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Redford’s promises for change ‘chip away at Alberta Advantage’

This Saturday, Alberta MLAs have been invited to an economic summit at Mount Royal University in Calgary, which I will be attending.

This Saturday, Alberta MLAs have been invited to an economic summit at Mount Royal University in Calgary, which I will be attending.

The Alberta government is billing it as a chance to “brainstorm” solutions to the province’s financial reliance on energy revenues. Additional invitations have been sent out to industry experts, business leaders and academics to discuss the current financial woes.

It’s expected that falling oil prices in the U.S. market will contribute to a $6-billion shortfall in Alberta’s bottom-line for next year. The reported purpose of this summit is to figure out ways to improve spending and to figure out ways to get Alberta off of the rollercoaster of volatile energy revenues. Unfortunately, we’re a day late and a lot of dollars short.

A government’s budget performance is generally a good indicator of a government’s fiscal responsibility, policy and intentions going forward. The current government of Alberta did not campaign on running multi-billion dollar deficits while accumulating debt for future generations to pay for, through higher taxes for years to come.

In fact, the budget that was tabled in the legislature two months prior to the election call, showed a modest deficit of just under $1 billion.

The projected deficit we’re heading toward will be in excess of $3 billion, with some experts predicting it could be as high as $8 billion, with a vast majority being attributed directly to overspending by the Redford government.

Unheeded warnings from the Wildrose, Liberal and NDP parties, stating the government’s 2012 budget was unrealistic, were dismissed by the government MLAs, who stated they were confident in their predictions.

The budget that has now created a record deficit was based on oil trading at $98.71 per barrel, which contrasts with the major financial institutions predictions that oil would trade at $92 to $95.

Wildrose Leader Danielle Smith describes the situation this way: “The simple truth is, Alberta has never had a stronger revenue stream and is the envy of every other province in Canada. Ms. Redford said she wanted to change the character of Alberta, and now it looks like her plans include chipping away at the Alberta Advantage.”

All indications up to this point are that the 2013 budget will require a complete departure from the conservative values a majority of Albertans hold near and dear to their hearts.

Budgeting within government is based on revenue projections that will ultimately determine how much each individual government department will receive for its services or programs.

The Opposition Wildrose Party will not support any tax increases to rectify the massive debt prospects for 2013. It’s our feeling that the Redford government is trying to soften the blow of possible income-tax hikes or the implementation of a sales tax in the near future.

It’s my intention to enter the summit discussions with the intent of getting Alberta’s finances back in order with our conservative values and prevent any further erosion of what is left of the Alberta advantage. The success or failure of my intentions will depend on whether they are willing to listen.

Rick Strankman is the MLA for Drumheller-Stettler.