Alberta Separation Costs Estimated at Over $200 Billion

A new report from the Canada West Foundation highlights Alberta's grievances against the federal government, but warns that separation is not a viable solution. The report, which was cited by the Calgary Herald, points to concerns around equalization, market access, energy policy, and representation in Ottawa as key issues.

According to the report, there is no unilateral path to independence for Alberta, and any attempt at separation would trigger a constitutional process involving negotiations with the federal government, provinces, and Indigenous groups. This process could take years or even decades, and there is no guarantee that it would ultimately result in independence.

Dr. Dwight Newman, a constitutional law professor at the University of Saskatchewan, analyzed the constitutional processes surrounding separation and concluded that Indigenous governments and treaty rights would be central to any separation discussions. The report also notes that there is no grandfathering clause for Alberta's international relations, meaning that an independent Alberta would not automatically inherit Canada's international agreements and privileges.

The report estimates that establishing an independent Alberta could cost over $200 billion in setup costs and roughly $57 billion in annual operating costs. Dr. Paul Boothe, an economist and former deputy finance minister for Saskatchewan, evaluated the fiscal considerations surrounding separation and concluded that Alberta would likely continue using the Canadian or US dollar as its currency.