HILL: Here’s how Carney can address frustrations of Albertans

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Premier Danielle Smith and Prime Minister Mark Carney recently reached a deal on the memorandum of understanding (MOU), which addresses several damaging federal policies holding back Canada’s energy industry and sets the conditions for a west coast pipeline. At the same time, a recent court ruling struck down the petition to hold a separation referendum in Alberta this fall, finding the provincial government failed to meet its duty to consult First Nations before allowing signature collection.

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How are these developments related?

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And how can Albertans — and the rest of Canada — move forward?

First, it’s important to understand Albertans’ contribution to the rest of Canada.

Alberta’s contribution

From 2007 to 2024 (the latest year of available data), thanks to their higher incomes, relatively strong economy and young workforce — fuelled in large part by the province’s oil and gas industry — Albertans contributed $285.1 billion more to the federal government than they received in transfers and services. That’s money redistributed to the rest of Canada to help deliver services and keep taxes lower than they otherwise would be.

In other words, Albertans, and their energy industry, help improve the lives of Canadians across the country.

Yet the federal government under Justin Trudeau introduced a slew of policies that undermined Alberta’s economic engine. The long list includes Bill C-69 (dubbed the “no pipelines act”), Bill C-48, which bans large tankers off B.C.’s northern coast and limits market access to Asian markets, a cap on emissions exclusive to the oil and gas sector, costly methane emissions reductions, the consumer and industrial carbon tax, and a long list of other regulations.

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It’s no wonder why polls find a majority of Albertans feel federal policies over the past several years have hurt their quality of life. All of these policies make Alberta less attractive to top talent and investment, which is crucial to create jobs, increase living standards and improve the lives of Albertans — and again, all Canadians.

The movement for a referendum on separation this fall reflects these concerns felt by many Albertans.

To be fair, the Carney government has made some important steps forward by cancelling both the consumer carbon tax and the cap on oil and gas emissions. But there’s much more work to be done. The government has maintained Bill C-69, Bill C-48, and reinforced other damaging policies including the industrial carbon tax and methane emissions regulations — while also introducing costly carbon-capture requirements.

All of these policies hurt Alberta’s competitiveness and drive away investment and jobs.

Course of action

The fate of the separation referendum is now unclear, though both the Alberta government and the group filing the petition for a referendum, indicate they may appeal the decision.

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Fortunately, there’s another clear course of action.

The federal government could meaningfully address the legitimate frustrations and concerns of Albertans. That means undoing all the damaging policies that still exist and disproportionately impact the energy industry.

If the Carney government does this, it will help foster prosperity for all Canadians.

Tegan Hill is director of Alberta policy at the Fraser Institute.

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