Tag: Fraser Institute

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Alberta Politics

War Room’s Twitter tirade against New York Times sends embarrassment shivers across Alberta.

Canadian Energy Centre CEO Tom Olsen and Alberta Premier Jason Kenney. (Source: Facebook)
Canadian Energy Centre CEO Tom Olsen and Alberta Premier Jason Kenney. (Source: Facebook)

Time to shut down the controversy-plagued Canadian Energy Centre.

“Shoot, shovel, and shut up,” was how former Alberta premier Ralph Klein suggested some of the province’s self-respecting ranchers could deal with the mad cow disease crisis of the mid-2000s. And it is time that Premier Jason Kenney heeded Klein’s words and applied the same advice to the controversy-plagued Canadian Energy Centre.

Premier Ralph Klein
Ralph Klein

The Energy War Room, as Kenney called it during and after the 2019 election campaign, has been fraught with embarrassing missteps and blunders since it was created in October 2019, but today marked peak embarrassment for the CEC.

The Calgary-based publicly-funded private public relations company and blog was caught under fire today for posting a series of tweets attacking the New York Times and sharing links claiming the 169-year old newspaper of record held anti-Trump and anti-Semitic biases and a “very dodgy” record.

The CEC’s childish tirade of tweets appear to have been posted in response to a Times article about the decision by some of the world’s largest financial institutions to stop investing in oil production in Alberta.

https://twitter.com/ByJamesKeller/status/1227690653938802688

Some international banks, pension plans and financial institutions appear to have included the impact of climate change into their long-term investments plans and have decided to move away from investing in some carbon-intensive resource extraction industries like Canada’s oilsands.

According to the Times, “BlackRock, the worlds largest asset manager, said that one of its fast-growing green-oriented funds would stop investing in companies that get revenue from the Alberta oil sands.”

Sonya Savage

The Times article noted that “Alberta officials didn’t immediately respond to questions about BlackRock’s announcement on Wednesday,” which is a shocking departure from Kenney’s pledge he would use “the persuasive power of the premier’s bully pulpit to tell the truth of our energy industry across the country.”

CEC Chief Executive Officer and Managing Director Tom Olsen publicly apologized on Twitter for the unprofessional tweet storm against the Times, a statement that is now being widely reported.

Olsen, a former United Conservative Party candidate and lobbyist, was appointed to the role when the CEC was launched in October 2019. The CEC is a private corporation created by the Alberta government and receives $30-million annually from the Alberta government to ostensibly correct misinformation about the oil and gas industry, but in reality appears to be doing a poor job conducting public relations for the oil and gas industry.

Doug Schweitzer Calgary Alberta Conservative
Doug Schweitzer

Another member of the CEC’s staff is Mark Milke, a former director of the Canadian Taxpayers Federation, former senior fellow of the Fraser Institute and lead author of the UCP’s 2019 election platform. Milke is the Executive Director in charge of Research, according to the CEC’s website.

Existing as a private corporation with a board of directors that includes Energy Minister Sonya Savage, Justice Minister Doug Schweitzer, and Environment and Parks Minister Jason Nixon, the CEC is not subject to the freedom of information rules that make other government institutions and agencies more transparent to the public and the media. Despite receiving $30-million annually from the government, the CEC appears to have no accountability mechanisms and its internal operations are kept secret.

While Kenney was recently lauded for changing his message about an eventual transition away from of oil (I suspect he is coopting language rather than changing his mind), some of the good for Alberta that his trip to Washington DC last week may have done has at least been partially damaged by the latest PR disaster exploding through the War Room in downtown Calgary.

Jason Nixon
Jason Nixon

What started a few months ago as a $30-million annual public relations subsidy to the oil and gas industry is starting to become a running joke that might hurt Alberta, and its oil and gas industry, more than it helps it.

As Finance Minister Travis Toews asks Albertans to accept deep cuts to public health care and education and for public employees to take salary rollbacks in his Feb. 27 provincial budget, it will become increasingly difficult to convince Albertans that the CEC’s $30-million annual budget is not a giant waste of money.

In this case, Kenney should take his own conservative free-market advice and let private sector industry groups like the Canadian Association of Petroleum Producers and the legions of public relations professionals working for Canada’s oil and gas companies handle their own public relations.

As Ralph Klein might suggest, it’s time for Kenney to take the Canadian Energy Centre behind the proverbial barn and stop this embarrassing initiative from doing any more damage to Alberta’s reputation at home and abroad.

