Province	Législature	Session	Type de discours	Date du discours	Locuteur	Fonction du locuteur	Parti politique
Alberta	22e 	4e 	Discours du budget	6 mai 1993	M. James (Jim) Dinning	Trésorier provincial	PC


Mr. Dinning: Mr. Speaker, Premier Ralph Klein's government has spent the past five months listening to Albertans. We've heard their message loud and clear. The budget plan I am announcing tonight reflects the principles our people cherish, the priorities they value, and the policies they expect. Albertans have told us to get our financial house in order, to pay utmost attention to the economy and jobs, to strengthen education, to maintain the excellence of our health care system, and to provide affordable public services. That is precisely what this government will do.

Our job is to foster a competitive and prosperous Alberta. We will do that by setting a responsible fiscal course with open and accountable government by providing value in government services and above all else by living within the taxpayers' means. Mr. Speaker, the budget I am presenting tonight is not an isolated exercise. Rather, it is an integral part of Premier Klein's government's financial plan.

The plan sets out four strategies: first, to legislate and enforce a four-year program which will result in a balanced budget by 1996-97; second, to set clear priorities and stick to them; third, to act boldly on Alberta's economic development strategy; and finally, to change the way government does business.

Mr. Speaker, the plan spells out an ambitious yet realistic and enforceable course to balance the provincial budget by 1996-97. As a first step, this year's budget will reduce the consolidated deficit by some 22 percent, or nearly $700 million. This will be accomplished through cuts on the expenditure side of the budget. There are no tax increases, no new taxes, and no sales tax.

The document I have tabled describes in detail the reductions in government spending. Much of the savings will come from our first line of attack: eliminating waste and duplication, reorganizing and downsizing government. But the expenditure cuts will have to go deeper. This year's budget contains tough but fair measures that will curtail some government services. Our work has just begun.

We all know that new times demand new approaches and new ways of doing things. That means change, Mr. Speaker. We cannot meet today's challenges with yesterday's ideas. Successful businesses and successful governments know that staying the same means getting left behind. In the financial arena this means doing the right things and doing them better. 

Premier Klein's government has demonstrated what change is all about, and we've begun our share of cost cutting. The size of government has been reduced. There are fewer ministers sitting at a much smaller cabinet table. Government departments and many senior jobs have been eliminated. Salaries of ministers and senior staff members have been cut, and now the outright elimination of MLA pensions. In 152 days, Mr. Premier, that's a lot of change. Cost cutting is only the beginning. Just as important is our government's commitment to fiscal responsibility and accountability. 

Mr. Speaker, there is no need for me to describe how economic conditions have changed and how they have transformed Alberta's financial affairs. We, this government, opened the books on the province's finances, and the stark reality is described in the recently published report of the Financial Review Commission. Their conclusion is straightforward. What individual Albertans have told us over and over, the independent financial experts have confirmed on the basis of careful analysis. We must re- examine the role of government, redefine what we in government should do, and how we should do it.

Our long-term financial plan, and within it this year's budget, sets a responsible fiscal course for the province and provides a workable blueprint for change: reducing government spending, changing the way we do business, eliminating waste and duplication, getting out of the way of business so they can get on with the job, balancing the budget. Those are the key elements, Mr. Speaker, of a new fiscal course for Alberta. 

Tomorrow I will take action on the first strategic component by introducing a new piece of legislation, the Deficit Elimination Act. This will impose strong discipline on all of us. The legislation will require government to follow a prescribed course of annual deficit reductions. There will be no loopholes, Mr. Speaker. If in any one year government fails to meet its deficit reduction target, the budget for the subsequent year will be reduced to make up the shortfall and keep the balanced budget plan on track.

The plan sets clear year-to-year targets for deficit reduction. Tonight, Mr. Speaker, we have announced a deficit reduction of nearly $700 million for this year alone. That takes the deficit down from $3.17 billion to $2.48 billion. Next year the deficit will be reduced another $ 700 million to $1.8 billion. In '95-96 the deficit will be $800 million, and in 1996-97 Alberta will balance the budget. Overspending and borrowing will come to an end. At that point we'll start attacking the debt. Albertans and their government backed up by a legislated deficit elimination requirement will ensure that these targets are met. 

