BUDGET MUST BE PRUDENT
The throne speech that marked the opening of the legislature earlier this month was clearly aimed at more than just Albertans. One of its key themes was the need to get our oil to tidewater, where it will fetch a higher price than fuel sold to the United States, which is where the great majority of our energy is exported.
The speech, read by Lt.- Gov. Lois Mitchell, had British Columbians in mind; in particular, Premier John Horgan, who has voiced strong opposition to the Trans Mountain pipeline.
“The dispute British Columbia triggered with its attack on Canadian workers will not stand,” the government said in the speech. “We won’t let it. We have been vigilant in defending our workers and we will remain vigilant.”
It was a well-crafted message, but when the government’s budget is released Thursday afternoon, the Rachel Notley government must ensure Albertans’ interests are at the heart of its fiscal blueprint.
Since coming to power in 2015, the NPD has posted irresponsible deficits. Its predecessor, the Conservative party, also failed to balance the books under successive premiers, but there was nothing like the NDP has done in the supposed defence of front-line services such as health care and education.
The NDP has spent taxpayer money with abandon, to the point that credit agencies, which determine how much Albertans will pay in interest on the massive amount of borrowing, have downgraded the province’s rating.
The NDP is clearly an ally of the organized labour movement, but it needs to expand its reach and popularity if it hopes to win re-election next spring. Many Albertans are seeking some financial prudence as opposed to the spending free-for-all we’ve been witness to.
Worryingly, that’s not likely to be the case when Thursday’s budget is revealed. Finance Minister Joe Ceci said Tuesday the document will include anticipated revenue from expansion of the Trans Mountain pipeline, apparently with the aim of balancing the budget within five years — well after the next election.
No sensible homeowner would cobble together a budget with the assumption they’d be getting a pay increase in a few years. And yet this is what passes for NDP mathematics — the hope that having imposed a punitive carbon tax on its citizens to win so-called social licence for pipelines, that politicians who are indifferent to energy infrastructure, or openly oppose them, are going to facilitate the flow of billions of dollars into Alberta’s coffers.
The NDP have proven to be poor money managers, but surely we’re not to have faith in such wild speculation. Opposition Leader Jason Kenney sees the danger.
“We obviously hope that Trans Mountain gets built quickly, but what we’ve seen is a year of delays already and the very strong potential of yet further delays,” said the United Conservative Party leader.
“This is putting a lot of eggs in one uncertain basket, and that’s not how you budget.”
The government should focus instead on reducing costs. Last year’s budget projected that by 2020, Alberta’s debt will be $70 billion — which is the equivalent of $16,500 for every person in the province.
Economists Janice MacKinnon and Jack Mintz argue that Alberta can learn lessons from other provinces, such as Ontario, Quebec and British Columbia, which spent an average of $9,233 per capita last year on services. Alberta spent $12,409 per person — that’s $3,176 more.
In health care alone, they note, Alberta spends $915 more per capita than the average of the other three large provinces, which means spending $3.8 billion more annually.
The NDP shouldn’t put revenue from incompleted pipelines in its ledgers. It should engage in the thoughtful work Albertans elected them to do and focus on reducing expenses.