THE ISSUE ’s Premier Review of 102 NEWS Politics and Government Vitality MARCH/2020 from

BLOCKADES, TEACHER BARGAINING AND But it was one item in particular that stirred that familiar scent of controversy that seems to follow this government around. One of the tabled amendments included in the bill includes the Public Education Collective Bargaining Act which regulates PHYSICIAN COMPENSATION – MLAS HIT THE the process that Alberta’s primary education system must adhere to when negotiating new agreements. There are two GROUND RUNNING organizations that engage in bargaining: the Alberta Teachers’ Association (ATA) and the Teachers’ Employers Bargaining Association (TEBA). Of importance is understanding that TEBA is comprised of school board officials and government Aaron Singleton appointees who form the voting majority. As it stands, the bargaining process starts with both parties at the negotiating table with final say being voted on by a collective of school board representatives. Alberta’s politicians emerged from the caliginous depths of our prairie winter and returned to the Legislature primed to The change proposed would eliminate the final vote by school board representatives and hand the final word to TEBA. As Senior Editor: Pascal Ryffel tackle what the UCP House Leader, , called an “ambitious agenda”. One would be hard-pressed to call the last well, the government would change the ministry of oversight from Education to Treasury Board and Finance. It’s not Publisher: Alberta Counsel adjournment a break as the government managed to keep sufficiently busy during their time away from the Assembly. The surprising to discover that there are red flags being raised from various backgrounds, crying foul over the change in power Alberta Union of Provincial Employees (AUPE) had been awarded a 1% retroactive salary increase, the report on Alberta balance. Legislating the right of final decision to one of the bargaining parties creates an imbalance of power at the Health Services (AHS) was released by Ernst & Young, and the UCP had both victories and loses in the energy sector as Teck ALBERTA COUNSEL negotiating table. Hypothetically, there would be nothing preventing TEBA from tabling and offer, refusing to amend their withdrew its oil sands mine application shortly before the Alberta Court of Appeal ruled the federal carbon pricing initiative Legal and Lobby Professionals position then subsequently imposing it regardless of opposition. The optics of the proposal could give an impression of an to be unconstitutional. Management Consultants avoidance of good-faith bargaining, especially when one considers that government representatives form a majority of the Trade-mark Agents ’s team commenced its second session as government at full speed as it works to handle its many matters of employer’s bargaining unit. With the current deal including the ATA and TEBA expiring on August 31, expect the teachers’ exigency. The UCP has tabled six new bills which include an omnibus and private member’s bill. Some of the subject matter association to ramp up their pressure on government while also growing louder in the public forum. LEDGEVIEW BUILDING includes amendments to liquor laws, fixed budget periods and the establishment of a new Strategic Aviation Advisory Question period has returned with the usual flair for the dramatic that has become a staple of this Legislature. The 800, 9707-110 Street NW Council. Her Majesty’s Official Opposition even tabled a private members bill which proposes to amend the Conflicts of discussion surrounding physician compensation has been raised by both sides of the house while doctors continue to apply AB T5K 2L9 Interest Act. Although this government has been busy, they have yet to reach February 18, 2004 levels during the Klein era pressure to the government through the media. The NDP has gladly taken every opportunity availed to them to share stories P: 780-652-1311 when six bills were tabled in the span of ten minutes. F: 780-652-1312 given by their constituents, many who happen to be doctors impacted by the budget. Leading the charge on this line of E: [email protected] The first of the government-tabled bills, titled the Critical Infrastructure Defence Act, was written in response to ongoing questioning is NDP Health Critic, David Shepherd. He has been heard reading e-mails and letters from constituents and www.AlbertaCounsel.com protests and blockades that are being erected in support of the Wet’suwet’en Hereditary Chiefs’ dispute with the federal medical professionals who have been sharing their experiences that include dealing with the dilemma of potentially closing government and the Coastal GasLink pipeline. The most frequent blockades have targeted