The discipline will go beyond mere numbers, however. It will require government to significantly improve the way we prepare and report on our budget. For one thing, all future budgets will be prepared using conservative revenue forecasts. Mr. Speaker, we learned our lesson. Optimistic oil and gas revenue forecasts have no place in the budgetary exercise. In the future we will err on the other side. We will stick to the assumption that oil and gas revenues will stay at the same level as the average of the previous five years. Should we be wrong and should revenues exceed our forecast, the additional funds will not be used for program spending. They will be earmarked for deficit and debt reduction. The same prudent principles will apply to other additional revenues over and above our revenue estimates. Let me repeat: we will not use windfall revenues to increase government spending; revenue gains will go to reduce the deficit and the debt.

With fiscal discipline in place the priorities of government spending will accurately reflect the priorities of the people of Alberta. Of the many tasks facing us, revitalizing the economy is clearly at the top of the list, yet this budget contains no dramatic spending gestures, no major infusions of cash. Here, too, we have learned a lesson, Mr. Speaker: government cannot stimulate the economy through quick fixes. 

The Klein government's approach is to build the Alberta economy in full partnership with others, not by ourselves but with Albertans. To strengthen investor confidence and enhance the rewards for success, we will begin by getting rid of unnecessary rules and regulations which hamper business efforts to invest and create more jobs. As part of our talks with businesspeople we've heard them complain about the paper burden they carry. They say to us: let us get out of the form-filling business so we can focus on our own business. We agree, Mr. Speaker. 

The two-stage regulation review announced by Premier Klein is already under way. Every government department will have a deregulation action plan completed by September 1, and these plans will come up with recommendations for revision, for reduction, or outright elimination of unnecessary rules and regulations. The second phase, a public review of those deregulation action plans will follow immediately. I expect a final report for cabinet's approval by December 31.

One further step in removing the paper burden for Alberta businesses, Mr. Speaker: I am announcing tonight that Alberta will begin negotiations with Ottawa to have the federal government collect our provincial corporate income taxes. There is simply no justification for both federal and provincial governments to be in the corporate tax collection business. 

Over and above administrative efficiencies in tax collection this government is concerned is concerned with the overall impact of taxation on the entire provincial economy, Mr. Speaker. We are establishing a tax reform commission to review all aspects of Alberta's taxation system. The commission will be asked to focus on one single question: what can we do to improve our competitive position? My objective is to appoint members of the commission by July 1 and have their report in hand by the end of this year.

Mr. Speaker, the Premier has already made it clear that we are getting out of the business of direct business subsidies. Existing and prospective business companies in this province can look forward to their government maintaining an healthy investment climate and creating a competitive tax environment.

Our economic strategy is not designed to be a quick fix for the Alberta economy. It establishes priorities. It defines directions. Our job in government is to set the stage for action by individuals, by entrepreneurs, by business and industry, and by an army of Alberta volunteers wanting to go to work.
To accomplish what we have set out to do, we must change the way government does business. Mr. Speaker, we told Albertans that we would take action on the recommendations of the Auditor General and the Alberta Financial Review Commission. Tonight we are delivering on that commitment. The result is timely and clear reporting to Albertans, new accounting and budgeting approaches, and a focus on performance and outcomes. 

Commencing this year all departments, agencies, and organizations receiving significant government funding will be required each year to prepare three-year business plans outlining long-term goals and program objectives, spending requirements that match our financial plan, and specific measures to measure results and performance. The business plans must answer the basic question: is this the business that we should be in? If the answer is yes, then how can we streamline and do the job better over the next three years? That's how successful businesses operate, Mr. Speaker, and that's how efficient organizations in the public sector must operate. Annual performance reports on the business plans will be prepared, and they will be made public.

This fall we will set out multiyear funding targets for all government departments and for schools, hospitals, and postsecondary institutions. The task of meeting those targets will be left to those who can do the job best: the people working on the front lines, Mr. Speaker. This government will get out of the way and let them do their job.

This budget, including the Deficit Elimination Act, takes the first key steps towards a consolidated budget that will give Albertans the complete picture of the province's financial activities. The day-to-day operating budget, much like a family's monthly budget, has been separated from the province's capital investment budget, and consistent with the recommendations of the Auditor General, Mr. Speaker, I wish to advise the Assembly tonight that spending of lottery funds will require the approval of the Legislative Assembly.

