Province	Législature	Session	Type de discours	Date du discours	Locuteur	Fonction du locuteur	Parti politique
Alberta	24e 	2e  	Discours du budget	12 février 1998	M. Stockwell Day	Trésorier provincial	PC


Mr. Day: Mr. Speaker, it is my honour and privilege to introduce to you and to all Albertans Budget '98, the government's new agenda for opportunity. This budget is about taking opportunities when we have them and building new opportunities for our future. It's a budget that brings good news for the people of Alberta, good news about promises kept, budgets balanced, and continuing careful stewardship of Albertans' tax dollars, good news that this government will keep its commitment to the people of Alberta, a commitment to stay the course on fiscal responsibility, continue to pay down the debt, and reinvest wisely in their priorities.

Budget '98 brings good news about a thriving economy, more and more jobs for Albertans, and exciting opportunities for the future. It also brings good news about reinvestment plans, plans with a deliberate focus on preparing Alberta's next generation for a new and exciting future. 

Budget '98 brings good news to every Alberta taxpayer. I'm pleased to announce that effective January 1, 1998, personal income tax rates in Alberta are going down. Mr. Speaker, Alberta's personal income tax rates will go down from 45.5 percent of the basic federal rate to 44 percent. Albertans will pay $123 million less in taxes to their provincial government. While that is not a huge saving for each Albertan, we will continue to have the lowest taxes in Canada. The only way taxes will go in Alberta is down. Combined with the increase this year in the Alberta family employment tax credit, Alberta families earning $30,000 will see their family employment tax credit increase from $300 to $800 and their total tax bill will be cut in half. That's what I call the Alberta advantage: helping those who need it the most to take care of their families and themselves.

Now for more good news in Budget '98. I want to begin with a look at Alberta's economic picture. It's critical for us to frame our expectations with a clear understanding of what lies ahead for Alberta's economy and the province's revenues. Since 1992 Alberta has had the fastest growing economy in Canada. Think about these facts. Alberta's economy grew by an estimated 5.5 percent in 1997, outpacing the rest of Canada. In fact, it's one of the highest growth rates in the industrialized world. A record number of Albertans were employed last year, and Alberta's unemployment rate dropped to the lowest it's been since 1981. Average weekly earnings rose by 4 percent in 1997, almost double the national average. Retail sales led the rest of Canada. Housing starts were at the highest level they've been since 1982, and growth in business investment is the highest it's been since 1981. With those results it's no wonder people are looking at Alberta and saying, "That's the place I want to be," and, Mr. Speaker, they are right. 

Those results also translate into a single word for Albertans and Alberta businesses: confidence. Confidence that we can keep investing wisely, take on new business ventures, expand our markets around the world, and the outcome will be opportunities for ourselves, our families, and our children.

As we look ahead through 1998 and beyond, signs point to continued strong growth in Alberta's economy. We're forecasting growth at 4.6 percent in 1998. That's something the people of Alberta can all be proud of. It's due to the hard work and energy of Albertans and their strong determination to seize on every opportunity and build an Alberta that is second to none. Looking ahead, Albertans can expect to see more jobs, more investment, and continuing consumer confidence. We expect to see strong employment growth: 156,000 new jobs for Albertans over the next four years and a continuing drop in unemployment.

In the face of all this good news, Mr. Speaker, I express a few words of caution. We all know that Alberta's revenues can go up or down. From one year to the next our revenues can swing up or down by a billion dollars, and for those who have been tracking the price of oil over the past few weeks, it's a stark reminder of just how volatile our revenues can be. There were times last year when some people criticized us for budgeting with assumptions that were too prudent, too conservative. Those critics have fallen silent lately as Alberta resource prices have dropped and the wisdom of careful budgeting has become abundantly clear. 

