
For over twenty years buying and selling rental properties has been my jam. Like any business, there are two facets to real estate investing: money and people. The hardest lesson I had to learn was logic and common sense have to override sentiment. As the old saying goes: it’s not personal, it’s just business. The second hardest lesson is, when negotiating a deal, always be willing to walk away.
Our grievances with Ottawa predate us becoming a province. Neither Alberta nor Saskatchewan negotiated our way in to Confederation, we were colonized and told this is how it is going to be. One could argue that, decades later, Premier Lougheed agreed to the 1982 Constitution by signing it (interestingly, Quebec did not) and there is merit to that. Though it could also be argued that our Premier was strong armed more so than in agreement. He did not create the first iteration of the Alberta Bill of Rights along with the Heritage Trust Fund shortly thereafter for no reason.
The good news is there is a mechanism within the Constitution to renegotiate Confederation. Many Albertans are hopeful that our fellow provinces will come to the table, ready to collaborate and reach a new deal. One that includes less equalization, more provincial autonomy, and all-around freedom for every province to make their own decisions across the county. It does sound quite nice.
Looking at the map below, we see both the Senate seats (white numbers) and House of Commons seats (black numbers) in each province. To open up the Constitution we need seven provinces and 50% of the population to agree. Told we have friends and allies across the county, which ones can we confidently expect to meet us at the table to renegotiate a better deal with Alberta? And the Territories don’t count.
Looking at the numbers, using logic and plain old common sense, two realities become obvious. The first is, Alberta does not have a lot of political power within Confederation. Even as a ‘western block’ there is no possibility of moving the needle. The second is, we do not have a lot of allies either. The eastern provinces are not going to willing to give up those seats in Parliament to make things fair and equitable for Alberta or any of our neighboring western provinces.
With these facts in mind, and they are facts, not conjecture, let’s look at our greatest complaint. Here is a map showing the latest equalization payouts.
Though the intent is to make things ‘equal’, there is nothing equal about it. Especially when we learn that the Prime Minister who changed the equalization formula to include 50% of our resource revenues but not Quebec’s was Harper. And he did so for eastern votes.
In 1904, the year before we became a province, the Minister of the Interior, Sir Clifford Sifton was at a meeting in Winnipeg. It was there he said, “We desire, all patriotic Canadians desire, that the great trade of the Prairie shall go to enrich our own people in the East, to build up the factories and the workshops of Eastern Canada and contribute in every way to its prosperity.”
When Angela Tabak and I are giving this presentation, this is usually the part where we hear crickets. It is also the hardest because this is when our fellow Albertans realize that this is how Confederation was designed. For the East, it has always been about money. Our money. For us, it has always been about people. The fact that our own country purposely keeps Albertans under foot is a hard pill to swallow.
As more and more Albertans come to terms with the truth, the independence movement keeps growing. As a result, the vitriol coming at us from the East, particularly over these last several months, has been shocking. There is no question how they feel and what they think of us. Which confirms, sadly, that our fellow Canadians have no desire to negotiate any sort of ‘fair deal’. While it is hurtful, we need to keep our emotions in check and use logic and common sense to guide us. Looking at this from a business perspective, and we have to, Albertans are left with two options. Either we stay with the status quo and the great trade of the prairie continues to enrich the east or, we put our own people first, and walk away.
It is time to tell the rest of Canada it’s not personal, it’s just business.
Fellow Albertans, it’s time for a referendum on independence.