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Politics - Local pension funds could emerge from upheaval

We all bear the responsibility of making the country we live in a better place.
Mandryk

We all bear the responsibility of making the country we live in a better place.

This is something that seems lost on the #wexit crowd 鈥 and perhaps a few other enablers who are contributing to the climate of upheaval by griping rather than providing solutions.

This does not mean Westerners 鈥 especially, those in areas that are under-represented like rural Saskatchewan 鈥 don鈥檛 have legitimate concerns.

It can certainly be argued we need to do more in Saskatchewan and Alberta to reduce greenhouse gas emissions and it can be argued that conservative-minded governments have been obstreperous in this regard for reasons that have to do with politics.

Moreover, it can surely be argued the federal Liberal government has demonstrated it does not grasp rural and western concerns regarding why we need to burn fossil fuels to simply exist in the sparse, cold place we call home. Simply applying a tax on gasoline and other fossil fuels has not been an answer.

The problem, however, is that going back and forth in this debate with neither side giving so much as an inch has gotten us next to nowhere.

What far too often happens is people get set in their ways and simply rule out the possibility of exploring anything else 鈥 regardless of how reasonable it might be.

This is the criticism that鈥檚 rightly been levelled by the west when it comes to the reluctance of Prime Minister Justin Trudeau to consider alternatives to the carbon tax.

But maybe if we all kept an open mind, wouldn鈥檛 spend so much time spending our wheels.

For example, one of the things emerging from the West鈥檚 frustrations is a push by Alberta Premier Jason Kenney鈥檚 government for a 鈥淔air Deal for Alberta.鈥

And one of the arguably more practical things Kenney鈥檚 United Conservative Party government is exploring is the prospect of Alberta withdrawing from the Canada Pension Plan (CPP) and starting up an Alberta Pension Plan.

It鈥檚 an idea that鈥檚 already been met with a lot of resistance. However, it鈥檚 caught the attention of former Saskatchewan Party premier Brad Wall, who recently openly wondered on Twitter whether its time to explore a 鈥淏uffalo Pension Plan鈥 involving both Alberta and Saskatchewan.

Perhaps Wall was being a bit politically cheeky. Others offer the less kind assessment that the former politician of making political trouble or doing the bidding of the investment or oil communities that might stand to benefit from this.

But instead of accusations maybe we should all ask: Is this a feasible, workable and perhaps even a good idea?

Well, the Alberta government is sure making a case for it. A study conducted by the Alberta Investment Management Corp. (AIMCo) and obtained by the Calgary Herald suggested: 鈥淏y withdrawing from CPP, Albertans would see 鈥榓 substantial benefit鈥 as their costs to contribute to a provincial plan would drop."

That could include a 鈥渄ecrease to at least 7.21 per cent from the base levels in the current CPP of 9.9 per cent,鈥 the report said.

AIMCo manages more than $115 billion in assets from 31 pensions, endowments and government funds, so it鈥檚 not like they don鈥檛 know what they are talking about.

Here in Saskatchewan, we have TD Greystone that emerged from Regina-based Greystone Investment 鈥 a private pension management fund that got its start 30 years ago as the Investment Corp. of Saskatchewan that used to manage government pension funds.

Of course, there are problems and costs and, in the end, separate provincial funds may prove to be not that great an idea.

But shouldn鈥檛 we at least consider some of the opportunities that might be emerging from this upheaval?

After all, hasn鈥檛 all this upheaval been over the need to consider change and news ideas?

Murray Mandryk has been covering provincial politics for over 22 years.

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