Earlier this month Alberta Finance Minister Ron Liepert introduced a big-spending provincial budget that pours more money into education, health care and family services. It was quite a contrast to the belt-tightening in other provinces, and drew criticism for running a deficit and for its optimistic forecasts for oil revenue in coming years.
This will be the last budget that Mr. Liepert – a former energy minister – tables in Alberta, as he plans to retire from government after the provincial election that’s expected in the spring.
Alberta has a reputation for being fiscally conservative, but your spending has gone up sharply in this budget. Aren’t you going to have to put on the brakes like everyone else?
We have been accused of spending too much, but we are also growing. You saw the census. When you are growing at that rate you need more schools and more hospitals and more teachers and more nurses.
Still, I’m a big believer that in every budget there are savings to be found. Every department is going to do a thorough review from the ground up.
Is there room for restraint in Alberta?
We spend 80 per cent of our budget on health care, education and social services. You’ve got to find some better, efficient, less costly ways of doing things in those departments, or you are never going to achieve your [cost-saving] goals. I don’t care how much savings you find in the other 20 per cent, it’s not going to make that big a [difference] overall.
Will you take some ideas from the Drummond report in Ontario?
I hope so. Surely to goodness there are a lot of things that Ontario and Alberta are doing in a similar way. We would be foolish not to have a look at it.
How do you convince the rest of Canada – where there is considerable envy – that a financially healthy Alberta is good for other Canadians?
It is a lot harder than you would think. If we start to run large surpluses again – and unless there is a worldwide recession again I don’t see us doing anything but – we have to start to look at ways that Albertans can show that the large surplus is good for Canada, not just for Alberta.
We have to have a more comprehensive communications plan – and not just a short-term campaign. It is [going to be] a lot of work in the trenches.
Given some of the negative reaction to the budget, will you make any adjustments?
None. The only criticism I’ve heard is that we are being too optimistic in our revenue projections. I say: Call me an optimist, I don’t care. I felt really good about it.
How do you get out the message that many jobs in the rest of the country exist because of Alberta’s energy industry?
If someone working in a facility in Ontario hears the message from their respected superior, or their neighbour, or their relative, that has more impact than hearing it from some Alberta guy. We have to provide the tools to folks who understand there are direct benefits to Ontario, and let them start to spread the message. That’s much more effective.
You said recently that other provinces need to be more accountable for the way they spend equalization payments. Isn’t that just rubbing salt into the wounds of “have-not” provinces?
I may have been taken a little bit out of context. What I said was that as the percentage of equalization grows, Albertans see other provinces implementing social programs that we at home don’t have. Questions are starting to be asked.
Maybe [we need to] discuss the goals and objectives that we collectively want to see equalization accomplish. I think we’ve got to start having those discussions, because I’m hearing it at home.
