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May 21, 2013 - No. 62

Alberta Government's Anti-Social Offensive

Oppose Attacks on the Right to Education and the Rights of First Nations!


Education Is a Right! Unite to Affirm the Rights of All!
Oppose Bill 26, the Assurance for Students Act - Kevan Hunter 
Unions Take a Stand Against Bill 26
Discussion in the Legislature on Bill 26
Provincial Government Blackmails Post-Secondary Educational Institutions into Harmful Cuts - Dougal MacDonald 

Oppose Violation of First Nations' Hereditary, Treaty and Constitutional Rights
Bill 22, Aboriginal Consultation Levy Act Imposed on First Nations - Peggy Morton
New Bill Assaults First Nations' Sovereignty
Statement of Confederacy of Treaty Six First Nations

Stop Paying the Rich! Increase Investments in Social Programs!
Harper Pays Canadian Natural Resources Limited to Increase Its Profits and Shine Its Image - George Allen




Education Is a Right! Unite to Affirm the Rights of All!

Oppose Bill 26, the Assurance for Students Act

Bill 26, the Assurance for Students Act was introduced in the Legislature on May 15 and passed third reading on May 16. Bill 26 imposes a collective non-agreement on all 62 locals of the Alberta Teachers' Association (ATA) and school boards in the province. It was rammed through the Legislature in one day.

The Bill was introduced and closure used to force it through three readings in the space of 24 hours. Teachers in Alberta have been working without collective agreements since September 1, 2012. Suddenly on May 13, when the Progressive Conservative (PC) government imposed deadline for ratification of a framework agreement arrived, the government declared that an emergency existed. There was absolutely no pretext available to PCs for such unseemly haste in violating the rights of teachers and running roughshod over elected school boards, which reveals the speed with which all old arrangements are being destroyed. This has simply become the way of doing business in the Alberta Legislature. With each day the Legislature sits, the PCs throw over yet another accepted norm of the functioning of the parliamentary system. It shows just how far the use and abuse of the government's executive powers and abuse of its majority have gone.

The bill says in essence that the government is justified in imposing the agreement since both the ATA and the Alberta School Boards Association agreed to recommend the agreement to their members, and in spite of the fact that it was not ratified by all locals and school boards. Education Minister Johnson and the Redford government themselves set the terms for ratification of the framework agreement. They required all locals and boards to endorse the agreement by May 13 and decreed that if unanimous ratification did not take place the agreement would be declared null and void. When these terms were not met, the PC government simply declared that it would impose the agreement through legislation. The legislation imposes the agreement on all parties, and further states that if any part of the agreement violates the Labour Code, the Act shall prevail over the Labour Code.

Bill 26, which imposes a three year wage freeze, is an assault on the right of teachers to wages commensurate with their contribution to society. It will not be able to resolve workload issues when budget cuts are leading to bigger classes and fewer resources for students. It shows the complete failure of the Redford government to do its duty and the danger it poses to the working people.

Bill 26 was imposed in order to implement the government's austerity agenda, stealing vast sums from education in order to pay the rich and line the pockets of the energy monopolies. It constitutes an assault on the right of teachers to decide. Despite the fact only two locals -- St. Albert and Elk Island -- voted no, the fact remains that this was not a freely negotiated agreement. Teachers voted with a gun to their head and in an atmosphere of dire predictions that failure to endorse the agreement would produce an even worse legislated non-agreement. Even so, the "yes" vote was very weak and many teachers voted to reject the agreement. Teachers voted with the understanding that any local rejecting the agreement would be vetoing it for the entire province, only to find out that the government had no intention in honouring its own process for ratification. The imposition of a non-agreement is a basic question of rights -- the right of teachers to bargain collectively, as well as the right of St. Albert and Elk Island teachers to say no.

While the government deliberately deprives the education system of necessary funding and makes deep cuts to social programs in the province, the government has the gall to declare that it must implement the Framework Agreement to "ensure that the best educational interests of students are met." A government that refuses to recognize the need to reduce class sizes and increase supports for students with special needs has no moral ground on which to speak about the best interests of students. It is teachers and education workers who every day articulate what is in the best interests of students. How dare the government ram through legislation in this fashion as though teachers and education workers constitute a threat to society. Such shock and awe tactics should alarm all workers and all Albertans.

