Alberta Agenda - In The News

A few weeks ago in a column I wrote about David Suzuki's rudeness and hypocrisy I admitted that similar to that green guru, I too love this planet and try to have as small a negative environmental impact as possible but unlike him, I don't believe that human-made CO2 is the main driver of global warming.

I received hundreds of e-mails -- most recounting often hilarious stories of run-ins people had with Suzuki, finding out for themselves that his TV persona is a lot friendlier than his off-camera one.

But it was an e-mail from a fella named Gerald in the Niagara region, that indicates just how good a job the man-made global warming believers have been at selling their message.

My response was: "Gee, Gerald. Can you really not think of anything? Nothing at all?"

Then I suggested he find the nearest child and ask them what makes the earth warm.

The next day I got a reply. "Do you mean the sun?" he queried, in all sincerity.

"Yes, Gerald. That big, burning yellow ball up in the sky is, not surprisingly, the main driver of global warming."

Yesterday, world renowned paleoclimatologist and geology professor at Carleton University in Ottawa, Dr. Tim Patterson, was in Calgary to pass that basic message on. Though his message was rather technical. He brought reams of proof, scientific studies, graphs and the like to back up his claims.

Indeed, one of the more interesting, if not alarming statements Patterson made before the Friends of Science luncheon is satellite data shows that by about the year 2020 the next solar cycle is going to be solar cycle 25 -- the weakest one since the Little Ice Age (that started in the 13th century and ended around 1860) a time when people living in London, England, used to walk on a frozen Thames River and food was scarcer.

"This should be a great strategic concern in Canada because nobody is farming north of us." In other words, Canada -- the great bread basket of the world -- just might not be able to grow grains in much of the prairies.

After the Little Ice Age, "things warmed up precipitously with no help from carbon dioxide," pointed out Patterson, in a telephone interview.

Indeed, the world warmed up until about 1940 and then the temperatures started to fall until the late 1970s when scientists started predicting another ice age.

"Post World War II, as the world started cooling, CO2 was going up like crazy. All the evidence shows that warming periods were all solar driven and that there is no correlation between CO2 and temperature."

But solar flaring on its own, says Patterson, does not account for most of the warming -- which is an increase of 0.8C since the end of the Little Ice Age. It's only when its coupled with evidence about galactic cosmic rays, do all the historic warming (and cooling) pieces fit together.

Cosmic rays -- caused by the explosion of supernovas -- constantly bombard the Earth.

The more cosmic rays, the more cloud cover and the cooler the earth. However, when the sun is flaring -- as it is now -- it essentially blows away the cosmic rays and the earth warms.

As the saying goes, by then all of the billions of dollars wasted battling CO2 emissions, rather than pollutants, for instance, will be money pumped down the CO2 sink hole.

In 2020 hindsight on the great global warming scare will be 20/20. It won't be a pretty picture.

Revenue-shearing plan

Conservative Leader Stephen Harper promised during last year’s federal election campaign provincial non-renewable natural resource revenues would not be included in any new calculation of the federal equalization hand-out program.

But now Prime Minister Harper and Finance Minister Jim Flaherty are reported to be considering counting 50% of a province’s natural resource revenue in a revamped program.

The apparent change of heart comes from a panel chaired by Al O’Brien, a former deputy minister in our province.

Alberta, Saskatchewan and Newfoundland taxpayers would be soaked under this formula — while taxpayers in other provinces, particularly Quebec, would be clapping their hands in glee.

Indeed, it is reported Quebec would receive about $1.5 billion more under the new formula.

Currently under the program, ‘have-not’ provinces receive about $6,000 per person to provide public services comparable to the ‘have’ provinces.

We say to Harper and Flaherty: Keep your promises and keep you hands off our natural resources revenues.

If not, you’ll face a backlash reminiscent of Pierre Trudeau’s and Marc Lalonde’s hated National Energy Program (NEP). B.C. Premier Gordon Campbell calls the possible inclusion of resource revenues a “National Energy Program by stealth.”

The Conservatives, who swept Alberta in the Jan. 23 election, might even see a new Alberta First party arise and with it see the loss of any chance of winning a majority government.

In June, then-premier Ralph Klein warned he would fight “tooth and nail” any attempt to include natural resource revenues in any new equalization formula.

