This column is an opinion from Max Fawcett, a freelance writer and the former editor of Alberta Oil magazine.
Staged photo opportunities are common fare in Canadian politics, but few have been more widely mocked than the gas station selfies taken by Alberta conservative politicians on the eve of the Jan. 1, 2017, implementation of a carbon tax.
As the National Post’s Tristin Hopper wrote at the time, Jason Kenney’s Dodge Ram 1500 “carries a fuel capacity of about 98 litres, so if Kenney rolled in running on fumes, at 4.5 cents a litre he dodged just enough tax to buy a New Year’s Eve Molson Canadian at the Legion (if it’s on special).”
As it turns out, though, those MLAs — and especially Jason Kenney — got the last laugh.
Yes, as Hopper wrote in his piece, nobody was saving any real money by front-running the carbon tax. But that was never the point. Instead, it was about framing the new policy in terms of its financial costs, not its environmental benefits.
The lesson, in retrospect, is clear: if you want to speak to Albertans, you need to be using the language that they’re most familiar with: the economy.
Moments of fluency
That lesson was driven home most recently on Monday, when the premier announced his “Alberta Recovery Plan.” But while the NDP has already taken a swipe at its contents, which include an acceleration of an already announced corporate tax cut and some additional stimulus spending, it’s not clear that they’ll be forthcoming with a competing economic narrative of their own.
After all, that was something they rarely talked about when they were in government.
Yes, there were moments, like premier Notley’s speech in 2015 at the Stampede Investment Forum, where it flashed some fluency.
“We know there is only one way to succeed,” she told the people in attendance. “And that’s by supporting a free, open, sustainable and increasingly diversified economy.”
But it became clear throughout the course of the next three-plus years that the economy was the NDP’s second language, at best.
Instead, it preferred to talk about increasing supports for vulnerable populations, improving rights for workers and showing leadership on the environment — all important priorities, but ones that rarely spoke to Albertans’ economic concerns that only grew as oil and natural gas prices continued to fall and pipeline projects continued to get stalled or cancelled outright.
That focus on social issues continued into their 2019 campaign, which focused on Jason Kenney’s perceived shortcomings as a leader and the threat his government would present to certain Albertans. The results, in the end, say it all.
If they want those results to be different in 2023, they’re going to have to become far more fluent in the language of jobs and economic prosperity — and fast, if the latest batch of polls are any indication.
It became clear during Rachel Notley’s time in office that the economy was the NDP’s second language, at best, according to Max Fawcett. (Jeff McIntosh/Canadian Press)
Yes, the sample size on the Innovative Research poll that was taken in early June was almost laughably small at just 297 people, but its results should still serve as a warning to Alberta’s New Democrats.
After all, despite its self-defeating war with doctors and a growing array of gaffes and missteps, Kenney’s party is polling at 42 per cent — the same as the combined total of the NDP (28 per cent) and Alberta Liberals (14 per cent).
“They’ve struggled to find their footing in opposition, and particularly during COVID, just as any opposition party has. I think they’ve done better than Scheer, but that’s a pretty low bar,” says Duane Bratt, a professor of political science at Mount Royal University.
“They had gained momentum between the election and our poll in March. [But] they lost that momentum by May.”
And while the province has been battered by bad economic news over the last few months, the recent bout of ultra-low oil prices could be seeding the ground for a much healthier economic environment in Alberta down the road.
Higher oil prices could be coming
Shale oil production, for example, may never recover to the levels it was at back in January, and it’s entirely possible that oil prices could be far higher than where they are today by the time Albertans head to the polls in 2023.
JP Morgan, for example, recently published a note that suggests $100 oil isn’t out of the question in the relatively near future, while Rystad Energy is calling for an oil spike “between 2023 and 2025.”
Even if those prices don’t materialize, the Trans Mountain expansion should still be nearing completion, Line 3 will be in service and Keystone XL could even be getting built. Fair or not, Kenney will be able to point to these developments as validation of his government’s approach — and a sign of its achievements.
That’s why the NDP needs a competing narrative, one that directly challenges the UCP’s double-or-nothing approach to economic development and its apparently unshakeable faith in the oil and gas industry’s ability to turn back the clock. And as the CBC News-Road Ahead poll from March reveals, there’s lots of opportunity there.
For example, when asked if “oil and gas companies have too much say in Alberta politics,” 54 per cent either strongly or somewhat agreed. More importantly, those figures held in Calgary, with 26 per cent strongly agreeing and 27 per cent somewhat agreeing. That majority held across key NDP demographics, from younger people (indeed, 63 per cent of those aged 25-44 agreed) to lower and middle income families and the highly educated.
Bill Clinton is shown, right, during one of the debates leading up to the 1992 U.S. presidential election. When progressive politicians win elections, it’s usually because they have a compelling economic message. (The Associated Press)
In a bit of a shocker, 54 per cent of Calgarians agreed that “Alberta should transition away from oil and gas.” And here, again, this majority held across the young, the working and middle class, and the highly educated.
When asked if “Alberta should transition toward renewable energy,” fully 80 per cent of Calgarians agreed. And when asked if Alberta should “do more to encourage the development of the technology sector,” support in Calgary hit 95 per cent.
Yes, the sample sizes here aren’t enormous, but they’re big enough to lend some credibility to these results, which should serve as a roadmap for the NDP’s economic message over the next 30 months.
And while it might be tempting to read these results as an invitation to talk about a “Green New Deal,” the political failure of the Climate Leadership Plan speaks to the dangers of putting environmental objectives ahead of economic ones in Alberta.