After two years of negotiations, it has been suggested that the ATA had no choice but to recommend this agreement because "teachers don't want to fight." Teachers want to teach, and want the conditions that will permit them to do so and provide what students need. But this is precisely what the government refuses to provide, and it has even withdrawn the inadequate funding which was promised before the last provincial election. Teachers must redouble their efforts. Organize discussion groups to keep up with the speed of developments in education. Together, teachers can work out how to resist the anti-social agenda and the attacks on their rights, and defend the right to education.

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Unions Take a Stand Against Bill 26

The Alberta Federation of Labour (AFL) denounced the imposition of Bill 26. "By bringing forward this legislation, they're basically saying that it didn't matter what any of those union locals and school boards said or did," AFL President Gil McGowan said. "Teachers basically didn't have a choice whether or not to accept this contract -- either they accepted it, or they would have it forced on them."

"This government is taking a top-down, full-throttle, my-way-or-the-highway approach to their dealings with workers," McGowan said. "This is the same bullying approach they've taken with prison workers, and the same bullying approach they're taking with post-secondary education."

"Legislating the contract shows that the Redford government wasn't negotiating in good faith in the first place," McGowan said. "This decision has undermined their ability to be taken seriously at the bargaining table. Who is going to trust that they won't just resort to bargaining by fiat?"

Alberta Union of Provincial Employees President Guy Smith also condemned the government's attack on the right of teachers to freely negotiate their wages and working conditions. "It is completely inappropriate for the government to remove teachers' legal rights to collective bargaining in their school districts, and remove Alberta families' right to have their school trustees perform the job that they elected them to do."

"The government just wanted a contract done quickly and on their own terms. There is no justification for legislating away employees' and trustees' access to their bargaining rights and their democratic right to vote for a contract," Smith said.

The United Nurses of Alberta (UNA) also spoke out against the legislation stating, "All Albertans should be gravely concerned by the Redford Government's plan to impose a legislatively mandated contract settlement on school boards and teachers throughout the province."

"Trying to reach the result you want through collective bargaining, then resorting to public pressure and finally using legislation when you can't get your way is really nothing more than bargaining in bad faith," UNA secretary-treasurer Karen Craik said.

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Discussion in the Legislature on Bill 26.

Bill 26 was introduced on May 14, 2013 and passed third reading the following day. The NDP caucus all voted against the Bill, while the Liberals and Wildrose voted in favour of the Bill. TML is reprinting excerpts from the speeches of two NDP MLAs.

***

Rachel Notley: [Bill 26] fundamentally undermines the authority of locally elected bodies and the ability of locally elected bodies to exercise their authority as contemplated under their legislation and under the overall system of legislation that governs K to 12 education. We have one school board, for instance -- granted, it's only one school board, but it's a school board that represents 20 per cent of students in the province -- that voted against this. We had the Edmonton public school board, which did in fact vote in favour. By all means, you know, it was a close vote, but it did vote in favour, so the government is certainly entitled to rely on that vote. Nonetheless, they were very reluctant in that choice because they were concerned about how this highlights a structural problem with respect to the delivery of K to 12 education in this province, where the school boards are asked to take the blame for everything that goes wrong but are not given the authority to make decisions about their own funding....

Of course, we know that once you take into account inflation and you take into account the increase in the number of students, effectively our school boards are being asked to wrestle with cuts, so they're trying to wrestle with those at the same time that they're having terms and conditions imposed upon them. It disrespects their authority, and it also puts them into a rather untenable position.

The final reason, Mr. Speaker, that I will be voting against this bill is because it fundamentally assaults the principle of collective bargaining. Now, I appreciate that this government doesn't have a tremendous amount of respect for that and that we have labour legislation in this province that relates to many public-sector workers, which flies in the face of the International Labour Organization's conventions on basic human rights. Indeed, this government and this province have been cited repeatedly by the International Labour Organization, a subsidiary of the United Nations, for their breach of the United Nations convention with respect to the rights of working people by bringing in legislation that negates and rejects the value of collective bargaining.

Obviously, when the government legislates an agreement over the objections of a bargaining agent and in this case two bargaining agents, it is disrespecting the fundamental principle around the importance of collective bargaining.

