New Report from C.D. Howe Highlights Tories’ Free-Spending Ways

A report released yesterday by the CD Howe Institute provides further indications that the Tories are frittering away Alberta’s future, said Alberta Liberal Campaign Manager Kieran Leblanc in Edmonton earlier today.

According to the C.D. Howe Institute report, After the Oil Rush: A Blueprint for Alberta’s Long-term Happiness:

Of particular concern for Alberta is that high energy prices and rapidly flowing resource revenues mask the province’s underlying fiscal position, undercut attempts at spending restraint, and risk leaving the province unprepared, either for market downturns or for an inevitable, eventual slowing of resource production.

With regards to the Tories’ past spending patterns, the report goes on to highlight that:

In the last five years, total spending increased above planned spending growth by an average of 6.3 percent annually. Not surprisingly, overall spending in the last 10 years has nearly doubled.

Ed Stelmach’s only plan is a surplus plan, meaning that they wait until they have extra money before setting any of it aside for savings.  Any personal financial advisor will tell you that this is the worst way to plan for the future.

And the financials on Stelmach’s election platform costing confirms the Tories have no plan. Despite making promises totaling over $7 billion, the Tories provide no indication of how they plan to pay for their promises. “Where’s the money coming from? It sounds like the Tories believe surpluses will last forever,” noted Leblanc.

Leblanc emphasized that the Alberta Liberals expect the Tories to continue their tradition of mismanagement and ad-hoc policy making when they announce further details of some new royalty scheme during the last days of the campaign.

“Hopefully, Stelmach will finally come clean with Albertans about the unintended consequences of his new royalty regime. That Stelmach is expected to come out with details in the campaign’s final days highlights the lack of any fiscal prudence, foresight, or management skill on the part of the Tories,” said Leblanc.

The Alberta Liberals have been clear on royalties. Albertans deserve their fair share. That is why royalties will increase by the 20% recommended by the Royalty Review Panel. Sectors of the oil and gas industry that can more easily afford increased royalties will pay more, while struggling sectors will get a break.

The Alberta Liberals are also the only party in this campaign with a comprehensive, sustainable and fiscally responsible savings plan. Under the Alberta Liberal’s Funding Alberta Future plan, an Alberta Liberal Government would immediately pay Albertans first by channeling 30% of resource revenue collected into four endowment funds. 

If our plan was implemented when first introduced, fiscal stability could have been assured through a vibrant Heritage Fund worth well over $100 billion by 2020.

It’s time to get the job done right. It’s time for a change.