Kenney betting public ready to focus on balancing budget

The clear message coming out of Premier Jason Kenney's minor cabinet shuffle on Thursday?

He and his government will now focus on building up Alberta's economy and on cutting the government's massive budget deficit. But it's still not clear if the second part of this message is in step with the mood of most Albertans.

The Kenney government's messaging has been off kilter for some time. Kenney was dreadfully slow to master pandemic politics. Prime Minister Justin Trudeau's caring and sharing vibe, complete with unprecedented levels of government support and spending, was much more aligned with public sentiment. Kenney often came across as tone deaf, most notably with the government's bitter pay dispute with physicians, the front-line troops in the battle against the virus.

The big issue in Alberta politics is still Covid-related. Almost all Albertans are still standing on shaky feet, emerging from our lockdown cocoons, reconnecting and seeing if we can get back up and running full speed. In such uncertain times, I'm not sure most Albertans are ready for major budget cuts, which always comes with nasty labour disputes.

In his Thursday news conference, Kenney defended taking a hard line with Alberta's nurses in salary negotiations, first noting that all Albertans appreciated the professionalism and care of nurses during the pandemic, then pointing out Alberta pays more in health-care wages than any other Canadian jurisdiction. On average, our nurses make

5.6 per cent more than nurses in other provinces, he said.

“We have a $16 or $17 billion deficit, we have had a string of the largest deficits in the province's history. This government is not going to squeeze more money out of taxpayers by raising their taxes to deal with that. We just need to operate more efficiently.”

There is zero appetite for tax increases in Alberta, certainly not among private-sector workers who have been hammered during the pandemic and still fear for their future. But for Kenney to succeed in labour negotiations, I can't imagine going scorched earth on public-sector workers will be a winning strategy either, not with their solid work during the pandemic.

He would have done well to admit the timing of his dispute with the doctors was all wrong, but when he was again asked about it on Thursday, he again defended it. Failing to admit any kind of error is a huge mistake the Kenney government keeps making.

It's worth noting Kenney struck a more conciliatory note, saying he is glad Alberta doctors are the highest paid in Canada.

“We value our physicians. We want them not just to be paid fairly but to be paid generously. But in the midst of an ongoing fiscal crisis, we need some budget management tools. We can't allow any part of government spending, let alone the largest portion of it, to go up annually by six per cent or more.”

Critics are blasting Kenney for not moving out Health Minister Tyler Shandro, Finance Minister Travis Toews and Education Minister Adriana Lagrange. Keeping such key ministers in place signals the UCP is staying on brand when it comes to budget cutting.

“Unions that benefit from taxpayer dollars always want more taxpayer dollars,” Kenney said in defending these ministers. “Our job as government is to ensure high quality public services, supporting the great people who deliver those services, but not allowing union bosses to dictate the direction of the province's finances because if we did that we'd be in the poor house forever.”

Fighting words like this didn't go over so well during the pandemic. Will they go over better now?

That is Kenney's bet. A large part of the outcome rides on the virus never again threatening our health-care system.

On that count at least, Kenney got a win this week with NDP Leader Rachel Notley changing her tune on the Calgary Stampede. Only a month ago, the NDP repeatedly needled Kenney for rushing the reopening of Alberta, saying it was being done to coincide with the Calgary Stampede, which opens Friday.

But Notley was last seen on Twitter announcing the kickoff of the NDP'S own Calgary Stampede road show.

“Good conversation, free swag, fun games and more in a safe, outdoor space for you and your family,” Notley promised.

Evidently, when Kenney's UCP both matches the public's mood and gets it right on policy, as he's done with the reopening, even major critics can be won over.

But pulling off this same trick when it comes to fierce labour negotiations? That will take more finesse than the UCP has yet demonstrated.