Between October '97 and January '98 oil prices dropped from $22.76 a barrel to a low of $15.74. This week the price has been hovering around $ 16.50. Frankly, we don't know what the price will be next week. In the face of that uncertainty the key facts to remember are these. If we had a drop in price of $7 a barrel over a full year, the result would be well over a billion dollar reduction in provincial revenues, roughly a quarter of what we spend on Alberta's health system alone. This government will not take that risk. We will not set our sights and plans on revenues when they are at their peak, and we will not forget what can happen when provincial revenues drop with little warning, even when Alberta's economy is growing. This government will never again put the financial security of the province at risk, and that is a promise.

In the past the kind of price drop we saw in the last few months would have caused grave concerns for all of us, but this time our concerns are tempered somewhat. Over the past few years Alberta's economy has become more diversified. We've seen increases in manufacturing, retail sales, exports, and other sectors of the economy. Together with actions this government has taken to get our spending in line and pay down our debt, it means we are in much better shape to handle unexpected hits on the economy.

At the same time, we need to remember that resource revenues still make up about 20 percent of government's total revenues. Lower prices are an important signal to Albertans and to those who have their minds firmly fixed on increased spending, and that signal is: be very careful; spend only what you can afford, only what you can count on. That's exactly what we're doing.
Overall, projections in Budget '98 are for a drop in revenues of about $1.5 billion. In part, that drop is because we're coming off an exceptionally strong year in 1997, but it's also because we're expecting resource revenues to be lower in 1998. We've projected the average price of oil at $17.50 a barrel, down $1.62 from the current year, and the price of gas at $1.70, down 6 cents from last year's forecast. With those lower prices and a drop in land sales, we're forecasting a drop of $1.1 billion in resource revenues this year.

With the uncertainty of oil prices in recent weeks, I've already heard some Albertans ask: can we afford the spending plans you've announced? And I'm sure they're asking today: can we afford a tax cut? The answer is: yes, because we've planned carefully. We've balanced competing demands. We've taken a careful and deliberate approach, and today we're able to reinvest with confidence in what counts most for Albertans. But for those who say, "You're not spending enough," or "We're not back to the spending levels we were at in 1992 before the cuts," my answer is this: we will spend only as much as we can afford, and we are not aiming at the high-water mark of spending we reached in 1992. We couldn't afford it then; we cannot afford it today.

Mr. Speaker, that balanced approach also means that we've learned the lessons from the past. This is a budget with levers and mechanisms to slow down spending if the dollars aren't there. This is a budget which promotes prosperity but allows us to shift gears to guard against a deficit. All spending will be monitored with clear outcome measures, measures which focus our efforts on the goals we set and results we expect to achieve.

This year's budget keeps us on the responsible and balanced course we set five years ago. Because of the actions we've taken, we're now in a position to take an important step in the right direction, and that is to lower personal income taxes for every Albertan. Mr. Speaker, this government has a commitment to Albertans: Albertans will pay the lowest taxes in Canada and pay no sales tax. It's a source of pride for our province, and it's a key part of Alberta's competitive advantage. The signal in Budget '98 is right, the direction is right, and Albertans can take a clear message that the only way their taxes are going is down. A two-income family earning $55,000 a year will save about $100 a year as a result of today's tax cut announcement. For lower income families the savings will be much higher.

Families who qualify under the family employment tax credit will see the maximum credit increase from $500 to $1,000, and that's good news for thousands of Alberta families. That's real money, hard cash they can use to support their families instead of sending it to the provincial government. In total, this important tax program is a direct benefit to 160,000 low- and middle-income working families and 320,000 children. Mr. Speaker, this is a government that cares about children and shows it in a way that counts, by putting money back into the hands of their parents. 

Albertans will also see other changes on the tax front in '98. Provincial school property taxes will go down in 1998 for the fifth consecutive year. Planned reductions in machinery and equipment tax will also go ahead in 1998. Based on investment decisions announced in the past year, it looks like industry may meet the investment targets we set two years ago. A decision on the next steps will be made when we get the latest investment information in March.

In total, the tax changes we've made over the last four years plus the ones I'm announcing today mean savings to individuals and businesses of more than $500 million. That's money that stays in the pockets of the people, supports families, stays with businesses for reinvestment, and stays working in Alberta's economy.

