In this episode of The Western Standard, host Sean Newman sits down with Derek and Michael Binion to discuss the Alberta sovereignty act. Derek is a Calgary lawyer specializing in Charter and Constitutional issues, co-author of the Free Alberta Strategy, and founder of Questair Energy, a public oil and gas production company operating in Quebec. Michael is the CEO of Modern Miracle Network, which advocates for a reasoned conversation around energy policy in Canada.
00:02:26.720First off, the Alberta Sovereignty Act is just an idea at this point.
00:02:32.660There is no Alberta Sovereignty Act, no pen to paper.
00:02:37.480And so they're critiquing something that's hypothetical.
00:02:41.260And so these bold claims that it's unconstitutional, it will lead to separation and angst, sure, there's no Alberta Sovereignty Act yet.
00:02:53.600Now, I think the other important thing, indicating that none of these candidates that talk this way have actually read the strategy, is that the Alberta Sovereignty Act is one part of a larger strategy, and that is the Free Alberta Strategy.
00:03:10.660And I just need to maybe give you an idea of the impetus behind that.
00:03:17.260And the Free Alberta Strategy was born of the frustration of Albertans.
00:03:24.020I can remember after the first time that the current prime minister won the election,
00:03:32.540there was a lot of angst in this province.
00:03:35.020And the most recent win that he had, again.
00:03:38.660And it seems like Albertans have felt, and this is broadly felt by many Albertans, that the federal government is deliberately trying to shut down our oil and gas sector.
00:03:57.240This is how families are fed in this province.
00:04:00.600And there is a deliberate strategy to end that, end within a certain period of time.
00:04:07.200And so there's that problem. And so we're hearing from Albertans that what can we do to solve this?
00:04:17.020And we looked at the current premier strategy and strategies from previous premiers was basically just to express discontent in some fashion.
00:04:28.500There might be a meeting between bureaucrats or high ranking officials and ministers or maybe even the premiers.
00:04:37.200but in the end this this is a ratchet it moves one way at least that's the feeling the perception
00:04:43.280amongst albertan voters and so the free alberta strategy was a practical implementable plan
00:04:51.600a strategy that is not fully fleshed out but it was a strategy to to unify a number of groups of
00:04:59.920people now the first group of people are those that were just they want to separate at any cost
00:11:04.920I really know personally well the people that were the architects of the 1995 strategy to separate,
00:11:15.040which, of course, culminated in the 1995 referendum, which was unsuccessful.
00:11:19.260So I'm not sure there's another Alberta that also understands better the Quebec strategy and what they do day to day and what they were doing in 95 to gain more political power in the country.
00:11:34.540I strongly advocate that, A, we have to do something.
00:11:38.240I'm probably with Derek, I'd hate to not to cheer for the Canadians in the Olympics, but it's got to a point where we have no choice but to do something.
00:11:47.680As I said, there's probably nobody in Alberta with a bigger reason to care than I do.
00:11:52.560But what we have to do, it has to be effective, it has to work.
00:11:56.720And I have to tell you, I think the Quebec strategy has been the most effective one that we've seen.
00:12:02.700And my view is the free Alberta strategy goes the opposite direction.
00:12:05.920My big honest concern about it is it'll take us backwards and it will take us further away from more political power in the country, not closer.
00:12:16.140and I'm I'm strongly advocating that we you know learn from what Quebec did and work more to gain
00:12:23.380and it's not just about holding the referendum that's the tip of the iceberg it's the 90% of
00:12:27.620what they do under the surface so that so that's I guess where I'm coming from and my my worry there
00:12:32.840I guess Derek I'd say first of all I do think people have read the Free Alberta Strategy I
00:12:37.200don't think it's a problem that they haven't read it um I mean not everybody obviously but I
00:12:41.960certainly certainly you know the campaigns have and a lot of you know there was a great article
00:12:46.820um by Howard Englund recently he clearly read it um and and I hear what you're saying it's not
00:12:52.220technically an act but I okay so my first thing is like would we not agree though that it's an
00:12:56.660outlying policy and that we can you know we don't have to necessarily read the act to say that this
00:13:03.860is an intention to make an act based on a published policy and so the two things I'd say to you is
00:47:14.140And at times we go deep and at times we're just scraping the surface of going back and forth to you two.
