Ontario Urges National Summit on Alberta’s CPP Withdrawal Proposal
ONT LIKE 90% OF ALBERTANS
OPPOSES THIS STUPID IDEA
Story by Olalekan Adigun • BNN BREAKING NEWS
Ontario, one of Canada’s most populated provinces, has called for an urgent national summit. The topic of concern is a controversial proposal by Alberta Premier Danielle Smith to withdraw Alberta from the Canada Pension Plan (CPP). This plan, if actualized, could potentially reshape the retirement landscape across the country, affecting millions of working people and retirees.
A Disproportionate Contribution?
Smith argues that Albertans are currently contributing more than their fair share to the CPP. She believes that Alberta is owed an astronomical sum of $334 billion, which is more than half of the total value of the CPP. To test the waters, a task force is currently holding hearings in Alberta to gauge public sentiment on the potential withdrawal. If public sentiment aligns with Smith's vision, a referendum could be on the horizon by 2025.
The Ontario Perspective
Ontario, however, has raised eyebrows at the calculations behind Alberta's claim. The province is demanding a firm estimate of Alberta's share of the CPP assets before moving forward with a referendum. Ontario's opposition to Alberta's plan, coupled with criticism from other provinces and pension experts, brings to light questions about the feasibility and potential consequences of Alberta's proposal.
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One key concern is the increased financial burden that may befall other Canadians. Ontario argues that the CPP's strength lies in its pan-Canadian approach, a shared responsibility that provides stability and security for workers and their families. By leaving the CPP, Alberta could disrupt this balance, potentially affecting the retirement savings of millions of Canadians.
Lessons from Ontario's Experience
Ontario's own experience with a standalone provincial pension plan, the Ontario Retirement Pension Plan (ORPP), serves as a cautionary tale. When federal departments and the Canada Revenue Agency refused to assist with the management of the ORPP, Ontario had to establish its own pension administration corporation. This experience casts a shadow over Alberta's assumption that federal entities would willingly take on the administration of an Alberta pension program.
In addition to concerns about the feasibility of Alberta's plan, there are questions about the accuracy of the calculations behind the claim that Alberta is owed $334 billion. Ontario's own calculations suggest a discrepancy. If Alberta's formula were applied to Ontario, it would be owed 63% of the CPP's total value, which contradicts Alberta's claim and raises concerns about the potential impact on other provinces.
Ontario's opposition to Alberta's proposal, along with criticism from other provinces and pension experts, emphasizes the complexity and potential consequences of withdrawing from the CPP. The ongoing dispute underscores the importance of a pan-Canadian approach to retirement savings, and the need for a national conversation on the subject.
UCP resolutions contentious, but most unlikely to become policy: Political scientist
Premier Danielle Smith speaks during a Calgary Chamber of Commerce luncheon at the Hyatt Regency hotel in Calgary on June 29.
Members of Alberta’s governing United Conservative Party (UCP) are set to vote on a series of policy proposals at their upcoming convention, though the likelihood of any of those changes becoming government policy remains unclear.
The UCP’s annual general meeting is set for Nov. 3 and Nov. 4 in Calgary where delegates will vote on 51 resolutions, including 30 policy proposals .
Those include a pushback against Ottawa’s clean electricity regulations, calls for a school voucher system, and an end for funding of supervised consumption sites.
Other resolutions seek changes to parental rights, treatment of transgender prisoners, and availability of material some deem offensive in schools. About one-fifth of the resolutions address some kind of grievance from the early stages of the COVID-19 pandemic; others assert conspiracy theories around 15 minute cities and electronic voting machines.
Mount Royal University political scientist Duane Bratt says while some of the resolutions are eye-catching for varying reasons, it would be a mistake to equate those with the views the party or government will put forth to the public, even if members vote in support.
“There is a wide gap between an election platform and policies adopted at a party convention,” he said.
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“They get a lot of attention, but let’s just see how many actually go through that whole cycle and end up as a public policy.”
There are also resolutions calling for the elimination of diversity, equity and inclusion offices in post-secondary institutions, the creation of a bill of parents rights minimizing the role of “activist professionals” in education, and banning schools form using race as a factor in admissions.
Bratt says what those resolutions do is highlight the views of the party’s most activist members.
“Those are the ones that show up.”
That dynamic, Bratt said, is apparent at all party conventions, noting provincial NDP leader Rachel Notley’s 2016 opposition to the federal NDP-supported Leap Manifesto, which called for the end of fossil fuels as an energy source.
It will also be a different dynamic than when Jason Kenney led the UCP.
“Transgender issues, parental rights, COVID medical stuff, none of that existed,” Bratt said.
“That just shows the dramatic change in politics in this province.”
It will also be a test for Take Back Alberta (TBA), the group credited by some for driving the party’s policies and encouraging enough of its members to attend the convention that a switch to a bigger venue was needed.
“This is going to be a test of TBA’s strength, not just in controlling the board, but in winning these votes and then seeing if they actually get implemented,” Bratt said of TBA.
Premier Danielle Smith will also have navigate her relationship with TBA, whose supporters appear to back some of the resolutions arounds parents rights and gender pronouns in schools, something Smith has been reluctant to speak out against in the past.
“There’s a huge gap between the personal beliefs of Danielle Smith and a political reality within our own party,” Bratt said.
“I don’t think she’s going to be able to avoid it.”
Walking that metaphorical tightrope will not be easy for the premier, Bratt said, bearing in mind the party turfed Jason Kenney as leader when he was a sitting premier not long ago.
He cautioned that any cracks in party unity that emerge at the convention could grow in the months to come.
“Is it actually about the resolution or is it about something wider?”
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