Mr. Speaker, participants at the Growth Summit discussed the need to maintain Alberta's overall competitive tax advantage across the board. As announced by Premier Klein, our new tax review committee will be up and running within the next few weeks. They will work closely with the Alberta Economic Development Authority to review Alberta's personal and corporate income tax system. I look forward to receiving their advice and recommendations on how we might simplify the system and, hopefully, lighten the tax load on Albertans even more. Our tax review will address suggestions which will enable small and large business to thrive and create opportunities for Albertans in an atmosphere of sustainable development.

Low taxes will continue to be a key part of the Alberta advantage. But with a growing economy and expanding business opportunities it is critical that we also reinvest in developing the best educated and most highly skilled young people. That's the focus of our spending plans in Budget '98.

Mr. Speaker, as Premier Klein outlined in his message to Albertans in January, the priorities for reinvestment in Budget '98 focus on people, on preparing Alberta's next generation, making sure that young Albertans have the skills and talents they need to succeed and keep building this province. To borrow a few words from Premier Klein, our government's new agenda for opportunity is based on five simple rules, rules Albertans have told us to follow.

One, remain fiscally responsible without ever running a deficit again or raising taxes.
Two, be unwavering in your commitment to pay off the debt.
Three, keep looking for new, better, and more efficient ways of doing things.
Four, when we have the money, reinvest in Albertans' priorities, and for this year that means putting children first.
Five, listen to what Albertans say as you remain accountable and honest.

Those five simple rules sum up the direction we've taken in Budget '98. 

Albertans looking at today's spending plans will see a clear focus on what counts most: programs for people, for children, and Alberta's next generation. This reflects a clear message from the Growth Summit. Mr. Speaker, many of the key announcements in education and health will come as no surprise to the people of Alberta. These announcements were made earlier in January so we could give our partners in health and education as much lead time as possible to begin their own budget plans. 

As announced by Premier Klein, our goal in education is for Alberta's young people to be the best educated in Canada. A package of initiatives set out by our government will put the emphasis on the early years of schooling, making sure that young children learn to read. This means that more teacher aides and intern teachers will be hired to provide necessary support to teachers in the classroom. Support for students with mild and moderate special needs will be increased by 30 percent and for students with severe mental and physical disabilities will also be increased by 30 percent. Improvements will be made in the curriculum so that Alberta students will continue to achieve high standards, succeed in postsecondary education, and are able to compete with the best in the world. 

We'll work with schools and the business community to make sure that Alberta's young people are well prepared for the workforce, and we'll reinvest money from this year's surplus to address critical needs for building new schools and repairing older ones. In 1998-99 total spending on education will increase by 5.7 percent to almost $3.2 billion. That's a number you don't want to get wrong. That's on top of a 4.6 percent increase in '97-98.

On the postsecondary side our emphasis will be on making sure Albertans have access to quality learning opportunities, building a highly skilled workforce, and expanding research excellence. A new Alberta opportunities bursary program will provide up to 15,000 bursaries to first- and second-year postsecondary students who need financial support. Funding for heritage scholarships will be increased, recognizing the talents of Alberta's best and brightest young people.

Consistent with the advice from the Growth Summit, additional funding also will be provided to expand apprenticeship programs. These programs are essential to make sure Alberta's industries have the highly skilled people they need to meet the demands of a growing economy.

On the research side we'll work with universities to revitalize research infrastructure and attract the best researchers to Alberta. Spending on postsecondary education will increase by 3.1 percent in '98-99 to a total of almost $1.2 billion, and that's on top of a 5.5 percent increase in '97-98.

Mr. Speaker, in Health we will continue to focus on improving the health of Albertans and the quality of the health system. Albertans put a high priority on health care. Delegates at the Growth Summit spent time and attention on health issues, and this government is listening. Budget '98 follows through on our commitment to reinvest in health and to keep working with people in the health system to provide stability, improve access to health services, and make sure we have a health system Albertans can count on.

