A somewhat sympathetic crowd greeted Alberta’s finance minister to a speaking engagement at the Athabasca Regional Multiplex last Wednesday.
About 50 people turned up at to hear Robin Campbell talk about the numerous challenges facing the province in its latest budget including low oil prices, a $7 billion revenue shortfall, high staffing costs and a $29 billion infrastructure deficit.
“We are facing a serious situation, but I don’t think people need to panic,” opened Campbell.
“Yes, oil prices are low, but they will come back. What or when they come back, I have no idea. But we have other industries in this province that are doing well and creating opportunities for people.”
Aside from the challenges already listed, Campbell added the fact people continue to flock to Alberta at this time, means the government needs to keep building and maintaining infrastructure.
“We have a number of people that keep coming to this province to spend money, create jobs, pay income tax,” he stated, “But they don’t bring the schools, hospitals, road and bridges with them. So, we need to finance that and build now to move the province forward and you will also see us spend a bit more money to maintain the assets we have.”
To that end, Campbell confirmed to the crowd that the replacement for Edwin Parr Composite will go ahead as planned.
Athabasca Mayor Roger Morrill and Athabasca County councillor Warren Griffin were at the event and that statement left both men pleased.
“It’s nice to see high profile ministers come to the area and meet with people,” Morrill said, “and I especially appreciate his reaffirmation of the new school to be build and the government’s desire to a sustainable and diversified economy over the long term to help us ride through these low oil price cycles.”
Griffin, meanwhile, was happy the province will continue the project and there won’t be any second-guessing about things going forward.
Campbell did explain that the government will continue, though, to search for efficiencies in the construction process in order to get the best price they can.
“Schools are a great example of the must-haves,” he stated, adding 28 new schools need to be built annually to keep up with those moving in.
That will mean all elementary schools will be built using a similar layout, while high schools will have a bit more choice – within reason.
Continuing along the infrastructure line, Campbell stated the government has some debt capacity and will use that to eat away at the deficit it faces in that area.
“We can borrow responsibly, but will only do it for capital projects,” he explained, later adding this coming budget will likely be in the red by about $2 billion should all of the government departments meet their financial targets.
Those targets are all focused on what Campbell emphasized is the government’s “three pronged approach” to this budget – one-third savings from operations and government spending, one-third coming from Alberta’s contingency fund and the other third resulting from looking for new streams of revenue generation.
Even though Campbell stated that everything is on the table and being looked at, Albertans have resoundingly rejected any notion of a sales tax and that includes the premier.
“Consumer confidence is one of our other challenges, and the largest employer in this province is small business,” he said.
“And in communities such as Athabasca, small businesses keep the community knitted together. So even though things are serious, we need to make sure that people still have confidence, still want to come here and invest.
“Our premier has made it clear that we will continue to be the lowest tax regime in Canada. That’s important (to our government) and will be useful foundations for the future and we will weather this.”
Campbell added in spite of the financial storms the province faces, the government’s core programs and Alberta’s more vulnerable will continue to be cared for.
“We have tough choices to make, so when better days return we can make the most of it,” he said.
