In the latest episode of Alberta Update, hosted by Bruce McAllister, Premier Danielle Smith discussed several pressing issues affecting the province, including federal overreach, the impact of the carbon tax, and new infrastructure funding for Alberta’s municipalities.
Premier Smith addressed the federal government’s involvement in provincial affairs, specifically criticizing Ottawa’s recent amendments to the Impact Assessment Act. Often referred to as the “no more pipelines bill,” the Act has been a source of contention between Alberta and the federal government. Initially, the bill sought to regulate environmental assessments for projects within provincial borders, including highways, power plants, and pipelines—actions that Alberta claims should be under provincial jurisdiction.
Smith reminded viewers that Alberta previously won a court ruling against the original version of the Act, which the courts deemed an unconstitutional overreach. Despite minor revisions from Ottawa, the premier argued that the core issues remained unresolved. “We’ve basically done the work for them,” Smith said, noting that Alberta provided line-by-line amendments to the federal government, offering a clear pathway to fix the bill in compliance with the court’s ruling. Smith was firm in her stance: if Ottawa does not adopt Alberta’s proposed changes, the province is prepared to return to court to enforce constitutional boundaries.
The ongoing legal tussle between Alberta and the federal government is, according to Smith, not only about protecting Alberta’s right to self-determination but also about ensuring that federal laws respect provincial jurisdiction as outlined in the Constitution. The Premier’s frustration with federal interference was palpable, as she emphasized the need for Ottawa to abide by court rulings instead of continuing to push policies that Alberta sees as harmful and unlawful.
The episode then shifted to a discussion of the federal carbon tax, which has long been a point of contention for Alberta. Premier Smith criticized the tax for placing undue financial burdens on sectors such as healthcare and education without delivering the promised environmental benefits.
According to data shared during the episode, the carbon tax has cost Alberta’s healthcare system $73.6 million—a figure that could have funded 981 additional nurses. Similarly, the education sector has absorbed $61.9 million in carbon tax costs, the equivalent of 495 teachers. Smith expressed disbelief that the federal government continues to uphold the carbon tax, despite the financial strain it places on essential public services like hospitals and schools.
“The most effective way to reduce emissions is the smart way that we’re doing by exporting our cleaner fuels and by using technology,” Smith stated. She contended that punishing public services through increased operational costs is counterproductive, arguing that Alberta’s approach to emissions reduction through technological advancements and responsible resource development is more effective.
Smith also pointed out that the carbon tax will increase annually, exacerbating its impact on already stretched provincial budgets. By 2030, she warned, the cumulative financial burden could severely limit Alberta’s ability to provide critical services like healthcare and education.
n a more positive note, the episode highlighted a significant boost in infrastructure funding for municipalities. The Alberta government will increase funding to $820 million next year—a 13% increase from the current level.
For years, Alberta’s municipalities have sought a more reliable formula for funding that allows for adjustments based on the province’s economic health. With Alberta expected to lead the country in job creation and economic growth until 2028, the new funding arrangement ensures that municipalities benefit directly from the province’s economic success. “There’s at least some predictability now,” Smith said, indicating that the new system allows municipalities to plan for long-term projects with greater financial security.
Municipalities will have the flexibility to allocate the increased funds as they see fit, with no strings attached, according to the Premier. This means local governments can prioritize projects that are most important to their communities, whether that be road repairs, bridge upgrades, or other infrastructure investments. Additionally, the province will continue to provide targeted grants for major infrastructure projects, including upgrades to highways and bridges in rural Alberta, as well as urban transit initiatives like LRT systems in larger cities.
With key legal battles still looming and fiscal policies under scrutiny, Alberta’s political landscape remains dynamic and critical to watch in the months ahead.