Rachel Notley speech gave no signal of solid fiscal plan, opposition leader says
Speech meant to brace Albertans for bad news, analyst says
Premier Rachel Notley's address to Albertans on Thursday was short on new information and probably aimed more at softening the blow of next week's budget, says a Calgary political scientist.
"It is to pave the way for something bad that's going to happen and next Thursday will be a bad budget," said Mount Royal University's Duane Bratt. "You know a $10 billion deficit says... it just screams bad."
In a 15-minute address taped in the kitchen of her Edmonton home, the premier acknowledged next Thursday's budget will feature a deficit in excess of $10 billion and warned royalty revenues are expected to drop by 90 per cent next year.
Notley said the NDP budget will include a jobs plan, a massive infrastructure program and details on a new Alberta Child Benefit aimed at helping thousands of low-income families.
- MORE ECONOMIC NEWS | Brooks woman rallies for struggling oil and gas families
- MORE ECONOMIC NEWS | Chevron lays off thousands globally
Opposition Wildrose Leader Brian Jean said Notley's address to the province fell flat in terms of reassuring Albertans that her team has a plan to weather the tough economic times.
The Wildrose leader said the premier gave no signal that the NDP government plans to control spending.
"The fact is Alberta will have over $50 billion in debt in just a few short years," Jean said.
"Interest payments on that debt will mean less money for schools, less money for hospitals, teachers and nurses, those things that Albertans hold dear."
Progressive Conservative Party Leader Ric McIver said Notley should be looking for ways to spend less without having to cut front-line jobs, while doing more for the private sector.
"She has control over not being business friendly, she has control over the carbon tax, putting a $3-billion-a-year burden on industry," he said.
The Canadian Taxpayers Federation said there was little new information in Notley's address. Rather than telling Albertans things they didn't know, Alberta director Paige MacPherson says it was probably more an exercise in bracing them for a bad-news budget next week.
"We've got an over $10-billion deficit that we're expecting. That is very large, looking at Alberta's history, and that really is bad news for taxpayers," she said.
MacPherson said to control the deficit the government must address its single biggest expense — public employee salaries.
Amber Ruddy with the Canadian Federation of Independent Business wanted to hear tax cuts are coming to help stimulate the economy.
"Businesses could do a lot more with a dollar than the government can, so let's let the job creators do what they do best," she said.
- MORE ECONOMIC NEWS | Laid-off oilpatch workers who moved provinces could face big tax bill
- MORE ECONOMIC NEWS | Small players, big problems: Junior players in oilpatch most vulnerable amid downturn