wasn’t always a forgone conclusion that Albertans would elect an NDP government. At points during last year’s campaign. Two polls released days before the writ was dropped showed the governing PCs and official opposition Wildrose Party in a race for first place with the NDP in a distant third. Disillusionment with an arrogant and entitled PC regime that had squandered the last oil boom and the pitch-perfect campaign led by Rachel Notley’s NDP resulted in a majority government.

Brian Jean Wildrose
Brian Jean

Those election results exposed a demographic shift, including a split between urban and rural Alberta. The NDP elected most of their 54 MLAs in Alberta’s fast-growing urban areas and central and northern rural Alberta. The Wildrose Party, led by former Member of Parliament Brian Jean won back most of the seats lost in the 2014 floor-crossings and made gains in rural Alberta. Jim Prentice‘s Tories earned 27 percent of the vote but fell victim to the first-past-the-post system and only elected 10 MLAs. The Alberta Party elected its first MLA, leader Greg Clark in Calgary-Elbow, and the Liberals were reduced to one MLA, interim leader David Swann in Calgary-Mountain View.

Joe Ceci Calgary NDP
Joe Ceci

May 5, 2015 saw the election of the a record number of women, including nearly half of the MLAs in the newly minted NDP caucus. The soon to be appointed provincial cabinet would have gender parity, a first in Canada. A contingent of under-30 MLAs were elected, bringing a new sense of diversity into the stodgy Legislative Assembly. Openly gay and lesbian MLAs were elected. And soon after, expecting and new mothers would become a common sight on the floor of the Assembly. Our Legislative Assembly felt more reflective of Alberta than it had in previous years.

The tone of government had changed.

The NDP banned corporate donations to political parties, a move that would never have happened under the corporate-donation fuelled PC Party. The new government not only admitted it believed in Climate Change, it also announced plans to do something about it. The NDP introduced a progressive income tax system and raised corporate taxes. They also reinstated funding to education, health care and post-secondary education that was cut by the PCs in their pre-election budget.

Smart, articulate, tough and quick on her feet, Ms. Notley has proven to be the government’s greatest asset. The senior cabinet ministers surrounding her, Sarah Hoffman, Danielle Larivee, Shannon Phillips, Kathleen GanleyDavid Eggen, Deron Bilous, Joe Ceci and Brian Mason, to name a few, have developed into a stronger team over the past year.

CBC National News Anchor Peter Mansbridge reacts to the results of Alberta's 2015 provincial election.
CBC National News Anchor Peter Mansbridge reacts to the results of Alberta’s 2015 provincial election.

Getting off the royalty rollercoaster’ by fixing a revenue system that was over-reliant on natural resource royalties to fund the government’s operations budget is a central theme of the new government.

Shannon Phillips
Shannon Phillips

A sharp decline in the international price of oil meant the new government faced higher private sector unemployment and decreased activity in the oil industry in our province.

The Alberta Advantage, a myth spun by conservative politicians and pundits over the past twenty years quickly turned into a disadvantage. The low taxes boasted by the previous government turned into a disadvantage when the price of oil dropped and left the province with a $10 billion shortfall in revenue.

Instead of slashing the budget, as the conservative opposition parties would have done, the NDP looked for outside advice from former Bank of Canada Governor David Dodge. The budget tabled by Mr. Ceci included investments in infrastructure while keeping operating funding steady to avoid major service cuts and job losses that would increase the province’s unemployment levels.

Sarah Hoffman NDP MLA Edmonton-Glenora
Sarah Hoffman

The NDP plan focuses on stability and job creation but it is yet to be seen whether those large deficits will be embraced by Albertans at the next election. The future of this government, like the PC government before it, may ultimately depend on the international price of oil.

The optimism of the new government masked a certain naivety. Transitioning into the role of government has been challenging.

The transition from a 4-MLA opposition caucus to majority government led the NDP to import senior political staff from across Canada, including those with experience working in Ottawa and for NDP governments in Saskatchewan, Manitoba and Nova Scotia.