Premier Ed Stelmach calls the reports of the 50% cash grab “really troublesome” and Saskatchewan Premier Lorne Calvert’s government charges Harper’s government may be willing to sacrifice Western Canada’s oil and natural gas resources to win seats in Quebec.

Alberta Intergovernmental Affairs Minister Guy Boutilier points out our province’s taxpayers already send $31 billion a year to Ottawa, but receive $17 billion back in services. We’re a net contributor of $14 billion to the rest of the nation — isn’t that enough?

Only Alberta and Ontario have traditionally been ‘have’ provinces that do not receive equalization payments, but are expected to support the rest of the provinces to the tune of $14 billion a year in transfer payments. That could rise to $15 billion under the new formula.

Paradoxically, just as Saskatchewan is moving into the ‘have’ province lineup with its energy resources, and likely able to pay its way, this swipe from Ottawa would undercut the move.

Newfoundland, too, could be headed for a similar status with its energy reserves, but its growing resource wealth, too, may be undercut.

Campbell describes the rumoured move on revamping equalization as “establishing equalization as an insatiable entitlement program” in which provincial governments will be deterred from attempting to get their house in order.

The madness in the recommendations was no better pointed out by Newfoundland Premier Danny Williams, whose province will lose $100 million a year in revenues if the recommendations are acted on.

“In one year, we have turned a $5-billion deficit into a surplus. The recommendations would reverse that progress.”

Aside from the unfairness in such a new formula, the proponents have ignored how volatile resource prices are.

Oil has fallen to $52-a-barrel from $78-a-barrel in just a few months, and natural gas is down 40%.

There is no magic long-term panacea for the equalization issue with these kinds of rollercoaster rides.

Harper and Flaherty should also recall the wisdom of Abe Lincoln, who declared you do not make the poor rich by making the rich poor.

Alberta 'bad boys' to stir federal pot
Province seeks same rights as Quebec

Calling Alberta "the bad boy" of Confederation, Intergovernmental Relations Minister Guy Boutilier says the province will fight for its own rights as a nation, including control over immigration.

In an interview with the Herald, Boutilier also indicated the Alberta government will stir things up on the national scene over the fiscal imbalance, the interprovincial struggle for a new equalization formula and whether revenues from oil and other non-renewable resources should be factored into the equation.

Boutilier said Alberta is a "powerhouse" very much driving the national economy, but won't brag about it.

Nonetheless, he said, it's not afraid to ruffle some feathers as it fights for what it sees as a fair deal with the other provinces and Ottawa.

"We're kind of the bad boys of Confederation," Boutilier said, adding that Albertans are proud Canadians.

"What Albertans understand is this: they contribute immensely to this country of ours, but also we want to be able to benefit from it."

Boutilier said Alberta and other provinces and territories are owed the same rights associated with the Quebec nation, a distinction recently approved by the House of Commons.

However, for Alberta, it could be more immigration powers to lessen the mounting labour crunch, and a federal solution to a fiscal imbalance that provinces claim sees Ottawa collecting more tax revenue than necessary, he said.

Boutilier's remarks follow new Premier Ed Stelmach's assertion last month that Alberta is a distinct entity and will fight for the same rights as Quebec.

But Paul Boothe, an economics professor at the University of Alberta who recently helped oversee the equalization program for Ottawa, said the province is already reaping the rewards of its place in Canada.

Many of the workers who are driving the Alberta economy come from other provinces and have had their educations partly funded by federal equalization dollars paid to those provinces to fund social programs.

"Confederation is working well for Alberta," Boothe said in an interview. "I'm not interested in Alberta being a bad boy. I'm interested in Alberta being a leader."

Albertans send $29 billion a year to Ottawa in federal taxes but receive back only $17 billion in programs and services, according to the provincial government.

Provinces also are fighting amongst each other and with Ottawa over the makeup of a new federal equalization formula. The program, which is paid for through federal taxation collected across Canada, allocates cash to "have-not" provinces so they can provide comparable levels of services at similar levels of taxation.

A handful of reports have been published recently by the provinces and a federal expert panel on how to calculate the equalization formula. A major sticking point among premiers is whether non-renewable resource revenues should be factored into the formula. Alberta and Saskatchewan are fiercely against it.

