Province	Législature	Session	Type de discours	Date du discours	Locuteur	Fonction du locuteur	Parti politique
Alberta	24e 	1re 	Discours du budget	21 avril 1997	M. Stockwell Day	Trésorier provincial	PC


Mr. Day: Mr. Speaker, it is an honour for me to rise today to talk to Albertans about our plans in Budget '97. First, as I do that, I thank you for accommodating my parents, my wife, my son, and other family members in your gallery today, and I am proud to announce that as of Saturday at 4 a. m. the status of myself and my wife has changed somewhat in that we are now proud grandparents of a beautiful six-pound two-ounce granddaughter. Congratulations to my son and daughter-in-law for vigorously pursuing the Alberta advantage.

Mr. Speaker, people listening today and watching the news tonight will be looking for a signal of what this government plans to do over the next three years and how we intend to deploy their tax dollars. Albertans have told us to stay the course, and they may be wondering tonight if we intend to do that. So let me address that right from the outset. 

Mr. Speaker, this government intends to stay the course. Our Premier and the people of Alberta have given me as Treasurer very clear instructions for this budget: no new taxes, no provincial tax increases, no sales tax, and stay the course or you're fired. It's rare that I get applause from the opposition. Today Albertans will see exactly what they expect: a solid, responsible, balanced budget focused on what Albertans told us is most important to them, spending on the right priorities, especially health and education, an ongoing focus on quality and efficiency, a strong commitment to a positive environment for economic growth. It is the private sector that creates jobs and opportunities, and it is our job to create the kind of thriving environment where that can happen.

Mr. Speaker, all economies are subject to certain unchangeable economic laws. Like the laws of nature, if we live in harmony with them, we will experience abundance. If we ignore those laws, we will stifle and stagnate the economic environment. This budget acknowledges Say's law, which dictates: production creates its own price of consumption. A healthy economy will generate the incomes which will enable all Albertans to share in the abundance of Alberta. 

Mr. Speaker, Albertans will see their government determined to live within our means and to pay down the debt. There are no surprises in the budget announcements I'm making today. Albertans saw Budget '97 on February 11. A month later Albertans put their stamp of approval on the plan and the track record of this government for keeping its promises. Today we continue the Klein tradition of keeping our promises. 

The budget I'm introducing today with minor adjustments is the same budget we set out for Albertans on February 11, and because of their strong support I'm proud to introduce this budget not as a Stockwell Day budget but as the people's budget. It is a budget reflecting their priorities, a budget that sticks to what's most important for Albertans, and a budget Albertans support and have approved. With a new and increased mandate and new faces around the table I've had several people ask: will we see changes in the basic fiscal approach the government takes? The answer is a firm no. The majority of Albertans voted for this budget the way it is, and that means I do not have the mandate to alter this budget or the fiscal course we have set. Over the past four years Albertans have been through some challenging times, but we've learned our lessons well, and there's no going back.

Mr. Speaker, with the advice of our constituents we have developed a proven formula for fiscal success, and to change course now would be sheer folly. Our formula relies on balanced budgets, paying down debt, spending wisely, never more than we can afford, measuring results, and staying with the priorities most important to Albertans. It's a formula Albertans understand and support, and it's a formula that will build a secure future for this province, not feast and famine cycles in government spending but solid, secure, and dependable government services paid for with today's dollars.

Before I get into an overview of the priorities for Budget '97, let me quickly run through the financial details. As required by law, Budget '97 is a balanced budget. The days of deficits are gone forever. 

The Budget '97 update projects a surplus of $154 million. Depending on oil and gas prices and corporate taxes, that surplus could be as high as $750 million. Total spending on programs will increase by $297 million over '96-97. Spending on Albertans' two top priorities, health and education, will increase by $410 million. Those increases are offset in part by reductions in other program areas and lower debt-servicing costs. The good news for Albertans is that we're listening to their concerns and spending in the areas of their priorities: more for health and education, less for bankers.

We're budgeting for revenues to drop by $2 billion, down to $14.1 billion compared with $16.1 billion last year. That's a substantial reduction of over 12 per cent. As we've seen in the last few weeks, oil prices have dropped to just above the $19 a barrel mark. With this budget update I am now announcing that we are adjusting our oil price forecast from $19 a barrel to $18.50. This shouldn't come as a surprise to Albertans. It's just good, responsible government. A look at the fluctuating prices over the year and even since the February 11 budget is a solid reminder of why we continue to use conservative forecasts, not wishful thinking, to set revenue targets.

We expect to make a payment of $2.26 billion on Alberta's debt. That is the projected surplus for 1996-97. As required by law, every dollar of that year-end surplus will go to pay down Alberta's debt. Alberta's net debt will drop to $3.5 billion by March '98, down more than half from the net debt burden we faced back in 1994.

