For Alberta independence supporter Keith Wilson, the western Canadian province is in a league of its own. With its wealth of rich oil and gas reserves, a significant agricultural sector and a young and skilled workforce, its economy is one to be reckoned with, says Wilson. The province will hold a referendum on 19 October, giving residents two options: vote to stay in Canada, or vote to move ahead with a formal binding referendum on independence at a later date.
The vote, despite not being a cut and dry "stay or leave", still stands to be among the most consequential in recent Canadian history, and a significant test of national unity. One key issue has become central to the debate: Would Alberta be richer if it were to become an independent country? "Alberta's economy is unique. is fundamentally different than the rest of Canada's - we have the people, the institutions, the infrastructure to excel," he says.
Alberta separatists have long argued that the province has been short-changed by being part of Canada, and that more of the oil and gas wealth would be kept within its borders instead of being shared with Ottawa, delivering it tens of billions in savings. But many disagree with their accounting. Alberta Premier Danielle Smith, who opposes independence, predicts a more sober outcome.
She says the province could risk paying C$400bn ($283bn; £213bn) in transition costs alone, while bleeding billions more in lost investments and trade due to the political upheaval. A report commissioned, external by her government released earlier this month calculated the costs of separation as between C$50bn and C$170bn over five years - and a highly unpredictable outlook over the long term. The report cautions that the to-do list for a newly independent Alberta would be long and costly.
It would have to set up agencies to manage taxes and national security, develop its own constitution, legal and court systems, and pension plans, and negotiate the division of federal assets like national parks and military bases. At Canada's biggest rodeo, the starting gun is fired in the fight over Alberta separation Alberta will vote on whether to remain part of Canada. Lennie Kaplan, a former finance official in Alberta, says the province would be expected to take on a share of Canada's national debt, among many other fiscal challenges and responsibilities.
A report on Alberta independence by the CanadaWest Foundation, external, a non-profit Alberta-based think tank, estimates that the province could be stuck with additional debt ranging from C$258bn to C$333bn. With a projected hit to Alberta's GDP and the additional costs, the report estimates separation could hit Albertans' bottom line and reduce their disposable income by 5.8% on average. "Why do we have to create all this uncertainty that might impact and impair the province's fiscal position going forward?
Extract — continue reading at the source.