railways used to ship crude oil their practices because of the changes implemented on the Alberta Medical Association. and other natural gas products across the country. The blockades had started off as obstacles that were designed to Surprisingly, the government side has asked The News from Alberta Counsel is prevent the continued movement of locomotives. In recent weeks, the tactics used by new blockades have resorted to questions of the Health Minister that stretch Alberta’s premier review of much more dangerous tactics. Protesters have set fires on rail lines and used other means which have resulted in a call for beyond the typical governing clarification style of police intervention lest a derailment result. provincial politics and government inquiries traditionally employed. Addressing vitality. As an original source of Bill 1 of the second session is designed to deter would-be protesters from interfering with railways through the creation of Minister Shandro, MLA said “…some political news and commentary, The new offences and much more serious consequences for those caught. Penalties for offences range from up to a $10,000 doctors have suggested to myself, AHS, and the News will provide a fresh look at fine for first time offenders to $25,000 and jail time media that they are planning to no longer work in legislation, policy, committee for recidivists. At the time of tabling, critical the ER and rescind certain hospital privileges.” debates, the civil service, along with infrastructure has been defined as pipelines, Shandro responded by saying that his department party updates and events. refineries, telecommunication infrastructure, utility It says that it’s meant to aim at continues to monitor physician levels across the infrastructure, highways, railways and mines. “critical infrastructure, but then province and will bring in temporary doctors in the There are two clauses included in the proposed event of shortages. This was followed shortly by a Alberta Counsel legislation that have raised concerns among it gives this just incredible return to the status quo line of questioning. We work with organizations to opposition members. Section (xvi) adds to the power to designate anything. From what we learned of this government during the last session of the Legislature, there is not really anything that has navigate their way through the definition of critical infrastructure, reading “a been raised to date that would constitute a surprise to anyone. The UCP has continually preached their unyielding desire to confusing network that is building, structure, device, or other thing prescribed , ” bring the province into fiscal balance while reducing red tape that stands in the way of Albertans in their daily personal and Former Justice Minister associated with government. We by the regulations”. Section 5 states “the Lieutenant business lives. If you are ever unsure of what direction the government intends to take on any given matter, you should be help our clients connect with those Governor in Council may make regulations able to safely refer to the MacKinnon Report to make an inferred deduction. It would not be surprising to see the who are important in shaping public prescribing buildings, structures, devices, or other government introduce more legislation than we witnessed during the fall session. things as being essential infrastructure”. policy and ensure your messaging is effectively communicated to Opposition worry stems from the openly vague language used in these two sections. Former Justice Minister, Kathleen decision makers. Ganley, argued in question period that “It says that it’s meant to aim at critical infrastructure, but then it gives this just incredible power to designate anything”. Essentially, the issue is that the ability to designate anything the government deems to be critical infrastructure could be used to potentially limit the movement of the public across the province or inhibit their ability to participate in peaceful and legal protests. To subscribe to The News from Alberta Counsel, please visit As mentioned earlier, the first omnibus bill of this session has been tabled in the Legislature by Treasury Board and Finance www.albertacounsel.com/news Minister, . These types of bills are assembled to pass multiple pieces of legislation that fall under a common theme to avoid tabling multiple items to avoid clogged debate in question period. The Fiscal Measures and Taxation Act is an omnibus bill that aims to implement a number of different initiatives described in the budget including the new K-12 funding model, the post-secondary performance funding model, banning life insurance side accounts and implementing the 4% tourism levy on short-term rentals.

