Statement from Kent Hehr on balancing the budget
Mr. Hehr: What has been lost in the conversation regarding the Alberta Liberal platform is that we will probably balance the budget. Let’s think about this for a second, not think about left or right but simply what is best for today and for tomorrow.
Unless you’re totally going to dismiss the role of government, there are expenditures that need to take place: roads, schools, universities, police, ambulance, hospitals, long-term care facilities, and the hiring of people to work in these endeavours. Money to pay for these services comes from income tax, fossil fuel, and gambling revenues. Currently these essential services cost some $40 billion a year: $12 billion from taxes, $2 billion from gambling, $10 billion or so from fossil fuels, and the rest are user fees and federal transfers and for the last four years by using the sustainability fund, which is now all but used. Take away resource revenues, gambling, and now the sustainability fund; it is clear we have a structural deficit.
Since 1985 the Alberta government has spent over $200 billion in fossil fuel revenues. Despite this largesse at different times Alberta has faced cycles of cuts to services and spending of epic proportions. See Ralph bucks. Furthermore, we have not saved a dime in our heritage trust fund, a fund that was set up to recognize that using all of our fossil fuel revenues to pay today’s bills would be like a landowner selling off pieces of the family farm to go on vacation.
In our plan we show a way to provide essential services and a way of saving for the future, all this without increasing the taxes of 90 per cent of Albertans.
This is a responsible position. Even if you believe in a tax advantage, there’s no need for a tax holiday. We will still be the lowest taxed jurisdiction in Canada. If we carry on with business as usual, our citizens will be shortchanged, and future generations will be put at a disadvantage. Accordingly, I’m hopeful that tomorrow’s budget will address a more fair and reasonable taxation policy in order that Albertans can have a real conversation about what our future should look like before the election, not after.
Alberta Hansard, February 8, 2012