CP NewsAlert: Alberta report pegs cost of separation at up to $170 billion

EDMONTON - A report commissioned by the Alberta government estimates separating from Canada could cost between $50 billion and $170 billion over the first five years. EDMONTON — An report commission by the Alberta government says if the province wants to separate from Canada, it will have to shell out up $170 billion and hire 70,000 civil servants to do it. The report from the University of Calgary’s School of Public Policy says the minimum cost would be $50 billion over the first five years of transition, topping out at $170 billion.

The money would cover building new infrastructure, hiring staff to manage and oversee the transition, and cover Alberta’s portion of the federal debt. Separation, states the report, “involves far more than just drawing new borders and building a new state, picking new politicians and deciding on new policies. “It completely changes how public services, trade, taxes and laws work.” Premier Danielle Smith’s government commissioned the report in June to give Albertans a better understanding of the costs of separation.

Finance Minister Jason Nixon said the prohibitive costs and logistics outlined in the report illustrate why the province is urging residents vote to stay in Canada in the upcoming Oct. “Alberta’s government has always been clear: we support a strong and sovereign Alberta within a united Canada,” Nixon said in a statement. “That is what we will continue fighting for each day.” The report says separating means managing a lot moving parts, negotiating with First Nations, and other countries.

The challenge, it states, is compounded by the fact Alberta is a landlocked jurisdiction with an economy reliant on exports. “Even under favourable conditions, achieving a fully functioning new country could take several years and entail significant costs,” says the report. “If any of these relationships or negotiations prove difficult, separation could take longer and impose greater economic costs.” It adds that the shock to Alberta economy will be profound, with lower output and an annual budget deficit of more than $30 billion.

Albertans are to go to the polls next month to vote on whether they want to remain in Canada or hold a second, binding referendum on leaving the country. The referendum was called earlier this year by Smith. Smith has said years of federal government interference has stymied Alberta’s economy and frustrated residents to the point that some see separation as a credible alternative that deserves to be addressed in a referendum.