Article continues on page 2 THE Alberta’s Premier Review of NEWS Politics and Government Vitality from

BLOCKADES, TEACHER BARGAINING AND But it was one item in particular that stirred that familiar scent of controversy that seems to follow this government around. One of the tabled amendments included in the bill includes the Public Education Collective Bargaining Act which regulates PHYSICIAN COMPENSATION – MLAS HIT THE the process that Alberta’s primary education system must adhere to when negotiating new agreements. There are two GROUND RUNNING organizations that engage in bargaining: the Alberta Teachers’ Association (ATA) and the Teachers’ Employers Bargaining Association (TEBA). Of importance is understanding that TEBA is comprised of school board officials and government Aaron Singleton appointees who form the voting majority. As it stands, the bargaining process starts with both parties at the negotiating table with final say being voted on by a collective of school board representatives. Alberta’s politicians emerged from the caliginous depths of our prairie winter and returned to the Legislature primed to The change proposed would eliminate the final vote by school board representatives and hand the final word to TEBA. As tackle what the UCP House Leader, Jason Nixon, called an “ambitious agenda”. One would be hard-pressed to call the last well, the government would change the ministry of oversight from Education to Treasury Board and Finance. It’s not adjournment a break as the government managed to keep sufficiently busy during their time away from the Assembly. The surprising to discover that there are red flags being raised from various backgrounds, crying foul over the change in power Alberta Union of Provincial Employees (AUPE) had been awarded a 1% retroactive salary increase, the report on Alberta balance. Legislating the right of final decision to one of the bargaining parties creates an imbalance of power at the Health Services (AHS) was released by Ernst & Young, and the UCP had both victories and loses in the energy sector as Teck negotiating table. Hypothetically, there would be nothing preventing TEBA from tabling and offer, refusing to amend their withdrew its oil sands mine application shortly before the Alberta Court of Appeal ruled the federal carbon pricing initiative position then subsequently imposing it regardless of opposition. The optics of the proposal could give an impression of an to be unconstitutional. avoidance of good-faith bargaining, especially when one considers that government representatives form a majority of the Jason Kenney’s team commenced its second session as government at full speed as it works to handle its many matters of AARON employer’s bargaining unit. With the current deal including the ATA and TEBA expiring on August 31, expect the teachers’ exigency. The UCP has tabled six new bills which include an omnibus and private member’s bill. Some of the subject matter association to ramp up their pressure on government while also growing louder in the public forum. includes amendments to liquor laws, fixed budget periods and the establishment of a new Strategic Aviation Advisory SINGLETON Policy Analyst Question period has returned with the usual flair for the dramatic that has become a staple of this Legislature. The Council. Her Majesty’s Official Opposition even tabled a private members bill which proposes to amend the Conflicts of discussion surrounding physician compensation has been raised by both sides of the house while doctors continue to apply Interest Act. Although this government has been busy, they have yet to reach February 18, 2004 levels during the Klein era During the second year of his pressure to the government through the media. The NDP has gladly taken every opportunity availed to them to share stories when six bills were tabled in the span of ten minutes. Political Science degree at the given by their constituents, many who happen to be doctors impacted by the budget. Leading the charge on this line of The first of the government-tabled bills, titled the Critical Infrastructure Defence Act, was written in response to ongoing University of Alberta, Aaron questioning is NDP Health Critic, David Shepherd. He has been heard reading e-mails and letters from constituents and protests and blockades that are being erected in support of the Wet’suwet’en Hereditary Chiefs’ dispute with the federal worked as the campaign manager medical professionals who have been sharing their experiences that include dealing with the dilemma of potentially closing government and the Coastal GasLink pipeline. The most frequent blockades have targeted railways used to ship crude oil their practices because of the changes implemented on the Alberta Medical Association. for a candidate in the 2011 and other natural gas products across the country. The blockades had started off as obstacles that were designed to federal election. He was able to Surprisingly, the government side has asked prevent the continued movement of locomotives. In recent weeks, the tactics used by new blockades have resorted to questions of the Health Minister that stretch much more dangerous tactics. Protesters have set fires on rail lines and used other means which have resulted in a call for translate that experience into a …some doctors have beyond the typical governing clarification style of police intervention lest a derailment result. public service career that “suggested to myself, AHS, includes various positions with inquiries traditionally employed. Addressing Bill 1 of the second session is designed to deter would-be protesters from interfering with railways through the creation of Minister Shandro, MLA Nate Horner said “…some Service Alberta and Justice & and the media that they are new offences and much more serious consequences for those caught. Penalties for offences range from up to a $10,000 doctors have suggested to myself, AHS, and the Solicitor General. He also served fine for first time offenders to $25,000 and jail time media that they are planning to no longer work in planning to no longer work for recidivists. At the time of tabling, critical as the Foreign Policy Advisor for the ER and rescind certain hospital privileges.” in the ER and rescind certain infrastructure has been defined as pipelines, Security Council at the University Shandro responded by saying that his department refineries, telecommunication infrastructure, utility of Alberta’s HSMUN conference continues to monitor physician levels across the hospital privileges. where he developed his infrastructure, highways, railways and mines. province and will bring in temporary doctors in the Nate Horner, understanding of pragmatic policy event of shortages. This was followed shortly by a ” There are two clauses included in the proposed MLA legislation that have raised concerns among analysis. return to the status quo line of questioning. opposition members. Section (xvi) adds to the From what we learned of this government during the last session of the Legislature, there is not really anything that has definition of critical infrastructure, reading “a been raised to date that would constitute a surprise to anyone. The UCP has continually preached their unyielding desire to building, structure, device, or other thing prescribed bring the province into fiscal balance while reducing red tape that stands in the way of Albertans in their daily personal and by the regulations”. Section 5 states “the Lieutenant business lives. If you are ever unsure of what direction the government intends to take on any given matter, you should be Governor in Council may make regulations able to safely refer to the MacKinnon Report to make an inferred deduction. It would not be surprising to see the prescribing buildings, structures, devices, or other government introduce more legislation than we witnessed during the fall session. things as being essential infrastructure”.

