Prentice promises ‘compassion’ for the vulnerable in Alberta budget

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A week before Premier Jim Prentice unveils a far-reaching budget that he has said will be painful for Albertans, the Tory Leader toned down his warnings and promised his government will show compassion.

For months, Mr. Prentice and his lieutenants have publicly floated ideas about raising revenue and cutting spending. Depressed energy prices have taken a bite out of the oil-rich province's tax receipts and left Alberta with what could be one of Canada's largest provincial deficits in the coming year.

"Some people would have us slash and burn our way to prosperity, by cutting services, cancelling infrastructure projects and cutting drastically across the board," Mr. Prentice said at a municipalities conference in Edmonton on Wednesday.

"We will, in the actions we take, show compassion for those who are vulnerable and for those who need to be protected."

As Alberta grapples with a deficit that could top $7-billion and an economy on the edge of recession, the Premier says he is preparing a once-in-a-generation rethink of how the province funds and provides public services.

The province's opposition parties say they don't trust Mr. Prentice to either make the right cuts or raise the right taxes.

"I don't think you can trust the Premier on anything at this point in time," said Heather Forsyth, the interim leader of the Wildrose Party opposition. "It really depends on the day, where his rhetoric will go."

With the budget to be unveiled on March 26 and a spring election expected to follow soon, Mr. Prentice's insistence that Albertans share blame for the deficits has softened.

"His message is starting to change a bit because he's starting to understand that Albertans aren't buying what he's selling," Alberta NDP Leader Rachel Notley said.

Mr. Prentice found himself in trouble two weeks ago when he told Albertans to "look in the mirror" to see who was responsible for the fiscal mess. Many were quick to point out that the Progressive Conservatives have held power for nearly half a century.

For decades, Alberta's Tories have promised low taxes and well-funded public services. A steady flow of royalties from strong energy exports kept the system going and allowed the province to pay off its debt. However, in recent years the province has posted a string of deficits and has struggled to invest as the population has boomed. Hospitals and schools are often overcrowded and housed in aging buildings.

Mr. Prentice has promised to take his province off the roller coaster of energy prices to avoid future boom-and-bust cycles, but first his government is eyeing cuts.

In early February, Finance Minister Robin Campbell warned that he was planning the equivalent of a 9-per-cent reduction to government spending in the budget. On Wednesday, Mr. Prentice did not rule out that his government still planned the across-the-board cut.

While little is known about the 10-year budget plan, the Tories have ruled out implementing a provincial sales tax as well as hiking taxes on corporations or energy exports. While promising to keep taxes below those found elsewhere in Canada, Mr. Prentice says he's looking to avoid the debt and deficits found in other provinces.

"We could use every cent that we have to cover these shortfalls," he said. "Within a couple of years, all the savings that it has taken this province 50 years to accumulate would be gone. We would then begin to rack up debt and structural deficits and that would put us in the same position as other provinces in the country."