First Impressions from the First Month of the 31st Legislature

Since the first day of session, there has been no shortage of big news stories coming out of the Alberta Legislature. As promised, the government tabled the Alberta Taxpayer Protection Amendment Act, 2023 as their first bill following the spring election – now awaiting royal assent. The Assembly has also passed two other bills: the Opioid Damages and Health Care Costs Recovery Amendment Act, 2023 and the Tax Statutes Amendment Act, 2023.

But there has been much, much more to this session that what has been happening during Question Period and Orders of the Day. In this week’s issue of The NEWS, we dive into some of the top stories facing each of the two parties from the last month.

First Month for the UCP

For this segment, we will focus on the two main stories that have been following the governing party – the Alberta Pension Plan and the restructuring of Alberta’s healthcare system. Frankly, these two topics could be articles on their own, so we will cover what we can.

On the pension discussion, the Government of Alberta has completed their public telephone townhalls and is now moving onto the next stage of consultation. However, rather than holding in-person consultation session as was promised, the province has released a consultation workbook for Albertans to complete.

In the 18-page document, Albertans are provided the opportunity to respond to thirteen questions – of which, ten are related to the subject of the pension itself. However, the workbook does provide some interesting insights into what the province may consider going forward.

Suggestions of possible outcomes include (see page 14 of the workbook):

• Alberta could ask the CPPIB to keep managing Albertans’ pension funds, on the same basis they do now, but in a separate account.

• Alberta could use a different investment manager that already exists. One option could be AIMCo, which currently manages over $150 billion in pension assets and other funds. However, there are many other financial organizations in Alberta, and Canada, that are experienced in managing pension funds.

• Alberta could create a new entity to manage APP funds, modeled after the CPPIB, or the Caisse de dépôt et placement du Québec.

• Alberta could hire private management firms to manage some or all of the assets.

The United Conservatives find themselves under fire for the last-minute decision to back away from in-person consultations.

Now, let’s change gears to look at the decentralization of Alberta’s health care system. In a phased rollout, Alberta Health Services will no longer be the central health authority in our province.

In a nutshell, the biggest change coming will be the creation of four agencies to oversee different sectors of the health care system. Those sectors will be dividing into acute care, primary care, continuing care, and mental health and addictions – each of which will be run by new agencies that will be established by fall 2024. AHS and Covenant Health will be accountable to the new acute care agency.

A new board has been established for AHS with the new chair being Dr. Lyle Oberg, a former Progressive Conservative minister before becoming an advisor to Danielle Smith during her Wildrose leadership days. Shortly after his appointment, six senior executives with AHS were relieved of their duties, including:

• Mauro Chies – CEO & President

• Dr. Francois Belanger – Vice-President Quality and Chief Medical Officer

• Colleen Purdy – Vice-President Corporate Services and Chief Financial Officer

• Tina Giesbrecht – General Counsel and Corporate Secretary

• Geoffrey Pradella – Chief Strategy Officer

• Dean Olmstead – Chief Program Officer of Capital Management

It is estimated that the changes to AHS will take up to two full years to implement at a cost of approximately $85 million. Currently, no other province is using a similar health care system structure.

First Month for the NDP

While the governing party has had quite the busy start to the 31st Legislature, the official opposition has not been easing themselves into the new term, either.

To get the inevitable question out of the way, there is still no timeline laid out with respect to the rumoured resignation of leader Rachel Notley. Whether or not she ultimately makes that decision is entirely up to the long-time head of the party – she will not be rushed out and will be given the time and space she needs to decide what the future holds.

The party has found its issue to dig its heels in for the fall session – the proposed Alberta Pension Plan. Alberta NDP staffers are dedicating considerable resources and time to holding their own consultations in opposition to the province’s efforts to get feedback on the pension debate. They have even gone so far as to schedule numerous in-person events for Albertans to provide their feedback – including a “counter-survey”.

In addition to the previously scheduled events, the NDP are hosting five more in-person town halls between St. Albert and Calgary. According to the party, tens of thousands have responded to their consultation survey which features three questions for respondents to complete.

The Sovereignty Act

On Monday, oral notice of the first ever Sovereignty Within a United Canada Act motion was given in the Alberta Legislature. The motion can be introduced as early as today, November 28th.

Rather than transcribe what was said, here are the key takeaways from the government’s press release following oral notice being given.

“The resolution asks Alberta’s cabinet to order all provincial entities not to recognize the constitutional validity of, enforce, nor cooperate in the implementation of the CERs in any manner, to the extent legally permissible. This order would not apply to private companies or individuals. The resolution also asks Alberta’s government to work with the Alberta Electric System Operator, Alberta Utilities Commission and others to implement various reforms to Alberta’s electrical system to ensure grid affordability and reliability.”

Additionally, the motion calls for the commission of a feasibility study of the creation of a new provincial Crown corporation.

“This Alberta Crown corporation would be a provincial entity and would not recognize the CERs as constitutionally valid. If needed, the Crown corporation would work with industry and other stakeholders to bring on needed electricity onto the grid, either through building new generation or purchasing existing generation assets (i.e. natural gas power plants) that private industry would otherwise not build or shut down due to the uncertainty and penalties established by the CERs. It could also be used as a means of assisting and partnering with industry to de-risk investments in nuclear power and other emerging green generation if needed.”

On the face of the motion, it appears the feasibility study of a new Crown corporation to act outside of yet-to-be-implemented clean energy regulations may be the biggest takeaway in terms of actionable items this government can pursue.

Stay tuned for more details on this debate – we’re just getting started.