Here's the best news for Albertans. For the sixth year in a row there will be no increases in provincial taxes and no new taxes. For low- and middle-income working families personal income taxes will actually decrease by as much as $500 a year. That's money people can use better than we can to meet their needs and help support their families. 

Mr. Speaker, those are the financial highlights. Now let's turn to the priorities in Budget '97. It will cost over $12.8 billion to run this government and provide essential programs and services in 1997-98. Albertans want to know how their sweat-soaked tax dollars will be spent and if it's worth their efforts.

Budget '97 focuses on three priorities: providing quality services for Albertans, building the right environment for economic growth and jobs, and maintaining fiscal responsibility and accountability for results. 

Providing quality programs: health, education, and innovation across the public sector. Albertans have consistently told us to spend money wisely. They want to see quality programs as a result, especially in their two top-priority areas, health and education.

A health system Albertans can count on. Mr. Speaker, with the changes that have taken place in Alberta's health system over the past few years, we know Albertans have concerns. We've listened and we'll continue to listen, and with Budget '97 we're taking action as requested. In November '96 the Minister of Health put forward a comprehensive package of initiatives designed to address problem areas, improve access and quality in health services, and provide longer term stability. Budget '97 builds on those announcements. Albertans will see specific actions on two fronts: improving access to high-quality services and continuing to build a first-rate health system for the future.

On the issue of access, with Alberta's growing population and recognizing the health needs of the growing numbers of seniors, there are increasing pressures on our health system. In light of the increased volume of people and needs, Budget '97 targets additional dollars to add close to 1,000 frontline nurses and other health care workers. It also responds to the increased volume of highly specialized, provincewide services. With this budget update I am announcing an additional $20 million into these provincewide services: services such as cardiovascular surgery, neurosurgery, and kidney dialysis. To continue health reform and build an excellent health system for the future, we will see the development of a new accountability framework, better information available for making good decisions in health, and legislation to protect the privacy of personal health information.

We will also see a review of best practices and administration in regional health authorities, simplified appeals, and a review of long-term care so the needs of seniors can be met. Over the next three years Albertans can expect to see greater stability and accountability in health care, better access to health services in hospitals and in their communities, and a growing emphasis on keeping people healthy and well. 

But to be perfectly frank, Mr. Speaker, nobody has solved the problem of rising costs and growing expectations in the health system, not here in Alberta and not in any other province. A nurse in Red Deer crystallized this issue for me one day when she said that health could swallow up every dollar you have and more. 

That nurse was simply reflecting another unchangeable economic law: the law of supply and demand. That law tells us that if the price for a product or a service is lowered, the demand for it will rise. Therefore, if the price for the consumer is lowered to zero, the demand can rise to infinity. A hospital technician echoed that same thought by telling me that there's not enough money in the entire province, in his view, to satisfy the demands of every health practitioner. We need an answer to this basic question: how can we get the best health care for Albertans at a price we can afford? We must deal with that question in the days and months ahead, because simply spending more and more money on health is not the answer.

With Budget '97 total spending on health will increase by $144 million to a total of nearly $4 billion. That's just slightly less than what we were spending in 1992 before the restructuring began. Over the next three years spending on health will increase to $4.1 billion, an average increase of 2.3 percent a year.

First-rate education and training. Mr. Speaker, education shares the top spot on Albertans' list of priorities and for good reason. For the sake of our children's future and the future of our province our young people must be able to seize the advantages they need in today's world. First-class knowledge and skills pave the road to that future. Over the next three years our focus will be on making sure our young people have the knowledge and skills they need, improving achievement, and ensuring that more students complete high school.

This year we will provide additional funding to support increased enrollment in schools and an increased number of students with severe special needs.

To ensure that students have access to technology, additional funding will be directed to computer technology in schools. In response to what Albertans have told us, we are easing restrictions on matching grants provided through technology integration funding. School boards will now be able to use the funds to purchase software and networking components for use in schools as well as for the purchase of computers. Government also will be working with software providers to reduce the cost of software for schools and to develop partnership agreements.

In total, education spending will increase by $91 million, or 3.3 percent, in '97-98. Over the next three years spending on education will increase by an average of just under 2 percent per year, bringing the total to $2.9 billion.

Moving to the postsecondary side of education, our goal is to promote excellence in adult learning. In today's world a high school education simply isn't enough. Today's marketplace demands knowledge, first-rate skills, and a willingness to keep learning and keep pace with rapid change. For Alberta to have the highly skilled workforce we need and for our young people to compete and succeed with the best in the world, we need a postsecondary system at the leading edge in innovation, quality, and performance.