00:47:20.260Would you agree that, like, whoever comes into power, if it is Daniel Smith, day one, it isn't like all of a sudden all the laws change in Alberta?
00:47:28.740What Derek said at the beginning is, I think, gives the comfort of saying, hey, look, it's a policy and it's not final.
00:47:37.060And I think the policy itself says, hey, it's subject to debate.
00:47:43.540And so I think the, you know, as Derek said, you know, let's not just jump to the conclusion that the statute's going to be the same as the policy is drafted.
00:48:10.420Yeah, so here's what I'd say that I've learned from a long time there is that Quebec in particular is a very political culture.
00:48:18.560It has, since 1763, been very focused on maintaining political power to protect itself from what it perceives to be an island of English who's out to get them, right, in order to persecute them.0.84
00:48:31.200And they would, you know, they probably would put it almost in those exact words, although I probably embellished a bit.
00:48:35.180whereas I find Alberta to be a mercantile culture or a business culture mercantile not mercantilist
00:48:42.560I find Ontario to be mercantileist which is to say we use business to to accumulate political power
00:48:49.340and and Alberta is like I say we're we're we're like a bunch of we're we're very business oriented
00:48:55.100mercantile culture and and I say we're a little bit like when Napoleon talked about we just we're
00:49:00.400a nation of shopkeepers and most people in Alberta we just want to get back to running our shops I
00:49:04.300derek and i i think agree on 95 of what we talked about it's just this issue of whether we're going
00:49:08.780to whether we're going to follow court rulings or not it's probably what we're arguing about
00:49:12.460the the uh but but what i would say is that because we have that business culture not political
00:49:17.580culture in the federation we play a different game we constantly go down to ottawa and explain
00:49:22.860to them like you know if you would just get out of our way and let us go back to our shops and
00:49:27.740make more money it would be good for the whole country gdp would go up people would be wealthier
00:49:32.940and what we don't understand is if you're in a political culture like quebec or a mercantilist
00:49:37.980culture like ontario what they hear you saying is we want more political power it wouldn't even
00:49:45.500occur to them that alberta would make more money and not use it for political fans because because0.99
00:49:52.220that's what they do and so what what i guess what i'm really saying is and i did on this other
00:49:57.580podcast you know if we're playing rummy and they're playing euchre us getting better at playing rummy
00:50:03.500is not going to win at euchre and i think what we have to do is learn to be political like quebec
00:50:10.460a bit more mercantilist like ontario and start using that to make to gain political power
00:50:18.860to in effect for us to keep them out of our politics but for them it's to get into our
00:50:23.580politics and what i really mean by that is where does power come from power and i've done business
00:50:27.900all over the world edward shiver nazi with a friend i mean so uh i i have seen how power gets
00:50:34.060exercised in different cultures in different countries and to me it really comes down to
00:50:38.140there's three things and just to make it glib guns votes and money and so if you know if you look at
00:50:46.460pre the capitalist area in europe all the people who had all the money were the people with the
00:50:50.860guns but with the invention of the company by the dutch in the 16608 or whenever it was the the
00:50:57.500beginning of capitalism we've now seen that power has devolved more to the money like people with
00:51:02.220money to them influence over the people with the guns and of course votes still has lots of political0.89
00:51:06.780power and in rome that would have been the mob uh throwing out an emperor today it's us exercising
00:51:12.700your votes so when i look at canada well let's hope nobody's going to pull out their guns so
00:51:45.020And I'll just tell you things that I know.
00:51:46.260Well, Quebec has, and so you'll just have to take my word for this from people that I feel very lively.
00:51:53.260Quebec, first of all, controls all of its own pension funds, controls all of its own money, even though it isn't a great place to generate wealth.
00:52:00.100They control their money, and they have threatened explicitly or implicitly at certain times to take all of their money out of the Canadian financial institution, which would be very harmful to the banks, very harmful to investment funds, be very harmful to a lot of things.
00:52:15.560But they're willing to use their money, even though they generate less of it than Alberta, they're willing to use that money for political purposes.