Kathleen Ganley NDP Calgary Buffalo
Kathleen Ganley

The rushed introduction of new farm safety laws made the NDP look as if they were more interested in dragging rural communities into the 21st century rather than leading them in that direction.

Like something out of the 1950s, Wildrose MLAs and conservative newspaper columnists have become prone to red-baiting, accusing Alberta’s NDP government of holding communist or socialist sympathies. While some individual NDP MLAs have self-identified as socialists, the reality is the new government has been quite moderate and even small-c conservative at times. Ms. Notley has become one of Canada’s strongest advocates for oil pipelines and the NDP even decreased the small business tax from 3 percent to 2 percent in the recent budget.

Days before last year’s election I asked the question, ‘how bad would Alberta’s conservatives need to screw up for Albertans to elect an NDP government.’ We found out on May 5, 2015.

The NDP had been elected in Alberta. Hell had frozen over.

On the morning of May 6, 2015, Albertans woke up to a new government and an unwelcome spring snowstorm. Today, as most Albertans focus on wildfires instead of politics, we can only hope for a repeat of that snowstorm to put an end to the fires ravaging Fort McMurray.


The governments of Alberta and Canada will be matching individual donations made to the Canadian Red Cross Alberta Fires Emergency Appeal to help the people impacted by the Fort McMurray wildfire. Click here to donate.

Categories
Alberta Politics

Wildrose defeated by “Justin Trudeau Liberal” in Calgary-Greenway by-election

Prab Gill won today’s by-election in Calgary-Greenway with 27 percent of the vote, holding the northeast Calgary electoral district for his Progressive Conservative Party. The by-election was triggered after the death of popular MLA Manmeet Bhullar in November 2015.

Devinder Toor Wildrose
Devinder Toor

Perhaps demonstrating how high the political stakes were for the conservative opposition parties, the right-wing Wildrose Party delivered a last minute flyer to houses across Greenway attacking Mr. Gill for being a “Justin Trudeau Liberal.”

The braintrust at Wildrose Party headquarters, all federal Conservative loyalists, probably didn’t consider that Albertans are smart enough to know the difference between federal and provincial politics. And then there is the possibility that Mr. Trudeau, and local Liberal MP Darshan Kang, might actually be popular among voters in northeast Calgary.

Khalil Karbani, the actual Liberal Party candidate (who ran for a Wildrose Party nomination in 2012), placed third with an impressive 22 percent of the vote. As the provincial Liberals have essentially been non-existant in this constituency for some time (they did not run a candidate in 2015), the longtime community association president likely benefited from his own personal popularity and that of Mr. Kang (and Mr. Trudeau, I am sure).

Khalil Karbani Liberal
Khalil Karbani

Wildrose candidate Devinder Toor placed second with 23 percent, only three points higher than he placed in last year’s general election. Mr. Toor faced allegations of questionable business practices during the campaign which may have hurt his chances. But the loss can also be seen as a rebuke of the Wildrose Party’s no holds barred ideological and negative attacks against anyone who disagrees with its positions.

The Wildrose Party’s attacks on Mr. Gill probably do not bode well for Wildrose leader Brian Jean‘s fumbling attempts to convince the PCs to merge with them before the next election. With one by-election win under their belt, the PCs could feel a renewed sense of optimism for their own future electoral prospects.

Roop Rai NDP Calgary Greenway
Roop Rai

New Democratic Party candidate Roop Rai placed fourth with 20 percent. Premier Rachel Notley played down expectations in this by-election but a fourth place finish by the NDP candidate, even if was only seven points behind the victor, is a poor finish for a governing party.

The by-election will likely contribute to the narrative that the NDP have lost popularity in Alberta, regardless of the party never actually having won an election in Calgary-Greenway. It is also the start of the narrative that, despite their claims, the Wildrose Party is not the only party that can defeat the NDP – the PCs and the Liberals can now claim they can defeat the NDP as well.

As I wrote earlier this week, it is difficult to tell what impact a single by-election will have on future general elections. An abysmally low voter turnout, at 29 percent, suggests that none of the parties have meaningfully connected with voters in this constituency.