Alberta's new human resource strategy, People and Prosperity, will guide our actions over the next three years. Albertans will see steps taken to revise Alberta's apprenticeship and industrial training programs. A new intellectual infrastructure partnership will encourage investment in research aimed at expanding Alberta's competitive advantage. Efforts will be focused on young people to ensure they have the career information and skills to enter the workforce. We will also address the needs of students who haven't finished high school and need skills to enter the labour market.

Over the next three years we'll focus on performance and results, tying more funding for postsecondary institutions to the results they achieve. We'll expand student assistance to accommodate rising costs, including tuition, and $40 million per year will be available to postsecondary institutions for upgrading their facilities and equipment, an area those institutions have told us is a major concern. With Budget '97 total spending on adult education will increase by $68 million, or 6.2 percent. By 1999-2000 this government will spend almost $1.2 billion on adult education and training programs, an increase of 2.4 percent a year for the next three years.

Mr. Speaker, those are the highlights of our government's plans for health and education. The publicly available Budget '97 document contains literally hundreds of ideas and initiatives that will be taken in other important areas.

We'll also build on our progress in social assistance programs. As former Minister of Family and Social Services it was rewarding to see the recent C.D. Howe study conclude that Alberta's welfare reform is one experiment from which all Canadians and their governments can benefit. The key to our success was stopping the incentive for more and more people to opt for welfare. In 1992 14,000 people joined the welfare rolls, most of them single, employable people. By 1996 the number of new people on welfare was down to 3,500. Nearly 16,000 fewer people under 25 are on welfare, a decline of 64 percent in three years. Mr. Speaker, I would be remiss if I did not acknowledge the initiator of that direction. Thank you, Mike Cardinal, okimaw. That's great news. Albertans believe in work. They believe in supporting themselves and their families. We want to see young people starting their adult lives in colleges, in universities, or in the workforce, not on welfare, and this study shows we're headed in the right direction.

For those Albertans with no options, people who need government and community support and who are unable to meet their basic needs, we are responding. We have increased seniors' benefits and provided more special- needs funding to address emergency and other unforeseen expenses. We will increase allowances for shelter benefits, widows' pension benefits, and assured income for the severely handicapped benefits, and we will redirect savings in other areas to employment programs and high-priority programs for children and disabled Albertans.

I'm not going to go into more detail about all the plans and initiatives. They are laid out for everyone to see in the business plans, but I do want to spend a minute talking about a theme that cuts across the entire public sector, and that is innovation. 
Innovation. The quest for excellence continues. Albertans expect and deserve the best services we can provide for the dollars we can afford. Demanding excellence in all programs, whether education or social services, is simply a reflection of Gresham's law, which warns us that bad money chases good money out of circulation. Therefore, lackluster programs will have to be avoided, or they will push excellent programs and incentives off the table.

Over the next three years we'll count on excellence and innovation from our dedicated public service, count on them to continue coming forward with their best ideas on efficiency and maximizing service delivery, ideas such as new ways of removing costly overlap and duplication or new ways of working together across government departments to build new solutions and provide quality service to Albertans. 

Jobs and the economy. Alberta is on the move. Mr. Speaker, let me move now to the second key focus in Budget '97. 

Albertans are well known across Canada as the most confident and optimistic people in the country and for good reason. Alberta is on the move, and there is no shortage of good news on the economic front. In the past we were used to seeing economic growth fueled primarily by oil and gas, and there is no doubt that the energy sector remains a strong part of today's economic growth, but unlike the past we are now seeing broad-based growth across a number of sectors. Manufacturing is up, exports are up, the value-added agrifood business is growing substantially, and so is forestry. We are welcoming more tourists from around the world, and we see new business ventures announced on an almost daily basis. 

All of this excitement and growth on the economic front is good news for Albertans, but the best news is that it means more jobs and better paying jobs for Albertans. Alberta now leads the country with the lowest unemployment rate in Canada, down to 6.2 percent. We expect to see that rate drop below 6 percent over the next three years. We lead Canada in having the fastest rate of employment growth. Since December '92 157,300 new jobs have been created in Alberta. Two-thirds of all new jobs created for Canadian youth in '94 and '95 were created right here in Alberta, and we're not stopping now. The new target is to see 155,000 new jobs created in the private sector over the next four years: high-quality, good-paying, sustainable jobs that give our young people and families a secure and solid foundation for building their futures right here at home in Alberta. 

On the government side we'll focus our efforts where we can make a difference: keeping the lowest taxes in Canada, maintaining Alberta's competitive advantage, maintaining a first-class infrastructure of roads and highways so people can get their goods to market, investing with the private sector in research and development in key areas such as energy, forestry, agriculture, health, and medical services.

