'Ideological tinge': Alberta to require provincial approval before municipalities, other entities strike deals with Ottawa
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Alberta Premier Danielle Smith has introduced a new bill that, if passed, will require hundreds of provincial entities — including municipalities and post-secondary institutions — to receive approval from the Alberta government before striking any deal with Ottawa.
Smith tabled Bill 18 — the Provincial Priorities Act, 2024 — in the legislature last Wednesday, April 10.
It’s modelled after Quebec’s Act Respecting the Ministère du conseil executif, and asserts that any new, amended, or renewed agreement between Ottawa and a provincial entity that comes without provincial approval will be deemed invalid by the Alberta government.
Smith said the move will ensure federal funding is aligned with provincial priorities, listing net zero housing, net zero electricity, and safe supply as the most prominent examples.
“We’re not going to allow the federal government to come in and work directly with the provincial entity that we give a regulated mandate to and circumvent the things we want to do,” she said in portraying the bill as “taking back control” of federal agreements.
“We know the federal government, on certain issues, has a diametrically opposed view to what it is we want to do.”
Smith went on to accuse the federal government of imposing “an ideological agenda” while insisting her government is not doing the same.
“When we do spending, it doesn’t have an ideological tinge to it.”
Entities that will be affected by the bill, as it’s currently drafted, include:
- Municipalities
- Education boards
- Post-secondary institutions
- Regional health authorities
- Covenant Health
- Public agencies
- Crown-controlled organizations
Government officials were unable to provide an exact number of institutions that will be affected by the new law but noted that non-profit organizations will not be impacted.
Smith said there’s approximately 14,000 existing agreements, of which about 800 have been flagged as problematic. She said there are 64 federal agreements with the City of Calgary, 44 with the City of Edmonton, and between five and eight agreements with other Alberta municipalities.
Government staff said the majority of those deals are for relatively minor matters including funding for Canada Day celebrations and the placement of Canada Post mailboxes.
Existing legislation requires provincial approval for some Alberta agencies including Alberta Gaming, Liquor, and Cannabis; the Alberta Securities Commission; and the Alberta Energy Regulator, among others.
The government believes that has created a gap that will be closed through Bill 18.
Consultation after introduction
The province says it will consult with the affected entities over the summer, after the bill has been introduced, with the intent of the legislation coming into force in 2025.
“I think people understood the general direction we’re going and now we will consult further on how we implement,” she said.
The restrictions contained in the bill are not retroactive, meaning agreements could still be reached until it comes into law.
Much remains to be seen about how the bill will work in practice. It comes with no expectation of increased staffing to handle the approval process.
Consequences for disobeying the bill are also unclear, with Smith only saying that federal-provincial agreements that don’t get approval won’t be allowed and would be considered to be invalid.
“We’re making it against the law,” she said.
There is also no timeline for how long the process to review agreements between Ottawa and a provincial entity will take, pending further consultation.
Municipal Affairs Minister Ric McIver denied the new bill would add more bureaucracy to existing processes, contrary to the government’s intention to reduce red tape.
“This will essentially take no time at all,” he said. “That seems like a normal process to get a grant agreement”
Opposition Leader Rachel Notley disputed that in speaking with reporters Wednesday, calling the bill “a partisan, petulant temper tantrum on the part of this premier.”
“Essentially, what this government will be doing is wrapping each and every municipality across the province in a spool of red tape as they struggle to make up for the significant funding shortfalls created by this provincial government.”
‘Hold back municipalities’
Edmonton Mayor Amarjeet Sohi also expressed concern over more red tape and said the new bill would stifle economic growth. “It will hurt our ability to move quickly on infrastructure projects, from small projects to the largest infrastructure projects,” he said before going on to question the provincial government’s priorities.
“I don’t know which problem the province is trying to solve. The system works really well now. As a municipality, we need both provincial and federal partners and we should have the ability to have independent relationships with both those of government.”
Liberal Edmonton Centre MP and federal Employment Minister Randy Boissonnault accused the premier of trying to limit federal programs in Alberta.
“She’d rather hold back municipalities like Edmonton and Calgary than work with Ottawa to solve problems,” he posted to social media “The premier wants to be a gatekeeper and use those funds for her own priorities.”
Under the Constitution, municipalities are creatures of the province with no independent constitutional authority of their own.
However, it’s unclear if the federal government could use its constitutionally-entrenched spending powers — which give it broad authority to unilaterally spend money or provide funding as it sees fit to implement Canada-wide programs — to circumvent the legislation.
Government officials told reporters earlier last Wednesday that legal challenges from either Ottawa or any of the provincial entities are not anticipated.
“We’re just doing what Quebec has done,” Smith said.
— with files from Lauren Boothby
mblack@postmedia.com
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