AB Today – Daily Report March 25, 2020

Quotation of the day

“Kicking people out during a global health pandemic is unconscionable.”

NDP Leader calls on the government to halt rental evictions while ​ ​ self-isolation and social-distancing orders are in effect.

Today in AB

On the schedule The house is adjourned but could be recalled for emergency legislation as needed.

Alberta Justice has promised to bring forward stiffer penalties for people in violation of public health orders, but it’s unclear whether the rule changes will be made via legislation or regulations.

Premier watch Premier spoke with WestJet president Ed Sims about the company’s ​ ​ ​ ​ announcement that it is laying off 6,900 employees. The premier offered to work with the company moving forward.

Kenney also joined a teleconference with chief medical officer of health Dr. Deena Hinshaw, ​ ​ Health Minister and faith leaders about their role in the COVID-19 crisis. ​ ​

Industry, workers split over oilsands bailout, well reclamation funding

As Ottawa finalizes a multi-billion-dollar aid package to address Canada’s economic hurdles during the coronavirus outbreak, arguments have broken out about which stakeholders in the ailing oil and gas sector should be the focus of any help.

A collection of environmentalists, social justice organizations, unions and faith groups sent a letter to Prime Minister Justin Trudeau on Monday, calling for a “Just Transition Act” that would ​ ​ put money towards transitioning oil and gas workers away from the fossil fuel industry.

The letter calls on Ottawa to give income support to oil and gas workers, regardless of their immigration status; to dedicate stimulus money to training and education in sectors like energy efficiency, technology, health care and renewable energy; and to bolster orphan well cleanup.

The signatories, which include the Canadian Association of Physicians for the Environment, Environmental Defence and Greenpeace Canada, say orphan well cleanup funding should be independently administered, with input from Indigneous communities, local governments and landowners — rather than led by oil and gas companies.

Currently in Alberta, oil well reclamation is funded by industry through the Orphan Well Association and regulated by the Alberta Energy Regulator.

The letter said money for orphan well cleanup should be tied to a regulatory change to make sure the public is not left on the hook for billing in the future.

“Oil and gas companies are already heavily subsidized in Canada and the public cannot keep propping them up with tax breaks and direct support forever,” the letter states. “Such measures benefit corporate bottom lines far more than they aid workers and communities facing public health and economic crises.”

Legislators, companies advocate for corporate incentives

While workers are the material focus of some concerns, politicians and industry leaders have also stressed the need to support companies.

Last week, Conservative MP Shannon Stubbs introduced Bill C-221, The Environmental ​ ​ ​ ​ Restoration Incentive Act, in the House of Commons, which would give oil and gas firms a tax credit for decommissioning old and inactive oil wells and establish a flow-through share mechanism to get private investors to fund well closures, remediation and reclamation.

Mark Scholz, the president and CEO of the Canadian Association of Oilwell Drilling ​ Contractors, supports incentivizing private investment.

“Programs designed to incentivize private investment in well reclamation, for instance, would help provide consistent work over time, which is the foundation for building a steady labour force again in the oilfield services sector,” he noted in a news release.

Premier Jason Kenney and Finance Minister previously asked the federal ​ ​ ​ ​ government for similar measures.

“Frankly, what we’re hearing from Ottawa is they’re not particularly interested in something like flow-through shares,” Kenney said at a news conference on Monday, adding that the federal government’s previously announced $10-billion national aid package will not be enough to meet Alberta oilsands’ needs.

“Our assessment is that our producers need access to a backstop,” he added. “Some of them are having their lines of credit impaired.”

Following the implementation of a backstop, Kenney said he would mull measures similar to the Troubled Asset Relief Program, which was utilized by the U.S. government during the 2008 financial crisis to bail out banks by buying back toxic assets.

Federal Finance Minister Bill Morneau hinted at money to finance the cleanup of orphan oil and ​ ​ gas wells last week as part of the economic recovery package.

The UCP government has already pledged $113 million in funding for the Alberta Energy Regulator’s industry levy for six months and extended a $100-million loan to the Orphan Well Association.

Topics of conversation

● A woman in her 80s in the McKenzie Towne Continuing Care Centre in Calgary has died from COVID-19, the second death from the virus in the province.

