Legislative Agenda of the Kenney Government


Youth in Calgary participate in climate strike actions, March 15, 2019, demanding that governments take measures to protect the natural environment and their future.

Making Alberta workers and resources open for private profit
of the financial oligarchy

The Kenney Conservative government in Alberta began to lay out its legislative agenda for the spring and fall sessions with its May 22 Throne Speech, making clear it will intensify the neo-liberal anti-social offensive. Four bills followed in short order.

Bill 1, the Carbon Tax Repeal Act

Bill 1, introduced May 22, will eliminate the Alberta carbon tax. In doing so, Kenney promises a court challenge to the federal carbon tax, which the Trudeau government is expected to apply to Alberta immediately following the repeal of the provincial tax.

Kenney vows to launch a constitutional challenge despite the ruling from the Saskatchewan Court of Appeal upholding the federal government's right to impose such a tax. This indicates the increasing hostility and animosity among competing sectors of the ruling elite, which with Kenney at the helm in Alberta can only grow more rancorous.

Bill 2, an Act to Make Alberta Open for Business

Bill 2, tabled on May 27, reduces the minimum wage for young workers from $15 to $13 an hour. The bill cynically calls this reduction in wages something that promotes job creation for young workers.

The bill also reverses legislation from the previous NDP government providing for automatic certification of a union when 65 per cent of workers in a workplace sign union cards. On this issue, the Throne Speech suggests that more will be coming, continuing the project of the former federal Harper government to obstruct the right of workers to organize effectively in their defence collectives. Expected as well is legal permission for employers to pay out all banked overtime hours as straight time.

Bill 3, the Job Creation Tax Cut Act

Introduced the following day, May 28, Bill 3 reduces the nominal corporate tax rate on net enterprise profit from 12 per cent to 8 per cent, becoming the lowest provincial rate in Canada.

Corporate income tax at 12 per cent provided only a small fraction of the total revenue collected by the Alberta government. In 2017-2018, total government revenue was $47.295 billion, with only $3.448 billion coming from corporate income taxes or about 7.2 per cent of the total budget. Assuming the reduced rate of 8 per cent had been applied in that fiscal year, this would have resulted in about $1.138 billion less collected for a total of $46.157 billion. The corporate income tax revenue of only $2.310 billion would have been just 5 per cent of the total provincial revenue collected.

The Throne Speech postulates the reduced corporate tax on net enterprise profit will "generate 55,000 new full time jobs, and increase the size of our economy by $12.7 billion." How this rabbit will be pulled out of the hat is, one can assume, a mystery of imperialist economics. However, making up for this lost revenue is no mystery as it will come out of lower investments in social programs and attacks on the wages and working conditions of workers in the public sector and job cuts.

Bill 4, the Red Tape Reduction Act

In rapid succession the next day, May 29, Bill 4 was introduced. The government wants this bill to speed up approval of resource projects, reduce the cost to corporations seeking regulatory approval, and generally provide a free hand for the monopolies to do whatever they please without restrictions on their actions regardless of the social and natural consequences.

Many would say this is a recipe for disaster given the reality that making as much money as fast as possible is the motive and modus operandi of companies within the imperialist economy. The profit motive leads big companies routinely to ignore their social responsibilities. This often results in reckless adventures and disasters -- such as the 300,000 orphaned oil and gas wells in Alberta, along with abandoned mining sites and polluted air, water and soil -- for which no company wants to be accountable, as that would damage the bottom line.

Additional Legislation

Another bill, the Appropriation Act will provide interim estimates for public services, to be followed by a full budget in the fall sitting. The Throne Speech states, "That Budget will be informed by the report of the Fiscal Review Panel chaired by former Saskatchewan Finance Minister Janice MacKinnon, which will make recommendations on how to restore balance to our province's finances so that we stop encumbering future generations with debt. My government will also engage in widespread public consultations on how best to end deficit spending while protecting front line public services."

Government deficit spending and debts are integral to the imperialist economy. For the cartel parties to use their existence as an excuse not to fulfil their social responsibilities exposes their role as toadies of the financial oligarchy and unfit to govern. The cartel parties block the working people from finding, proposing and implementing a pro-social direction for the economy that would guarantee the well-being and rights of the people, humanize the social and natural environment and eliminate the destructive class privilege of the rich oligarchs.

