Alberta Premier Unveils Inflation Relief Plan: Freeze on Fuel Tax, Money for Families With Children, Seniors

Alberta Premier Unveils Inflation Relief Plan: Freeze on Fuel Tax, Money for Families With Children, Seniors
Alberta Premier Danielle Smith holds her first press conference in Edmonton on Oct. 11, 2022. (Jason Franson/The Canadian Press)
Marnie Cathcart
11/22/2022
Updated:
11/23/2022
EDMONTON—Alberta Premier Danielle Smith gave her first televised address to the province Tuesday night and announced a long list of measures intended to address high inflation, rising food costs, expensive fuel at the pumps, and skyrocketing energy expenses.
Smith said on Nov. 22 that details of the new Inflation Relief Act are still being finalized, but will include at least a six-month suspension on provincial fuel tax, with permanent fuel tax relief after that. Also planned as part of the $2.4-billion package is a $600 benefit for seniors and families with dependents under 18, paid out over a six-month period to families with household incomes below $180,000 annually. Assured Income for the Severely Handicapped (AISH) and Persons with Developmental Disabilities (PDD) recipients will receive the same amount.

The premier also said that in one week’s time, her proposed Alberta Sovereignty Within a United Canada Act will be introduced, legislation intended to “restore and respect the constitutional rights of the province.”

“The government in Ottawa is intentionally and systematically attempting to control and regulate all aspects of our province’s economy, resources, and social programs,” said Smith. She added that equalization and transfer payments funnel billions of tax dollars out of the province “and into a black hole of federal bureaucracy.”

Constitutional Shield

Smith said that contrary to what her critics have alleged, the legislation is not about leaving Canada.

“This legislation is designed to be a constitutional shield to protect Albertans, so that when Ottawa implements a policy or law attacking our economy or provincial rights, our government will not enforce those unconstitutional measures in Alberta,” said Smith.

“We will put the rights of Albertans first … always.”

Smith said, “The Canadian constitution is clear. The Federal and Provincial Governments are equals. We both have sovereign areas of exclusive federal and provincial jurisdiction.”

Albertans in Charge

“Albertans, not Ottawa, are in charge of developing and exporting our resources, growing our economy, and delivering health care, education, child care, and other programs,” she said. “As Albertans, we must no longer ask permission from Ottawa to be prosperous and free,” added the premier.

She said that the province is in a severe crisis, “primarily caused by years of record spending and debt by the federal government in Ottawa, combined with a continual string of anti-energy policies that are driving up the price of fuel, electricity, heating, food and everything else we need to live and raise our families.

Inflation has hit the province hard, with the rate sitting at 6.8 percent, year over year, according to the most recent provincial government estimates. Food prices have soared more than 10 percent, and energy costs by more than 13 percent.
Smith said all provincial tax brackets will be indexed retroactively to 2022, providing bigger rebates for tax filing in spring 2023. Also indexed for inflation will be AISH, PDD, income support, the seniors benefit, and the Alberta Child and Family Benefit, starting in January 2023.

Inflation Relief

Under the announced package, the province will provide an additional rebate on consumer electricity bills through winter, which will offer households an additional $200 in savings, and limit spikes in winter electricity rates. Smith said the current natural gas program will continue.
The province will also invest in food banks and expand the low-income transit pass program. The province will not, however, pay “Ralph Bucks,” as the program came to be named under former Premier Ralph Klein, who famously paid out a revenue surplus to 3 million Albertans with a one-time $400 “prosperity” payout.

Smith said, however, she would look to follow one example of the late premier. She said when it came to making mistakes, she would “admit to it, learn from it, and get back to work.”

The premier reiterated earlier plans to improve issues facing Alberta’s health care system, such as long hospital wait times, slow ambulance response time, too few frontline health care workers, and unacceptably long surgery wait times.

Smith also said she had spent decades in media and took controversial positions on hundreds of different topics, many of which had evolved or changed over time.

“I know I’m not a talk show host or media commentator any longer. That is not my job today,” she said.

The province had a $3.9 billion surplus in the 2022 provincial budget, due to soaring oil and gas prices. Smith said affordability for Albertans will be balanced with the need for fiscal responsibility and balanced budgets.