With provinces unable to agree on a formula, Boothe said Prime Minister Stephen Harper will likely unveil his own plan for the fiscal imbalance in a federal budget that could be released as soon as next month.

"If they can't reach consensus, what's the federal government to do?," he asked. "They've got to move ahead."

Stelmach will fight for Alberta 'nation'
Tory leader promises to review oil royalties; 'Northern' premier won't exclude Calgary; Province will pursue same rights as Quebec

Jason Fekete, With a file from Michelle Lang, Calgary Herald
Published: Tuesday, December 05, 2006

Premier-designate Ed Stelmach served notice Monday that Alberta will flex its political muscle on the national scene, vowing to fight for the same rights as a Quebec nation and to defend encroachments on the province's wealth.

In his first official press conference since a stunning victory Sunday in the Progressive Conservative leadership race, Stelmach was both emotional and assertive in a nearly 30-minute appearance in front of journalists at the legislature.

The affable 55-year-old -- who will be sworn in as Alberta's 13th premier Dec. 15 -- blinked back tears when he discussed his dedicated volunteers. But he

delivered a firm message to Prime Minister Stephen Harper, Quebec and Canada's other political leaders over Alberta's place in the country.

Stelmach said he's concerned about a handful of intergovernmental issues, including the debate about a new equalization formula and the fiscal imbalance, as well as the notion of Quebec as a nation within Canada.

"I'm going to fight for the same rights and privileges that may be assigned to this nation within a nation," the usually low-key Stelmach told reporters, gesturing with his hands to drive home his point.

The unassuming northern Alberta farmer and MLA said he had a "good, long chat" with Harper on Sunday and suggested he'll have a very good working relationship with Ottawa and his provincial colleagues. "I want to work with Stephen Harper and Ottawa to make sure that we build even a stronger Canada," he said.

A meeting between the prime minister and Alberta's next premier is planned for either later this month or early January, Stelmach added.

A more immediate concern is choosing a cabinet -- one he said will be smaller than Premier Ralph Klein's -- which will likely be unveiled next week prior to the swearing-in ceremony. He's also called a caucus meeting for Wednesday in Edmonton.

With massive responsibilities now thrust onto his shoulders, Stelmach and his wife Marie received a "special blessing" Sunday, from a Ukrainian Catholic priest in his hometown of Andrew, that he'll make "the best decisions for the province of Alberta."

Political observers said the bold Stelmach, like all new leaders, is trying to boost his profile, while creating a sense of "action and energy" following his weekend win.

Stelmach also came out firing against new federal Liberal Leader Stephane Dion, who said Sunday he wants to find ways to achieve more sustainable development in the booming oilsands by reviewing "the advantageous tax treatment" offered to oil and gas companies. "I'm going to tell them right off the bat that they have to be careful as to the kind of policies they start articulating," Stelmach said. "Any damage to Alberta's economy is going to severely hurt Ottawa and their treasury as well."

When asked about the federal Grits possibly eyeing Alberta's energy wealth, he tapped his chest and said: "They're going to be dealing with me."

While Stelmach spent much of his time targeting the federal Liberals, it's likely he will -- like Klein -- keep some distance between his government and the Harper Tories as well, said University of Lethbridge political scientist Peter McCormick.

"Stelmach has to show himself as his own guy with his own set of ideas," he said.

The new Tory chief identified labour, housing and infrastructure as key issues that need to be quickly addressed by the new government.

He's also focusing his attention on three campaign promises, including ensuring a more transparent government, strengthening the PC party and discussing with caucus his desire for an Alberta pension plan.

The forcefulness of Stelmach's comments caught the attention of opposition MLAs and already appear to have quashed any perception that his nice-guy image means he's a pushover. "Having a look at Mr. Stelmach today and how he did in his news conference, it just occurred to me that he's not a guy that I'm going to underestimate," said Alberta NDP Leader Brian Mason.

As Stelmach slowly takes the reins from Klein, speculation builds as to who will be named to his cabinet. Flanking him at Monday's news conference were Health Minister Iris Evans and Government Efficiency Minister Luke Ouellette, both Stelmach loyalists.

Calgary-area MLA Ted Morton, Stelmach's other main competitor in the race, said it would make sense if he were offered a cabinet posting in an effort to embrace the tens of thousands of party members who backed his campaign.

