Albertans Receive Much Needed Cash Lifeline From Trudeau
– Momentum Public Relations –
Prime Minister Trudeau travelled to Alberta on February 3rd, 2016, to let Albertans know that Ottawa would be prepared to provide up to 950 million dollars in “bail-out” funding in order to help the struggling province deal with its oil crisis and unemployment rates. More specifically, Ottawa would pledge up to 700 million dollars to fund infrastructure projects and add 250 million as a fiscal lifeline if needed. That is, the 250 million dollars that the federal government pledged to Alberta would go towards a fiscal stabilization program that has not been used in quite some time.
As for the $700 million, Trudeau promised to fast-track the money as needed in order to help unemployed Albertans get back on their feet, with funding expected to arrive in a few weeks to a few months. Given the fact that Alberta plans to invest 34 billion dollars in the next 5 years in order to rebuild hospitals and schools that have been overtaxed over the years, the extra funding from Ottawa will help expedite Alberta’s infrastructure project plans while minimizing any obstacles.
Moreover, the meeting between Alberta’s Premier and the Prime Minister could not have come at a better time, as the fiscal prognosis for the fledgling province in 2016 is dire at best. Fortunately, Trudeau’s reaching out to the province will help alleviate some of the tensions between the Liberal Party and Albertans, as the two sides have had a precarious relationship for several decades.
However, while Trudeau’s cash lifeline offer will not go unnoticed, many are still questioning where his party stands on the development of the Energy East Pipeline, as the proposal to build the pipeline has been met with ardent opposition from British Columbia and Quebec. Albertans, on the other hand, have stressed the importance of building a pipeline in Alberta in order for the province to access international oil markets.
Whether Trudeau will concede to Quebec and British Columbia’s demands or side with Alberta remains to be seen, although Trudeau hoped to make inroads on plans regarding climate change, E.I. reforms, and federal infrastructures during his hour-long meeting with Premier Rachel Notley.
In regards to employment insurance reforms, Trudeau promised marked and swift changes that would benefit the citizens of Alberta. For instance, Trudeau stated that getting financial aid in a timely and convenient manner was of the utmost importance, and went on to say that, “Nowhere is [it] clearer that there is a need for that right now and right here in Alberta.” It should also be noted that the restrictions placed on receiving E.I. benefits have been stricter in Alberta compared to other provinces for the longest time, as Alberta has historically enjoyed low unemployment rates until recently.
As such, employees in Edmonton and Calgary must work a minimum of 600 hours in order to qualify for employment insurance benefits and can only receive a maximum of 38 weeks. In comparison, employees in Atlantic Canada are only required to work 420 hours to receive E.I. benefits and can qualify for up to 45 weeks.
What’s more, the diversification of Alberta’s economy as well as its climate change plans were also addressed during the meeting, as Ms. Notley hoped to accentuate the grim economic conditions that the province was currently facing. For instance, Suncor Energy Inc-a notable oil sands monolith-posted a net loss of over two billion dollars in Q4 of 2015 due to asset writedowns. The net loss was attributed to foreign currency exchange losses as well as depressed crude oil prices.