Mr. Speaker, I want to spend a few moments on taxes. Albertans pride themselves on having the lowest overall taxes in the country. It is a key advantage we hold over our competitors, and it is an advantage that we cannot afford to lose. Other provinces are now taking Alberta's examples and moving ahead with their own fiscal plans. Across the country we hear more and more about tax breaks. Clearly, other provinces see the importance of low taxes as a strong, competitive advantage. If Ontario moves ahead in July with their own tax reductions, Albertans need to know that Ontario's provincial income taxes will be lower than ours. We will still have the lowest overall taxes, but in this lane of the tax track if Ontario moves ahead with their plans, they will be lower than ours in that area.

Based on the advice of Albertans, we put some proposed tax reductions on hold and moved ahead in selected areas: a tax reduction for low- and middle-income working families, as I've already mentioned, improving our competitive advantage by tax changes and reductions in aviation and railroad fuel and machinery and equipment taxes. We now have a dilemma, and we need Albertans' advice. Maintaining the status quo on taxes may not be a long-term option if we want to keep our reputation as having the lowest taxes in the country.

Albertans also need to think very carefully about the level of taxes they pay to their provincial government and indeed to all levels of government. In my view we have become just too tolerant of taxes, too used to writing a check to government and thinking it's the price we have to pay.

I'd like people to reflect on a story. It is a story set in the time of Alexander the Great, a time when there were huge conquering armies and the ruling class kept their subjects as slaves. One particular officer had a habit of beating his slaves. Each night when his slaves came in from the field after toiling all day, the officer would take a branch from an olive tree and deliver six strikes to the back of each slave. Following the beating he would allow the slaves to have their supper. The slaves felt they were powerless to do anything, so they subjected themselves to this treatment each day. They endured and were happy to be fed. After several months one of the slaves returning from the fields braced himself for the usual presupper treatment and to his surprise and relief found that the officer delivered only four strikes to his back instead of the usual six. He looked up at his master and asked: why only four strikes? The master replied: well, you've been a good slave, and now you need only four strikes. The slave was naturally overjoyed and thanked his master for his kindness.

I can't help wondering, Mr. Speaker, if we as taxpayers haven't become so used to our annual regular taxation beatings that we've become willing to give up our freedoms and take the beating rather than protest out of fear that our masters, the government, may not continue to take care of us or give us poor service, poor programs. It's time Albertans started to ask their governments at all levels why taxes need to be so high.
In modern-day history I can recall no other political leader who has stated the case as succinctly and honestly as a few days ago by our own Premier, Ralph Klein. He asked the question, and rather than dress up taxation in the usual political language of necessity, he boldly described taxation as it really is, and I quote: the easiest way to raise revenue is to pick people's pockets. It is a no-brainer, he said, and in making this statement he tore the balaclava of higher taxation from the faces of every elected politician dreaming of raising taxes.

This session new legislation will be introduced for discussion among Albertans. That legislation would, if passed, cap personal and corporate income taxes and perhaps other taxes at current levels unless and until Albertans vote to increase taxes through a referendum. Mr. Speaker, think of it: a Premier who actually believes citizens - citizens, not politicians - should have the right to determine if their taxes should be raised. Thank you, Mr. Premier, for that bold thinking.

Mr. Speaker, Albertans will have the opportunity to think about that legislation. Albertans will tell us whether a freeze on taxes is what they want or if there are other actions we should take. With good progress on the debt front and with reinvestment in key program areas, it may be time once again to look at leaving more money in the pockets of Albertans.

Mr. Speaker, the third priority in Budget '97 is continuing fiscal responsibility and accountability. As I said at the outset, we have found a formula for fiscal success. Albertans support it, and there is no sound reason for us to change course now. These are our commitments to Albertans. Budgets will be balanced. Debt will be paid back. Overall taxes, for now, will remain the lowest in Canada. Spending will be kept under control at a level we can afford. We'll use savings in debt- servicing costs to reinvest in areas where Albertans can see real improvements in their top priority areas. We will stay with conservative and responsible revenue forecasts, dollars we know we can count on. We'll keep challenging the status quo, searching for better solutions, and we'll never be afraid to say that we can do this better or maybe we shouldn't do it at all. We'll be open and accountable to Albertans. We'll tell people what we plan to do, how much we expect to spend and to take in revenues. We'll measure progress and tell Albertans where we met the targets and where we fell short, and at the end of each year we'll account for the dollars we spent and the results we achieved. Above all we will keep listening to Albertans and make sure their priorities are our priorities. It's a simple and basic approach to sound fiscal management. It keeps Alberta on track, working together to achieve our goals and leading the way for the rest of Canada. 

