AB Pol Econ

Smith, LaGrange, Alberta public service face grave test

17Feb

By Bob AscahNo Comments

Agencies, Budget, Government Finances, Health, Opinion/Research, Politics

Smith, LaGrange, Alberta public service face grave test

Updated 18 February 2025 On 5 February 2025, Carrie Tait of the Globe and Mail broke the story of the dismissal of Athana Mentzelopoulos who was the President and Chief Executive Officer of Alberta Health Services (AHS). Since that date Ms. Mentzelapoulous has entered a statement of claim at the Court of King's Bench seeking: a. Judgment for pay in lieu of notice in the amount of $583,443.00, less applicable income tax; b. Judgment for bad faith, aggravated, and/or punitive damages, in the amount of $1,116,557.00; c. In the alternative, judgment for damages for breach of contract in the sum currently estimated at $1,700,000.00, less applicable income tax, being the balance of the compensation owed under the Employment Agreement, or such further and other amount as this Honourable Cou...

6Feb

By Bob AscahNo Comments

Agencies, Financial Institutions, Government Finances, Intergovernmental, Politics

C-387 and the Alberta Pension Plan- Response from Finance Canada

Background Last summer, I wrote the following letter to the then Finance Minister and Deputy Prime Minister, Chrystia Freeland. Edmonton, Alberta T6C 4R1 12 August 2024 The Honorable Chrystia Freeland, P.C., M.P. Deputy Prime Minister and Minister of Finance Member for Parliament, Toronto University-Rosedale Ottawa, Ontario Canada K1A 0A6 Dear Ms. Freeland Re. Bill C-387 In the last sitting of the House of Commons, M.P. Heather McPherson, M.P. for Edmonton Strathcona tabled an important private member’s Bill C-387 which would limit the exclusive authority of the Minister responsible for administering the Canada Pension Plan (CPP) and the Governor in Council from allowing a province to withdraw from the pension plan. This exclusive executive authority under sect...

5Feb

By Bob AscahNo Comments

Agencies, ATB, Government Finances

ATB Financial to borrow up to $11-billion through the Alberta Government

On 29 January, the provincial cabinet passed an Order in Council under sections 56, 57, and 58 of the Financial Administration Act to authorize the President of Treasury Board and Minister of Finance “to make advances to or purchase securities of ATB Financial.” This Order rescinds three previous Orders. The advances may be in Canadian dollars or equivalent amount in other currencies. The maximum amount outstanding may not exceed $11-billion. At the end of September 2024 ATB had GOA advances of $3.583-billion which represented 6.3 per cent of total liabilities. There was no press release from the Alberta government or ATB Financial about the reason behind this huge increase in borrowing from the wholesale markets. It is difficult to speculate as to the threefold increase to the...

5Feb

By Bob AscahNo Comments

Agencies, Government Finances, Investment, Opinion/Research, Politics

“Alberta’s New Heritage Fund “

Updated 8 February 2025 On 5 February this post was originally published. I February 2025 the Standing Committee of the Alberta Heritage Savings Trust Fund met to hear from the President of Treasury Board and Minister of Finance, Nate Horner, his officials, and the Acting Chief Executive Officer of the Alberta Investment Management Corporation AIMCo, provide a high level overview of the new Heritage Fund. Secondly, the Committee received an update on the second quarter report of the Fund's performance. As a result of this testimony and questions and answers. some of the unanswered questions I had about the Fund "refresh" were clarified. I have made some changes from the original post which are highlighted in bold type. The transcript for the meeting has not been posted b...

19Jan

By Bob AscahNo Comments

Credit Ratings, Economic Data, Energy, Financial Institutions, Intergovernmental, Opinion/Research

Danielle Smith’s Pretext

Updated 20 January 2025. This is an opinion/prediction piece Economic and political winds favourable for Smith Danielle Smith has enjoyed a highly favourable economic backdrop in her first 27 months of her premiership. Oil prices have ranged from a monthly average price of $U.S. 69.95 in November 2024 to a monthly high average price of $85.64 in April 2024 (Cushing, OK WTI Spot Price FOB). This favourable oil price environment has assisted Smith greatly on the fiscal side. In preparing for the May 2023 election, the province’s books were in surplus by a whopping $11.6-billion and the fiscal 2024-25 fiscal year surplus is estimated to be $4.6-billion. The surplus could go much higher with the weakness in the CAD. From October 2022 to December 2024, Alberta’s labour force grew from 2,5...

