Getting good value for Albertans tax dollars is key to the UCP government’s mandate, says Athabasca-Barrhead-Westlock MLA Glenn van Dijken and a report released last week by an independent panel is the first step towards to curtailing spending and eliminating the deficit by 2022/23.
The Blue Ribbon Panel on Alberta’s Finances, chaired by former Saskatchewan finance minister Janice MacKinnon, was released to the public Sept. 3 and laid out 26 recommendations to offset spending in the province by looking at health and education spending, which are the two biggest costs to the government at this time, with healthcare spending coming in at $20.4 billion in 2018-19 and education spending at $8 billion.
The report also recommended looking for efficiencies in the public sector, capital spending, program review and enhancing Alberta’s competitiveness to help balance the budget before the end of the UCP government’s first term in office.
“Our main findings should be of concern to all Albertans,” said MacKinnon at a news conference in Calgary that morning. “We found that without bold change, Albertans face a future of rising deficits and debt with more and more tax dollars going to interest rather than programs.”
van Dijken said the report is a recognition that Alberta has a spending problem.
“I think most Albertans understand that our spending was out of control compared to other provinces and our outcomes were no better ... I think Albertans said in the spring election that it was time to change that,” he said.
The report focused on areas of spending and did not take into account revenue streams, and rightly so, said van Dijken.
“Expenses have to come into control before we’re going to find ways to try to increase revenue. It’s like a university child that comes to mom and dad and needs more money, and mom and dad can either just willfully and blindly give it to them or they can ask the tough question — where did all the money go?
“We have to get into a position where Albertans feel their government is getting good value for their hard-earned tax dollars and I believe that to come to Albertans and ask them to pay more when they know that our spending is out of control, I think they would look at us and say ‘That’s not fair,’” he said, adding Alberta needs to be on par with other provinces as far as spending goes.
Critics and the NDP Opposition responded to report, saying that cutting health spending in particular will only lead to more privatization in the healthcare system. The report recommended day procedures be performed by non-profits or private clinics instead of hospitals, for instance.
“I was the health minister when I looked at those other jurisdictions,” said deputy NDP leader Sarah Hoffman in a press conference in Edmonton Sept. 3. “B.C. spends less on drugs, that’s true. They do that because they don’t have a seniors drug plan. Saskatchewan spends less because they privatized a number of things and have two lineups — one for those who pay out of pocket and one for everybody else.”
“The government is looking towards finding ways to deliver programs that Albertans need and expect in a more effective and efficient manner,” said van Dijken. “It all comes back to value for tax dollars. Albertans expect to get good value for their tax dollars and the first step in going in that direction is to find how we can do this better and where can we find savings and efficiencies.”
van Dijken said he understands the concern of the critics, but points out the UCP received a mandate by the largest margin in Alberta elections history.
“I understand there is concern and there is speculation, but at the same time, our government is charged with ensuring, and I think Albertans elected us on a platform, to make sure they’re getting good value for their tax dollars,” he said, adding no decisions have been made as of yet, but the report will help lay the groundwork for the upcoming October budget.
“I think it’s fair that people speculate. We all have to try to understand what the future is going to bring, so I don’t see that as a bad thing for Albertans to consider and then give us feedback.”
