Allowable government rates are set by city and in line with each market, and are not tied to transient room rates. http://rehelv-acrd.t...ng.aspx#CanadaA
Edmonton rate limits are higher most of the year than Victoria. In the summer, Victoria's is about $11 higher than Edmonton's.
Properties don't have to sell at or below the rate limits, but of course in those cases government employees on government business are supposed to book elsewhere. July and August some downtown properties have taken themselves out of the government program because it doesn't make sense to sell that low and most government travel during that time is government employees on holidays vs. travelling on business. Meanwhile, groups & conferences of over 10 rooms are allowed to be quoted above the rate limits but of course individual departments may not approve the higher rates. In Victoria, this is generally only a concern in June-September - not really a busy conference time. If you're attending meetings and conferences in Edmonton instead of Victoria during October to May, the rate generally isn't the reason as those do tend to fall in line with the rate limits.