Airdrie MLA Rob Anderson is speaking out against the PC government after Minister of Finance Doug Horner shared dire predictions about the upcoming operating budget with the media, Dec. 19.
During a press conference, Anderson said the premier sold Albertans a “false bill of goods” during the election, making promises she couldn’t keep.
“Minister Horner and Premier Redford weren’t honest with Albertans,” said Anderson.
“What they have done with our money is absolutely shameful.”
The accusations came after an Edmonton media scrum, during which Horner told the media he is concerned about the cuts that will be necessary to balance Alberta’s operating budget.
He said the problems stem from the difference between crude oil prices and Alberta producers can sell their oilsands bitumen to its biggest customer, the United States, for.
Horner said while oil prices are around $80 to $90 per barrel, producers are only receiving between $40 and $50, putting a strain on the Province’s coffers.
“I am very concerned about where those numbers are headed,” he said.
Horner went on to say the differential is the reason Alberta is advocating so strongly for new market access, through initiatives such as the Northern Gateway pipeline, which would allow producers to sell bitumen to China via the coast.
Horner revealed that as finance minister, he recently warned cabinet ministers to be prepared to make some tough choices.
“It’s not the greatest Christmas news… but reality is reality and we have to adjust,” said Horner.
“This is a very substantial impact to our revenue. This is a very big issue for Albertans.”
Horner said “everything” is on the table for potential cuts, including education and health care, such as primary care networks and family clinics. He added he has directed departments to find savings of up to $500 million for next year’s budget.
“It’s my duty to say that everything should be on the table, or off the table,” he said. “I can’t guarantee everything in the budget. We will have a much clearer picture of that in the new year.”
Horner said tax increases are not being considered at this time.
Alberta’s last budget was about $41 billion, with nearly 28 per cent of that funding coming from non-renewable resources.
Redford campaigned last spring on having a balanced budget, and made a number of promises including new schools, clinics and an oilsands research fund.
Alberta’s second-quarter financial report, released Nov. 28, revealed resource revenue was $1.4 billion lower than expected and expenses were $293 million higher because of forest fires and severe hail storms.
“Alberta continues to forecast a deficit of between $2.3 and $3 billion,” stated the report.
Anderson said the lower-than-expected prices for Alberta’s commodities are no excuse for the financial fix the province is in.
“You would have to be living under a rock to say you didn’t know there was a problem getting our product to the market,” he said. “We have to have a very honest discussion about what our priorities are. We are in a tough spot, there is no easy fix to this at all.”
Anderson said in order to fix the problem, massive cuts will be necessary.