We do know two things. First, the PCs blocked the Wildrose Party from grabbing one of their nine remaining constituencies, which is an important victory for a party that was written off as dead less than one year ago. Second, attacking Justin Trudeau in Calgary might have actually hurt Wildrose chances of winning this by-election.


Unofficial results of the Calgary-Greenway by-election from Elections Alberta:

Prab Gill, PC: 2,292 (27.7%)
Devinder Toor, Wildrose: 1,957 (23.6%)
Khalil Karbani, Liberal: 1,870 (22.6)
Roop Rai, NDP: 1,667 (20.1%)
Thana Boonlert, Green: 166 (2%)
Said Abdulbaki, Independent: 146 (1.7%)
Larry Heather, Independent: 106 (1.2%)
Sukhi Rai, Independent: 61 (0.7%)

 
Categories
Alberta Politics

“Over My Dead Body” – This week in Alberta’s Big Happy Conservative Family

It was only last week that the leaders of Alberta’s two main conservative political parties – Progressive Conservative interim leader Ric McIver and Wildrose Party leader Brian Jean – were in Ottawa hobnobbing with the conservative and right-wing establishment at the annual Manning Centre conference. It was reported that the two party leaders met with federal Conservatives at Stornoway, the official residence of official opposition leader Rona Ambrose, who were trying to help facilitate a merger between the two parties.

Yesterday, it appeared that any ground closed between the two party leaders last week may have been lost after Mr. Jean publicly claimed that Mr. McIver was encouraging PC Party members to purchase Wildrose Party memberships.

The Calgary Herald reported that Mr. McIver would not directly answer a question in an interview Monday on whether he had encouraged dual membership in both parties. But yesterday afternoon, Mr. McIver came out swinging with a LinkedIn post titled “Over My Dead Body,” in which he refuted Mr. Jean’s “outrageous statement.”

This strange blowout follows another odd episode on social media on Monday between the president of the Calgary-North West PC association and a Wildrose Caucus staffer, which PC MLA Sandra Jansen responded to on Twitter. Seen as a moderate conservative, Ms. Jansen is a vocal opponent of a merger with the Wildrose Party, and she could be a potential candidate for the PC Party’s permanent leadership.

https://twitter.com/SANDRAYYCNW/status/704444384058576896

In another odd story, Wildrose MLA Derek Fildebrandt stirred up attention with his aggressive defence of his decision to submit expenses for a breakfast meeting with former Reform Party leader Preston Manning, the Manning Centre’s namesake.

Mr. Manning’s recent move to insert himself into the merger debates was publicly rebuffed by Mr. Jean. Conservatives still remember Mr. Manning’s role in the defection of nine Wildrose MLAs to the PC Party in December 2015, which proved to be a very unpopular move with party members and regular Albertans.

Both the PCs and Wildrose parties are running candidates in the March 22 by-election in Calgary-Greenway to choose a successor to PC MLA Manmeet Bhullar. The results of the by-election could be vital in projecting the future viability of the PCs, who formed government in Alberta from 1971 until they were defeated by Rachel Notley‘s NDP in 2015.

It is clear that despite attempts by outside groups to merge the two parties, which have a history as vicious opponents, there is still a very wide gap between the leadership and supporters in both camps.

Categories
Alberta Politics

They did what?! Reaction to the NDP Royalty Review from across the political spectrum

Here is what energy industry executives, progressive advocates and opposition politicians had to say about the Royalty Review panel report released on Friday, Jan. 29, 2016:

“Our new royalty framework recognizes the economic context of Alberta’s energy industry and the need to protect and promote good jobs. Our new system will gradually deliver greater revenue to Albertans while building a more competitive energy sector enhanced by greater transparency and performance measurements to allow Albertans to hold government and industry to our commitments.” – Rachel Notley, Premier of Alberta (press release)

“Our history of innovation has made Alberta into one of the world’s top energy producers. With the changing world we face today, it’s even more important to encourage innovation and ensure Alberta can compete. That way, everyone benefits. Our panel is proud to deliver these recommendations to improve our energy industry’s future.” – Dave Mowat, Royalty Review Advisory Panel Chair  (press release)