Mr. Speaker, I want to spend just a few minutes on debt, because I know that paying down the debt is important to Albertans and there is some confusion about how much we actually owe. As the public accounts clearly show, Alberta owes approximately $25 billion. That's everything, including unfunded pension liabilities. Separate long-term legislation is in place to take care of the pension liabilities. We need to think of debt as two parts. One part, about $16 billion, is backed by financial assets, including the heritage fund. The other part, the net debt, excluding pension liabilities, is now approximately $3.5 billion. That's the amount that is not covered off by the value of what we own. It is the difference between what we owe and what we own. The net debt is a drain on taxes, and it is our first target. By the time Alberta celebrates its 100th birthday, in 2005, if we maintain our fiscal course, our plan is for the net debt to be eliminated entirely.

The benefits of getting rid of net debt show up directly in our ability to reinvest where it counts most. By 1999-2000 we will save about $ 475 million a year in interest costs from the peak in 1994-95. Money that used to go to bankers can now go to building a better future for our province. But net debt is only the first step. After net debt is gone, Alberta will still owe money. It's money we will continue to pay off, just like a mortgage, over time. When net debt is gone, Albertans will have choices to make about how vigorously we attack the remaining debt and how much debt is reasonable for Alberta to have on an ongoing basis. 

I also want to clarify what happens to Alberta's surpluses under the Balanced Budget and Debt Retirement Act. Some people are saying that now we can spend the surplus. For those who want to see us pay down debt as quickly as we can, let me reassure you that year-end surpluses must and will continue to go to debt. Yes, we may have some legal flexibility during a given fiscal year. If there are problems that require onetime solutions, we can vote in this Assembly to take action. But if Albertans tell us to do that, any additional spending above the budget can only be for onetime costs, not annualized spending. At the beginning of each year we will assess priorities and needs and make our best judgments on what we can afford and what needs to be done. We are not going to blow open the doors to the vault, and we're not going to jeopardize long-term stability with short-term, quick-fix thinking.

Looking ahead. Mr. Speaker, those are the highlights of Budget '97, a budget squarely focused on three priorities: quality programs, jobs in a growing economy, and continuing fiscal responsibility that has become a hallmark of the Alberta government. Budget '97 contains no surprises for Albertans, just steady, responsible action to keep building this province and a better future for all of us. Steady, responsible, good government does not mean the status quo. It does not mean that what we are doing today is all that can or should be done. There are key issues ahead that demand our attention.

Before I stand before you to present Budget '98, should I have that privilege, we will need Albertans' advice on these questions, questions all of us have heard from Albertans year-round and during the campaign, on their doorsteps, in meetings and in debates, questions we need to face. Questions like those posed to me by that nurse and by that health technician. "Is there no end to the amount of money we spend on health? How do we get a first-rate health system without spending every cent we have?" Questions like the one asked of me by a frontline worker in a downtown social agency. "Now that Alberta is growing again, how do we make sure all Albertans have opportunities to share in the benefits? How do we accommodate the stresses and strains of growth without falling back into the old trap of throwing money at every problem that comes along?" The question from a homemaker who understands the pressures of family finances. "What do we do about the rest of Alberta's debt once net debt is gone?" The question from the worker at a steel plant north of Red Deer who rides his bicycle to work at 6 every morning to save money on gas. "When are you going to reduce my taxes?" he says.

Mr. Speaker, those questions are anything but simple. The answers we choose will shape the kind of province we want to build for the future and determine the actions we take. I present this budget on behalf of Albertans with a great deal of care because it truly is their budget, a budget that builds on their priorities, a budget they strongly supported in the election campaign.

The past few weeks have been an overwhelming experience, getting to know a new job, trying to understand the entire range of everything government does for the people of Alberta. In those short weeks I've learned quickly that budgets are not just about divvying up the dollars. They're about making choices, setting priorities, trying to achieve the best results, balancing literally thousands of good ideas about what could be done with a practicable sense of what can be achieved with the dollars we have. Most of all, budgets are about charting a course and building a strong future for our province.

I've considered the costs and the billions of dollars it takes to operate this province. I am reminded of the most basic of all economic laws, nine simple words each of us needs to keep in mind when we ask our neighbours to sacrifice more of their paychecks. Those nine words, simply put: there is no such thing as a free lunch. Mr. Speaker, somebody has to pay.

A former head of state of the nation of Israel said something I believe most Albertans endorse. He said: the hand of the diligent makes rich. That was King Solomon, and he said it 3,000 years ago. We must allow Albertans to enjoy the rewards of their diligence and in the ways that are most important and most enriching to them. Albertans are creating a new future for our province, a future of our own making forged by the hopes, dreams, and hard work of Albertans. We are carving out new paths as we go, and together I am confident that we can turn those hopes and dreams into a new legacy, a new future that we'll be proud to leave to our children and to my granddaughter.

