This letter is in response to the headline in the South Peace News March 11: “Alberta independence best option.”
It is not! Alberta is boom and bust. Its economy is based on oil, but is not big or powerful enough to control the price. There are many outside influences that do that.
Albertans pay the same federal taxes as every other province through the GST, personal income tax, corporate taxes and others. This goes into general revenue. It is not a direct transfer from Alberta.
Equalization payments are based on a province’s ability to raise revenue at average tax rates. If a province cannot do that, the federal governed tops it up, so it can provide reasonable public services. It is neither reward nor punishment – it is insurance.
Alberta doesn’t qualify (neither does British Columbia or Saskatchewan) most years, because its ability to raise revenue is good. This is due to a younger population earning good wages. Corporate profits are higher in boom years.
Talk of separation scares business away. Other provinces have different demographics. That’s just the way it is.
In 2020 when oil prices crashed, also COVID was upon us. Alberta received $6.6 billion rising to $8.2 billion by 2025 – plus Canada Emergency Wage Subsidy.
The numbers cited by separatists are for the good years, not what Alberta avoids losing in the bad ones.
Much of the anger seems to be about control of resources. This needs to be further addressed in debate, not separation.
Every province has its issues, not just Alberta. We would be much worse off by separating:
- Alberta’s oil economy is boom or bust.
- Our population is four million – too small for a country’s tax base.
- Oil is finite. It will run out.
- Alberta cannot set oil prices.
- We are landlocked.
- No shared cleanup of orphan oil and gas wells ($1 billion).
- No credibility to borrow in bust years.
- No credibility for trade with other countries.
- Deeper and longer recessions.
- Negotiating Indigenous treaties (federally administered).
- No national balance sheet absorbing risk.
- No Canadian social transfer.
- No Canadian health transfer.
These have nothing to do with equalization. They support healthcare, post-secondary education, child care and social services.
Incidentally, the mess we have with healthcare and education, has more to do with Alberta’s application of these funds.
I was born in Canada and have lived in Alberta for nearly 60 years. I worked and paid taxes here every year. Now I am retired and enjoying my Old Age Security and Canada Pension Plan. Don’t mess with it!
I am proud to live in Canada.
I want to stay part of Canada.
Marilyn Stewart,
High Prairie