○ A staff member and two residents at the facility have tested positive; 11 other residents are showing symptoms of the virus. ○ Alberta’s total cases are 358, with 19 in hospital, seven in ICU, and three recovered. ○ When asked about the leak of Saskatchewan’s worst case scenario modelling that projected 15,000 deaths, Alberta’s chief medical officer of health Dr. Deena ​ ​ ​ Hinshaw emphasized that Alberta is focused on flattening the curve to prevent ​ the deaths. ○ The province is working on guidelines for volunteers or workers who are delivering food, with resources expected by the end of the week. ○ Alberta has 704 ICU beds, while Saskatchewan has just 109.

● Alberta’s oilsands companies are laying off workers and reducing staff as the industry grapples with the hit due to the COVID-19 pandemic and plunging global oil prices from the Saudi Arabia-Russia price standoff. ○ The Christian Labour Association of Canada (CLAC) told CBC at least 500 oilsands workers have been laid off, while Canada’s Building Trades Union president Terry Parker noted 10,000 workers across Alberta have had jobs ​ ​ postponed because of the regular spring oilsands shutdown. ○ On Monday, Suncor revised its 2020 capital spending program with a $1.5 billion ​ ​ decrease in spending. ○ A CLAC Ledcor worker who had a medical incident at Suncor’s Borealis camp tested negative for COVID-19.

● NDP Labour critic accused the UCP of failing to implement a ​ ​ work-from-home plan for public sector workers. ○ Last week, most public sector staff were told to work from home where operationally feasible. ○ Despite that, Gray says the NDP has heard from bureaucrats who claim work-from-home policies are not yet in place. Some workers are being asked to use vacation time or to come into work, according to the NDP. ○ In a statement, a spokesperson for the Public Service Commission said “managers are working with employees to make sure they have what they need to work from home, while continuing to provide programs and services to Albertans.”

● Alberta gun owners are panic buying ammunition, CBC reports. ​ ​ ○ Cabela’s lineups to the gun counter are 30 minutes long, and buckshot is sold out.

● On Tuesday, Parks Canada banned vehicle traffic in national parks and historical sites, ​ ​ except for traffic passing through on highways, after a large number of people headed to parks on the weekend despite facilities being closed.

○ Alberta’s chief medical officer of health Dr. Deena Hinshaw reiterated on ​ ​ ​ ​ Monday that people should not go to provincial or national parks, since washroom and hand-washing facilities have already been closed. ○ Parks have reported “extreme overcrowding,” litter, human feces and garbage near shuttered park facilities.

● The four First Nations of Maskwacis declared a state of emergency and evoked the “medicine chest” clause of Treaty 6 on Tuesday. ○ The clause requires the federal Crown to provide health-care services and other assistance.

● Canadian men report being much less worried about COVID-19 than women — despite preliminary data out of Italy and China suggesting that men are much more likely to die from the disease. A poll from Abacus Data shows a 19-point gender gap among ​ ​ Canadians most worried about the pandemic, with 49 per cent of women respondents indicating they are “extremely” worried about COVID-19 compared to 30 per cent of men. ○ Men over 60 — the demographic experiencing the highest COVID-19 fatality rate — are among the least concerned with 42 per cent saying they’re “a little or not at all” worried about the pandemic. ○ People aged 30 to 44 are the most concerned male demographic.

News briefs

NDP calls for eviction freeze ● NDP Leader Rachel Notley called on the UCP government to ban evictions for tenants ​ ​ who can’t pay their rent amid the COVID-19 crisis. ○ She said the measure is needed so no Albertans are forced to vacate their homes at the same time they’re asked to self-isolate. ○ “Kicking people out during a global health pandemic is unconscionable,” Notley told reporters on Tuesday. “You can’t stay home during a public health emergency if you don’t have a home.” ○ Notley said it’s not enough to ask landlords to pass along savings from tax and mortgage deferrals, which Premier Jason Kenney indicated was the plan earlier ​ ​ this week. (He also said he is considering a potential short-term stay on evictions.) ○ Notley said landlords should still be able to move ahead with evictions related to criminal activity.

Appointments and Employments

Dale Nally’s portfolio expanded to include electricity

● Associate Minister of Natural Gas Dale Nally was re-sworn-in as associate minister for ​ ​ electricity, adding that to his existing natural gas portfolio. ○ Nally will continue to work under Energy Minister . ​