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Alberta Politics

Kenney declares victory but the pipeline fight is nowhere close to over

The 1358th chapter of the ongoing saga of the Trans Mountain Pipeline expansion project ended today as the Federal Court of Appeal unanimously ruled to dismiss four challenges by First Nations in British Columbia.

Speaking in Montreal today, Premier Jason Kenney lauded Prime Minister Justin Trudeau, telling reporters that “I have my disagreements with Prime Minister Trudeau on a number of issues … but I think they did realize there has to be at least one project that gets Canadian energy to global markets so we can get a fair price.”

3000 kilometres away from Alberta is probably a safe distance for Kenney to effuse some praise for Trudeau, something he likely wouldn’t be caught dead doing back home. But praising Trudeau for a pipeline that is deeply unpopular in Quebec while he is in that province’s largest city is a shrewd piece of political theatre on Kenney’s part.

Since he jumped into provincial politics in 2017, Kenney has used the pipeline as a cudgel against his political opponents, tarring Trudeau and former premier Rachel Notley as opponents of a project they spent incredible amounts of political capital to see completed.

Nationwide support for the Trans Mountain Pipeline expansion dropped by 11 per cent since 2018, according to a poll released by Angus-Reid last month. Urgency about climate change has become a more front and centre issue since then, most effectively demonstrated by tens of thousands of Canadians participating in climate strike marches across Canada, including more than 10,000 people in Edmonton. And since Kenney’s United Conservative Party formed government in April 2019, his government has taken a hyper-aggressive approach to responding to opponents to oil industry expansion, which may have had an impact on national opinion. 

The creation of the publicly funded Canadian Energy Centre (aka The Energy War Room), a government-sponsored public relations company run by failed UCP candidate Tom Olsen and boasting a $30-million annual budget, has been front and centre in the government’s new approach.

The CEC largely duplicates public relations work typically done by industry associations like the Canadian Association of Petroleum Producers, and had a rough first few months as it was forced to replace a plagiarized logo and tell its staff not to identify themselves as reporters when writing content for the War Room’s blog.

The Canadian Energy Centre, the Public Inquiry into Anti-Alberta Energy Campaigns (which has been dogged by an alleged conflict of interest scandal), the pledge to open Alberta government offices in provincial capitals across Canada, and Kenney’s steady schedule of international travel, are part of what the UCP government calls it’s “Fight Back” plan.

The court ruled that First Nations have no veto and cannot refuse to compromise or insist a project be cancelled, and found that the federal government made genuine effort to consult and accommodated concerns raised by First Nations communities.

While this decision is expected to be appealed by First Nations groups at the Supreme Court, and will likely have political implications if UNDRIP is implemented in Canada, it is likely that the next round of opposition to the pipeline project will come in the form of civil disobedience and direct action.

This isn’t over yet.

UCP releases radical health care report, and look! Jason Kenney is leaving the country, again!

Tyler Shandro, Dr. Verna Yiu, and John Bethel (Source: YouTube)
Tyler Shandro, Dr. Verna Yiu, and John Bethel (Source: YouTube)

Perhaps it is just a coincidence, but it seems pretty darn convenient that Premier Kenney was on a plane to Quebec when Health Minister  Tyler Shandro shared a stage with Alberta Health Services CEO Dr. Verna Yiu and Ernst & Young spokesperson John Bethel (who attentive readers will remember as the 2004 federal Liberal candidate in Edmonton-East) in announcing the release of the international management corporation’s $2-million report on Alberta Health Services.

The report is big and bristling with the kind of ideological and predictable recommendations that you would expect from the right-wing Fraser Institute, which was cited a few times in the report. Privatization of services ranging from long-term care to security, gutting of collective agreements and salary rollbacks, and closure of rural hospitals were among the many recommendations included in the report.

While Shandro was clear that he would not risk further alienating his party’s rural base by closing rural hospitals, despite the report’s recommendations, the report did deliver the UCP with a powerful talking point – $1.9 billion in potential savings.

The report suggests that if all its recommendations were implemented, the government could potentially save $1.9 billion in costs to the health care system (of course, many of those costs could be transferred to patients). It might be unlikely that all of the recommendations will be implemented, but expect to hear Shandro repeat that $1.9 billion number, a lot.

Meanwhile, Kenney will soon leave Quebec for meetings in Washington D.C.

Kenney’s office stops releasing public travel itineraries

The Premier’s Office under Kenney appears to have stopped publicly releasing the Premier’s itinerary ahead of inter provincial or international trips. Previous premiers commonly released a brief daily itinerary that listed who or which organizations the Premier and their staff were scheduled to meet with.