A new management board structure will be established to regularly monitor and adjust the province's financial affairs and planning activities. The audit committee's role will be expanded to serve as an ongoing Financial Review Commission to report directly to the public on government's progress towards the goal of a balanced budget. 

There has been a lot of discussion about the Alberta heritage savings trust fund. Premier Klein is committed to carrying out a public review of the purpose and the future of this fund. It's a fund that belongs to all Albertans, Mr. Speaker, and we will not make changes to it without listening first to Albertans.

Moving to government operations, actions will be taken to redefine the role of government along the lines of a successful business. This means reducing the overall size and complexity of government by eliminating and amalgamating and in some cases privatizing a number of agencies, boards, commissions, and committees. It also means focusing on positive results, improving productivity through creativity and innovation, getting out of the direct business of providing programs wherever we can, and disposing of assets that are no longer required.

Mr. Speaker, those are the highlights. I encourage Albertans to look carefully at the details in this four-year plan. Taken together, the full range of actions will achieve the objective of getting Alberta back on track and balancing the budget by 1996-97.

Proof, Mr. Speaker: Albertans are looking for proof, and the proof of our commitment lies not in promises but in action, delivering on those promises. The first action comes in this year's budget. Priority has been placed on streamlining government to eliminate duplication and waste and reduce overall government spending. We're also putting in place the essential processes and reviews to set the stage for further spending reductions in 1994-95 and the two years following, and those reviews will begin immediately. We cannot and we will not take action on specific savings over the next three years without consulting Albertans first. 

Mr. Speaker, these are the key facts about this year's budget. Budget '93 contains no tax increases, no new taxes, and no sales tax. Alberta's operating deficit will decline by $400 million to $1.92 billion. That's a 17 percent reduction from the $2.32 billion operating deficit for the past year. A 17 percent reduction in our operating deficit, Mr. Speaker. Our consolidated deficit for '93-94 will decline by $690 million to a total of $2.48 billion. That's a 22 percent reduction from last year's consolidated deficit. Overall revenue is expected to decline this year by $79 million to just under $11.5 billion. Total operating expenditures will be $13.4 billion. That includes more than $1.4 billion to service the cost of our debt. Our investment in capital projects and equipment will be $817 million.

More than $130 million will be saved in '93-94 from our first line of attack: eliminating waste and duplication, reorganizing and downsizing government. The operating budgets of 14 government departments will be cut, and overall the civil service will be reduced by 2,575 positions. Eighteen hundred of these positions are the result of the early voluntary options program, and the remaining reductions will take place almost entirely by attrition. That's the bottom line: a reduction in the deficit of almost $700 million and no increase in revenue.

Mr. Speaker, to achieve the bottom line, specific actions have been taken to cut spending in addition to those I've already mentioned. Four hundred and forty million dollars will be saved by reforming programs, eliminating some programs, and not renewing others. The $440 million includes savings from the significant welfare reforms introduced by my colleague the Minister of Family and Social Services, first-time real reductions in the Health department's budget, and $165 million in specific program cuts across the entire government operation.

The new Alberta registries agency will serve as a model for future government operations. It will provide timely and accessible one-window services to Albertans in their own home communities using private-sector agencies to deliver the services in partnership with government. 
Tonight I am announcing the amalgamation of nine government agencies and the elimination of 13 advisory committees and councils. As examples, the Agricultural Development Corporation, the Alberta Opportunity Company, and the Motion Picture Development Corporation will be amalgamated into one efficient organization. The Land Compensation Board and the Surface Rights Board will be merged. The Labour Relations Board will be amalgamated with the Public Service Employee Relations Board. The Alberta Sport Council will be combined with the Recreation, Parks and Wildlife Foundation. Those are actions, Mr. Speaker, action on reducing the size of government.

Action has also been taken in Budget '93 on the priority areas of education and health. Albertans have said, Education is fundamentally important to our children and to our future, but Albertans have also begun to question whether there are ways of getting better results for our investment in education. The key question is whether the structure we have in place now is the best way of ensuring that Alberta students get what they need, and that's the best possible education at a reasonable cost. To meet this objective we will turn to the basic education and postsecondary communities to engage them and to authorize them to carry out a review process with known spending targets and a clear objective, practical strategies for doing the job better. Actions from that round table will be part of the '94 budget.

