My column on the weekend, The Canadian Affliction of Socialism, reminded all of us of the corrosive nature of socialism and the betrayal of our healthcare system despite the herculean efforts of those within who serve Canadians. With a Prime Minister who doesn’t “believe in markets” now leading a big government party that has been failing the country for more than a decade, what is Canada’s future?
More specifically, will the two fastest-growing and free-enterprise provinces of Alberta and Saskatchewan succumb to the obvious direction of our new Prime Minister to solidify the country as a socialist paradise?
The Carney government, although more subtle, is still leveraging pipeline approvals to punish the industry by sharply increasing industrial taxes after removal at the retail level — a clever, disingenuous, and effective pre-election gimmick. The increased industrial tax is now the vehicle for more ‘special treatment’ for the energy sector.
For more clarity, the tax has increased for producers in Western Canada but is absent for oil imported into central Canada. As a reminder, fully 80% of emissions are the result of consumption; only 10% are the result of the development and production of oil. Rank discrimination or just punishment?
This gets us to the Major Projects initiative and the pipeline to the Pacific negotiations, primarily between Premier Danielle Smith and Prime Minister Carney. The Office is yet another layer of approval and regulation strictly controlled by Carney and features federal government investment.
By contrast, pipelines are receiving timely approval in the US by state regulators, more appropriate than the distant and stifling federal government in Canada. It is noteworthy that Canadian companies such as Enbridge, TC Energy, and now South Bow are expeditiously building pipelines south of the border utilizing private capital. Free enterprise unleashes timely responses to opportunity and attracts capital.
Danielle Smith’s role has been surprising and disappointing. With time pressure on Carney to have early success regarding his “build Canada” imperative, she unwisely allowed the pressure of time to work against Alberta. With recent active expansion of Enbridge and TMX underway, and the almost fully approved South Bow project, about 1.2 million barrels per day of additional capacity are, dare I say, ‘in the pipeline.’
South Bow will have optionality to add another 500,000 barrels per day, taking future capacity to 1.7 million. A more experienced negotiator would have recognized the advantage of time and negotiated accordingly. Instead, Premier Smith accepted the punishing carbon tax increases and reduced Alberta royalties (to be recompensed with carbon tax revenues).
Instead of playing a shell game with taxpayer money, a true conservative would have stood her ground and, in turn, made decarbonization of oil in Alberta conditional upon first being imposed on the almost million imported barrels per day consumed in Ontario and Quebec.
Instead, Alberta is a playground for one of the world's leading climate crusaders. This “climate action” will play well with Carney's pals in Europe, at the World Economic Forum where he was a director, and at the United Nations where he was “a special envoy for climate change.”
Rather than protecting Alberta interests, the Premier is acting like a Western Captain Canada with similar falling ratings of Ontario's Captain Canada, Premier Ford. Insisting she wants to demonstrate how Canada can work, her acquiescence to an outcome unprecedented in the world more demonstrates how Canada does not work.
Smith played her hand deftly by insisting Albertans have the right to be heard. But recently she has come out very strongly as a federalist, at times appearing to be an ambitious politician with federal aspirations. Proudly announcing that she “trusts Mark Carney” is also revealing and disappointing — his bending and often breaking the truth is a matter of documentation, not opinion.
Much of her behaviour has been anything but conservative, including claiming to derisk the project, which really means transferring the risk to Alberta taxpayers. With the inefficiencies that accompany government capital, and the increasing risk of Aboriginal intervention, especially in the lower mainland following recent legal decisions, reticence of private capital may result in another government-owned and operated pipeline.
This questions the motivations of a former libertarian now with her fingerprints on a taxpayer investment and a partnership with Ottawa, hardly hallmarks of a conservative or worthy of a proud legacy.
A split in her party could elect another NDP government, leaving the once adored Premier again responsible. This would crush any federal aspirations and define Smith forever. Like Kenney, she has done nothing for the 63% of Albertans who want to revisit equalization. By trusting Carney, transferring the pipeline risks to the taxpayers of Alberta, and potentially putting her party’s unity at risk, Daniel Smith has earned her low ratings.
But the bigger question remains — will the last beacon of free enterprise in our country survive?
It would be a sad irony if the mistakes of a libertarian resulted in a socialist victory in Alberta. Imagine the joy of Carney, the federal Liberal government, and the Laurentian Elite, which will have finally captured all the country.
