$1,600 cheque in the mail

ALBERTA OIL WINDFALL

LETHBRIDGE, ALTA. •

All men, women and children in Alberta will be showered with roughly $400 each before the end of the year, as the province divvies up a surplus now expected to mushroom to $6.8-billion on the back of sky-high oil and gas prices.

Premier Ralph Klein said the average household will receive about $1,600, prompting some critics to warn the giveaway could stir sentiments in Ottawa that the province share its wealth with the rest of Canada.

But Mr. Klein was unrepentant. ‘‘ God knows what the future holds for us. But I would remind Canadians as well that whatever goes up must come down,’’ he said.

‘‘ All I can say to the rest of Canada is remember that we aren’t investing this in ongoing programs and program development. We’re doing a one-time investment because we have one-time riches.’’

Mr. Klein — who last week said the ‘‘ prosperity bonus’’ would be $300 — told reporters yesterday the province would share even more of its energy windfall with Albertans — about $1.4billion — after finance officials recalculated year-end surplus projections.

Alberta Liberal leader Kevin Taft said the rebate cheques reflect a complete lack of vision for the province’s future, and he wants a legislature debate before they are implemented.

‘‘ The Tories are sacrificing the future for a political orgy to satisfy the Premier,’’ Mr. Taft said. ‘‘ This is the public treasure chest that’s being emptied and the public has the right for it to be debated.’’

Mr. Taft said the cheques should only be allocated to ‘‘ those most in need,’’ such as working mothers, rather than corporate executives.

Mr. Klein noted $2.6-billion of the unexpected surplus will still be split between capital projects, such as schools and health-care infrastructure, and investments into some kind of savings, perhaps endowments, though exactly how hasn’t yet been determined.

Alberta’s debt-free government had budgeted for a surplus of about $1.5-billion in last spring’s budget, but subsequently bumped up the number to $2.8billion after its first-quarter update last month as it reaped big royalties from surging oil and natural gas prices.

Alberta’s swollen coffers ratcheted up pressure on the government to decide what to do with the money. Mr. Klein believes the government has got it right with the dividend cheques.

‘‘ We expect to have cheques in the mail … by the end of this year,’’ Mr. Klein said.

‘‘ This is one-time only. We’ll have to assess it on a year-by-year basis. We don’t … want to get ourselves into the situation of people anticipating that this a given in future years.’’

Mr. Klein said there would be no clawback for Albertans living on provincial assistance programs. The province won’t tax the dividends and will ask Ottawa to follow suit, he added.

There will be some kind of eligibility requirement to receive the cash, Mr. Klein explained, adding he hoped people wouldn’t rush to Alberta to try to get a share. Finance Minister Shirley McClellan is being asked to work out the details of how the program willl work over the next month.

Cabinet did not discuss ways Alberta could use its wealth to help the rest of Canada during a retreat yesterday, Mr. Klein said, noting the province already contributes about $2,400 per capita.

‘‘ I think that there’s an understanding at … Cabinet and caucus that we are doing more than our fair share,’’ he said.

Despite rumblings that not all of caucus was on side with the idea, the Premier said there were no objections in Cabinet.

‘‘I specifically asked, ‘ Are you agreed? Anyone disagree?’ [and] I didn’t hear one peep,’’ Mr. Klein quipped.

Political observers said a stubborn Mr. Klein is digging in his heels on the rebate cheques in an effort to show his critics — including business groups and think tanks — that he won’t succumb to their demands. The Calgary Chamber of Commerce and Canada West Foundation have both advised against the rebates.

‘‘Klein is saying damn the torpedoes — full speed ahead. This is how it’s going to be,’’ said David Taras, political analyst at the University of Calgary.

The dividend cheques are ‘‘ bound to produce envy and jealousy’’ from the rest of Canada, Mr. Taras added, which would only contribute to thoughts of raiding Alberta’s treasury.