This does actually relate back to the best interests of our children, Mr. Speaker. If our kids are going to thrive, the teachers who work with them day in and day out need to be respected, and they have chosen to be part of a bargaining unit which has the right to collectively bargain on the terms and conditions of employment. Quite frankly, telling teachers that they need to go for the next four years without a pay raise is, in my view, disrespectful to them and to the work that they do.

***

Brian Mason: First and foremost, this bill is a complete and open attack on not just teachers in this province; this is a bill that attacks all working people in Alberta. The fact that you've got a deal that's being imposed via legislation on teachers is an affront to the basic rights of unionized workers in Alberta and their rights to collective bargaining. You know, I can appreciate that the government has been trying to negotiate a deal for two years, but this is not the answer, where if you don't get the result that you're looking for, you turn around and just end up bullying the other side into accepting your terms....

Mr. Speaker, I mean, it's important to know that this isn't just about teachers. I find it quite offensive, actually, when the minister stands up and says: this is for students, and students are first. To be honest, I think this bill is more like: students first over the cliff. If the government respected students and parents and families and wanted to ensure that they had the best quality of education and access to that education, then they would put their money where their mouth is....

Just the other day I was at one of my schools in northeast Edmonton, and their special-needs teachers are losing their positions as of June of this year, and they will not be back in the fall. I can't tell you what a disadvantage that's going to place on not only students with special needs; we're talking about students where English may be their second language or third language. We're talking about students who need additional help and supports, who are now going to be thrown into a classroom with 25 to 35 other students and one teacher trying to juggle everything that teachers have to do in a classroom today. It's going to have far-reaching effects. That's another issue that I have with this bill and with many government decisions, their lack of long-term vision and planning. For example, jamming too many students into a classroom with not enough supports is going to have an impact on those students for the rest of their lives. Again, to this government, in their mind, it's probably penny wise but pound foolish as far as the long-term well-being of students, parents, and families.

(Hansard, May 15, 2013)

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Provincial Government Blackmails Post-Secondary Educational Institutions into Harmful Cuts

The Redford regime's March 7 budget made savage funding cuts to Alberta's already-underfunded post-secondary education (PSE) system. The cuts axed 7.3 per cent or $147 million from the PSE budget after promising an inadequate increase of two per cent. The new round of cuts is already negatively affecting post-secondary educational institutions across Alberta, exposing the Minister of Enterprise and Advanced Education's falsehoods about "duplication of programs" and the "fat" that supposedly needs to be trimmed from the PSE system.

The main brunt of the cuts has fallen on the PSE workers and the programs offered by the institutions. Since it is the workers who are the producers of all added-value in the PSE system through their teaching, research, and support work, they can in no way be considered "fat" or a cost of any kind. The programs also cannot be considered "fat" because the very reason the post-secondary educational institutions exist is to provide required programs. Complicating the matter is that Alberta's Post-Secondary Learning Act mandates that the PSE system must not run a deficit. This means that to deal with the provincial cuts, most PSE upper administrations are being blackmailed into concluding that the only way to balance their underfunded budgets is though internal cuts.

In April, Edmonton's University of Alberta revealed its plan to cut $25 million in 2013-14, which includes layoffs as well as a 1.5 per cent cut across all faculties and units. Funding for travel and expenditures will be cut 25 per cent. The U of A Faculty of Arts has slashed its graduate student budget by 20 per cent, meaning fewer teaching assistants and research assistants in undergraduate classes. The lack of teaching assistants will prevent breaking up large classes into smaller discussion groups, which greatly improve student learning. At Edmonton's Northern Alberta Institute of Technology (NAIT), staff in certain programs are being asked to consider leaving the institution voluntarily. NAIT is also looking at cutting programs and increasing class sizes. At MacEwan University, the president has announced that hiring is frozen and that approximately 36 vacant staff positions will not be filled and will "disappear." All departments are being given budget targets and staff layoffs are being discussed.