Also announced are the Tax Statutes Amendment Act that is expected to revert to a flat tax regime for personal income tax, which entrenches its regressive nature; and the Royalties Guarantee Act to "provide certainty that the royalty structure in place when a well is drilled remains in place for the life of the well."

The Choice in Education Act will restore and expand "the choices available to parents and children," which is code for continued privatization of education, as well as an attempt to attack the right of students to privacy and the responsibility of teachers to respect that privacy.

Perhaps the most cynical claim of all is the promise to enact the Saving the Girl Next Door Act, which would introduce measures against human trafficking. This comes from Jason Kenney who as federal Minister of Immigration during the Harper regime launched particularly vicious assaults on migrant workers, including live-in caregivers and temporary foreign workers. Such treatment of these workers by Canadian governments is considered by many as tantamount to human trafficking.

The Throne Speech repeated the Kenney government's assertion to repeal the Carbon Competitiveness Incentive Regulation and replace it with a Technology Innovation and Emissions Reduction Fund to "ensure investment in new emissions-reducing technologies which can be exported around the world."

The previous NDP government provided extensive pay-the-rich schemes to the energy cartels for "emissions reduction technology." Oil sands companies are eager to introduce such technology, as it reduces fuel use and therefore the price of production of their commodities. They also want to be paid from the public treasury to do what is in their self-interest and to attract global investors. Kenney's pledge to reduce emissions should be considered within the context of a pulling back by certain sections of the financial oligarchy from investment in carbon products and their use, and the growth of private investment and public pay-the-rich schemes in green energy and related actions, such as carbon capture.

The Kenney government also proclaimed the Preserving Canada's Economic Prosperity Act, legislation passed by the previous NDP government but never given Royal Assent. This gives the government authority to require companies to obtain a licence before transporting energy products from Alberta via pipeline, rail or truck. The legislation is a threat to the BC government that the authority in Alberta will "turn off the taps" should the BC government or others "obstruct" the building of the Trans Mountain Pipeline Expansion.

The BC government responded with a court challenge to the legislation calling it unconstitutional. Former Alberta Premier Rachel Notley said Kenney's action weakened Alberta's fight with BC. She said her government's intention in passing the bill was to wait until it was "necessary to turn off the taps," quickly proclaim the bill and use its provisions within three hours before BC could file a legal challenge. "He [Kenney] is a bit like a gunslinger who's swaggering down the streets waving his gun after intentionally taking the bullets out of it," Notley said.

The Alberta Throne Speech signalled that the Kenney government will continue the opposition mounted by the Notley government to two federal bills. Bill C-48 turns into law the current ban on tankers loading and unloading on BC's west coast, north of Vancouver Island. Bill C-69 revises the regulatory regime for approval of projects such as pipelines and mines. The Alberta Throne Speech states that Bill C-69, the Impact Assessment Act "threatens Alberta's exclusive jurisdiction over non-renewable natural resources, and is damaging investor confidence."

Jason Kenney Then and Now

Jason Kenney was a prominent member of the Harper Conservative federal government that used every means at its disposal to impose the will of powerful private interests Canada-wide to carry out nation-wrecking, attack the rights of working people and the Indigenous nations, and to attempt to crush all opposition, declaring that you are either with us or against us.

Kenney has now morphed into a defender of particular private interests in Alberta and provincial powers, although the private interests of the supranational financial oligarchy that own and control the energy, construction and other dominant cartels in Alberta do not stop at or even recognize any border unless it serves their narrow interests.

The Throne Speech repeated Kenney's declaration of war against anyone who stands up against the demands and direction of the ruling elite regarding bitumen and other carbon-based production in Alberta. A public inquiry will be held into "the foreign sources of funds responsible for the campaign to landlock Alberta's energy." This does not, of course, refer to the words, deeds and huge sums of money spent by the Canadian Association of Petroleum Producers -- an organization largely made up of foreign entities -- other organizations of Big Oil, or the mainly foreign corporations that dominate the energy sector in Alberta, to promote their private interests and block any discussion or thinking of an alternative direction for the economy, to wean the province off its one-dimensional, crisis-prone and foreign-controlled economy.

(Photos: TML, Calgary Social Change)


This article was published in

Volume 49 Number 20 - June 1, 2019

Article Link:
Legislative Agenda of the Kenney Government


    

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