Face of Nation : Fresh off of the release of the MacKinnon report this week on the province’s fiscal state, Alberta Finance Minister Travis Toews is warning of spending cuts to come. Toews spoke to the Calgary Chamber of Commerce over the noon hour on Wednesday.
He said when he presents a new provincial budget next month he will present a plan for balancing Alberta’s books. But because this fiscal year is already well underway, Toews said that the second and third years of the UCP government’s mandate will see what he calls “transformative changes.”
The government released the report by the blue-ribbon panel, chaired by former Saskatchewan finance minister Janice MacKinnon, on Tuesday. The panel concluded Alberta has a spending problem and that the government should take steps to get its fiscal house in order.
The recommendations included legislating salaries for public sector employees, allowing privately-run health clinics to perform day procedures and to end the freeze on tuition fees at post-secondary institutions.
As part of its work, the panel concluded Alberta’s expenditures would drop by more than $10 billion a year if it simply matched the average per capita spending in B.C., Ontario and Quebec. Toews told the chamber audience that Alberta’s rate of spending is no longer sustainable as it is racking up debt which will cost more and more to service.
“Folks, we can no longer afford to spend at that rate. We can no longer spend like we’re the rich kid on the block because quite frankly, we’re not anymore.” To balance the provincial budget by 2022-23, the panel recommends that the government cut its spending by at least $600 million.
In speaking with reporters after his speech, Toews noted that he cannot ignore the possibility of outside events which could affect the province’s finances in coming years.