In northern Alberta, Grand Prairie Regional College will lay off 18 workers in order to balance its budget, which has a $4 million shortfall due to the provincial cuts. Forty-five workers in total will be let go through all job-related measures, including layoffs. Northern Lakes College, based in Slave Lake, serves over twenty-five smaller nearby communities that are mainly Aboriginal and rural. It will be greatly affected by a $100 million provincial cut to adult education because high schools do not exist in some of the remote communities, making Northern Lakes' upgrading programs critical for getting students into the trades. Athabasca University, Alberta's online university also located in the north, is cutting 44 jobs and is trying to shift the way tutors are paid from a partial salary and partial piecework to total piecework.

In eastern Alberta, Lakeland College has announced that more than 40 permanent positions will be eliminated at its Lloydminster and Vermilion campuses and several programs will stop accepting new students. Portage College in Lac la Biche has eliminated fifteen full-time staff positions, closed its Vegreville campus and reduced the size of its Bonnyville campus by more than one half.

In central Alberta, Red Deer College (RDC) is preparing for layoffs and program cuts as the administration is trying to find $6 million to balance its budget. The president has stated that 32 workers will lose their jobs. RDC is cutting its virtual assistance distance certificate starting September 2013 and also ending its hospitality and tourism programs. The early learning and child care diploma program will be suspended in September 2014.

In Calgary, the University of Calgary continues to make budget cuts, as it deals with a $40 million cut in provincial government funding. U of C has announced that 200 student positions will be eliminated by September 2013. This is in addition to the elimination of 30 student positions in nursing and 15 in medicine. U of C still has not decided how the cuts will be made but it expects to get rid of fifty faculty positions and may also eliminate certain programs. Calgary's Mount Royal University has put three diploma programs, four certificate programs and an engineering transfer program on the chopping block due to a $14 million budget shortfall. The three diploma programs on the block are disability studies, music performance, and theatre arts. The four certificate programs are aging studies, forensics, journalism and perinatal care. The disability studies program cut accompanies millions of dollars in cuts to funding and the closure of the province's Michener Centre, a major care centre for people with disabilities.

In southern Alberta, the University of Lethbridge faces a $11.8 million shortfall due to budget cuts. Various departments are leaving positions vacant and eliminating term positions, sessional lecturer positions, casual positions and some student positions. Twelve full-time workers will be laid off, mainly due to the closure of two rural campuses. Other workers will receive a zero per cent cost of living increase. Intake will be suspended to the Office Administration, Fashion Design and Marketing diploma programs. Travel budgets are being cut. Other measures being considered are raising student fees, reducing the number of computer labs and cutting the library budget.

It is clear that the March 7 provincial funding cuts have placed each of Alberta's twenty-six PSE institutions in an even more difficult position. The provincial government is cynically using its control over PSE funding and its backward Post-Secondary Learning Act to blackmail the PSE system into cutting workers and programs. Those active within the PSE system, their allies and others concerned for the future of education must resist this blackmail. The neo-liberal mantra is that there is no alternative to what the ruling circles dictate and that everyone should just shut up and do what they are told. But this must not pass because there is an alternative for education. Already, students, faculty, support staff, and their allies have been vigorously expressing their opposition to the government attacks on the PSE system through a number of effective actions across the province. Now is the time for all the PSE institutions to join this opposition en masse and to demand with one loud voice that the provincial government must increase investments in post-secondary education and must guarantee the right to education for everyone. The people of Alberta must decide the direction of education in Alberta, not the private energy monopolies and their fawning agents in the Redford dictatorship.

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Oppose Violation of First Nations'
Hereditary, Treaty and Constitutional Rights

Bill 22, Aboriginal Consultation Levy Act
Imposed on First Nations

Bill 22, the Aboriginal Consultation Levy Act was introduced in the Legislature on May 8 and passed third reading on May 15. Robin Campbell, Minister of Aboriginal Relations, described Bill 22 as "innovative, groundbreaking legislation that puts Alberta at the forefront of First Nations consultation in Canada." The Minister went on to claim that he had consulted extensively with First Nations. Apparently the Minister thinks he can organize a dinner meeting, mouth some platitudes and put a tick beside the "consultation" box. This shows that the Redford dictatorship is in total contempt of its duty to consult and accommodate First Nations.

First Nations expressed their shock at the blatant colonial outlook, false claims about consultation, brazen violations of aboriginal rights and significant expansion of executive or prerogative powers through use of "regulations." First Nations leaders filled the visitor's gallery as the legislation was debated to show their firm opposition.

