Quebec has amassed over $102 billion in its Pension Fund, while Alberta’s share of the CPP is around $13.5 billion.
Quebec’s Fund is run by Quebecors, ours is run by Ottawa.
Quebec choose to opt out of the CPP right from the start. Alberta, consisting of good little Canadians, choose to go along for the rip-off ride as we always do.
For instance, it's estimated that Albertans contribute over $4 billion per year into the CPP and get little more than $2 billion back to service our needs. Hence, it is fairly safe to say that an Alberta Pension Fund would grow at a minimum of approximately $2 billion per year.
It is highly unusual that Alberta, Canada’s most prosperous province and the economic engineer of our country, has no significant local source of investment capital. An Alberta Pension Fund would remedy this major shortcoming, and would enable Alberta to realize its full potential.
Note that none of the above includes the potential benefits of reducing other massive federal cash transfers (Federal Equalization Program) from Alberta to the rest of Canada. Dr. Robert Mansell at U of C has recently updated his landmark study (Mansell and Schlenker), and estimates that these transfers in extra taxation total $244 billion (1961 to 2002 inclusive). While at the same time Quebec received over $202 billion up to 1998 and possibly up to over $280 billion by 2009. In 2009 Quebec is asking for approximately $8.4 billion in equalization payments under the Federal Equalization Program and they will get it. Over 90% of this money will come from Alberta businesses and working Albertans. 'This while Statistics Canada has shown Albertans on average work 3 1/4 wks longer per year than Quebecers.'
When are Albertans going to wake up to the fact that we are giving our children and grand-children’s heritage away to other provinces? Latest figures show Quebec continues to receive up to 48% of the equalization program. Last year Alberta contributed around $15 billion. Ontario is now claiming to be a have-not-province much like Quebec. So does this mean Albertans will now under Equalization have to also give hand-outs to Ontario???
We think it's time to create an Alberta Pension Fund. Some place where we could put our provincial budget surpluses and even our Heritage Savings Trust Fund. It must be run by an independent management Board and be made as secure from political interference as possible. It will force provincial politicians to save our surpluses, and it will protect the surpluses from looting by Ottawa – because it would be an attack, not on our provincial government but on ourselves. It is our money.
Our Alberta Pension Fund could start with the Alberta Heritage Fund $15 billion, the billions our own Alberta government has stashed away thought to be approximately $13 billion and our share of the CPP of approximately $15 billion. That would be a total of approximately between $40 - $45 billion dollars. A nice start! We see no reason why this huge capital fund could not increase to over $100 billion in 10 years.
Having a huge capital Fund located and head quartered in this province owned solely by Albertans would give Alberta an up-lift to world status in the world of finance and investment. Money attracts money and this would attract more industries from around the world wanting to do business in Alberta to the benefit of Albertans. And don't fall for that crap that Albertans are greedy. We as Albertans since joining confederation have given more per capita to the rest of Canada than any other province. A strong, rich and industrious Alberta not only benefits Albertans but it benefits all of Canada.
Watch for more details to come within the coming days.