New Report from C.D. Howe Highlights Tories' Free-Spending Ways
February 28, 2008
New Report from C.D. Howe Highlights Tories' Free-Spending Ways
Edmonton - 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.
New Report from C.D. Howe Highlights Tories' Free-Spending Ways
Edmonton - 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.
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