City notebook: Defence cash up for grabs

By Collin Gallant on March 1, 2025.

@@CollinGallant

A few year ago this column made the dark joke that unfortunately training NATO troops at CFB Suffield to deal with chemical, biological and nuclear threats was a “growth industry.”

Fast forward to the unsettled world of today, where, coincidently, Medicine Hat economic Development officials have schedule round-tables with defence contractors aiming to bring investment and work to the region.

How topsy turvy is the world? When was the last time anyone would expect a Liberal Party leadership debate to begin with an in-depth discussion on how to rapidly increase defence spending? It happened on Tuesday, with the only difference in opinion being how fast?

Voting in the internal party contest to pick a new leader (and next Prime Minister), ends next Sunday. Conservatives, who are happy to rest on their reputation as supporters of military, would likely boost budgets as well.

Canada currently spends $41 billion per year on defence, about would have to spend $60 billion per year to hit the much talked about target of 2 per cent of GDP.

Any ideas out there for $19 billion in annual spending?

Better question, does anybody have that sort of cash laying around?

Speaking of defence spending

This month’s edition of the Canadian Defence Review includes a look at what the sector is up to in Alberta. profiles include the work being done locally by Qinetiq, Redcliff-based UVAD, not to mention Atco Frontec, which is headed in Calgary by former CFB Suffield base commander Jim Landon.

Tax brackets

Tax accountants make a good wage for good reason, but some ins-and-outs of the trade really shouldn’t be that mysterious.

For example, tax brackets are again floating about due to the provincial plan to reduce its lowest tax bracket by two percentage points to eight per cent.

They set tax rates relative to different portions of total income… pause while eyeballs unglaze… typically higher on higher amounts.

In Alberta that top rate is 15 per cent on money earned above about $356,000, but a person earning $1 million wouldn’t pay $150,000 (or 15 per cent) in tax.

A million-dollar earner would pay:

— 8 per cent on the first $60,000 (not including basic exemption), or $4,800,

— 10 per cent on the next $80,000, another $8,00);

— 12 per cent on the following $28,000, add $3,360;

— 13 per cent on the next $60,000, plus $7,800;

– Deep breath;

– 14 per cent on next $60,000, worth $8,400, then;

— 15 per cent on the remaining $644,000, or $96,000).

The grand total is $128,000, or a blended rate of 12.8 per cent, provincial tax bill.

Or, let your accountant sort it out.

AI as well

Another standout, albeit offhand mentioned from a press conference on Friday is that Premier Danielle Smith will reconvene a panel this year to seek out savings it the provincial budget that’s currently pegged for Reb ink until early 2029.

“Line by line” is the term always used because it sounds great, but this analysis will also be done by artificial intelligence, Smith told reporters. Depending not he results, such a method might be welcomed by fiscal hawks, but others may no doubt make the comparisons to a current mixed-results U.S. budget exercise U.S. being done by tech billionaire Elon Musk.

A look ahead

The Alberta legislature is on break until March 10, but area MLAs will be back in town next week to discuss the budget and take part in a town hall related tot he new Community Resilence and Inclusive task force to deal with social disorder. That’s on Tuesday night at the Medicine Hat College theatre.

100 years ago

The Monarchs topped Blairmore 5-2 in a total goals series before 1,000 fans at the community rink, advancing to the provincial amateur title series against either Carstairs, Ponoka or Okotoks,” the News reported in early March 1925.

Local coppers were busy looking into a possible stolen radio ring after two of the devices were taken from separate businesses, the Palace Club and Ireland’s Garage.

Wheat Pools in the three prairie provinces would provide an interim payment of $30 million to 90,000 farmers. In Ottawa, a “hemp bounty” system was devised to encourage the production on as mush as 20,000 acres.

The Sears and Roebuck Company would come north to Canada with the acquisition of the Robert Simpson Co., a Toronto-based nationwide retailer.

For the first time in a decade the open bonspiel in Medicine Hat was neither delayed nor affected by weather. The grand aggregate was secured by the rink of H.L. Bowyer, which won the Hotels and Bankers bracket.

In Washington, U.S. President Calvin Coolidge outlined his high tariff policy during an inaugural program in congress.

Collin Gallant covers city politics and a variety of topics for the News. Reach him at 403-5280-5564 or via email at cgallant@medicinehatnews.com.

39
-38