BALANCING ACT FOR NDP
The NDP’s throne speech contained a significant piece of good news — a substantial lessening of the school fees that dog weary parents each fall. Throne speeches traditionally feature more pomp than substance. Delivered by the Queen’s representative, they give the government the chance to pat themselves on the back and crow about all the good they’re about to do in the legislative session that looms ahead.
The Rachel Notley government veered from that practice a little on Thursday, articulating clear plans to cut school fees by 25 per cent before classes next open in September, saving a family with three children in a Calgary Board of Education classroom $1,400 a year.
The government has promised to cap electricity rates, but as we see in Ontario, that doesn’t necessarily safeguard consumers. Kathleen Wynne’s government is now cutting Ontarians’ power bills, but in doing so, creating steeper liabilities that will have to be addressed in the future. In the case of Alberta, we’re offered a cap on power rates in the throne speech, but are confronted with a carbon tax that ratchets up the cost of the energy we consume, including natural gas, diesel and gasoline.
Carbon tax proceeds will be used to subsidize green forms of energy that would not be viable without the transfer of Albertans’ cash to renewable power companies. The government is attempting a risky balancing act: capping power prices, increasing energy costs, funding green forms of energy and returning some of the carbon tax proceeds in the form of rebates.
Striking the proper mix will be challenging, especially as the carbon tax increases in subsequent years. Persuading electric generating companies to shut down their coal-fired plants has already cost $1.36 billion.
The speech also contained an admission that government spending can’t continue to increase at the pace it has, including under the Conservatives. “Through diligent action and targeted reductions, we are bringing the rate of spending growth down, thoughtfully and prudently,” says the speech, which was read by Lt.- Gov. Lois Mitchell. “Your government has cut and amalgamated government agencies, frozen salaries for cabinet ministers, MLAs, political staff and management in the civil service, and streamlined spending across government.”
This is true, but there’s no talk of freezing total government spending, or reducing the budget — just stemming its rate of growth.
The government deserves credit for putting flesh on its promise to cut school fees. Albertans will have to wait to see how successful the NDP is with the all-important subjects of electricity and prudent public spending.