Issues - TILMA a monster to MASH

| Commenting on this story is closed.

Alberta is booming. Unfettered expansion in the tar sands has caused economic growth in the province to run rampant, but the irresponsibility of the Alberta Conservatives has left huge gaps in that growth, and many municipal organizations have been left to fall through the cracks.

The Alberta government has coined a name for institutions whose ability to sustain their community infrastructure is already undermined seriously by deregulation: MASH—Municipalities, Academic institutions, School boards and the Health sector. But what has the provincial government done to address their concerns?

Has it called a moratorium on tar sands developments to allow for communities to catch up and sustain the boom? Has it raised royalty rates for international oil companies that are making millions in profits in order to redistribute the wealth to the people who live and work in the province?

Nope, not under the watch of the best premier oil money can buy. Instead, the provincial government has heralded the Trade, Investment and Labour Mobility Agreement (TILMA) in an attempt to convince the MASH organizations that more of the same free market logic that has created the economic crisis will provide the answer to their problems.

TILMA was signed in 2006 between BC Premier Gordon Campbell and former Alberta premier Ralph Klein without any discussion in the legislature of either province, and enabling legislation was forced through in the early morning hours of the longest sitting in the history of the Alberta legislature. TILMA was created to modify the trade relationship between the two provinces in order to create an economic union that promotes the maxims of free trade: small government and big business.

A major factor in TILMA is to have all MASH organizations confined to the commands of “no obstacles” to corporate activity and “non-discrimination” against out-of-province corporations, whether or not it benefits communities.

Under TILMA, if any MASH institution chooses to privilege a local Albertan provider for a contract, an outside organization from BC would be able to sue the province for compensation of up to $5 million. This is a direct assault on small businesses within Alberta and threatens the capacity of local industries to develop sustainable local economies.

The Alberta government seems unwilling to have a conversation with its citizens about the dangers of TILMA and unable to recognize why a growing number of municipalities are opposed to this anti-democratic agreement. TILMA entrenches a dispute settlement mechanism within a private court system—similar to the controversial Chapter 11 of the North American Free Trade Agreement (NAFTA)—which enables big business and powerful individuals to sue the provincial government if a MASH sector institution does not comply with the requirements of the agreement—in other words, if a MASH policy undermines their access to a free market.

Because of this, TILMA will create a chill effect on communities and municipalities taking policy leadership on issues like pesticide bans and healthy school initiatives, because of the possibility of lawsuits.

Top trade lawyer Steven Shrybman has questioned the constitutionality of TILMA for the way it empowers businesses to sue democratically elected institutions. The city solicitor of Saskatoon has called the TILMA an attack on “local choice.” In fact, both Saskatchewan and the Yukon have rejected the agreement due to its undemocratic and unconstitutional nature.

So what does this really mean for the decision-making powers and privileges of the MASH institutions? And how will it affect their ability to mitigate the negative effects of growth in the province?

Despite the Alberta government’s release last week trumpeting that a deal has been struck with the MASH sector to amend TILMA with only a few minor provisions relating to procurement, land zoning and business licenses, fears remain that the agreement stands to undermine the work of MASH institutions and the health of local democracy.

The results of a provincial government consultation process with MASH organizations regarding TILMA implementation, entitled “Alberta Background Report on Municipalities, Academic Post Secondary Institutions, School Districts and Health Sector (MASH) Consultations,” reveals a number of concerns about the impact of the agreement.

The government document highlights unanswered questions about TILMA from the consultations, ranging from the impacts of the agreement on municipal environmental and ethical procurement policies to who will pay for the costs incurred in the dispute resolution process to whether TILMA will undermine the “natural person” powers accorded under the Municipal Government Act of 1995, which empowers municipalities with the freedom to govern unless otherwise restricted by legislation.

As for these concerns, the MASH sector is now going to simply have to wait and see. But one thing is certain: what municipal governments can and can’t do to manage their local economies is no longer in their hands. Their right to draft policies to foster community growth and protect the public from the environmental, social and health effects of corporate activity has been seriously compromised.

So as the premier avoids dealing with the economic, environmental and social costs of his tar sands boom, his government takes away the power of municipalities, school boards and health authorities to try and fix the problems themselves. V

Shiela Muxlow is the prairie organizer with the Council of Canadians.

Issues - TILMA a monster to MASH

Most recent comments