Opposition worry stems from the openly vague language used in these two sections. Former Justice Minister, Kathleen Ganley, argued in question period that “It says that it’s meant to aim at critical infrastructure, but then it gives this just incredible power to designate anything”. Essentially, the issue is that the ability to designate anything the government deems to be critical infrastructure could be used to potentially limit the movement of the public across the province or inhibit their ability to participate in peaceful and legal protests.

As mentioned earlier, the first omnibus bill of this session has been tabled in the Legislature by Treasury Board and Finance Minister, Travis Toews. These types of bills are assembled to pass multiple pieces of legislation that fall under a common theme to avoid tabling multiple items to avoid clogged debate in question period. The Fiscal Measures and Taxation Act is an omnibus bill that aims to implement a number of different initiatives described in the budget including the new K-12 funding model, the post-secondary performance funding model, banning life insurance side accounts and implementing the 4% tourism levy on short-term rentals. THENEWS from

Photo Credit: Brendan Brown BRONTE VALK POLITICAL EVENTS Senior Associate After graduating from the UCP – St. Paddy’s Brunch NDP – Central Alberta Icebreaker Pub Night University of Alberta with a Sunday, March 15th @ 11:00am Thursday, March 19th @ 4:30pm Political Science degree, Bronte Location: Dublin Calling Pub, Location: Original Joe’s, Red Deer pursued her passion for politics • Join the Calgary-Currie Constituency Association and • Join the NDP for political discussion over beverages and light by working on the campaigns of for an Irish brunch and Celtic music. snacks. numerous progressive political • Tix: $50 (unitedconservative.ca/events) • Tix: RSVP (albertandp.ca/events) candidates. This experience combined with her in-depth UCP – 2020 Vision Renewing the – AGM Friday, March 20th @ 6:00pm Saturday, April 4th @ 4:30pm knowledge of Alberta’s political Location: Pinebrook Golf and Country Club, Calgary Location: The Westin, Calgary affairs, drew her into advocacy • Join Jason Kenney, and • Join the Alberta Party for their 2020 AGM. You must be a party work. Bronte has worked as a for a panel discussion about Alberta’s economy. member to participate in voting. Observers can purchase case worker in the Honourable • Tix: $75-$150 (unitedconservative.ca/events) tickets as well. ’s constituency • Tix: $150 (albertaparty.ca/2020agm) office as well as the MLA for Edmonton-Ellerslie’s. Her connections with government caucus and strong advocacy skills make her a great asset to our team.

KEY INFLUENCER PROFILE BROCK HARRISON Chief of Staff – Ministry of Children’s Services Bronte Valk

There is no question that the role of Chief of Staff to Children’s Services would be a difficult one to take on. With the government in the process of ending contracts with childcare centers who offered families $25 per day care, Minister Schulz has been on the Source: Linkedin.com defensive in the past few months as she attempts to get the public on board with this decision. Brock Harrison’s previous experience serving as Director of Communications for Andrew Scheer, as well as Starburst Creative, will no doubt be of service to the Minister. Despite Brock’s very partisan work history, he is well regarded amongst people of all political stripes. Brock was one of the first high profile conservatives to speak openly about mental health issues. It is actions like this that have made his return to Alberta welcomed by most politicos in the province. As stated previously, the Ministry of Children’s Services has become a Ministry of bad news. With no increased supports going to families, Brock will need to take an assertive approach to justifying the unpopular decisions coming out of the Ministry. While support in rural communities is still high for the new governing party, their popularity wanes in urban cities. Edmonton and Calgary urban parents are struggling to afford childcare and there will need to be some response to this coming from the Ministry. As a father of two young children living in an urban city, let’s hope Brock can provide a solution to this issue. THENEWS from