"I certainly hope I play a constructive role in the Stelmach government," Morton said.

Capital idea for Albertans
Morton pension plan would pay dividends

By LICIA CORBELLA
Calgary Sun
Wed, November 15, 2006

A young man -- informed and well educated -- was despondent on the phone.

One of this 22-year-old's many woes was everything he paid into the ponzi scheme known as the Canada Pension Plan might be consumed by that enormous demographic group, the baby boomers, leaving him with nothing.

When he called, I was, coincidentally, reading a pamphlet I picked up at a cocktail party called: The Proposal for an Alberta Pension Plan (APP).

The pamphlet was created and given to me by Patrick Beauchamp, chair of the Alberta Residents League, a group with a motto of "More Alberta, Less Ottawa."

"Currently, Albertans pay about $4 billion annually into the Canada Pension Plan (CPP) and get a little more than $2 billion back annually," said Beauchamp.

"Why are we paying an extra $2 billion annually into the CPP that may not be there for anybody under 40 years old when they retire?" he asked.

It's a good question.

Under Section 94(a) of the Canadian Constitution, any province has the right to opt out of the CPP, so long as it operates its own separate plan, just like Quebec chose to do in 1966, when the CPP was formed.

The outcome?

Quebec's pension plan is far healthier than Canada's.

"The value of the Quebec pension plan is more than $102 billion while Alberta's share of the CPP is about $13.5 billion."

Considering Quebec's population is about three times larger than Alberta's, even when you triple Alberta's share of the CPP, that adds up to just $40.5 billion -- far short of Quebec's plan.

Beauchamp, who hired an actuary to crunch the numbers, said a 20-year-old starting out in the work force in 2011 and working until 60, would possibly receive triple what they could get from the CPP.

Besides a monthly cheque equivalent to, or greater to the CPP, under an APP, a supplementary plan would be established that would give contributors a lump sum of money when they retired at age 65.

For instance, assuming someone in their 20s, who made $40,000 a year, contributed to the APP until age 65 and the fund earn-ed interest at 6%, that worker would receive a lump sum of $453,656 upon retirement.

To find out what you might get, depending on your age or income, log onto www. albertapensionplan.ca

Beauchamp admits he got the idea from Alberta MLA and PC party leadership hopeful, Ted Morton.

Fellow-leadership hopeful Ed Stelmach has recently jumped on the APP bandwagon but said he'd also still force Albertans to pay into the CPP, which doesn't make any sense.

Of course, under Morton's plan, anyone who has already paid into the CPP would still receive their benefits and anyone who pays into the APP would receive their benefits regardless of where they live upon retirement, but only Alberta residents could pay into the plan.

Besides providing a better pension for young people, Morton says the advantages for the province are vast.

"The APP would very quickly become one of the largest pension funds in Canada and that will have two effects," says Morton.

"It will stimulate the banking and financial services sectors in Alberta which will contribute to economic diversification and also it will create a significant capital pool, not just for Alberta but for all of Western Canada, which has historically been something we've always lacked."

The depressed young man listened intently as I read from the pamphlet.

He hung up the phone more cheery than before.

An APP is certainly something Albertans should demand be debated, not just during the current leadership race, but afterwards by whoever wins the Tory leadership.

Alberta pension plan could work

By LINK BYFIELD
Calgary Herald Editorial Page
Saturday, October 21, 2006

At a campaign rally in Edmonton last week, Conservative leadership candidate Ed Stelmach promised to “fund a secure Alberta pension plan”.

Stelmach joins his leadership competitor, Ted Morton, in committing to an APP.

Of all the Tory promises wafting around Alberta, the APP could do the most good. For young Albertans, a properly structured Alberta pension plan could double the otherwise paltry $10,000 annual payout the can expect from the CPP.

For businesses, the attraction of an APP would speed the arrival of more workers and create a major Alberta-based investment fund. It would also help staunch the annual net $15 billion hemorrhage of Alberta revenues to Ottawa.

Anyone curious about how Alberta’s plan could work will find only vague statements about it on Morton’s and Stelmach’s websites. They’ll learn a lot more at www.AlbertaPensionPlan.ca. The plan proposed on this website is the handiwork of Pat Beauchamp and the Alberta Residents League, along with a committee of interested Albertans (including me). The technical brains behind the APP proposal is Calgarian Gordon Lang, who runs a national firm of consulting actuaries.

