Alberta Finance Minister Joe Ceci, right, says the budget’s aim is to grow businesses.Topher Seguin/The Canadian Press
Joe Ceci, Alberta's Finance Minister, this week unveiled a budget sporting a $6.1-billion deficit and plans to borrow money to cover operating expenses starting in 2016. The government devised a program where companies can access up to $5,000 for every new employee hired, which the government believes will create up to 27,000 new jobs a year for two years. The New Democratic Party expects to balance the province's budget in fiscal 2019-2020, a year later than it promised during the election campaign this spring.
Mr. Ceci defended the government's financial plan in a scrum with reporters Tuesday.
How do you justify to Albertans borrowing money to cover operating expenses for the first time in 20 years?
In these economic times, we want to keep front-line services strong. We don't want to fire thousands of nurses and teachers. So we're going to continue to appropriately fund front-line services. We want to start investing in this province, over and above the previous capital plan so that we can add a stimulator to this low recession time. And to do all those things and to have a pathway back to balance, we of course have to use our contingency account for the reason it was set up. It was set up to accept the shock of not having the available revenue to cover off operations. In the meantime, to get us back to balance, we will borrow for operations.
Why is the job creation program, in your reckoning, the most appropriate way to create jobs?
The job creation incentive was in our platform. It was called a job creation tax credit then. But we've reloaded a little bit and looked at what we think will be the most appropriate. A grant program to support the creation of jobs across Alberta – we heard that it would be a good thing. So we're going to make it that. In doing so, we'll see them take advantage of growing their businesses, taking advantage of a grant that would help them support those people.
How does giving a company up to $5,000 to hire someone they already need 'create' a job?
It is going to support businesses who want to hire, to grow their businesses in these recession times. If they have a business plan that they believe can take advantage of a recessionary period by bringing in more staff, we will support that staff person to the tune of $5,000. Which I think is good for business. It is good for the people who perhaps otherwise would have been left out. … It is a significant amount of money. Over all, $89-million into the economy to support the creation of jobs is good. Non-profits and charities have the same advantages as businesses. So if there's a way that one of those sectors wants to take advantage of this, I know it would make a big difference to their bottom lines.
What campaign promises have you had to rethink or delay given the economic circumstances in the province?
There's more than one that we've had to look at delaying, but the one that stands out is $25-per-day daycare. I'm not sure exactly when we start seeing that as a tick [mark on our priority list]. It may be not next year, maybe the year after that – [fiscal] 17-18. But you know, I'm very happy to say a lot of the things we promised to do are being included in this budget.
Why does the province need so much infrastructure?
There needs to be repairs going on. We believe there has been a lag in the repair of many of the bridges, roads, other facilities in this province. We need to maintain, we need to repair and maintain, and we need to create new for the growing population. Even though fewer people are coming here, they still come here. And they don't bring their hospitals with them.
This interview has been condensed.
Carrie Tait