NO BUSINESS IN BUSINESS

It’s perhaps not unexpected that western premiers would want to diversify the economy, given the now long- standing plummet of oil prices. It would be nice to wave some magic wand and wipe away the red ink on government ledgers and get breadwinners back to work.

“We need to make sure that with respect to falling commodity prices, that other parts of the economy are functioning well — that we can access other markets,” said Saskatchewan Premier Brad Wall, who hosted the conversation, earlier this week.

All the premiers — including Rachel Notley, who missed Monday’s teleconference because MLAs were being sworn into office — should remember, however, that their job is to provide essential services, such as health care and education, and look after seniors, not be some clumsy alchemist trying to decide which commercial ventures should succeed or fail.

It’s understood, of course, that to provide these essential services, governments need to tax both individuals and corporations to raise the necessary funds. The money is used to hire teachers, health- care employees and other civil servants to the extent that is necessary.

Diversification is a noble goal, but it’s not to be assumed that government is the best force to ensure it takes place. Government tends to be a high- cost provider of services — critical though they are — so it’s best that it restricts itself to operating what must be offered and not dabble in illusory ambitions such as diversification.

Former Conservative finance minister Ted Morton recently expressed concern about the province’s investment in the North West Upgrader, north of Edmonton, for instance, which will add value to bitumen. It’s a wonderful pursuit, but the project has taxpayers on the hook for $ 26 billion, says Morton.

“What began as a low- risk, low- cost project to encourage domestic bitumen upgrading has morphed into a multibillion- dollar boondoggle with high risks for Alberta taxpayers,” the political science professor said in a paper recently released by the University of Calgary.

If there’s a dollar to be made, entrepreneurs will step in and fill the breach. If there isn’t a profit to be earned, businesses will stay on the sidelines, as one would expect. Instead of worrying unduly about diversification, western premiers should be ensuring that tax rates are competitive, so that those with imagination and ambition — and the talented people they employ — don’t carry an unnecessary financial burden. By all means take what money is necessary to finance top- rate schools and hospitals and such, but politicians shouldn’t try to pretend they know the nuances of the marketplace.

That’s what entrepreneurs are for.