Thank you, Mr. Speaker.





Province	Législature	Session	Type de discours	Date du discours	Locuteur	Fonction du locuteur	Parti politique
Alberta	23e 	5e 	Discours du budget	11 février 1997	M. James (Jim) Dinning	Trésorier provincial	PC

Mr. Dinning: Mr. Speaker, it is a rare pleasure for me to move the motion standing in my name on the Order Paper.

Mr. Speaker, when I talk about the provincial budget, people immediately think of money, but the budget is about more than money. It's about setting priorities, the right priorities, Albertans' priorities, and it's about building a better province. Instead of focusing on the dollars and cents, I want to talk with Albertans today about what this budget means to them.

My first message is a simple one. Alberta is back on top, and we have never been stronger. Balanced budgets, net debt cut in half, the lowest taxes in Canada, a growing and more diversified economy, more jobs and more Albertans working than ever before, a smaller and more focused government, citizens that are skilled, energetic and motivated: with those strengths, Mr. Speaker, it's no wonder proud Albertans are saying, “Nothing can stop us now.”

The prize we set out to achieve, a solid financial foundation, that prize is now firmly in our grasp, and we aren't letting go. Now it's time to secure what we've achieved and build on it, time to put spending cuts behind us, to focus not just on what we spend but what we can achieve. That's what Budget '97 does. It keeps us on track with responsible spending, spending that's targeted at the right priorities, spending that achieves the kinds of results that Albertans expect. And that means a health system Albertans can count on, a health system that's there when they need it.

Budget '97 is also about education and training for our young people. It's about jobs and a thriving economy for our province. What we're talking about is building Alberta, a vibrant and prosperous province where Albertans enjoy a superior quality of life, a province where people are confident about the future for themselves and for their children. That's our vision, Mr. Speaker. That's what we're working so hard to achieve, and that job is a constant work in progress.

Budget '97 is about responsible spending. With this budget Albertans will see an affordable plan for spending on priorities that are important to them. They'll see a government determined to stick to a responsible course, because every commitment in this budget is paid for. Every commitment fits into a balanced budget plan. Unlike the lofty promises made by others, there are no promises paid for with borrowed money, with future tax increases, or from selling off the heritage fund or from passing debt on to our children. Some members, Mr. Speaker, may want to lure Albertans to believe there are no limits on how much we can spend, but Albertans know better. They want solid, responsible management of their tax dollars, and that's exactly what they'll get from a Ralph Klein government.

With Budget '97 we're sticking with what works: spending that we can afford, reinvesting savings in high-priority areas, continuing to search for better ways to get better results for the dollars that we spend, paying down the mortgage, doing all the same sensible things that Alberta families do when it comes to their own budgets.

Let me give you the financial highlights. First, Alberta has a balanced budget. We will never again present a deficit budget in this Assembly; that's the law in this province. This coming year Alberta will have a surplus of at least $144 million. If volatile oil and gas prices and corporate tax revenues are higher than budgeted, the surplus could be higher. In fact, it could exceed $800 million. And if those windfall revenues occur, if they come our way, every dollar of that surplus will go to pay down the debt. We'll start this year with a $2.2 billion payment on our net debt. That's the surplus we expect at the end of March '97, and like every surplus in Alberta the law says it must go directly to the debt.

[…]

Indeed, unless the Liberals would want to break it, Mr. Premier. That's not going to happen, because Alberta's net debt will be down to $3.5 billion by next March, down from the peak of $8.3 billion. We're on track to pay off the original 25-year mortgage in just nine years. When Alberta celebrates its 100th birthday in 2005, the net debt will be gone completely.

Because debt is going down, interest savings are going up. In fact, we're saving $389 million in interest costs compared to what we spent in 1994, and this is where Albertans see the direct benefits of a responsible fiscal plan. Instead of going to bankers and bond traders, the money we're saving is being reinvested in programs that count the most for Albertans.

On the spending side we're looking at modest increases overall, keeping us on track and in control of our budget. Total spending will increase by 1.2 percent this year, to a total of almost $14 billion. Spending on programs goes up by $296 million this year, and the bulk of that money goes to Albertans' top priorities. Health and education now make up 63 percent of our total program spending, and that's up from 53 percent just five years ago. Mr. Speaker, we got our priorities right.

