The New Alberta: Business Opportunities Toward 2000

Introduction

Alberta is an interesting province. Its people are very proud and independent and they have a refreshing tradition of bucking the establishment.

On December 5th, the provincial party of the Progressive Conservatives reminded its own establishment just how real that tradition is when it elected Ralph Klein as leader and the new Premier of Alberta.

From where I sit, it's hard to imagine the word conservative showing up in the same sentence with the name Ralph Klein. I understand Albertans are having such a difficult time of reconciling the two that they have dubbed the Conservative party the Ralph Party.

Probably the only person who was not surprised that Ralph won the leadership race was Ralph himself. He's quite used to doing things others imagine impossible.

In 1980, following an 11-year stint as a journalist on the civic affairs beat with Calgary's CFCN Television, he decided to run for mayor. He put his life savings, all $300 of it, into his campaign. His boss found the idea so implausible that he refused to air the announcement.

But Ralph won the election, and the next one, and the next one. In 1986, he took 92 per cent of the vote. He brought the hugely successful Winter Olympics to Calgary. And by the time he was finished with municipal politics, he was the most popular mayor in the city's history.

He was so popular, former Premier Getty invited him to run in the 1989 provincial election. He was elected and appointed Minister of the Environment.

But now he's here in central Canada to talk to us about Alberta and opportunities. Two words in my vocabulary that have always gone together. Please join me in welcoming the Premier of the province of Alberta, the Honourable Ralph Klein.

Ralph Klein

Members of The Empire Club of Canada, distinguished guests, and ladies and gentlemen, it is my distinct pleasure to be with you today.

Since becoming Premier of Alberta a little over two months ago, I have had the opportunity to make a number of speeches, but I confess this is the first organization I have addressed that has been in existence longer than the province of Alberta.

Your founding on November 18, 1903, makes The Empire Club some 22 months older than the province of Alberta. In a world of dramatic change, that is a remarkable testament to the enduring strength of your mandate, adopted some 90 years ago, and I quote:

...dedicated to the interests of Canada and the Commonwealth, in partnership, for peace and progress, with our friends and allies throughout the world....

In that spirit, I thank you again for the opportunity to be with you today.

I spoke a moment ago about the fact that we live in a world of dramatic change. Certainly, neither Alberta nor Canada is immune to that change. And it is how we respond to change that will determine the future we are creating today.

Some of you may be familiar with the Banff School of Advanced Management in Banff, Alberta, where a six-week course in dealing with change is offered to senior managers from various organizations around the world.

The motto of the Banff School is simple: it is the Latin phrase Adaptor, o pereo; Adapt or Perish.

And if that doesn't convey the message, each graduate of the school is given a small lapel pin of a dinosaur, the most famous example of those who did not adapt, and who did perish.

So, to adapt, to keep this nation competitive and in pace with the world as we approach the end of the century is the formidable task of all Canadians.

If a nation is the sum of its parts, then Canada's provinces and territories have a critical role in working with the federal government to achieve our goals.

Albertans have always prided ourselves on having a strong voice at the national table. Today, therefore, I would like to discuss Alberta's perspective on a number of issues that speak directly to The Empire Club's goal of "progress in the interests of Canada."

The first is the critical issue of federal-provincial co-operation for efficient government. The issue of streamlining government is an issue of increasing priority.

All governments in Canada have significant public debt, thus we must examine new ways of working together to reduce government taxation and regulatory burdens, and thus reduce the cost to the taxpayer.

At the First Minister's Conference on the Economy, the Prime Minister and premiers agreed to work co-operatively in reducing overlap and duplication in eight specific areas: Social programs, job training, national infrastructure, international trade, agriculture, fisheries, sales tax co-ordination and eliminating internal trade barriers.

From Alberta's standpoint, a priority is eliminating barriers to internal trade. It is ironic that a country so dependent on international trade should face such difficulties in trading amongst ourselves. Provincial trade ministers have agreed to recommend to their respective cabinets a new and comprehensive process to address internal trade barriers by June of 1994.

This approach is being considered to accelerate the process of pursuing sectoral agreements in government services procurement, construction, wine and spirits, and extending agreements to cover municipalities, academic institutions, and hospitals.

Comprehensive negotiations, it is hoped, will ultimately lead to an agreement identifying prohibited internal trade practices and the establishment of a dispute settlement mechanism.

It is likely that there will be opposition to this initiative from some vested interests as trade barriers are removed. Already, various facts and figures are being debated regarding the cost-benefit ratio of this policy.

From Alberta's standpoint, the elimination of barriers to internal trade is entirely consistent with our intergovernmental policy since 1986. We are of the opinion that trade barrier reduction will result in new export opportunities for Alberta businesses.

Equally as important, we fear that failure to achieve progress could undermine our international competitiveness, and encourage the federal government to adopt unilateral measures to resolve the issue. As I'm sure you know, Alberta has long opposed unilateral action by the federal government when co-operation could have led to a better solution.

