Alberta wealth fuels federal programs

Alberta Premier Ralph Klein is engaged in a cross-Canada mission to sell a message that his province is a vital cog in the national economy, armed with a new study that says Albertans feed more into the federal coffers than any other region.

Over 40 years to 2002, Alberta paid an annual average C$2,500 per head in federal taxes compared with C$758 from Ontario (seen as Canada’s industrial heartland) and C$428 from British Columbia.

The other seven provinces collected more than they paid into a national equalization program, with Quebecers collecting C$770 each and Prince Edward Islanders $4,700. The information was contained in a report by the University of Calgary’s Institute of Sustainable Energy, Environment and Economy.

Economist and co-author Robert Mansell said Alberta is “by far the largest fiscal contributor” to federal programs at a time when some are calling for a larger share of Alberta’s budget surpluses and C$13.2 billion in oil and gas revenues.

He said it would be unfair to expect Albertans to pay more.

Mansell also cautioned that within four years, because of the struggle to find new gas reserves, non-renewable resource revenues in Alberta will be half their current level.

—Gary Park