By Paul Vieira
OTTAWA--Alberta Premier Danielle Smith said she hopes to tamp down support in the province for secession from Canada through talks with Prime Minister Mark Carney that address the region's big concerns about federal economic and environmental policy.
"I hope we can get to a constructive relationship with the new prime minister and address some of these things have that have been an irritant for a number of years," Smith said at a press conference Tuesday. Her comments come a day after saying she could allow a referendum next year on Alberta splitting from Canada so long as citizens collect enough signatures--in this case, 177,000--on a petition.
Talk of a referendum on sovereignty is starting to get the attention of a financial markets. Brent Donnelly, president of foreign-exchange research firm Spectra Markets, said traders need to put the situation involving Alberta on their radar, as it carries the risk of turning into a national-unity uproar.
Smith said she opposes separation, adding the idea has the support of about 30% of Albertans. "I want to make sure that those numbers do not get higher and those numbers end up going lower," Smith said.
Yet, Smith said she has "marching orders" from lawmakers and citizens to pursue a new arrangement with the federal government in Ottawa. That new deal must include the repeal of measures introduced by Carney's predecessor, former Liberal prime minister Justin Trudeau, that attempt to limit carbon emissions from the energy sector.
"There is evidence of some pragmatism," Smith said of Carney, citing his decision to drop a consumer carbon tax. "I would hope that the near-death experience of the Liberals--where they were almost obliterated and had to change out their leader--was actually a wake-up moment for them that they can't continue pursuing extremist policies that are supported by a fringe group of legislators."
In Washington, Carney addressed developments in Alberta, where he spent the bulk of his youth. "Canada is stronger when we work together. As an Albertan, I firmly believe that you can always ask a question, but I know what I would respond clearly," he said.
Opening the door to a separation referendum is the latest salvo from the oil- and gas-producing province after the federal Liberals won a fourth term in an April 28 election. Smith, business leaders and Alberta citizens have expressed deep frustration about Liberal environmental policy, such as a ban on tankers shipping crude oil in northwest British Columbia, a cap on carbon emissions from the energy sector, and a more stringent environmental-assessment process.
The Liberals won the election with nearly 44% of the popular vote nationwide. But in Alberta, the Liberals won only 28% of the vote, with the Conservatives garnering nearly two-thirds of provincial votes.
Smith's openness to holding a sovereignty referendum has triggered opposition from indigenous communities and organized labor. "Her list of demands combined with talk of referendums is a loaded gun pointed at Canada. In labour circles we call this bad faith bargaining," Alberta Federation of Labour President Gil McGowan said.
Smith defended her approach, and said citizens have a right to express their opinion and it's her job to ensure a respectful debate. "I'm not going to be demonizing anybody who may have a different view on me. All I can do is try to convince people my view is right, that it's worth fighting for and it's worth giving it a try."
Write to Paul Vieira at paul.vieira@wsj.com
(END) Dow Jones Newswires
05-06-25 1715ET