A compelling economic message
Instead, they need to remember that when progressive politicians win elections, it’s usually because they have a compelling economic message that connects with working and middle class voters. That was true of Bill Clinton’s “It’s The Economy, Stupid” campaign of 1992. It was true of Barack Obama in 2008. And to some extent, it was true of the NDP back in 2015.
But those elections are the exceptions, not the rule.
“Typically,” Bratt says, “the NDP owns the issue of health care and education. They don’t [own] the economy.”
Even with all of the health-care and education-shaped rakes that the UCP has stepped on lately, it’s still polling ahead of the NDP — and that’s before any potential rebound in commodity prices.
In a recent blog post, progressive organizer Scott Harold Payne argued that “as long as we’re busy attacking Kenney on issues of his choosing, we’re not busy building an alternative economic narrative that could unseat the UCP.”
In other words, even if they can’t truly own the issue of the economy, they have to find a way to not get owned on it again.
And if it takes a few silly staged photo-ops to do that? Well, it beats losing another election.
This column is an opinion. For more information about our commentary section, please read this editor’s blog and our FAQ.
OTTAWA – Statistics Canada says wholesale sales, excluding petroleum, petroleum products, and other hydrocarbons and excluding oilseed and grain, rose 0.4 per cent to $82.7 billion in July.
The increase came as sales in the miscellaneous subsector gained three per cent to reach $10.5 billion in July, helped by strength in the agriculture supplies industry group, which rose 9.2 per cent.
The food, beverage and tobacco subsector added 1.7 per cent to total $15 billion in July.
The personal and household goods subsector fell 2.5 per cent to $12.1 billion.
In volume terms, overall wholesale sales rose 0.5 per cent in July.
Statistics Canada started including oilseed and grain as well as the petroleum and petroleum products subsector as part of wholesale trade last year, but is excluding the data from monthly analysis until there is enough historical data.
This report by The Canadian Press was first published Sept. 13, 2024.
VICTORIA – British Columbia is forecasting a record budget deficit and a rising debt of almost $129 billion less than two weeks before the start of a provincial election campaign where economic stability and future progress are expected to be major issues.
Finance Minister Katrine Conroy, who has announced her retirement and will not seek re-election in the Oct. 19 vote, said Tuesday her final budget update as minister predicts a deficit of $8.9 billion, up $1.1 billion from a forecast she made earlier this year.
Conroy said she acknowledges “challenges” facing B.C., including three consecutive deficit budgets, but expected improved economic growth where the province will start to “turn a corner.”
The $8.9 billion deficit forecast for 2024-2025 is followed by annual deficit projections of $6.7 billion and $6.1 billion in 2026-2027, Conroy said at a news conference outlining the government’s first quarterly financial update.
Conroy said lower corporate income tax and natural resource revenues and the increased cost of fighting wildfires have had some of the largest impacts on the budget.
“I want to acknowledge the economic uncertainties,” she said. “While global inflation is showing signs of easing and we’ve seen cuts to the Bank of Canada interest rates, we know that the challenges are not over.”
Conroy said wildfire response costs are expected to total $886 million this year, more than $650 million higher than originally forecast.
Corporate income tax revenue is forecast to be $638 million lower as a result of federal government updates and natural resource revenues are down $299 million due to lower prices for natural gas, lumber and electricity, she said.
Debt-servicing costs are also forecast to be $344 million higher due to the larger debt balance, the current interest rate and accelerated borrowing to ensure services and capital projects are maintained through the province’s election period, said Conroy.
B.C.’s economic growth is expected to strengthen over the next three years, but the timing of a return to a balanced budget will fall to another minister, said Conroy, who was addressing what likely would be her last news conference as Minister of Finance.
The election is expected to be called on Sept. 21, with the vote set for Oct. 19.
“While we are a strong province, people are facing challenges,” she said. “We have never shied away from taking those challenges head on, because we want to keep British Columbians secure and help them build good lives now and for the long term. With the investments we’re making and the actions we’re taking to support people and build a stronger economy, we’ve started to turn a corner.”
Premier David Eby said before the fiscal forecast was released Tuesday that the New Democrat government remains committed to providing services and supports for people in British Columbia and cuts are not on his agenda.
Eby said people have been hurt by high interest costs and the province is facing budget pressures connected to low resource prices, high wildfire costs and struggling global economies.
The premier said that now is not the time to reduce supports and services for people.
Last month’s year-end report for the 2023-2024 budget saw the province post a budget deficit of $5.035 billion, down from the previous forecast of $5.9 billion.
Eby said he expects government financial priorities to become a major issue during the upcoming election, with the NDP pledging to continue to fund services and the B.C. Conservatives looking to make cuts.
This report by The Canadian Press was first published Sept. 10, 2024.
Note to readers: This is a corrected story. A previous version said the debt would be going up to more than $129 billion. In fact, it will be almost $129 billion.
NANAIMO, B.C. – Former Bank of Canada governor Mark Carney says he’ll be advising the Liberal party to flip some the challenges posed by an increasingly divided and dangerous world into an economic opportunity for Canada.
But he won’t say what his specific advice will be on economic issues that are politically divisive in Canada, like the carbon tax.
He presented his vision for the Liberals’ economic policy at the party’s caucus retreat in Nanaimo, B.C. today, after he agreed to help the party prepare for the next election as chair of a Liberal task force on economic growth.
Carney has been touted as a possible leadership contender to replace Justin Trudeau, who has said he has tried to coax Carney into politics for years.
Carney says if the prime minister asks him to do something he will do it to the best of his ability, but won’t elaborate on whether the new adviser role could lead to him adding his name to a ballot in the next election.
Finance Minister Chrystia Freeland says she has been taking advice from Carney for years, and that his new position won’t infringe on her role.
This report by The Canadian Press was first published Sept. 10, 2024.
