Prosperity for Alberta's Poor and the Homeless

Cash registers were ringing across Alberta this weekend after most Albertans received their $400 'prosperity cheques'—or "Ralphbucks"—in the mail last week.

The cheques, which come attached to a letter from Premier Ralph Klein thanking Albertans for their role in "building this province," are symbolic of Alberta's explosion in oil wealth, which buoyed a surplus of an estimated $8.7 billion last year. The provincial government earmarked roughly $1.4 billion in funds to be mailed to every man, woman and child in Alberta, with the exception of prisoner and individuals who have fallen behind on child-support payments. And if oil and gas prices remain high, Alberta could enjoy an even greater surplus of $19-billion in 2006, according to one economist.

But while many Albertans are enjoying the good life in Canada's emerging economic powerhouse, others are struggling under the widening disparities between rich and poor in the province. For the growing number of homeless in the province, the prosperity cheques were a welcome boost.

"I'm gonna spend it on what I was planning to, base guitar and a little amp," says 32-year-old Richard Carr, who currently lives in the Salvation Army Supportive Residence in downtown Edmonton.

"I would've thought it would be better ….[for the] government to keep the money and use it on social programs, but they kinda gave us lower class citizens a little boost," says Carr, as he flicks the long line of ash from the tip of his cigarette.

When the prosperity cheque plan was first announced, it met with disapproval from a majority of Albertans, who felt the $1.4-billion could be better spent on health care, infrastructure, social programs or other, more worthy causes.

63-year-old Archie Snisarenko, another resident of the supportive residence, says the money would have been better spent on health care.

"Everybody is crying about healthcare, well, why didn't it go that way?"

He's planning to spend his share of the surplus on a better pocket hearing aid.

Plans are a little different for a crowd of men gathered outside the George Spady Centre, an overnight shelter for people under the influence of drugs or alcohol.

Some plan to spend it on new clothes, while some of them are planning on saving for the future. Under a crowd of noise, one man yells from the back that he's going to spend his cheque on his "son's life insurance"; another middle-aged man says he's planning to spend his money at the liquor store, but after a moment of reflection changes his mind and says he'll spend it in the drugstore.

Alberta's homeless population has risen sharply in recent years, due largely to an influx of economic migrants coming to the province for work, but unable to find housing. A real-estate boom has also made finding affordable housing a daunting task, although there is no shortage of jobs.

Dr. Gordon Laxer, director of the Parkland institute, a non-partisan Alberta research network located in the University of Alberta in Edmonton, thinks the increase in the number of homeless people is in part due to the rising cost of housing and rents that has come about as a side-effect of Alberta's booming economy.

"The cost of housing and rents have gone up tremendously…the cost of living goes up as well, partly because of the boom, and if you are earning minimum wage, you can't afford rents," says Laxer.

"There is also not many government housing projects like cooperative housing, housing that low income people could afford."

A report prepared by the Edmonton Homelessness Count Committee in 2004 showed that there are 2,192 homeless persons in Edmonton, an increase of 15 percent compared to 2002. A similar report prepared by the City of Calgary Community Strategies showed a more dramatic increase in the number of homeless in Calgary. According to the report, there were 2,597 homeless people in Calgary, an increase of 49.5 percent compared to the 2002 figures.

"One of the things that I find a disgrace in this very rich province and rich country is that there is a fair degree of poverty, and I think the government should pledge to end poverty in Alberta…those funds could go a long way to realizing that."

But Klein has insisted that "this rebate is not being provided at the expense of investing in Alberta's future."

"The lion's share of the surplus - over 75 percent of it, based on the current outlook for energy prices - will be used to improve the province for its children and their children," Klein said in an open letter addressed to all Albertans.

As for giving the money to charities, Klein says "our government believes that individual Albertans can and should decide for themselves what to do with their rebates."

"You might choose to save your rebate for your children's future…or you might choose to donate it to a charity of your choice."

Some charity organizations such as Canadian Red Cross and some Alberta homeless shelters are trying to persuade people to give their cheques for their cause.

Alberta Liberal MLA Hugh MacDonald has already donated his $400 to a homeless shelter in Edmonton.

But even some of the homeless are giving their money towards charity.

"My mother mentioned a positive point, she's giving her check away to the inner city [to improve homeless shelters]…so she convinced me to give $50 [towards that]," says 33 year old Don, who currently lives in the Hope Mission Herp Jamieson Centre, a shelter for single men.

He's going through difficult times, but he says he's more fortunate compared to the other homeless people in the area because he has family support.

Don thinks it would have been better if the government kept the money and spent it on building more shelters for the homeless.

"It always bug me seeing all the people on the street here, so maybe putting the money towards that [would have been better]. I know a lot of the checks are gonna be coming to these people here, like us, again it's gonna be blown on whatever."

Additional reporting by Mike Cote in Edmonton