A lack of publicly released itinerary meant that Albertans discovered on Twitter that Kenney’s trip to New York City in September 2019 included a speech at a reception hosted by the right-wing Manhattan Institute. It was also revealed by the Alberta Today newsletter through Freedom of Information requests that Kenney also held court at a historic speakeasy in midtown Manhattan, an event that was not listed in the standard government press release announcing his trip.

Kenney’s office also did not release an itinerary for his December 2019 trip to London, UK, citing concerns that individuals he was meeting with could be targeted by climate change advocacy groups.

With no journalists from Alberta accompanying Kenney on his international trips, the release of public itineraries is an important way to ensure some basic accountability and transparency when the Premier is travelling out of province on the public dime.

Note: Past requests for public itineraries of Premier Kenney’s international trips have gone unanswered by the Premier’s Office.

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Alberta Politics

Kenney is the closest thing the Conservatives have to a “Svengali-like genius”

Jason Kenney Andrew Scheer Alberta Election
Andrew Scheer and Jason Kenney at a campaign rally in Edmonton-Centre in 2019.

Six weeks after the federal election, Andrew Scheer has resigned as leader of the Conservative Party of Canada, raising instant speculation about who might enter the contest to replace him.

Rona Ambrose
Rona Ambrose

While there does not appear to be an obvious heir apparent, Alberta Premier Jason Kenney‘s name immediately comes to mind as a potential successor. But is appears as though Kenny could just be a visitor in Ottawa for the foreseeable future.

Kenney told Postmedia columnist Don Braid yesterday he had “absolutely no intention” of running for the leadership and offered what appears to be an early endorsement of former interim party leader Rona Ambrose.

In response to rumours of his federal ambitions, Kenney told Postmedia’s  Stuart Thomson that “I should be flattered that they think I’m some kind of Svengali-like genius.” The thing is, Kenney is probably the closest thing to a Svengali the Conservatives have. Whether you believe he a brilliant political operator with good intentions or a sinister political beast plotting to smash his growing list of enemies likely depends on whether you are his ally or opponent (ask Rachel Notley and Brian Jean). But there is no doubt he is a skilled career politician.

He also checks a whole bunch of boxes on the list of Conservative constituency groups.

Kenney started his political career as a social conservative anti-abortion activist at a private Roman Catholic university in San Francisco. He returned to Canada to become a founder of the anti-tax Canadian Taxpayers Federation. He spent 19 years in Ottawa as a Member of Parliament and, after briefly losing some favour with the party during Stockwell Day‘s disastrous time as leader of the Canadian Alliance, proved to be a loyal solider to Stephen Harper and worked his way into a senior cabinet role. And he has deep connections to conservative think-tanks like the Atlantic Institute for Market Studies (recently merged with the Fraser Institute) and New York City-based Manhattan Institute.

In less than two years, Kenney commandeered Alberta’s Progressive Conservative Party and merged its membership with its decade-old bitter enemy, the Wildrose Party, by winning the United Conservative Party leadership. He then led the party to win the 2019 election. Plus, he, or his closest advisors, were not above testing the limits of what was acceptable in order to win. And since entering the Premier’s Office, he has been a master of sowing chaos and creating crisis in order to implement his political program.

Kenney is respected by Conservative partisans and, as long as he can keep up his winning streak, will remain one of the most prominent leaders of the Conservative movement in Canada.

Or maybe I’m just giving him too much credit.

Winning as a Conservative in Alberta is a much easier task than winning in other parts of Canada, including populous regions like Vancouver, Montreal, and Toronto. Kenney’s whistle-stop tour through Ontario during the federal election resulted in dismal returns for Conservative candidates, and a recent poll shows his approval ratings in Alberta have plummeted by 15-points since his government tabled an unpopular provincial budget, which serves as a reminder that while he is a skilled politician, he is not invincible.

Which is why he might be reluctant to jump back into federal politics.

Being premier of a large province is certainly a more influential office, at least it is in 2019, and comes with more prestige than being leader of the official Opposition in Ottawa. But staying in Alberta means he is not one-step away from becoming Prime Minister of Canada, which many people still speculate is his goal.

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Alberta Politics

MacKinnon Report endorses Jason Kenney’s political agenda, doesn’t fix Alberta’s big revenue problems

Janice MacKinnon
Janice MacKinnon

The report and recommendations of the Blue Ribbon Panel on Alberta’s Finances, known widely as the MacKinnon Report, after the panel’s chairperson – former Saskatchewan cabinet minister and history professor Janice MacKinnon – was released yesterday.