A second area where Alberta believes there needs to be change is in the area of federal-provincial fiscal relations. I know that Premier Rae has also commented strongly on this matter.

While we have differing political philosophies, we do have in common (with British Columbia), the distinction of being two of the three provinces that do not receive equalization payments.

And, in 1990, the federal government unilaterally imposed a ceiling on the annual rate of growth in Canada Assistance Plan Transfers to the same three provinces: Alberta, Ontario and British Columbia. These actions have hampered Alberta's ability to carry out its constitutional responsibilities to design programs to meet local needs and priorities.

For example, when the economy slows and unemployment increases, social assistance expenditures rise. Yet the cap on Canada Assistance Plan Transfers will impact Alberta to the tune of $300 million to the end of 1994-95.

The federal government has historically been reluctant to consider changes in this area, but we will nonetheless continue to press Ottawa to refrain from imposing conditions which restrict the ability of all provincial governments to be accountable to taxpayers for program expenditures and delivery.

One area where there is no doubt that Premier Rae and I disagree is on the question of the North American Free Trade Agreement, or NAFTA as it is known. The agreement, signed on December 17 of last year, was strongly supported by Alberta.

We believe it will provide an opportunity to expand and improve provisions of the Canada-U.S. Free Trade Agreement. In particular, we believe it will provide all Canadians with new export opportunities.

In Alberta's case, we will see an opportunity for Alberta's oil and gas--field equipment and service industries to participate in the development of Mexico's energy sector. As well, there are long-term benefits with respect to sales of meat, livestock, oilseeds, and grains to Mexico.

To those who oppose NAFTA, I would simply say that it is our belief that through liberalization of trade and investment and the expanded economic opportunity and activity that it brings, all of North America is better positioned to compete with the new European economic trading block and the Far East. In all of these areas, ladies and gentlemen, the economy, and not the Constitution, was, and is, the No. l priority.

First Ministers have not met on the economy since March, 1992, and thus Alberta believes it is timely to discuss these broad economic issues in order that a plan for prosperity can be developed.

We are emerging from an insidious recession that has made Canadians fear for their economic well-being, and that of their children. In the streamlining of federal-provincial governments, in reducing internal trade barriers, in our fiscal relationships, and in progress on NAFTA, we feel that a First Ministers conference on the economy is crucial.

On the day after the Charlottetown Accord was defeated by referendum, I called upon the Prime Minister to convene a First Ministers meeting on the economy. I did so because I believed then, and I believe now, that the rejection of the agreement was due, in large part, to the feeling by a majority of Canadians that we should do no less than meet to attack these issues head-on.

Ladies and gentlemen, I mentioned a moment ago the Charlottetown Accord, and I would like to take a minute to talk about Senate reform, which, of course, was an important component of the agreement. I do so with some hesitation, because I am reminded of the story of the three people lined up before a firing squad, a Russian, a Canadian and an American.

When asked for their last request, the Russian said: " I would like a glass of vodka." The Canadian said: " I would like to talk about Senate reform," and the American said: " I would like to be shot before the Canadian speaks."

But let me simply say this: Albertans feel that the reform of the Senate is a fundamental solution to Canada's historic regional dissatisfaction.. Canada's immense size is both her blessing and her curse, and, indeed, it has been said that Canada is a triumph of politics over geography.

A vast majority of Western Canadians believe that that triumph is not complete until a reformed and elected Senate speaks equally, and effectively, for all Canadians.

Ladies and gentlemen, I have spent some time this afternoon talking about some of the problems we have; some of the challenges we face; and some of the issues that stand in the way of our prosperity.

For all those challenges and issues, both Alberta and Canada have had many successes. And as Canadians face the problems that lie before us, we can look for support to the most distinctive thing about us, the one thing that we all share, our history.

I am an optimist; I think most Canadians are as well. We are a people that have travelled far together. We have faced recessions and depressions; we have gone to war, and to this day we help maintain peace around the world; we have survived linguistic and constitutional strife; and we have been equal to these challenges because we share our history and have a common vision for the future.

When Albertans talk about the values that Canadians share, the one they mention most often is equality, but a flexible equality. If I may quote from the Alberta Select Special Committee on constitutional reform:

The constitution must reflect and embody the equality of the people of Canada and the existence of equal provinces. The concept of equality must take into account historical, cultural and economic realities; the concept is sometimes better served through different, rather than uniform, treatment.

In conclusion, ladies and gentlemen, it is on the basis of the foregoing quotation, that Alberta stands ready to play her part in the future development of a strong, united and prosperous Canada

I thank you very much.

The appreciation of the meeting was expressed by The Rev. Canon Harold Roberts, Rector, St. Timothy's Church, Agincourt, and a Past President, The Empire Club of Canada.