JENELLE SASKIW Senior Advisor AGGRESSIVE CHANGES TO ALBERTA FEES AND

Jenelle Saskiw has over 17 years’ RULES RAISE ALARMS THROUGHOUT THE PROVINCE experience in administration and Jenelle Saskiw as an elected official. She served After back and forth negotiations between the Alberta Medical Association (representing Alberta’s physicians) and the four terms as a municipal provincial government, Alberta Health Minister recently announced 11 changes to the structure of Alberta councillor, eight years as a mayor, doctor’s rules and fees. It has quickly become a passionate topic throughout the province. The province unveiled a list of six years with the Alberta Urban changes that will impact how doctors operate in communities, stating that these changes will eliminate duplication of services and save millions of dollars for Albertans. Doctors throughout the province disagree and see this as a major cut to their Municipalities Association and profession and many have already stated that these changes will result in closure of clinics and reduction or elimination of three years with the Federation of services. Canadian Municipalities. Jenelle has a strong understanding and The following is a summary of the 11 changes that the Ministry of Health will be putting in effect starting April 1, 2020. passion for municipal and Care Plans: Currently, doctors maintain comprehensive annual care plans which are agreements between a doctor and a provincial issues. patient used to help patients manage their health needs. The government saw this as duplication in services, stating they are already existing in current coverage. The AMA has offered to tighten the rules on the plans and insists they still have merit. Senior driving exams: Under the new model, seniors who are over the age of 74.5 years of age will have to pay out of pocket for the required medical exams needed to renew their driver’s license. This aligns with coverage from other provinces and makes it consistent that every Albertan must pay. Diagnostic imaging: Codes and fee rules will be streamlined to prevent duplication in billing and overbilling. Diagnostic imaging refunds: The new structure will see the elimination of payments for diagnostic imaging referral by uninsured practitioners, including physiotherapists and chiropractors. The new structure will see only payment for those who provide publicly funded services. Clinical stipends: The salary top-ups have been eliminated. Former regional health authorities were using them as incentives to compete or attract physicians but will now no longer be necessary under the single integrated province-wide health system. Non-invasive diagnostic tests: AHS fees in facilities for these tests will be standardized for consistent compensation. Good faith claims: Claims will no longer be accepted for services for patients that cannot provide proof of Alberta residency or proof of Alberta health coverage. This will be done to reduce unpaid billing claims. Submission of claims: Currently, physicians have 180 days to submit payment claims. This will now be changed to 90 days. The Ministry believes that this will improve the ability of the ministry to improve budget forecasting, planning and policy. The government originally requested a 60-day deadline, but the AMA was able to have it renegotiated to 90 days. Overhead: Physicians will no longer be allowed to bill for overhead costs including supplies, leases, equipment and technical staff for work delivered within an facility. Patient visits: The province will only cover a maximum of 65 patients per day to ensure that physicians are not fatigued nor compromising patient care. The cap is applied to office visits. Hospital visits and rural offices are exempt from the cap. Complex modifiers: These fees would mandate more time to be spent directly with patients who have complex needs, allowing for 25 minutes per patient rather than the current 15 minutes, before an extra fee could be claimed. This plan is set to be phased in for 2021. The 2020 complex modifier will still be charged at the 15-minute benchmark, but pay will be cut in half, going from $18 down to $9. The Alberta Medical Association has been very vocal about the upcoming changes citing many concerns regarding the future of health care in Alberta. The AMA has said changes will limit services, lead to doctors no longer focusing on complex patients (such as obstetrics) and could potentially bankrupt some smaller rural family offices. They have also said that there will be an increase in wait times for specialty services and that the changes will make the recruitment process more difficult. There have already been several community physicians raising alarm bells that they are prepared to close their practices and move to different provinces where they can operate with fewer restrictions and not be responsible for the overage costs of operating their clinics. This will leave rural and remote communities in a vulnerable situation and could lead to higher patient care costs if issues are not diagnosed in a timely fashion. AMA and community leaders will continue to put pressure of the Ministry of Health to come back to the table, renegotiate certain terms and conditions, and ensure that Albertans continue to receive world-class health care in our province. THE Alberta’s Premier Review of NEWS Politics and Government Vitality from