In the Legislature, NDP MLA Deron Bilous expressed the essence of the matter when he stated, "Secondly, aboriginal relations, Mr. Speaker, involve government-to-government relations. First Nations are not subordinate to the Minister nor to any government. They are equal partners and should be treated in that fashion. By failing to consult with First Nation chiefs and councils, the Minister has really violated the protocol agreement and imperilled the relationship between the government of Alberta and First Nations."

Members of the opposition tried to send the legislation back to Committee, and then proposed what is known as a "hoist" motion, which would have delayed the bill for six months. When those motions failed they introduced many amendments in consultation with the First Nations, but these were all summarily rejected by the PCs, who were clearly intent on ramming the bill through the Legislature at break-neck speed.

The preamble to Bill 22 states, "Alberta has the constitutional right to manage and develop provincial Crown lands and natural resources in the province to benefit all Albertans and to take up land for such purposes." What does this actually mean? First it is a claim that First Nations surrendered their traditional lands when in fact they signed treaties of peace and friendship to share the land. Second it is based on the outlook that the "right to manage and develop" means turning over lands to private monopoly interests. Third, as was made clear in Bill 2 when all reference to the public interest was disappeared, the phrase "to benefit all Albertans" has the meaning of whatever is good for the oil and gas monopolies.

The irony of a bill about consultation which was introduced with no consultation with First Nations was not lost on anyone but the PC government itself. The government is so thoroughly and unreservedly captive to and in the service of private monopoly interests that it seems blind to any other considerations. In the Legislature, Wildrose leader Danielle Smith and some other legislators stated that the bill was well-intentioned but at some point went off the rails. But Bill 22 is entirely consistent with the government's agenda. The Harper, Redford, Clark and other governments are putting new arrangements in place to strengthen the global resource extraction corporations' unrestricted monopoly right to plunder the natural resources and export them for a quick profit.

The PCs railroaded Bill 2, the Responsible Energy Development Act through the Legislature in the fall session. Bill 2 established a new regulatory regime to guarantee that whatever the monopolies decide will be rubber-stamped with lightning speed. The founding president of the Canadian Association of Petroleum Producers and former executive officer of EnCana Corporation and its predecessor company has been appointed chair of the new regulator. Bill 2 eliminated all vestiges of the concept of public interest and strengthened the arbitrary powers of the executive to act on behalf of the most powerful private interests, the oil and gas cartels.

The workers and all people of Alberta should stand with the First Nations to fight together for a new direction for the economy and an end to monopoly "right" violating the rights of all.

The development of natural resources should be a decision of the body politic including First Nations and the wealth generated should go directly into the public treasury to benefit all the people including First Nations and the general interests of society.

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New Bill Assaults First Nations' Sovereignty

Specific provisions of Bill 22 that are not acceptable to First Nations include:

1. The bill is being imposed without consultation with First Nations. First Nations have their own protocols and processes on consultation, which the government has ignored. Further, several of the treaty confederations have put forward consultation papers that the government has also ignored.

2. It fails to recognize the true spirit and intent of Treaties. Treaties 6, 7 and 8 were not land cessation treaties but treaties of peace and friendship where the First Nations agreed to share the land provided their rights were not infringed. The Act violates the Crown's obligations deriving from the nation-to-nation relationship which exists, and First Nations inherent or hereditary, Treaty and Constitutional rights.

3. The Alberta government illegally claims the "right" to define who constitutes an aboriginal group.

4. First Nations are required to provide information to government on all agreements made with industry, while such disclosure is not required of any non-aboriginal landowners. This constitutes a discriminatory requirement.

5. The bill establishes an industry levy to fund aboriginal consultation. Initial information is that funding for First Nations consultation will be reduced from the current $150 million to $70 million a year. The amount of the levy and other matters covered in the regulations can be arbitrarily imposed, giving more executive powers to the Minister in the form of a royal prerogative.