Jason Kenney Alberta Politics
Jason Kenney

The report is an endorsement of the United Conservative Party government plan to implement deep cuts to public sector funding, a wide-range of drastic changes to how Alberta’s public services are delivered (or delivered at all), and the use of legislative tools to interfere with the collective bargaining process.

When reading the panel’s report and recommendations, it is important to remember this is not a neutral or academic document. The MacKinnon Report is very much a political document written by political people who were appointed because they share the government’s vision.

Despite her past political affiliation as an NDP cabinet minister in Saskatchewan, MacKinnon’s fiscal conservative views make her more likely to feel welcome in the UCP or the Fraser Institute than in a party led by Rachel Notley or Jagmeet Singh. For decades MacKinnon has been a champion of fiscal conservatism and more recently provided an enthusiastic endorsement that was prominently displayed in the UCP’s election platform.

The MacKinnon Report calls for funding freezes or cuts to public services across the board, including increased privatization of health services, changing the funding formula for Alberta schools (and likely introducing more private and charter schools), increasing government control of post-secondary institutions and lifting the current freeze on tuition fees, and downloading more infrastructure costs on municipalities.

Premier Ralph Klein
Ralph Klein

In yesterday’s press conference announcing the report, MacKinnon suggested that “fewer hospitals” could be a solution to cutting the health care budget, which should raise giant red flags in rural communities across Alberta. During her time as Saskatchewan’s finance minister, 52 rural hospitals were closed as a result of budget cuts.

The report’s suggestion that the government scale back capital investments could also spell trouble for the much-needed new hospital in southwest Edmonton, which was announced by the previous New Democratic Party government in 2017.

The recommended cuts and creation of legislative mechanisms to interfere with the collective bargaining processes are likely designed to create strife with public sector unions whose members would be directly impacted by these cuts – a group that the UCP is eager to pick fights with.

For anyone who grew up or lived in Alberta in the 1990s, it may feel like deja-vu.

When premier Ralph Klein and treasurer Jim Dinning imposed drastic cuts on public services, Albertans were told that balancing the budget and paying down the provincial debt was necessary to get Alberta’s fiscal house in order. At the time, a young anti-tax crusader named Jason Kenney cheered on those cuts, going so far as to tell the Western Report that “Education will be the toughest area to cut, but it will also be the most important. If the government backs down on this one, then the entire Klein revolution will fail.”

Successive governments, both Progressive Conservative and NDP, spent decades trying to fix the damage those short-sighted cuts had on Alberta’s communities, public infrastructure and public services.

The “blue ribbon” panel was created to provide an endorsement of Premier Kenney’s political program, and, if its recommendations are adopted, could be the most radically ideologically conservative agenda Albertans have seen in decades. It is a far cry from the technocratic conservative agenda meticulously implemented by former prime minister Stephen Harper, who Kenney served dutifully in Ottawa.

Unlike Harper, there is no indication that Kenney is interested in half-measures or incrementalism.

Alberta still has a big revenue problem

The narrow mandate of this panel was a missed opportunity to actually address the fiscal challenges facing Alberta, which includes issues with revenue ranging from low taxation and over-dependence on oil and gas royalty revenues.

Rachel Notley Alberta Premier NDP
Rachel Notley

The report briefly mentions that over-dependence on unreliable natural resource revenue is an issue, but the panel was specifically told not to provide recommendations to fix the revenue problem – only spending. Both MacKinnon and Finance Minister Travis Toews repeated the government’s well-used talking points during yesteday’s press conference – that Alberta has a spending problem and not a revenue problem.

The report frequently compares public sector spending in Alberta with British Columbia, Ontario and Quebec, but only when it comes to government spending. The big problem with comparing Alberta with our provincial counterparts on the spending side is that our revenue – generated through taxes – is significantly lower than every other province.

If Alberta had the same level of taxation as BC, which is the second lowest in Canada, then Alberta could have no deficit and could be collecting billions of dollars in additional revenue each year. 

By not addressing the revenue challenges faced by the Alberta government, the MacKinnon Report shows it was created to justify the spending cuts and privatization of public services that the UCP was likely already planning to implement. Remember, this is a political document.

It’s hard to criticize the MacKinnon Report without also laying some criticism at the feet of the past PC and NDP governments who did not fix Alberta’s revenue problems when they had the chance. Had the NDP been as aggressive in fixing Alberta’s long-standing revenue problems as the UCP will be in attacking government spending, we might not be reading the MacKinnon Report today.

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Alberta Politics

A look at who is backing Jason Kenney’s bid for the PC Party leadership

Former Reform Party leader Preston Manning and Jason Kenney.
Jason Kenney with former Reform Party leader Preston Manning, a key player in the last attempt to unite-the-right in Alberta.

