It appears to be decision time when it comes to Alberta’s finances
Posted Jan 30, 2013 12:54 pm.
This article is more than 5 years old.
A political scientist at Mount Royal University says Albertans have been wanting to talk about a new way to financially manage the province for more than 20 years.
Keith Brownsey tells 660News the reason why the governing Progressive Conservatives haven’t wanted to entertain those conversations is because the discussions would likely lead to a reduction in the spending of lucrative oil and gas revenues.
Brownsey says Albertans should demand the goverment find a way to live within its means and sock away all the money from energy royalties.
“We should do what Alaska and Norway and other nations have done with their oil and gas revenues,” Brownsey tells 660News. “Sock it away in these sovereign wealth funds. That would be the smartest thing we could do. But this is Alberta after all.”
Municipal Affairs Minister Doug Griffiths doesn’t disagree that it’s time for a discussion as to how the government should handle a deficit projected to be as high as $3 billion this fiscal year, combined with a revenue shortfall of $6 billion.
“I’ve been in government for 12 years and every time I bring it up I get the same thing: Yeah it’s your guys’ fault because you rely on royalties. But don’t increase taxes. But you better not cut any services because in a province this wealthy, we can afford this,'” Griffiths tells 660News. “Well, ‘Hello,’ you can’t keep saying that.'”
Griffiths admits the Tory government has some decisions to make in advance of its March 7th budget,which has yet to be finalized.
“People are going to be surprised at how tough it’s going to be and they won’t be exempt,” he says. “But we’re not going to just pick one place to make all the pain happen and download stuff to municipalities. It wouldn’t be fair and that doesn’t build stronger communities.”
“It’s not enough to balance the budget,” Griffiths continues, touching on a subject raised by the Canadian Taxpayer’s Federation concerning public sector wages. “But I mean you have to look in every nook and cranny and every crevice to see what you can save. But we don’t also want to create a disincentive to keep good young talent in the province of Alberta … to help find new solutions. So we’re exploring every option.”
For his part, Brownsey says the PC’s have been left to weather the current fiscal storm on their own.
“The Liberals don’t have a position,” claims Brownsey. “The New Democrats, I’m not sure exactly where they are on these issues. And the Wildrose Alliance simply say, ‘less tax, less spending, less service.'”
Brownsey says it’s time for the Alberta government to wean itself off more than 40 years of relying on oil and gas revenues to fund program spending, and instead look to other revenue streams such as taxation.
Griffiths couldn’t agree more, adding it’s time for serious conversation and he feels Albertans are up to the challenge.