14Jan

By Bob AscahNo Comments

Uncategorized

The Parkland Institute 2025 Gala- 27 February 2025

University Club, Saskatchewan Drive and 115 Street Please join us on February 27 at the University (formerly Faculty) Club for an evening of fine dining and meaningful impact in our only fundraising event of the year: Parkland Institute’s 18th annual Gala Dinner and Silent Auction. As always, there will be great food, even greater company, and the good feeling that comes from contributing to your favourite progressive organization. Buy your tickets and reserve a table now at parklandinstitute.ca/2025_Gala If you have any questions — or want to donate items for our silent auction — please call Sharlene Oliver at 780-492-8558. When: Thursday, February 27, 6:30 pm Where: Faculty Club, University of Alberta Buy tickets: parklandinstitute.ca/2025_Gala Parkland Institute is an Alberta-w...

13Jan

By Bob AscahNo Comments

Agencies, Investment, Opinion/Research

On the Road to AIMCo’s Politicization

Reprinted from The Parkland Institute with permission. On the Road to AIMCo’s Politicization - Parkland Institute Jan 12, 2025 Bob Ascah The Alberta government’s abrupt dismissal of AIMCo’s board and CEO has raised alarms about political interference and the erosion of the corporation’s independence. The subsequent appointment of former Prime Minister Stephen Harper as AIMCo’s chair underscores concerns that the organization is being reshaped to serve partisan interests rather than focusing on its responsibilities to Albertans. Against this backdrop, understanding AIMCo’s evolution, governance challenges, and its politicization becomes more critical than ever. The Establishment of the Alberta Investment Management Corporation (AIMCo) Prior to the establishment of AIMCo, the...

Pinocchios Aplenty: Fact Checking Alberta’s Coal Industry Modernization Initiative

10Jan

By Bob AscahNo Comments

Energy, Environment, Investment, Opinion/Research, Politics

Pinocchios Aplenty: Fact Checking Alberta’s Coal Industry Modernization Initiative

Contributor Dr. Ian Urquhart is Professor Emeritus of Political Science from the University of Alberta. In memory of Kris Unger. Kris was passionate about preserving Alberta’s landscapes, most especially perhaps the Eastern Slopes and the Rockies. I hope his spirit approves of the following Introduction Disingenuous. That’s how The Globe and Mail’s Emma Graney characterized Energy Minister Brian Jean at the news conference announcing the government’s vague Coal Industry Modernization Initiative. Deceptive and brazen also would be fitting adjectives. In their 30-minute news conference Mr. Jean and Environment Minister Rebecca Schulz failed miserably to communicate accurate information to the public about many vital aspects of exploiting coal in Alberta. One of the few une...

28Dec

By Bob AscahNo Comments

Agencies, Financial Institutions, Opinion/Research, Politics

Canada’s Chief Actuary reports on CPP withdrawal

On Friday 20 December, Canada’s Chief Actuary Assia Billig released a report on the withdrawal formula under section 113(2) the Canada Pension Plan Act. Billig emphasized that “throughout this process my office has acted with independence and impartiality. These two factors are foundational elements to my role as the Chief Actuary.” Background The report was requested by a committee of officials representing ministers of finance as a result of the 23 September announcement of the Smith government they would begin an engagement process based on the Lifeworks (consulting actuary) report’s interpretation of section 113(2) (see below). As part of the $7-million pension roll-out, Premier Smith has claimed that Albertans won’t be asked to decide a referendum question without a number. ...

18Dec

By Bob AscahNo Comments

Agencies, Financial Institutions, Government Finances, Investment, Politics

Why AIMCo needs more scrutiny and transparency- Part 3

Introduction In Parts 1 and 2 of this series I examined the weaknesses in AIMCo’s reporting on its investments. With the recent news about the firing of AIMCo’s board, CEO, the CEO’s chief of staff, the Chief Legal Officer, and the head of human resources, it is incumbent for the government to clearly demonstrate that it has no intention of bringing AIMCo more closely under the direction of politicians. One measure the government could adopt is to appoint representatives of the major pension plans to the AIMCo board. That representation would mean those sitting on the board would have some “skin in the game;” that is their clients’ interests would be better aligned with AIMCo’s interest. The recent appointment of Alberta’s deputy finance minister gives some say in AIMCo’s operations as...