6. There is no enforcement mechanism if industry fails to pay the levy.

7. By omission, the Act permits the levy fund to be used for purposes other than First Nations consultation, and the exclusive benefit of all First Nations and aboriginal groups. The bill specifically prohibits the creating of a trust in favour of a First Nation. The government can arbitrarily exempt any corporation or any class of proponents from paying a levy. There is no certainty that levy funds will not be considered accommodation or compensation for infringements upon treaty rights.

8. While First Nations are required to make discriminatory disclosures, there is no requirement that the government report on disbursements from levies in its annual reports.

9. The bill not only lacks an appeal mechanism but also specifically states that there is no appeal of decisions made by ministerial prerogative and all decisions are final.

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Statement of Confederacy of Treaty Six First Nations

On Wednesday May 8, 2013 the Honorable Minister of Aboriginal Relations for Alberta presented Bill 22: Aboriginal Consultation Levy Act to the Legislature. This presentation came as a shock to most First Nations in Alberta, and especially within Treaty 6 as recent indications were that the Minister was unready to present any type of legislation dealing with Consultation. At a meeting with the Chiefs of Treaty Six on May 3, 2013 there was zero indication that any levy would be placed into law, nor was it mentioned that the law would arrive five days later. In this respect, the Chiefs of Treaty Six feel that the Alberta Government is once again moving forward with their own agenda and ignoring the recommendations and terms of First Nations leaders.

Since the recognition of the Crown's duty to consult, the relationship between First Nations, government and industry have been slowly improving, but now this progress has been placed in jeopardy. For some time, and with each reiteration of Alberta's Consultation Policy, First Nations have stated that the terms of Consultation cannot be unilaterally imposed. Consultation, the terms and fees associated are largely governed through individual First Nations Impact Benefit Agreements (IABs). The benefits and provisions of these agreements have always been determined by the affected First Nation, and each agreement is unique. This recognition of sovereignty is now being threatened by the imposition of Alberta legislation.

With its legislative approach, it appears as though the Government of Alberta is moving forward with the notion that, as stated in their Consultation Policy Paper (2013);

Alberta has the constitutional right to manage and develop provincial Crown lands and natural resources in the province to benefit all Albertans and to take up land for such purposes.

This statement alone has been widely contested and continues to be questioned to this date as many First Nations view the Natural Resource Transfer Agreement (NRTA 1930) as illegal and invalid. First Nations have repeatedly stated that the true spirit and intent of the Treaty relationship was an equal sharing of the lands and resources. To this date, this relationship has not been achieved and Bill 22 is not a step towards this realization. Any terms of sharing resource revenue must be negotiated together with First Nations, not simply imposed in a unilateral and colonial fashion through a minuscule levy.

Continuing with the colonial approach, the Aboriginal Consultation Levy Act grants the power of determining who is an Aboriginal to the Minister of Aboriginal Relations. Not since the Constitutional Repatriation has the definition of Aboriginal been approached, a definition that was largely contested, yet Alberta feels obligated to grant themselves the ability to create their own definition. First Nations have prior to contact defined themselves through their inherent right to self-determination, and continue to express this right through the enactment of First Nations laws. Alberta does not have the right or ability to define Aboriginal groups, nor were they transferred this ability.

The United Nations Declaration on the Rights of Indigenous Peoples (UNDRIP 2007) states that;

[First Nations] have the right to own, use, develop and control the lands, territories and resources that they possess by reason of traditional ownership or other traditional occupation or use, as well as those which they have otherwise acquired. (Article 26(2))

In this respect, First Nations have the inherent right to determine how and why their traditional lands are to be developed, and the right to be actively involved in any decision making. The Consultation Policy and levy ignore these rights, and Alberta is attempting to determine when First Nations should be consulted and the subsequent fees associated. Then in true patriarchal fashion, Alberta will divvy out the funds to First Nations in a domineering fashion.

Lastly, in his May 9, 2013 statement in the House, Minister Campbell stated;

...I can say that I met with the grand chief personally. We met about three weeks ago. He was made aware of this bill. He agreed to this going forward.

