‘We’re Going to See If Diplomacy Works’: Danielle Smith on Dealing With Ottawa

‘We’re Going to See If Diplomacy Works’: Danielle Smith on Dealing With Ottawa
Alberta Premier Danielle Smith gives a keynote address at the LNG2023 conference in Vancouver on July 13, 2023. The Canadian Press/Darryl Dyck
Marnie Cathcart
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Alberta Premier Danielle Smith says she hasn’t had much chance to slow down since winning the May 29 election, and the summer months have been even busier.

Ms. Smith said that between issuing mandate letters to all 25 cabinet ministers between now and when the legislature resumes in the fall, and multiple public appearances at various events throughout the summer, she doesn’t expect to have any down time.

“Summer is the best time to connect with Albertans, particularly in rural Alberta, so I’m trying to go to every major rodeo and fair,” she said in an exclusive interview with The Epoch Times.

“My August is going to be pretty darn busy, but that’s part work and part pleasure, to go through Alberta during the summer and take part in all of these events.”

One of the premier’s major areas of focus involves dealing with Ottawa and pushing back against federal policies that her government deems as having a negative impact for Alberta.

Alberta Premier Danielle Smith attends her Stampede pancake breakfast in Calgary on July 10, 2023. (The Canadian Press/Jeff McIntosh)
Alberta Premier Danielle Smith attends her Stampede pancake breakfast in Calgary on July 10, 2023. The Canadian Press/Jeff McIntosh

Emissions Caps

Ms. Smith campaigned on the Alberta Sovereignty Act during her leadership bid, and while she said the province hasn’t had to use the act yet, she’s prepared to “do whatever it takes to protect Alberta ratepayers, power prices, and to protect our industry.”

She said one area where she envisions the act coming into play is if the federal government proceeds with emissions caps that are “unrealistic, unachievable, and amount to a production cap.”

Ms. Smith said Ottawa is still talking about a 30 percent reduction in emissions on fertilizers, and a 42 percent reduction on oil and natural gas by 2030, and a net zero power grid by 2035. She said she’s made it “very clear” to the feds that these goals are not achievable and outside their jurisdiction.

“The pace of production and electricity generation are to be decided by provincial governments,” Ms. Smith said, adding that if the province doesn’t have the technology to implement the federal caps within the designated time frames, Alberta is taking the view that the federal regulations violate the constitution.

“We’re coming to the table and have outlined our approach.”

She said the province is on track to achieve carbon neutrality by 2050. “Most of our major industrial operations, including oilsands as well as power producers, believe that 2050 is achievable.”

The premier said the province “is in the process of finalizing a terms of reference with the feds, so they can bring themselves into alignment” with Alberta’s 2050 target.

“That’s where I hope we get to so we don’t have to use the Sovereignty Act.”

Ms. Smith cited a recent report that places the cost of a national power grid at $1.7 trillion if it was to be achieved by 2035, which she says would increase electricity prices by up to five-fold for consumers. She said another report suggested that federal regulations would result in a “shut-in” of 1.5 million barrels of oil production.

“We’re not going to do that either,” she said, “and now we’re going to see if diplomacy works.”

Prime Minister Justin Trudeau and Alberta Premier Danielle Smith meet in Calgary on July 7, 2023. (The Canadian Press/Jeff McIntosh)
Prime Minister Justin Trudeau and Alberta Premier Danielle Smith meet in Calgary on July 7, 2023. The Canadian Press/Jeff McIntosh

New Cabinet, New Spirit

Ms. Smith said since being elected and appointing her new cabinet on June 9—consisting partly of ministers new to their roles and partly the old guard appointed by the previous premier—the two factions are approaching their roles with a new spirit.

“Everybody’s coming together,“ she said. ”I haven’t seen any divisions.”

Her fellow United Conservative Party members are happy they were given a mandate by the people of Alberta to govern, she said, acknowledging the election was not an easy win.

“We had been down at 30 percent in the polls at our lowest point and we were going into the election just as even. It could have gone either way. I’m grateful that people decided to give us another chance, and we’re not going to let them down.”

Media

In January, Ms. Smith accused Canada’s national broadcaster of publishing a “defamatory article containing baseless allegations” which suggested that staff in her office had sent multiple emails to crown prosecutors about ongoing COVID prosecutions.
At first adamantly standing behind its reporting, CBC News retracted its original article on July 5, stating portions that referenced “direct contact between the premier’s office and prosecutors—which the premier has vehemently denied” were removed. CBC expressed “regrets” for its inaccurate reporting.

“The more people I meet, the more they get to see who I am, realize the caricature that has been painted of me by the mainstream media and by the opposition, it’s just not true,” Ms. Smith said.

“I’m here for the right reasons. I care about Alberta, I care about good policy, and I care about fixing problems.”

Clean Energy

Premier Smith said there are a number of reasons the province is pursuing a hydrogen strategy over electric cars. Alberta currently has major hydrogen initiatives throughout the province, including Calgary, Edmonton, and Medicine Hat. The Alberta Motor Transport Association is working on dual fuel designs for diesel and hydrogen for long-haul vehicles.

She said this approach makes more sense in an environment like Alberta, with its long and very cold winters. The alternative—upgrading power grids, upgrading transformers, upgrading home boxes to move everything to electricity—would result in “extraordinary costs,” she said.

She recently drove a hydrogen fuel cell car at the Edmonton International Airport, which has secured 100 new Toyota Mirais. “They’re zippy. I got to drive one. It’s like driving a regular vehicle,” she said, noting  it was the first time she’s been allowed to drive herself since she was elected premier.

“They do drive me everywhere,” she added, laughing.

Carbon Tax, Gas Prices

Ms. Smith said the federal government is laying on heavy additional charges onto fuel. The province remains opposed to a retail carbon tax. “We think a lot of the heavy lifting on emissions reductions is going to be done by the major industrial players.”
To alleviate the burden of the carbon tax on Albertans, the government suspended the collection of provincial fuel tax on gas and diesel on Jan. 1, to remain in place until the end of 2023.

“[The carbon tax] is harming low income individuals. It’s harming fixed income seniors. It’s unfair, and people are hurting as a result of it,” she said.

Ms. Smith said the province may extend the tax freeze, depending on what Ottawa does.

“We hope the federal government sees reason, and realizes they can’t be serious about affordability as long as they’re continuing to increase the price of everything, because of the carbon taxes they’re putting on everyday usage for power and transportation.”