On the revenue side we all know that oil and gas prices are almost impossible to predict, and those prices have a huge impact on Alberta's revenues. That's why we continue to use conservative forecasts and build in protection in case things aren't as good as others expect. For this year we will budget Alberta's revenues at $14.1 billion. For the sixth year in a row Albertans will see no increases in taxes and no new taxes. Mr. Speaker, Alberta has no sales tax, and under a Ralph Klein government, it will never have a sales tax.

For low- and middle-income working families taxes in fact are going down. By next year a one-income family with two children will pay no Alberta taxes until they earn $24,500. For 130,000 families and 200,000 children in this province, that's the best news of all in today's budget. Those are the financial details.

Let me turn from the numbers to what's most important for Albertans, and that's health and education. Budget '97 means a health system that Albertans can count on. In November government announced the Action for Health package to reinvest in specific initiatives where Albertans expect to see real improvements in access to health services. We've listened to Albertans, listened when they said, “Assure me that the health system will be there when I need it or when my children are sick.” Albertans told us waiting times are too long. They said, “We need more nurses and frontline health workers.” They want more services in communities and home care for those who need it. Albertans want to know the system is working well, not by throwing money at the problem but by spending money wisely and making sure the problems get fixed.

The Action for Health package responds directly to what Albertans said was important. With the actions we're taking, people can expect to see shorter waiting times for surgeries, more frontline staff, and predictable funding for regional health authorities. They can expect better information about health and a greater emphasis on staying healthy. With these actions Albertans have every reason to expect stability, to expect quality care, and to expect problems in health care to be fixed. Funding for health will increase by 3.4 percent this year. In total we'll spend over $4 billion on health, more than any other area of government.

Budget '97 also means a strong focus on education. Albertans want our children to succeed and to be able to compete with the best in the world. As a former Minister of Education I can't tell you how proud I was last month when we learned that Alberta's 13 year olds and 16 year olds led the country in science achievements. Our grade 8 students ranked third in the world, tied with Japan. Those results are a tribute. They're a tribute to Alberta's hardworking teachers, they're a tribute to Alberta's hardworking students, and they're a tribute to those professionals who work so hard to develop the very best science curriculum in all of this country.

To me that success is what budgets are all about. They're not just about dollars and cents. They're a powerful combination of talent, effort, and resources devoted to achieving what's right and what's good, and with Budget '97 we're determined more than ever to keep working, to build more success stories for Alberta's students. This year our efforts are devoted to making sure more students finish high school. We're working with teachers to improve the achievement of students in math. We're putting more computers in schools to make sure students have access to information technology so that they enter the 21st century with 21st century skills.

We're working hard to improve the co-ordination of services to children, and we're providing additional funds for children with severe special needs. Spending for basic education will increase by 3.3 percent this year, to a total of $2.8 billion. That's over $5,000 invested this year alone in the education of every student in Alberta.

On the postsecondary side we're taking action to reward excellence in our universities, our colleges, and technical institutes and tie more of their funding to the results that they achieve. We're increasing financial assistance to students and investing $40 million to improve facilities and equipment. Spending on postsecondary education and training will go up by 6.2 percent this year, for a total of $1.16 billion. The new Canada/Alberta agreement provides an additional $107 million for labour market programs.

Mr. Speaker, on top of investing in health and education, Albertans want to know that their government is spending their money where it can make a real difference for people and their communities. This year we're increasing funding for the Alberta seniors benefit by close to 11 percent. For Alberta seniors this means their government will spend $180 million on one of the most comprehensive seniors benefits programs in all of Canada, and we will keep working with seniors to make sure support is there for those who need it the most.

Alberta's social assistance programs will keep their strong focus on getting people back into the workforce and able to support themselves and their families. In total we'll spend almost $700 million for income support programs. For some Albertans this means increases in shelter allowances. It means an increase in widows' pension benefits and an increase in benefits in the assured income for the severely handicapped. We'll shift the savings from reduced welfare caseloads to high-priority areas so we can expand support for disabled Albertans and deliver better services to our children.

With Budget '97 we're taking additional steps to support Alberta's communities. Currently our communities share in over $51 million in revenues from lotteries. By next April an additional $50 million will be shared with communities on a per capita basis. Community lottery boards will be in place to set priorities and decide how the additional funds should be spent.

Finally, Mr. Speaker, Budget '97 means jobs and a growing Alberta economy. Our goal is a simple one: to build the right climate for growth in Alberta's economy so businesses and industries will prosper and so Albertans will see more jobs – good-paying, high-quality jobs. All the signs point to a broader and far more diversified economy than we've ever had in this province, and forecasters see Alberta leading the rest of Canada in economic growth. We have forecasted our growth this year at 3.6 percent. For Albertans that good news means jobs. More Albertans are working than ever before, and there appears to be no letup in that trend. In the last four years 157,000 jobs were created, and four out of every five new jobs are full-time jobs.