This above statement is false in all accounts. The meeting that took place was a dinner meeting and the mention of a levy was made as a casual statement, there was no indication of Bill 22 or that the Alberta Government had any law drafted. Similarly, echoed in statements at the April 16, 2013 meeting in Calgary by Grand Chief Charles Weaselhead, notification is NOT Consultation. The Confederacy and the Chiefs of Treaty Six have never agreed to a Levy being placed on industry, and many Chiefs have stated that this is an individual First Nation matter and often covered in IABs. The Confederacy of Treaty Six First Nations, as stated in a letter on May 9, 2013, reject Bill 22: Aboriginal Consultation Levy Act and call for immediate action by the Alberta Government to rescind its unilateral approach and adhere to First Nations concerns.

Sincerely,

[signed]

Grand Chief Craig Makinaw
Confederacy of Treaty Six First Nations

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Stop Paying the Rich! Increase Investments in Social Programs!

Harper Pays Canadian Natural Resources Limited to Increase Its Profits and Shine Its Image

For years, the Redford regime and previous Tory provincial governments have handed over billions of dollars to the energy monopolies who run Alberta. The Harper dictatorship is also getting in on the act. Recently, the Harperites have been directing their pay-the-rich schemes toward not only increasing the profits of the energy monopolies but also toward trying to shine up the tarnished image of the oilsands on the environmental front. North American activists have repeatedly called oilsands' oil "dirty" to support their anti-pipeline campaigns. The European Union (EU) countries are threatening to officially label the oil "dirty," which would make it more expensive and hence harder to sell to European customers.

In keeping with Harper's program to further pay the Alberta energy monopolies, Gary Goodyear, Canada's federal Minister of State for Science and Technology, announced on May 10 that the National Research Council was handing over $9.5 million in public money to Canadian Natural Resources Limited (CNRL) to build a $19-million plant at CNRL's Primrose South oilsands project near Bonnyville, Alberta. CNRL, one of Alberta's "big five" private oilsands monopolies, will partner with Ontario-based Pond Biofuels in the project. CNRL will be paid notwithstanding the fact that President Steve Laut stated on May 2 that the company had "an excellent start to the year" with "record quarterly production." In the first quarter of 2013 (January-March), CNRL generated cash flow from operations of about $1.57 billion compared to $1.28 billion in the same quarter in 2012. This once again exposes the fraud of Redford's "bitumen bubble," as a reason for decreased claims on resource revenues.

The proposed CNRL plant will use carbon dioxide emissions from the oilsands to turn algae into products such as fuel, fertilizer, and livestock feed. The technology feeds carbon dioxide emissions from smokestacks to algae, and, as it blossoms, the algae develops fat (oil) which can be blended with heavy bitumen to make it flow more easily through pipelines or to be sold to refiners. The leftover product after the oil is stripped out can be used as fertilizer or animal feed. Goodyear claims that the project can both be sold to the rest of the world and prove that Canada is a leader in emissions reductions. The main goal of the NRC-funded project is to test the algae technology on a large scale, which exposes it as a classic case of the public sector taking the risks and the private sector making the profits.

The payment to CNRL is the first project to receive funding under a restructured National Research Council (NRC), which announced on May 7 that it would henceforth focus exclusively on technologies that directly serve the monopolies, rather than on more general scientific endeavours. NRC President John McDougall stated on May 7, "We want business-driven, industry-relevant research and development." At the announcement of the payment to CNRL on May 10, McDougall, who is a former CEO of the energy-focused Alberta Research Council said, "I can confidently state that such a project would rarely, if ever, have happened under the previous operating model at NRC."

The people of Alberta demand to know why public funding is used to enhance the private gain and claims of the energy monopolies. Is that not corruption of public finances to benefit a privileged minority? The feeble argument that the people benefit collaterally when the monopolies and their owners benefit directly is the neo-liberal "trickle-down theory," the core of Reagonomics, long discredited by such facts as that in the U.S. between 1979 and 2005, after-tax household income rose only six per cent for the bottom fifth of income earners and over 13 times as much or 80 per cent for the top fifth. Trickle down is the basis of the old saw that because the monopolies provide the people with jobs, the public treasury should be opened up to fund their projects. The monopolies then seize those publicly-funded projects and developments as their own private property and use them to enlarge their private fortunes. But if millions of dollars of public money are going to be put into projects such as CNRL's Primrose Lake plant, then it is the public that should benefit directly from the investment and results, not the private owners. These schemes to pay the rich and strengthen their private empires and class privilege must stop. They are wrecking society.

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