Alberta would exercise its constitutional right to opt out of CPP, as Quebec did when CPP started in 1965. Federal law allows any province wishing to establish its own public alternative plan to quit CPP after giving three years’ written notice to the federal minister of Human Resources.

CPP (like QPP) charges contributors premiums of 10 per cent of annual income between $3,500 and $42,000. The 10 per cent premium is split evenly between employee and employer.

The rate of return young people can expect on this investment of up to $4,000 per year when they retire is at best zero, and may even be negative. In other words, they’ll be lucky to get as much back in deflated dollars as they put in.

As for earning interest, forget it. CPP is largely unfunded, meaning it lacks a capital base big enough to pay for the benefits owing to pensioners, present and future. Today’s payouts to seniors are furnished mainly by what is brought in by today’s premiums. Although CPP is now 20 per cent covered by capital investments, Ottawa plans to continue running it mainly as pay as you go.

Because Alberta has a younger workforce than other provinces, a pension plan would need to charge only eight percent to return the same basic benefits CPP provides by charging 10 per cent.

The Alberta plan would continue to charge 10 per cent of the first $42,000 of income, but would consist of two parts. The first would be the basic plan, yielding the same as CPP. This is required by the federal Canada Pension Plan Act.

The remaining two per cent – augmented by a one per cent contribution from the province – would be invested in a supplementary account owned by the contributor and released when he or she retires or leaves the province.

Lang calculates the supplementary account of a young Albertan entering full-time workforce today would compound to $250,000 to $500,000 in extra savings by age 65, depending how much the person earns and on future rates of interest.

And unlike the CPP-equivalent basic plan, the APP supplementary plan would be the property of the contributor, not the government, to spend or bequeath to heirs. True, the Alberta government added to it, but only to make up for the fact that today’s seniors are taking more from CPP than they put in, at great cost to the young. Lang estimates the government’s share would be less that $500 million a year.

I have heard only three objections to this idea, none of which hold water.

Some say (leadership candidate Lyle Oberg) that it will somehow increase the liability Albertans owe for CPP. It will reduce it. For every CPP dollar that comes back to Alberta, Albertans now pay $1.50. Unless Alberta opts out, this penalty will continue.

Some say Alberta’s smaller plan would be more expensive to administer than CPP. Not so. Albertans are losing at least $750 million to CPP every year. By comparison, the cost of setting up and running our own pension plan would be quite small.

CPP was a foolish and needless federal trespass into provincial social jurisdictions that would never be contemplated today. Alberta has a chance to lead Canada toward the kind of regulated private pension alternatives that are proving so superior in countries such as Chile.

Morton and Stelmach have the right idea. An Alberta pension plan would secure the future of our provincial workforce, and encourage a long-overdue redesign of national social entitlements.

Link Byfield is and Alberta Senator-Elect, Chairman of the Citizens Centre for Freedom and Democracy, and was co-chair of last month’s Calgary Congress.

Sun of a gun

Guess what? That big yellow ball in the sky is warming our world

Revenue-shearing plan

Alberta 'bad boys' to stir federal pot
Province seeks same rights as Quebec

Stelmach will fight for Alberta 'nation'
Tory leader promises to review oil royalties; 'Northern' premier won't exclude Calgary; Province will pursue same rights as Quebec

Capital idea for Albertans
Morton pension plan would pay dividends

Alberta pension plan could work

Sun of a gun

Guess what? That big yellow ball in the sky is warming our world

Revenue-shearing plan

Alberta 'bad boys' to stir federal pot Province seeks same rights as Quebec

Stelmach will fight for Alberta 'nation' Tory leader promises to review oil royalties; 'Northern' premier won't exclude Calgary; Province will pursue same rights as Quebec

Capital idea for Albertans Morton pension plan would pay dividends

Alberta pension plan could work

Alberta 'bad boys' to stir federal pot
Province seeks same rights as Quebec

Stelmach will fight for Alberta 'nation'
Tory leader promises to review oil royalties; 'Northern' premier won't exclude Calgary; Province will pursue same rights as Quebec

Capital idea for Albertans
Morton pension plan would pay dividends