AT A GLANCE

provided which indicates that the land will revert to In the Media Crown land and will not be sold to anyone. Rather, the word sale simply refers to any assets still on the lands. Short-Term Rentals Banned from Condominiums Government is looking for partners to help run some A temporary injunction has been made permanent that sites, but that will come in the form of a lease rather than rules short-term rentals like Airbnb are not permitted in selling the land itself. condominiums in Alberta. Justice Paul Belzil stated that renters who book rooms do not enter into a lease which Janice MacKinnon Appointed as University of Alberta constitutes a contravention of condo board by-laws that Governor state units are to be used as a residence and not serve a commercial function. Essentially, it would serve a The former chair of the now infamous MacKinnon Panel PHIL JOHNSON purpose too closely related to a hotel service without has been appointed to a high-level position with the Associate condominium consent. University of Alberta. The panel was convened for the purpose of looking into the state of Alberta’s finances and Short-term rentals in Alberta have taken two big hits over With over 11 years of political finding areas of opportunity for the province to balance the last two weeks. In the provincial budget released on experience in Alberta, Phil most the budget and return to a surplus. Since the report was February 27th, it was announced that each booking recently held the positions of released, it has been referred to in nearly all the policy would now be subject to a 4% tourism levy (included in announcements by the UCP as well as question period. Ministerial Assistant to the Bill 5). Airbnb Canada has said that the levy is an Minister of Energy and Chief of “…opportunity to further help communities throughout The opposition has raised red flags upon receiving notice Staff to the Minister of Indigenous the entire province benefit from the positive economic of the appointment. NDP MLA has said this Relations in the NDP government. impacts of home-sharing”. is “…putting the fox in charge of the hen house”. He has also enjoyed various Advanced Education Minister, Demetrios Nicolaides positions with the NDP expressed that her appointment was due to her UCP Accused of Delaying Climate Report Opposition. He holds an Honours professional experience and knowledge and that there should be no perception issues. University governors are Bachelor of Science from the A report commissioned by the former NDP government is responsible for overseeing the operations of University of Toronto. A skilled projecting that Alberta will see a faster rate of warming in post-secondary institutions. public relations advisor, policy relation to the rest of the world. The report was submitted to the government on September 1st of last analyst and project manager, he year but was not published to Alberta’s Open Data understands what it takes to build Safe Consumption Site Report Released website until recently. It was also revealed that the strong networks and effectively Ministry of Environment and Parks denied two FOIP The Supervised Consumption Services (SCS) Review advocate on both economic and requests related to the report. Committee released its report about its findings on the social issues. controversial service’s impact on health and the The report titled Alberta’s Climate Future shows that communities it operates in. The committee found that the Alberta could see a 2-degree average winter temperature sites have generated an increase in social disorder in increase while also seeing a rise in the summer average their communities and have increased the number of by 1.5 degrees. According to former Environment opioid-related deaths in the area despite there being no Minister, , the report was due to be reported deaths at an SCS. They also found crime has ready prior to the 2019 election. increased in every community except for Edmonton. Concerns were also expressed with their findings of Alberta Reducing Number of Provincial Parks increased needle debris in playgrounds, public parks and private property. On Saturday, Jason Nixon announced that 164 provincial park sites were being considered for removal from the During the press release, one of the panel members Alberta Parks system. Of those sites, 20 were selected engaged in a back-and-forth with the media after she for partial or full closure. The move to “optimize Alberta had indicated that the statistic of 100% overdose Parks” includes increasing base camping rates at reversal rate was misleading. They had found that remaining sites as well as increases to utilities. The move overdoses included “adverse events” such as closed is intended to target many of the smaller sites that do not eyes, for which the remedy was administering oxygen. see significant visitor numbers. She was asked if she believed the remedy was lifesaving, she said it was not in many cases. She also The press release was met with heavy online criticism said that she thought that the statistic was inaccurate. due to the talk of selling off parks. Clarification was later THE Alberta’s Premier Review of NEWS Politics and Government Vitality from

