Separatists unable to see economic future through their blinding rage

It would be easy to dismiss the threat of Alberta separation as the delusions of a misguided and greedy minority. Easy because the concept does not have much traction.

Opinion polls show that a solid majority of Albertans do not want to leave Canada. Yes, more than 300,000 of the province’s voting-age citizens signed a petition demanding a referendum seeking a departure from the federation. But more than 400,000 other Albertans signed a petition telling the separatists to get stuffed.

That is not a good excuse to ignore what is happening in Alberta. It’s a serious threat but right now, it’s easy to ignore because it’s being pursued by people who are decidedly unserious.

The demands uttered by Alberta separatists are not designed to give its citizens more fairness and equality within the federation; this is about getting more from Canada than any other province has a right to expect.

Alberta separatists want to have complete control over their natural resources. They want freedom to dispose of national standards, like universal health care. They want to essentially seal the province off from any kind of immigration, save for a handful of hand-picked people from hand-picked countries.

There is a robust debate to be had on all of those issues; in fact, similar debates are unfolding in other provinces. What sets Alberta (and, perhaps, Quebec to some extent) apart from the rest of the federation is a desire to exist within Canada with preferential benefits and rules that other provinces would not get.

What does Alberta really want?

A recent Globe and Mail editorial advised Ottawa to be more serious about addressing Alberta’s “mainstream, real and long-standing” concerns. They include federal energy policies, unbalanced representation in Parliament, the inequities of the equalization program and “Ottawa’s incursions” into provincial jurisdictions such as health and immigration.

With respect, this is not a list of real and legitimate concerns. This is a wish list that some Albertans are pressing to get a special deal.

On things such as immigration, and the formula used to calculate seats in the House of Commons or Senate, let’s talk. Just about every province has an opinion on those two issues; only a portion of the Alberta population thinks they are excuses to separate.

On energy policies, it is true that in the 1970s, in an effort to protect Canadians from skyrocketing oil prices, Ottawa imposed a cap on domestic prices. Alberta was, obviously, most affected by the policy, but only in terms of unrealized royalties and taxes that would be collected if prices were allowed to grow without restraint.

Ironically, right now we are getting a perfect idea of what would have happened if oil prices were allowed to rise in the 1970s: huge benefits for the treasury of Alberta (and other oil-producing provinces) and misery for all Canadians who have the misfortune of living in provinces that don’t produce oil and gas.

As for environmental restrictions on Alberta’s oil patch, there is a pretty strong environmental and longer-term economic argument for weaning our economy off its dependence on oil and gas. These are non-renewable resources that heat the planet and threaten our climate. Ending our dependence is smart on all fronts.

The greed of Alberta separatists really comes into focus on the issue of federal transfer payments.

Separatists claim Alberta is “subsidizing” other provinces because it does not receive equalization payments. While Alberta does not get equalization, it is incorrect to say Albertans “pay more” than any other Canadians.

Equalization is a redistribution of a portion of federal taxes to support provinces with smaller economies. Albertans, who live in a wealthier province, thanks to oil and gas, do not pay more taxes than residents of any other province; they pay the exact same taxes.

But based on its much larger economy, it does not receive equalization.

There is a legitimate debate to be had about whether provinces in a federation should share the wealth created by resources in just one or two jurisdictions. But even if you oppose that concept, it does not mean equalization puts Alberta at a disadvantage.

In fact, notwithstanding equalization, Alberta has the lowest provincial income taxes and has never had a sales tax, two benefits of nearly incalculable value.

That reality is what makes the arguments advanced by Alberta separatists so ridiculous. They already pay the lowest taxes in Canada but want a special deal from Ottawa so they can pay less.

Is Alberta’s economy important for the well-being of the country? Absolutely. For the time being, the wealth and resources generated by Alberta provide a lot of benefits to the rest of Canada including, but not limited to, equalization.

However, what separatists are not considering is that oil and gas will not, simply cannot, remain the economic powerhouse it is today. Our need to find new oil-free ways to fuel transportation, energy generation and manufacturing will mean huge investments by the federation in transitioning Alberta to a radically different economy.

A minority of Albertans somehow want to ignore all the advantages they have now and scuttle that future, all to get a deal that no other province in the country is getting. It’s simply hard to take those folks seriously.

» Dan Lett is a Winnipeg Free Press columnist.