Calgary Chamber of Commerce Issues Warning Against Alberta Separation

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The Calgary Chamber of Commerce, with support from numerous Alberta business leaders, has penned an open letter cautioning against the economic ramifications of Alberta separating from Canada. The letter highlights potential job losses and fiscal shortfalls that could arise from such a move.

CALGARY, ALTA. — Business leaders across Alberta have rallied behind an open letter from the Calgary Chamber of Commerce, expressing grave concerns regarding the potential economic fallout should the province choose to separate from Canada. The letter emphasizes the importance of maintaining strong relationships and stability, which are essential for the prosperity of both Alberta and the nation as a whole. It states, “We must remain at the table and prioritize relationships, opportunities, and stability that have helped make this province and this country prosperous.”
Among the notable signatories are executives from prominent companies, including AltaGas, ATCO, AltaLink, Capital Power, Keyera, BHE Transmission, and Chirp Foods Inc., which is recognized as Canada’s largest McDonald’s franchise operator. Additionally, organizations such as Tourism Calgary and Calgary Economic Development have lent their support to this initiative, alongside a former CEO of Trans Mountain Corp. The Chamber anticipates that more leaders will add their names to the letter in the coming days.
In three weeks, Alberta residents will face a pivotal decision as they vote on ten referendum questions, one of which will probe whether the province should remain a part of Canada or initiate a process for holding another referendum on separation. A recent study conducted by economist Trevor Tombe from the University of Calgary projects that trade costs could escalate by five to eight percent if Alberta were to separate. This range mirrors the economic impact observed in the United Kingdom following its exit from the European Union.
The study further underscores Alberta's position as the most trade-exposed region in Canada, indicating that nearly one-third of the workforce is employed in sectors particularly susceptible to disruptions. According to the analysis, the predicted increase in trade costs could result in job losses amounting to as many as 175,000 in Alberta, alongside a staggering potential annual economic downturn of up to $62 billion. Tombe's report also predicts a $9 billion fiscal deficit for Alberta in the event of separation, which would necessitate severe tax increases or deep cuts to essential social programs.
Tombe articulated the tangible consequences of GDP contraction, stating, “When you hear something like GDP contracting, it seems like an abstract statistical notion, but this translates directly into real incomes and wages. How much goods and services can you afford to purchase with an hour of work?”
Chamber president and CEO Deborah Yedlin conveyed that a move for Alberta to split from Canada would be akin to scoring an own goal to send a message. Reflecting on the notion of the 'Alberta advantage,' she warned that low taxes, quality education, and robust social services could vanish, creating a detrimental cycle that would deter investment and diminish tax revenues, ultimately harming essential services for Albertans.
Yedlin also pointed out that the timing of this vote coincides with significant opportunities for Alberta, particularly in the energy sector, as global demand for stable energy supplies rises amid ongoing conflicts in the Middle East and Russia. Furthermore, she highlighted recent policy shifts by the federal government under Prime Minister Mark Carney that have garnered business support and a commitment to developing new energy infrastructure.
While acknowledging that some business leaders might have hesitated to engage in this debate for fear of alienating employees who sympathize with the separatist viewpoint, Yedlin emphasized the importance of standing firm on core values. “The reality is, though, that as an entity, you can say this is what you stand for. And at the same time, you respect the right of your employees to vote according to what they feel is important to them,” she stated, advocating for optimism and forward-thinking in Alberta's energy landscape.

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