THE SHORT-TERM RENTAL INDUSTRY SHOULD NO LONGER BE IGNORED BY MUNICIPALITIES Pascal Ryffel

With the introduction of Bill 5, the UCP Government is officially moving towards requiring short-term rentals (STRs), such as Airbnb and VRBO, to charge a 4 per cent tourism tax. Given the proliferation of STRs across the province – the total number of units across the province increased 1723% between 2015 to 2018 – it is not particularly surprising that the provincial government has taken action to properly tax STRs to ensure they are paying their fair share. The provincial government has PASCAL RYFFEL made a firm statement that this is no longer an emerging industry that needs nurturing to succeed. Director of Government Some municipalities in Alberta have also taken a firm regulatory stance on STRs based on concerns from within their Relations community, notably Canmore. In the mountain town STRs are restricted to commercial and mixed-use areas and are prohibited in residential areas to limit the impact on neighbours. Canmore has now stepped up enforcement and has started levying fines of $2,500, including to first time offenders. "That's a commercial activity and there is long term impact to the After completing his MA in Media neighbourhood," Mayor Borrowman said to CBC. and International Development, Supporting the idea of firmer regulations and restrictions, a judge in Edmonton recently ruled in favour of a condo board that Pascal spent four years with the tried to ban STRs from operating in their building. Court of Queen’s Bench Justice Paul Belzil issued a permanent injunction Alberta NDP Caucus. Pascal has and affirmed the condo board’s right to ban STRs, stating that “reduced to its essence, short-term occupancy through been directly involved in Alberta platforms like Airbnb, where no lease is entered into, results in the functional equivalent of a hotel stay.” politics for almost two decades, Despite the explosion of STR units in Alberta and a growing pushback from concerned residents, both Edmonton and Calgary have so far had very tepid responses to the idea of including as a candidate in 2008, regulating the industry to any meaningful degree. In and has a deep and current both cities the only regulation is a requirement to reduced to its essence, knowledge of Alberta politics. purchase a business license for about $100. “short-term occupancy through Edmonton City Council voted yesterday to require Pascal has been with Alberta STRs to post their business license number in their platforms like Airbnb, where Counsel since 2015. advertising. While certainly a step in the right direction, it is doubtful this minor piece of no lease is entered into, results regulation will have much impact without additional in the functional equivalent of resources dedicated to enforcement. a hotel stay. So why the hesitancy to implement meaningful regulation? The reasons likely vary from municipal- Court of Queen’s Bench ”Justice Paul Belzil ity to municipality but are probably a combination of well-resourced lobbying by multinationals like Airbnb and a sense that STR platforms are ‘underdogs’ who simply provide homeowners an additional source of revenue in tough economic times. But is it really too much to ask that an unregulated, non-taxed portion of the accommodation sector be structured similarly to other parts of the short-term accommodation sector – hotels for instance - who pay commercial taxes, employ numerous Albertans and comply with safety and security regulations? And is Airbnb really the underdog when the number of STR rooms almost certainly outnumber hotel rooms in Alberta? The fact that Airbnb is a multinational worth $38 billion and pays no taxes whatsoever in Canada also makes it harder to support the underdog argument. Beyond equity and fairness in our economy there are also quite a few (more important) reasons why municipalities should take another look at regulating STRs more firmly. Firstly, an increasing number of jurisdictions in Canada are taking bold steps to limit the spread of STRs, most often by restricting operations to one’s primary residence. Toronto, Vancouver, Ottawa and most recently, Sarnia have put in fairly strict regulations. Secondly, the current lack of regulation in many municipalities essentially makes neighbours the ‘first line of defense’ in dealing with unruly guests. The right to earn short-term rental income in one’s home should not supersede a person’s right to enjoy a safe and peaceful life. Finally, and perhaps most importantly in these cash-starved economic times, municipalities need to closely look at STRs as a potential source of revenue; countless dollars are being left on the table. It is estimated, for instance, that Edmonton could bring in an additional $2.5m per year simply by requiring commercial STRs to pay commercial rather than residential property taxes. Short-term rentals are no longer an emerging industry. Municipalities across Alberta should ensure they are regulated and taxed in accordance with any other established industry that relies on public services and has real impacts on citizens.

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