“Virtually none of our concerns or suggestions are reflected in the royalty report… Those ideas were passed over in favour of a plan that could have been introduced by a PC or Wildrose government… We had high hopes at least some of those progressive alternatives would have found their way into the final report. But they didn’t.” – Gil McGowan, President of the Alberta Federation of Labour (reported in the Calgary Sun and AlbertaPolitics.ca)

“Together, we created a meaningful dialogue around the energy issues both in Alberta and across Canada. I believe that together, we have developed an enduring framework and set of recommendations that will contribute to Alberta’s future prosperity.” – Leona Hanson, Panel member and Mayor of Beaverlodge  (press release)

“The most glaring omission is the complete absence of any kind of incentive for environmental improvement by industry. Under this new royalty system the government is rewarding the environmental status quo. Alberta’s energy industry is innovative and they deserve the opportunity to be rewarded for improved environmental practices. This is particularly prevalent in the decision to ignore the oilsands royalty process completely.” – David Swann, MLA for Calgary-Mountain View and interim leader of the Liberal Party (press release)

“The new royalty framework is principle-based and provides a foundation to build the predictability industry needs for future investment… The report recognizes royalties are just one part of the competitiveness equation for Alberta. With today’s economic situation, now is the time for industry and the Alberta government to work together on solutions that will make Alberta a world-class province to do business… Today’s announcement has been the result of a fair and credible process, one Albertans can trust.” – Tim McMillan, president and chief executive officer of the Canadian Association of Petroleum Producers (press release)

“They’ve done some good things that were laudable, but that keeping the royalty rates and structure was disappointing. There was a lot of room for improvement to capture a greater share of the resource generated by the industry in a high-price environment; holding the line doesn’t accomplish that.” – Ricardo Acuna, executive director of the Parkland Institute (Globe & Mail)

“I was impressed with the efforts of the Panel to understand and balance the interests of the public, the Province and the industry, but I was particularly impressed with how all of the input was considered and integrated to the Modernized Royalty Framework report. I believe the Panel’s recommendations significantly update and improve the Alberta royalty framework which should ultimately encourage investment in Alberta’s resources.” – Kevin ‎Neveu, President and CEO of Precision Drilling Corp.  (press release)

“Just like in our royalty plan, the panel has found that Albertans are getting a fair share from oil and gas royalties, and that our royalties today are globally competitive. As well, they also agreed with our plan that oil sands royalties are fair as-is, and that further transparency is needed. I urge them to take this one step further by compiling and issuing an annual Resource Owners Report, both to inform and educate Albertans as to the many ways we benefit from our energy industry.” – Greg Clark, MLA for Calgary-Elbow and leader of the Alberta Party (press release)

“We see this as a good start on increasing competitiveness and enhancing the province’s financial strength. We look forward to seeing the final details, but at this stage, we commend the Panel on delivering what looks to be a thorough and credible framework that can help Alberta companies compete in difficult market circumstances while providing a more transparent and suitable royalty system.” – Pat Carlson, CEO of Seven Generations Energy Ltd.  (press release)

“Our heart goes out to the Albertans who suffered job losses because of the instability caused by calling the royalty review. The next step is to recover from the damage done by this review and the series of poorly thought out policies that are harming our energy sector. Alberta needs to start seriously evaluating how to restore our competitiveness on the world stage.” – Brian Jean, MLA for Fort McMurray-Conklin and leader of the Wildrose Party (press release)

“We are pleased the government has concluded that the oil sands royalty framework provides the appropriate share of value to Albertans. Completion of the royalty review provides certainty, predictability and helps increase investor confidence in the Province. Industry and government can now focus on initiatives to lower costs, improve efficiencies and enhance environmental performance—all with the goal of getting Albertans working again.” – Bill McCaffrey, President and CEO of MEG Energy Corp.  (press release)

“It is no surprise to see that the Panel found the existing royalty structure to be fair and equitable for Albertans. It’s sad that this government had to create such havoc within the industry only to find out that the regime created by the Progressive Conservatives gives Albertans their fair share of resource revenues.” – Richard Gotfried, Progressive Conservative MLA for Calgary-Fish Creek

Categories
Alberta Politics

Rachel Notley boosts her credentials as a pragmatist by accepting Tory royalty rates

If you were looking for evidence that Alberta Premier Rachel Notley is a pragmatist, we saw it yesterday. Backed by the members of the Royalty Review Panel, Energy Minister Marg McCuaig-Boyd and the 16 New Democratic Party MLAs from the Calgary region, Ms. Notley announced the Alberta government would not be increasing natural resource royalty rates.