Conservative Member of Parliament Jason Kenney is expected to announce his candidacy for the leader of the Progressive Conservative Association of Alberta tomorrow, July 6, in Calgary, deliver a speech in Grande Prairie that evening and then travel to Edmonton on July 7 for another speech. He was widely expected to run for the leadership of the Conservative Party of Canada and only just recently began positioning himself as candidate to unite Alberta’s conservative partisans under one banner.

He would be the first candidate to officially enter the PC leadership contest, which is scheduled to be held on March 18, 2017.

  • As I explained in a column last month, Mr. Kenney could have a rough landing in Alberta politics.
  • A skilled organizer with more than 25 years of experience as a taxpayers federation lobbyist and Ottawa politician, Mr. Kenney should not be underestimated by his opponents.
  • Mr. Kenney follows in the footsteps of his former colleague, Jim Prentice, who led the PC Party from 2014 until its defeat by Rachel Notley’s New Democratic Party in May 2015. That election ended forty-four uninterrupted years of PC majority governments in Alberta.
  • Mr. Kenney recently purchased a membership in the PC Party, despite being widely seen as a supporter and ideological ally of the Official Opposition Wildrose Party, currently led by former MP Brian Jean.
  • Perhaps anticipating a threat of takeover, the PC Party recently abandoned its one-member one-vote system of choosing its leader in favour of a closed-delegate system, which forces candidates to campaign and organize in all 87 constituencies across the province.
  • Mr. Kenney is not assured an easy victory in the PC leadership race. I spoke with CTV about some of the potential candidates who also might enter the race, including former deputy premier Thomas Lukaszuk, who Mr. Kenney once described as an “asshole,” Vermilion-Lloydminster MLA Richard Starke, and Calgary-North West MLA Sandra Jansen, who said she would consider leaving the PC Party if Mr. Kenney became the leader. Edmonton City Councillor Michael Oshry is also considering entering the contest and former MLA Doug Griffiths is rumoured to be interested.

It is unclear whether Mr. Kenney would resign as the MP for Calgary-Midnapore immediately or if he would keep one foot in federal politics until he secures a leadership position in a provincial party. Under provincial elections law, he does not need to resign his federal seat until he is a registered candidate in a provincial election.

Because of his track-record as a social conservative and Wildrose supporter, Mr. Kenney might not find a great deal of support among existing PC Party members, including the 1,001 who attended the party’s annual general meeting earlier this year. But two unite-the-right groups could provide him with a base with which to organize his PC leadership bid.

Mr. Kenney appears to have the support of two unite-the-right groups. The Alberta Can’t Wait group, backed by former Reform Party stalwarts Preston Manning and Cliff Fryers, lobbyist Hal Danchilla and 1980s Tory cabinet minister Rick Orman, and the Alberta Prosperity Fund, backed by former right-wing talk radio host Dave Rutherford, former MLAs Heather Forsyth and Shiraz Shariff, and former PC Party president Jim McCormick. The Alberta Prosperity Fund issued a formal endorsement of Mr. Kenney on July 5, 2016.

The Alberta Can’t Wait group was reportedly planning to hijack the Alberta Party later this summer and Prosperity Fund founder and director Barry McNamar, formerly of the Fraser Institute and Manning Centre, is reportedly suing the Wildrose Party.

The two groups are part of a burgeoning cottage industry of anti-NDP groups, including the infamous and less polished Kudatah, that have popped up since the May 2015 election. Both the Wildrose and PC Parties have publicly rejected their overtures.

Alberta’s elections laws bar political parties from merging financial assets, meaning any actual merger between conservative parties is highly unlikely. Making things more complicated was the formation of a sixth conservative party last month – the Reform Party of Alberta. It may be a more likely scenario that a PC Party led by Mr. Kenney would apply to Elections Alberta to change its name to the Conservative Party of Alberta and urge Wildrose MLAs to run under its banner in the 2019 general election.

Cast into the opposition for the first time in 44 years, Conservatives in Alberta will need to define what their vision is for the future of our province. After decades of fiscal mismanagement, much of Alberta’s current economic situation is a result of decisions made by PC Party governments. Conservatives cannot simply expect that Albertans will forgive, forget and restore the natural governing party in 2019. Those days are gone.

Aside from his politically charged rhetoric about “free enterprise” and the bogeyman ‘bohemian Marxism‘ it remains completely unclear what Mr. Kenney’s vision for Alberta would be, besides just returning Conservatives to power. I expect we will find out more in the next few days.

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