For '93-94 spending in education will increase, Mr. Speaker. This is in response to the enrollment growth that our schools will experience this fall and addresses a number of important issues. Thirty million dollars in lottery funding has been added to the education system as an interim measure to address the problem of financial inequities among school boards. This will directly help the education of children in communities particularly a little less wealthy than others, cities, towns, and rural communities, including places like Edmonton, Red Deer, Vermilion, and Raymond. But the equity problem is growing, and a long-term solution is absolutely essential. That solution will be achieved as part of the tax review announced by Premier Klein in the economic strategy, and the report is to be prepared by December 31 of this year.

An additional $17 million will be provided to the Students Finance Board. Students qualifying for student loans will receive an additional $ 350 to cover increases in tuition fees as well as an increase in their cost of living.

Albertans, Mr. Speaker, have said that health is a top priority. The challenge is to provide quality, affordable health care for all Albertans. Spending in '93-94 will be reduced by $127 million, but Health's share of total government spending will actually increase to over 33 percent. The costs are growing at a rate we can no longer afford. People working in the health care system understand that reality, and they also have the vision and the will to change the system and find a better way. My colleague the Minister of Health will work with people directly involved in the health care sector to determine how those spending reduction targets will be met. In addition, a health review round table process will begin this summer. Health planning groups will be formed throughout the province, and their recommendations will be made this fall and further actions will be included in the 1994 budget.
To keep pace with rising costs, monthly health care insurance premiums will increase October 1 from $54 per family to $60 and from $27 to $30 for individuals. At the same time, more low-income Albertans will be protected from having to pay full health care insurance premiums. We've increased the threshold by 10 percent for those who qualify for reduced health care insurance premiums.

Finally, this budget provides increased support for those Albertans with the greatest need. An additional $3.4 million will be spent to increase benefits under the assured income for the severely handicapped program and the widows' pension. Nine million dollars will be added to assist persons with disabilities to live in their own home communities. The rates paid to foster care parents will be increased by 9 percent to recognize the invaluable services they provide, and a further $1 million will be spent to develop foster care treatment spaces throughout the province.

Mr. Speaker, those are the highlights of Budget '93. Further details for all government departments are included in the information that I have tabled with you today, sir.

I have said very little about our commitment to protecting Alberta's environment, about the future of agriculture, and about our commitment to Alberta's senior citizens. Our commitment to these Albertans and to the essential services for them remains. To secure the future of social programs and the way of life Albertans value, we have to take action now to get spending in line with our revenues because, Mr. Speaker, if we fail, what we will do is put our social programs, our programs for people at risk. A strong economy is the essential foundation for good social programs, quality services, and a clean environment.

Mr. Speaker, this is the first time in my years of public service that I have the honour of delivering a Budget Address. Being new to the job, I had one major advantage. I simply didn't know what can't be done. Over the past five months I've ignored what can't be done and focused instead on what can be done. The proof is in the budget you see tonight. Today we've taken the first step in getting Alberta's fiscal course back on track, and in many ways the first step is the toughest. It means facing the problem head-on, realizing there is no easy way out, no simple solutions. Then it's a matter of getting on with the job of making decisions in a fair and deliberate way.

That great baseball player cum philosopher Yogi Berra once said: when you come to a fork in the road, take it. Well, we've come to that fork in the road, Mr. Speaker. We can't continue on the same path as in the past. We've got to choose a new route to the destination of a better future for Alberta.

In both the economic strategy and this financial plan our message is one of confidence and commitment: confidence that we can turn Alberta's economy around and position us for success as we approach the 21st century, commitment that this government will deliver a balanced budget. With these two plans in place, we can rekindle Albertans' hope and confidence in the future. We've come to the fork in the road, we've turned the corner, and we're on a new path for a better Alberta.
Mr. Speaker, when Premier Klein took office, he promised that this would be a government of change and he promised to listen to Albertans. Tonight a promise made is a promise kept. We have a plan that contains no tax increases, no new taxes, and no sales tax: a reasonable, achievable, and enforceable plan for balancing the budget. We have a tough but fair budget that cuts nearly $700 million off last year's deficit, a budget that comes before an election, a budget with no giveaways.

We are confident, Mr. Speaker, about Alberta's future, about working with Albertans to build a better Alberta. We will work, and we will work together until our work is done.

Thank you, Mr. Speaker.