The Royalty Review wraps up the second major review panel launched by the NDP after their win in the 2015 provincial election. The report from Alberta’s Climate Change panel represents a more meaningful shift by the government by phasing out dirty coal fired power plants and introducing a carbon tax. As the Climate Change report represents sweeping change, the royalty review panel embraces the status quo.

It is not the time to reach out and make a big money grab. That just is not going to help Albertans over-all right now, and so I feel quite confident that this is the right direction to take,” Ms. Notley told the news conference in Calgary yesterday.

The decision to keep royalty rates the same is a 180 degree turn from the feisty NDP opposition we knew ten months ago, which claimed Albertans were not getting their fair share from royalties under the old Progressive Conservative regime.

It was also a sharp contrast from the words we heard from the chairman of the province’s previous royalty review. In 2007Bill Hunter wrote that “Albertans do not receive their fair share from energy development. Albertans own the resource. The onus is on their government to re-balance the royalty and tax system so that a fair share is collected.”

If you were paying attention to the moderate language Ms. Notley and NDP cabinet ministers have used when discussing royalty rates since forming government and launching this review panel in mid-2015, you might be less surprised.

With the government’s messaging in mind, it is not shocking that the NDP did not choose to ignore the panels recommendations and impose sweeping changes that many Albertans, including myself, felt were needed. It is my belief that our resource royalties should have been raised to ensure that Albertans are actually getting their fair share when oil prices are high. This report does not do that.

While the decision to accept the status quo on royalty rates will certainly be a divisive issue within the NDP caucus and party, it demonstrates that Ms. Notley is not a partisan ideologue.

The NDP would have faced a severe political backlash from its right-wing opponents, the energy industry, and thousands of Albertans nervous about the state of the economy if they had jacked up royalty rates yesterday. In the short-term, with the current economic situation in mind, it is a smart political decision to keep royalty rates the same, but in the long-term it represents a missed opportunity for Albertans.

Closing the door to royalty increases will also not help solve the revenue shortfall caused by the drop in the international price of oil. After enjoying decades of high oil and natural gas prices, the old conservative government became over dependent on resource royalties to fund the province’s operations budget. With international oil price dropping, the new government now faces a significant shortfall in revenue.

By accepting current royalty rates, the government has also rebuked months of hyper-partisan rhetoric and nasty attacks from Wildrose leader Brian Jean, who claimed the review was risky, ideological and would “not be independent or fair.” It is troubling that Mr. Jean and his party are opposed to even the concept of reviewing Alberta’s resource royalty rates, something that should be done by the Alberta government on a regular basis to assess whether our rates are competitive.

Creating mechanisms for increased transparency around royalties is one positive outcome of this review. The report recommends the annual publication of a capital cost index for oil and gas wells and the costs and royalties paid for each oil sands project. The Auditor General has reported numerous times that the old Conservative government was not properly tracking whether Albertans were receiving the royalty rates they were owed.

Significant new investment in the Heritage Fund when oil prices do rise again will pay off for Albertans in the long-term. In their 2015 election platform, the NDP campaigned on the promise that “100% of incremental royalty revenue, above the sums earned by Alberta under the current regime, will be invested into Alberta’s Heritage Fund.”

Many Albertans will disagree with the report’s claim that Albertans are currently receiving our fair share from resource royalties. Others will claim it will limit the government’s options for dealing with the revenue shortfall. But, for better or worse, it does show the evolution of Ms. Notley and her party from leftish opposition into a moderate government. For better or worse, yesterday we saw Rachel Notley boost her credentials as a pragmatic Premier of Alberta.