View All News Items

Klein decrees a freeze, so it shall be - Friday, October 31, 2003 at 13:14

Klein decrees a freeze, so it shall be
In this Kleinocracy, The Boss decides policy and his caucus obeys
 
Graham Thomson 
The Edmonton Journal
http://www.canada.com/edmonton/edmontonjournal/columnists/story.asp?id=F59C54D8-B984-42FE-B27C-049ADAEB8224

Thursday, October 30, 2003
 
If Premier Klein wants a freeze on auto insurance rates, he will get a freeze on insurance rates.

It doesn't matter that he's contradicting his colleagues or catching his own government off guard.

We live in a special kind of democracy in Alberta: a Kleinocracy.

"If a freeze is necessary, then a freeze is what will be put in place," Klein said while talking to reporters on Wednesday. "I'm going to propose it. I run a democratic cabinet and caucus but I'm going to propose it."

Anything Klein would "propose" to his cabinet or caucus carries more weight than Governor Schwarzenegger's workout room.

Cabinet ministers call Klein "The Boss" for a reason. This is the guy who has taken the Conservatives to three election victories and, when the day comes in early 2005, he'll undoubtedly take them to a fourth.

If he wants something, he gets it because they'll fall all over themselves to deliver it. Klein, in turn, has a proven record for delivering what Albertans want.

Everybody in government knows that.

Just look at Finance Minister Pat Nelson. After Monday's raucous meeting of caucus where her insurance proposals were driven off the road, Nelson said she did not favour a temporary freeze on insurance rates. She insisted Alberta would not be following the lead of Ontario's newly elected premier Dalton McGuinty, who froze car insurance premiums 15 minutes after his cabinet was sworn in.

On Wednesday, though, minutes after Klein spoke, Nelson's staff was scrambling to explain that she would introduce legislation during next month's sitting of the legislature for a one-year rate freeze which would run retroactively to October 29 (Wednesday). She just needs cabinet's approval at its November 3rd meeting.

As if that's a problem.

Klein joked about the power he holds over his colleagues, asking reporters to get the word out to his ministers that he'll be asking them to support the insurance freeze.

"I hope that you communicate this very, very widely and broadly so everyone gets the message and they're well prepared for the cabinet meeting on the third," Klein said with a laugh.

Earlier, he reminded reporters that it is his voice that carries the most authority in caucus, not anybody else, not even the government's point-guy on car insurance, MLA Rob Renner.

"Mr. Renner is not Mr. Klein, so listen to Mr. Klein, okay?"

Klein is feeling particularly frustrated these days, more than a little annoyed this issue continues to plague his government. He said back in July he wanted a speedy resolution to an issue that almost toppled the New Brunswick government and has been the bane of provincial governments (without public insurance plans) across the country. He hoped the matter would have been resolved by now thanks to a special committee run by Renner.

Instead, Renner's recommendations were sent to the scrap heap at Monday's caucus. A majority of Tory MLAs were opposed to a $4,000 cap on compensation for pain and suffering paid to victims of "minor" soft-tissue damage. They also opposed having Edmonton drivers pay higher premiums than drivers in Calgary.

The issue has split Klein's caucus, embarrassed his finance minister, called his government's judgment into question and, most importantly, angered ordinary Albertans who drive cars and vote.

Klein doesn't have a solution. Nobody has a solution to resolve all the issues. It will take months to figure something out and get it in place, at the earliest.

So, Klein is buying himself time. By freezing the rates, he's giving the impression his government is taking action. It's a bit like the federal government shelving a problem by appointing a royal commission to study it.

Or Klein's own trip in the summer to Washington, D.C. to see U.S. vice-president Dick Cheney at the height of the mad cow crisis. Klein's trip didn't solve anything, but it did give the illusion he was doing something.

Same with the freeze. When critics complain, he can say his government is taking action. It's short-term action, of course.

But the important thing is it will be popular with premium-buying Albertans, even more so when they hear insurance companies are complaining about the move. Companies don't mind a freeze as long as government offsets their loss of income with a cap on some compensation payouts.

Never mind the companies, Klein said. The consumer is the "important person." New government regulations and legislation will be aimed at protecting the people who buy the premiums.

Which sounds like a great idea until you listen to personal injury lawyers who warn us we shouldn't forget that victims are the important people. And all consumers are potential victims. The government must not place arbitrary caps on payouts and thereby limit the ability of legitimate victims to receive fair compensation.

It doesn't matter what lawyers or insurance companies want, though.

It only matters what Klein wants.