Western Canada: Alberta Premier attempts to change the channel with cost-of-living measures

Good morning. It’s James Keller in Calgary.

Alberta Premier Danielle Smith has unveiled a suite of measures that she says will help people in the province deal with inflation, six months before an election in which cost of living is likely to be a major issue.

The policies, which she announced in an evening television address, include payments to seniors and families, as well as electricity rebates and a temporary cut to the fuel tax. She also outlined previously announced changes such as indexing income taxes and a number of income-support programs to inflation.

She made the announcement despite warnings from economists and other experts that providing direct payments to people could actually make inflation worse. The previous government under her predecessor, Jason Kenney, made that point to argue against such measures. It’s also something that Ms. Smith warned about earlier this month, telling her weekly radio show that she was warry about handing out cheques in part because it could exacerbate inflation.

The speech marked her second major policy announcement in a week, following her plans to overhaul the health care system, as she attempts to change the channel after a rocky start to her term as Premier.

She was forced to walk back comments from her first day in office when she said the unvaccinated were the most discriminated group in her lifetime and shortly after apologized for appearing to echo Russian talking points about the Ukraine war. This past week, she faced criticism over past comments arguing that people should pay more of their health care costs out-of-pocket.

In her TV address, Ms. Smith said the province can’t solve the inflation crisis on its own but a recent windfall owing to high energy prices has left the government in a position to offer some relief.

The measures announced Tuesday include direct payments to seniors and families worth $600 for every child or dependent, as well as the same amount for every senior. The payments will go to qualifying households with incomes below $180,000, as well as to people collecting income support, and recipients of Assured Income for the Severely Handicapped and the province’s Persons with Developmental Disabilities program.

Alberta will suspend the entire provincial fuel tax for six months and then make permanent a current policy that cuts the tax in stages depending on the price of oil.

The government will provide another $200 in electricity rebates over the winter.

Ms. Smith reiterated previous promises, such as indexing income taxes and support programs to inflation – after her predecessor removed indexing – and the continuation of a natural gas rebate program.

The Premier also addressed controversies related to her past comments, including over things she said as a talk radio host in Calgary.

Ms. Smith said that she spent decades commenting in the media and hosting radio shows, which included taking controversial positions. But, she said, her opinions have “evolved or changed as I have grown and learned from listening to you.”

She didn’t offer any insight into what views have evolved or exactly how. While Ms. Smith has accused critics of digging up decades-old comments to smear her, she has mostly been plagued by far more recent statements.

The vaccine comments were on her first day on the job, and her online posts about Ukraine were from earlier this year.

She was criticized for appearing to argue in favour of out-of-pocket health care in a paper published by the University of Calgary’s School of Public Policy in November of last year, months before announcing plans to run for the UCP leadership. The paper looked at Alberta’s finances and argued that the province should “shift the burden of payment” for health care away from the government and onto individuals and their employers or insurance.

Ms. Smith also argued in the paper that the government should set up health spending accounts funded by the province and individuals, which she said could be used to pay for doctor visits, among other services. While Ms. Smith has announced plans to set up health spending accounts, she has said her government has no plans to make people pay for health care.

The next election is in May and Ms. Smith has already signalled that the cost of living and health care will be significant issues for her party.

Ms. Smith will turn to another priority next week, as the legislature sits for the first time since she became Premier, following her by-election win earlier this month. She will introduce her Sovereignty Act, which she claims would give the province the ability to refuse to enforce federal law. She will also introduce legal protection for people who haven’t been vaccinated for COVID-19.

This is the weekly Western Canada newsletter written by B.C. Editor Wendy Cox and Alberta Bureau Chief James Keller. If you’re reading this on the web, or it was forwarded to you from someone else, you can sign up for it and all Globe newsletters here.