Dear Editor;
Ms. Iris Evans reported last week the global financial turmoil gutted $6.5 billion out of the expected provincial surplus in the second quarter. $1.2 billion has been eroded from the Heritage Fund in the first six months of the fiscal year, and $3.1 billion originally targeted for savings and inflation and other endowments has been wiped out. The Stelmach government announced it won’t have enough surplus dollars to cover the $4 billion in climate-change initiatives it originally budgeted.
There is a considerable argument between commentators as to whether, apart from a pretty painful recession, the US economy is in for a bout of inflation or deflation. Both sides have apparently cogent arguments, and maintain their positions with considerable vigour. Regardless of who will be correct, Alberta’s sole source of international revenue, the U.S. economy, is in for some tough times.
Ignoring reality and our fiscal planning responsibilities is not an option available to this Alberta’s government; we can’t spend as if the trough will never be empty. If we continue to do so, we will pay the price for the shortsightedness of our government. Ms. Iris Evans and Mr. Stelmach are correct in warning us of an unsustainable budget, but nobody is holding them accountable to take any steps necessary to behave in a fiscally responsible manner.
We need to gently rollback expansion plans for our energy sector now. We must not develop oil or gas where the infrastructure or environment cannot support the development. We don’t need to import workers to further exacerbate an over-heated economy. We can’t allow our politicians an unfettered right to give themselves a 34 per cent pay raise while we are all forced to cut back everywhere else. We need to invest in the future and prepare for a US economic recession. We need to encourage investment in sustainable economic activities. Oil and gas revenues can support this transition. We need to save for the future. We need to do it now.
Joe Anglin
Rimbey