New Recording

The tension between the federal government and Alberta stems from the government relying on Alberta during times of crisis, while Alberta feels it doesn't get much in return. Alberta's oil sector has been a major point of contention, with the federal government initially controlling it until 1930. During World War II, Alberta provided resources for Canada's war efforts, and the government imposed demands on the coal industry. The Arab oil embargo further strained relations, as the federal government taxed Alberta to afford eastern oil. The National Energy Program (NEP) created by the federal government was seen as an attack on Alberta's independence and limited its growth. Alberta feels the federal government is taking advantage of its oil resources, despite Alberta's significant contributions to the national economy. Alberta also pays federal taxes and unequalization fees to support other provinces. Despite these challenges, Alberta has provided infrastructure and job opportunities fo Thank you so much, I'm so happy to be here. Yeah, they do have a very complicated relationship and personally I believe that they forever will. I would love to. So, a lot of the tension that lies between the federal government and Alberta is due to two different factors. One of them being the federal government often falls back onto Alberta, especially in times of crisis, and that Alberta makes a lot of significant contributions to the federal government, though doesn't get much in return. Though this kind of allows the two governments to be very intertwined, it does also mean that the federal government does depend heavily on Alberta. So, tension between the federal government and Alberta has been long-going and basically ever since Alberta joined confederation. The oil market in Canada was booming and in 1905 Alberta decided to join confederation. While oil was a very profitable resource and this newfound resource caused a major boom for Alberta and now Canada as a whole, upon joining confederation Alberta believed that they would be able to keep control of their oil, though this was not actually the case. Unlike all the other provinces who had full control over their natural resources and full rights to them, the federal government kept control of the oil sector in Alberta and some of the other western provinces until 1930. In 1930, after 25 years of restless pushing from Alberta, the federal government finally gave in and allowed them to have these rights and this control over their oil. This kind of left a very sour taste in the mouths of Albertans and this was just because it was a little bit of a bad impression of the federal government as they had just joined and this was the first thing that had ever happened. And it gave them the feeling as though the federal government did not have the people's and the provincial's best interest in mind. Moving on, we know how much war helps improve the economy and this was the case for Alberta during the second world war. Canada kind of turned to them for a lot of resources, both coal and oil to help in Canada's war efforts and due to the War Measures Act, the government was able to dictate and oversee the factories and production in Alberta. Well, in the end, the high demands the federal government put on to Alberta and their coal industry especially, that was in the end beneficial and allowed for a lot of growth and development within the sector. At the time, only 25% of the workforce within coal mines were under 35 and this was just because so many of the younger men were fighting in the war. But this demands very hard to meet as well as put a lot of strain on the industry. Here we're even further able to see how the federal government kind of falls back onto Alberta. And another example of this is during the Arab oil embargo. In this time in history, it was very hard for the whole world economically and it also led to peak tension between Ottawa and Alberta. During the crisis, many Arab countries stopped selling oil to the U.S. due to their support for Israel as well as countries that were allied to the U.S. which included Canada. At the time, Prime Minister Pierre Elliott Trudeau asked western provinces to agree to a price freeze on oil. And also set a tax on to many western Canadian provinces that especially affected Alberta. This tax basically equalized the price difference between domestic and international oil prices. And during all of this, the money taken from western provinces was used to subsidize purchases of oil from eastern refineries. So basically the federal government was taking from western provinces, mostly Alberta, just to be able to afford eastern oil that they otherwise couldn't have. This obviously really enraged Alberta and the Albertan people. But it didn't stop here. The federal government also set a policy of taxing eastern consumers which further worsened Alberta's situation. And during the oil embargo, the price per barrel went up to $12 USD. These were and still are record high prices that enraged western provinces. For years to follow, the provincial government and federal ties between Alberta and Ottawa were tense. And it led to western provinces taking initiative to be able to make more profit off their natural oils and gases. It also led to the creation of the NEP and Petro-Canada. And this is where tension hit its all-time high between Alberta and Ottawa. The NEP was a program, or National Energy Program, was a program the federal government created to assert more federal control over the oil sector. And it also aimed to push out a lot of the independent out-of-state owners that at the time had much of the control over the Albertan oil sector. This message was not well received by many Albertans. And it was actually seen as an attack on the Albertan independence as well as limiting their opportunities for growth. What made things even worse is that the federal government didn't fully consult the provincial governments that were largely affected, which created further distrust within the people. We can see in these cases how the government falls back onto Alberta. And while provinces must help support the economy, and such a powerhouse like Alberta must do that and work for the greater good of the country as a whole, many Albertans felt and still feel as though the federal government is purposely taking advantage of Alberta. It doesn't just stop there though. While analyzing the actions of the federal government, it's clear to see that Alberta and the federal government feel entitled and ownership over the oil. While on paper Alberta has rights over their oil, overall the federal government is in control of all foreign affairs and trade when it comes to oil. This creates quite an interesting dynamic. Furthermore, the federal government had also taken additional steps into the oil sector in Alberta, since it is one of the most profitable resources to Canada. And though considering Alberta had to fight for 25 years to get their rights to their oil, having the federal government take these additional steps really doesn't feel right to them. Meanwhile, Alberta provides a lot of support to the federal government and indirectly helps many of the other Canadian provinces. Like any other industry, the oil in Alberta is taxed. Due to the federal government having jurisdiction over the international affairs, it gives them a lot of power. Nevertheless, Alberta has the most profitable economy by far compared to all of the other provinces. Oil is an expensive resource and everyone is always in need, which helps their case. Though all these resources are coming from Alberta, they have to pay a tax, like a fee on these exports to the government, which as we have previously discussed has aided the government through many tough times. Furthermore, the citizens of Alberta pay federal taxes just like the rest of us. Though the province itself has a lot of job opportunities and job safeties, a lot of Albertans are in a higher tax bracket compared to many other provinces, which also accounts for more money to the government. There's also the federal equalization program. This was a program introduced in Canada in 1957, and although Alberta's advance stands economically, they are still a part of it. Equalization payments is a way for the federal government to make sure that all provinces have a relatively unequal amount of funding. This means that since Alberta has more than enough, they have to pay a lot in unequalization fees so that other provinces have what they need as well. On paper, it's pretty great and it makes sense. As a united country, we all have to support each other, although this doesn't sit well with many Albertans due to the sheer amount of history with the federal government. Lastly, Alberta is an opportunity-rich province. Building and creating infrastructure and employment opportunities is vast there. Alberta has contributed to building the Trans-Canada Highway and the Canadian Pacific Railway, which supports infrastructure to this day. While we focus a lot on the negatives of the oil sector, it has provided many jobs and will most likely continue to provide for many Canadians. Overall, they do have a very rocky relationship through their history, though they are still able to work together, and at the end of the day, Alberta provides a lot to Canada.