Copy/paste
Edmonton Journal > Page: N7
> Section: Financial Post
> Byline: Gary Lamphier
> Column: Commentary
>
> Source: Edmonton Journal
>
> If you're still wondering why oil-rich Alberta doesn't have a massive
> sovereign wealth fund like Norway, consider this.
> Alberta is a province, not a country. Ergo, we don't get to keep all
> the wealth we generate in this province. Not even close.
>
> I realize this runs counter to the preferred narrative in Canada,
> where politicians and media types insist Alberta either "put all its
> eggs in one basket" by failing to diversify its economy (hello Christy
> Clark), or that Albertans "spent like drunken sailors" during boom
> times.
>
> Sure, there's some truth to those arguments. But the far bigger reason
> why Alberta isn't rolling in filthy lucre is that we are part of a
> federation called Canada.
>
> Ergo, most of our tax revenues go to Ottawa, and are then
> redistributed to fund a vast array of social, health and educational
> programs in Quebec, the Maritimes and the rest of Canada. The federal
> equalization program alone, under which Quebec receives nearly $10
> billion a year, is just part of that wealth transfer.
>
> When economists say Alberta has been Canada's key engine of growth in
> recent decades, that's really what they mean. Without Alberta's energy
> wealth, this country would have been a fiscal basket case long ago.
> Now that Alberta's oil-fired economy is also struggling, Canada is
> heading for the fiscal swamp.
>
> So just how much money has flowed out of Alberta to Ottawa? A lot.
> Between 2000 and 2014, on a net basis, ALBERTAS INDIVIDUAL AND
> CORPORATE TAXPAYERS SHIPPED AN ESTIMATED $200 BILLION-PLUS TO THE
> FEDERAL GOVERNMENT. THAT;S WHAT LEFT THE PROVINCE, LESS WHAT THE
> FEDS REINVESTED HERE.
>
> To put that lofty figure in perspective, it's nearly 12 times the
> value of the $17.4 billion Alberta Heritage Savings Trust Fund. No
> other province - including Ontario, with three times Alberta's
> population - even comes close to matching this province's contribution
> to the federation.
>
> During Alberta's boom years, back in 2007 and 2008, the province's
> taxpayers shipped more than $20 billion annually, on a net basis, to
> Ottawa. And when oil prices returned to triple-digit levels after the
> 2008-2009 recession, the cash gusher from this province returned. In
> 2011, for instance, it reached nearly $19 billion.
>
> Even more remarkable, few Canadians seem to be aware of this, except
> in the vaguest sense.
>
> Conspicuously, I've never seen these numbers reported in the national
> media or disclosed by federal and provincial politicians.
>
> And after calling not one but four leading public policy think tanks,
> I couldn't find a single expert who has researched this data, or who
> was willing to discuss it at any length. Some seemed downright
> defensive about it, as if it was "un-Canadian" to explicitly
> acknowledge one province's outsized contribution to the federation.
>
> The only reason I'm now aware of the massive amount of money that has
> flowed out of Alberta in recent years is due to the efforts of one
> man. Fred McDougall, 78, is a former deputy minister of forestry who
> served under former Alberta Premier Don Getty in the 1980s. After
> leaving the provincial civil service in 1989, McDougall was recruited
> by Weyerhaeuser, the U.S.-based forest products giant, to run the
> company's Alberta operations. After working for Weyerhaeuser for 12
> years, McDougall retired in 2007, although he did part-time consulting
> work for several years after that.
>
> Just to be clear, McDougall isn't an activist, an axe grinder or even
> a member of any political party. He's just a thoughtful, straight
> shooting Albertan who wanted to know for his own edification what
> Alberta's financial contributions to Ottawa amounted to over the past
> 15 years or so. He knew it was big, but after spending considerable
> hours crunching the relevant numbers from Statistics Canada, and
> comparing that data with stats compiled by Alberta Finance, he admits
> he was shocked by the scale of what he found.
>
> "My main motivation in doing this was to see what the magnitude of it
> was and to get some accurate numbers," he says. "I wanted to see quite
> simply how much money has been going out of Alberta and being
> allocated by the federal government to other provinces."
>
> McDougall was also motivated by the fact that other provinces, which
> have benefited immensely from Alberta's energy wealth, are now
> explicitly or implicitly opposing new oil export pipelines, thus
> jeopardizing Canada's economic future.
>
> "Other provinces have basically been trying to extort benefits out of
> pipelines going through their province. To a certain degree I can
> understand that, but when it gets to the point where they are as
> bellicose as (Montreal mayor) Denis Coderre has been, I just find it
> sickening," he says.
>
> "I'm really disappointed as a Canadian that we've got a federation
> that tolerates this kind of thing. I mean we're talking about
> staggering amounts of money here, so maybe other provinces have to
> share a bit of inconvenience and a bit of environmental risk.
>
> "But they've been directly benefiting from Alberta's economy for
> years." I couldn't have said it better myself, Fred. Too bad the rest
> of Canada seems determined to look the other way in Alberta's hour of
> need.