00:52:23.740And, you know, we all go, they had a referendum vote, but that's but but they took they took a long time before they did that.
00:52:30.580They first built their institutions to manage their own pensions effectively.
00:52:34.020They police themselves. They collect their own revenues.
00:52:36.920They have, so what I would say is they built the institutions to show they could govern themselves, and then they have used votes and money to exercise political power in the federation.
00:52:51.600If you look at Alberta, what we do is we send our money down to Ottawa and let them manage it for us.
00:52:56.880So here's the irony. Can you imagine this, right? Just the Canada Pension Plan, $700 billion under management. On an actuarial basis, $400 billion belongs to Albertans, right? 12% of the country. We have more than 50%. But let's talk about the power of, hey, I'm deciding where that money gets invested.
00:58:17.760And so, yeah, we need we need to control that.
00:58:19.880But so I want to just address what I've harped on this a little bit through this discussion today, which has been excellent.
00:58:26.740that we need to actually have something credible that we can do and that there's certain things
00:58:34.700that we know that will not work and flawed as it may appear to some the free Alberta strategy and
00:58:41.440particularly the sovereignty act is an attempt to doing exactly what Bifield said we need to have a
00:58:46.380credible threat or else we're not getting anywhere like election night federal election night the
00:58:50.180elections decided for the most part by the time it gets to Manitoba as you pointed out Michael
00:58:55.800But I want to point out that Taves has brought forth a strategy in response to the Sovereignty Act, which is just to willy-nilly slap tariffs on products coming in and contracts, goods, all sorts.
00:59:09.740And if you want to talk about constitutionality, I spent seven years of my life on the way to the Supreme Court in the R.B. Como case, and we were discussing or addressing Section 121 of the Constitution about interprovincial trade.
00:59:27.240And what we do know from 150 years of constitutional discussion is that Tave's plan is offside the Constitution.
00:59:35.660Well, yeah, just but OK, so first of all, I think there's it's absolutely black and white clear based on Supreme Court decisions that you cannot absolutely black and white clear.
00:59:44.100You cannot put a financial tariff on. But when I heard Tay's talk, I thought he was talking about the possibility of non-tariff barriers as well.
00:59:54.580He's either misused the term or he or he doesn't understand the law.
00:59:58.440It sounded to him. It sounded like a policy he came up or his campaign team came up with on the fly without actually thinking it through thoroughly, which is problematic as well. But then the other thing is we have another campaign talking about opening constitutions with the federal government.
01:00:15.440Now, I am old enough to remember Charlottetown and Meech Lake and all the heartache and what actually was accomplished from those constitutional negotiations.
01:00:25.860And there is no provision in the Constitution that allows someone to send notice to the federal government and say, you know what, we're opening the Constitution.
01:00:39.680yeah okay so first of all that's that's that's doing an extension of the precedent of the quebec
01:00:45.600secession reference it is and i think i think and i think ted morton's points there have merit and
01:00:51.760of course at the end of the day we'll find well maybe one day we'll find out what if a court
01:00:55.200agrees or not well it's a misreading of the of the court's decision and and and they always
01:01:02.400where the obligation of the rest of obligation of the federal government the rest of canada will be
01:01:07.200to acknowledge acknowledge alberta's discontent and then that's that's it that's right i i i
01:01:15.600hear what you're saying just getting back to the like what does quebec do differently they actively
01:01:19.840look for loopholes too yeah right like they don't just like as you said hey this this this 91 to 95
01:01:26.400it was ironclad but then over 100 years people find this loophole and that loophole and this
01:01:31.120surprise judgment and so forth they actively look for those and that's another thing i find that
01:01:35.360albertans are don't have again in our business mercantile culture we're trying to avoid contractual
01:01:40.480disputes we're trying to be reasonable we're not trying to and i think we have to learn maybe to
01:01:44.720start looking for some loopholes ourselves and one of them just on the tapes idea which i which i
01:01:50.480which you know if he strictly means a financial tariff then you then of course you're right but