We're not stopping now, Mr. Speaker. We will keep working with the private sector to build on the Alberta advantage to create jobs and opportunities for young people here in their own home province. And as my good friend Paul Taylor always says, “They won't have to leave home to take on the world.”
On the government side, Mr. Speaker, we're sticking to what we can do and do well: staying the course on our fiscal program, maintaining the lowest overall taxes in Canada, providing targeted tax reductions where they can make the most difference, expanding the focus on research and development, maintaining and improving Alberta's infrastructure, and helping build a highly skilled workforce that's up to the challenge.

Budget '97 means taxes on airline and railway fuel go down, down so that they enhance Alberta's competitive position. Taxes on machinery and equipment are down another 20 percent this year to stimulate investment and job growth, and all the signs are again that it is working. We're looking at major plant expansions and new investments across this province, investments that will create jobs for Albertans.

As part of Budget '97 we're taking steps to expand the focus on research and development. We're investing $5 million in the science and research fund to kick start new strategic research and development initiatives. That's right. We're doing that, Mr. Speaker, so leading edge ideas will turn into leading edge products and services.

In agriculture we'll keep pushing to expand Alberta's agrifood industry. We'll establish the new agra value added corporation to get new products into the marketplace, and that means good news for farmers.

With exports leading Alberta's economy, we will move ahead with plans to build a safe, efficient trade corridor from Grande Prairie in the north to Coutts at the United States border. For Alberta's export businesses, for truckers and transporters this means getting goods to U.S. markets quickly and efficiently. For people in rural Alberta it means a safer way to get from Grande Prairie to Fox Creek or from Fort Macleod to Coutts. For people living in our cities it means safer interchanges to keep traffic flowing and keep transport trucks off city streets.

Mr. Speaker, that's Budget '97 in a nutshell.

I said at the outset that I wanted to talk with Albertans about what this budget means to them. It means a health system they can count on. It means better results in education, more students staying in school and achieving the success that they deserve. It means more money spent on benefits for Alberta's seniors, better programs for children, for disabled Albertans, and for Albertans working hard to get a leg up so they can support themselves and their families. For thousands of Alberta families it means more money left in their pockets. For communities it means sharing lottery revenues. For businesses it means a chance to grow and expand right here in Alberta with a government that stays the responsible fiscal course, sticks to what it does best, opens doors and creates the right climate for growth. For Alberta's young people this budget means hope, hope that jobs will be there when they're ready to take them on. For all Albertans it means a deliberate and affordable plan, a plan that builds on our strong financial foundation, a plan that keeps building this province, building a future for all of us.

As I stand here today, I naturally look back on the past four years, and the message that I want to leave with Albertans is this one: thank you; you were right. Four years ago when we told you the straight goods about the province's fiscal situation, you told us to get on with it, to act now and act fast to balance the budget. We promised Albertans we would do that, and we kept that promise.

A year ago you told us to keep paying down Alberta's debt, reinvest savings to make sure our children get the best education and so that our health system is there when you need it. And you were right. You know what's best for your province, and you've never been shy about telling your government what needs to be done. A good government, the Ralph Klein government, will always follow your lead.

Today, Mr. Speaker, Alberta is back on solid ground. We're stronger than ever, and, yes, we're a little wiser than we were before. We're firmly grounded in the right priorities, and we are determined to stay the course.

I'll close today on a personal note. I've had the honour of being a Member of the Legislative Assembly for 11 years. That's a special honour that the people of Alberta bestow on all of us, all of us who serve in this Chamber, and I want to thank the people of Calgary-Lougheed for that honour, Mr. Speaker. Over those 11 years I've had the privilege of working with you, sir, and with my colleagues in this Chamber. I've also had the good fortune to work with a talented cast of public servants, professional men and women with wisdom and ideals and a zeal to make a difference, to make Alberta a better place. I want to say a special thank you to my colleagues and especially to so many people I've worked with over the years. Finally, I want to say thank you to members of my family, who've been at my side since day one.

I always knew that I would turn a corner and this day would be right in front of me, but that doesn't mean I'm any better prepared for the turmoil of mixed emotions. Gratitude, gratitude for the honour and the privilege of serving Albertans and helping guide the province's finances. Pride, pride for what has been accomplished. Hope, hope that Alberta's future is brighter than ever, that the 21st century will indeed belong to Albertans. And confidence, confidence that the leadership of this province is in good hands, the capable hands of Ralph Klein.

So, Mr. Speaker, as I beg leave to adjourn debate, I want to say thank you to my fellow Albertans, and I want to say thank you to Premier Ralph Klein.

Thank you, sir.