01:01:55.200if he means tariffs in the broader sense of uh non-tariff barriers too then um uh non-financial
01:02:01.920territories too then i think there's the loophole that quebec has found actually actually no
01:02:08.720and i think the answer is that we do we do esg we do an esg trade barrier and we put those those
01:02:16.800alberta's signatory both to the canada free trade agreement and to the northwest uh partnership
01:02:22.640agreement and i actually had the opportunity to litigate through both of those regarding one of
01:02:28.240of Joe Cece's, our former Billy Feuze Minister of Finance at the time, and had one of his illegal
01:02:34.180policies, which was a tax and rebate scheme regarding beer. It was struck down by the trade
01:02:39.260agreement. And so it's not just merely financial penalties. It can be slightly more convoluted. It
01:02:45.420can be explicitly like it could be as simple as differential grading between products. Anything
01:02:51.780that has the purpose of keeping a product or a service or a contract or eligibility out of the
01:02:57.280province if that's the purpose the primary purpose of it then it's offside the constitution and the
01:03:02.900trade agreements right but we just had the pog case which said that if there's a climate emergency
01:03:08.600then there's exceptions to that and we just had the beer case in new brunswick which says if there's
01:03:13.440a social reason there's exceptions to that and and i've also looked at the canadian free trade
01:03:18.460agreement and you know what the penalty is if you're caught off first of all there's never been
01:03:22.600one complaint ever done under it and second of all even if you do the penalty gets paid to some
01:03:27.100some it gets paid to some um actually actually our success was was technically under the Canada
01:03:32.340free trade agreement okay I don't know I don't know of a government that's that's that's done
01:03:37.240that and maybe maybe you can help me but uh but getting back to though the idea but of like what
01:03:43.240Quebec does these non-tariff barriers that are done for language culture environment all these
01:03:48.640other reasons Supreme Court's shown both in the Fogg case in the beer case that they're very
01:03:52.840supportive of the idea that if it's done for those reasons, it's an exception to free movement of
01:03:57.940goods. Well, why doesn't Alberta do, why don't we do an ESG review too? Like, I'd like to call out
01:04:03.180Quebec as the biggest greenwashers in the world and make them meet Alberta ESG standards. And so
01:04:08.980what we're going to do is we're just not going to do business with you until you can meet Alberta
01:04:13.520ESG standards. Yeah. Essentially, I think, not to use too many political jargon or talking points,
01:04:19.720But this really reminds me of what Danielle Smith has been saying, that it's time for Alberta to grow up and no longer be a teenager, as you said, and start acting like a senior partner in Confederation.
01:04:35.760So, you know, boys, I could probably hold you here the rest of the day and sit here and just listen to this.
01:04:40.580And honestly, I got no problem with it.
01:04:42.340I just want to be respectful of your guys' time.
01:04:44.600Can we maybe all agree, and maybe I'm wrong on this, that one of the best things then that has come from the Alberta Sovereignty Act is people are actually listening and talking and hopefully starting to debate more on the merits of it and things that Albertans need to do.
01:05:01.460I mean, I go back to what Todd Lowen said on stage in Vermilion about the firewall letter in 2001.
01:05:10.260Actually, it's been around for a very long time.
01:05:12.660can we all agree that hopefully alberta is going to maybe uh to use both your terms grow up a little1.00
01:05:20.280bit move out of the parents house uh start acting for itself and start to move in the direction of
01:05:25.560maybe some of the things quebec has done right and take whether it's you know a year away or
01:05:30.920whatever the time frame is i don't know um but start to pull some of the things back that allow
01:05:36.320them to have a little more influence in the country is that a fair enough statement yeah
01:05:40.760And you know what? I have to tell you, I think that the that every leadership candidate and maybe I should say the five out of seven who have read all their stuff, they they have all come up with a plan to get tough for Alberta.
01:05:56.060And I think we can give Daniel some credit for being a catalyst for that.
01:06:01.200And and I and I agree that the discussion is good to say, hey, it's time for us to grow up.
01:06:06.620I like 90% of what I see in the free Alberta strategy.
01:06:10.140The part about that we're not going to, that we're going to, you know, no longer, we're
01:06:13.260going to decide to opt in or out of court rulings, I find goes far too far for me.