Support for regional health authorities will increase by 3.1 percent per year over the next three years. By 2001 financial support for highly specialized, lifesaving medical services provided in Edmonton and Calgary will be up by 29 percent.

We'll also address other pressure points in health, adding $3 million to the rural physician action plan so we can attract and keep doctors in rural communities. New technologies will be used to link rural physicians to specialists through telehealth initiatives. A review of long-term care will explore new options for providing services to an aging population. By increasing the dollars allotted for physician services to $819 million in '98, we are addressing population increases and a 5.5 percent increase to physicians over the next three years.

We'll move ahead on a new health information system to ensure that we have better information to help make good decisions and improve health. We'll develop new legislation to protect the privacy of health information. We'll also provide additional funding for drugs and medical supplies and to help people in palliative care with the support they need. 

With this year's budget, spending on health will increase in '98-99 by 4.8 percent to $4.2 billion, and that's on top of an increase of 4.7 percent in '97-98.

Mr. Speaker, not only the provincial government but also regional health authorities, doctors, nurses, and others working in the health system must commit to the ongoing task of maximizing our limited resources in the delivery of first-class health services. Every province faces the same challenge. We are attempting to deliver a top-quality service and product at no visible cost to the consumer. Every law of economics and every real-life application of these laws clearly demonstrates what a significant challenge we face in maintaining a first-class system - and we will - while keeping costs under control.

This government clearly supports and upholds the principles of the Canada Health Act. The delivery of quality health service to all Albertans is absolutely a top priority. However, to achieve this goal we must all work together to seek out the ideas and initiatives which will see the people of Alberta properly cared for and cared for in a system where the growth in costs is managed carefully to protect our ability to fund not only the health system but also other essential areas of government service.

Mr. Speaker, the budget and business plans we're tabling today for other ministries list hundreds of initiatives our government is taking, and I only want to highlight a few of these today.

In Family and Social Services a key focus will be on helping children in need. Mr. Speaker, we're able to put that focus on children because of the deliberate actions we've taken to reduce the number of Albertans on welfare. Welfare caseloads are down 63 percent since March 1993, and most of those people have moved off the welfare rolls and onto the employment rolls, giving them the chance they need to support themselves and their families.

A new child health benefits program will be introduced in August '98 and will help pay for basic drug, dental, optical, and ambulance services for children from low-income families. We will continue working with our federal, provincial, and territorial counterparts on a national children's agenda. We will work with communities to implement a new regional approach to delivering services to children and families. We will spearhead new initiatives targeted at reducing drinking during pregnancy so more babies will get a healthy start in life. We'll take action on reducing juvenile prostitution, and we will increase current levels of support for women's shelters and family and community support services. 

Within the provincial government we are fortunate to have a dedicated public service, people who work hard to make their province a better place. Employees are finding new and better ways of doing things, and it's time they were recognized for their success. This year we will introduce a new achievement bonus program to reward performance of the public service when they achieve budget and business plan targets. Mr. Speaker, this is a first in Canada.

With a growing economy there are natural pressures on Alberta's infrastructure. As announced in January, $260 million will be invested in transportation, schools, health equipment, and postsecondary facilities and equipment. A new capital investment planning committee is reviewing infrastructure strategies and will help set investment target levels. In future, if Alberta continues to run surpluses, the first billion dollars will go to the debt. The next $250 million will go to onetime initiatives, including infrastructure and other priorities, one year at a time and only if we have the money.

In total, Mr. Speaker, we will spend $13.9 billion on programs and services for Albertans in 1998-99. With spending at that level and prudent revenue forecasts, we expect to end the year with a surplus of $ 165 million. If our legislated revenue cushion is not needed to protect against revenue shocks, the surplus could increase to $585 million. 

As I mentioned earlier, we are determined to take the responsible course, never again spending more than we can afford. Some may think that with a growing economy and a string of past surpluses we can afford to open the bank vault and give away money for any number of good reasons, but that's not why people elected the Ralph Klein government. The people of Alberta elected us to do the right thing: to take the responsible course, to keep a careful eye on the bottom line, and to reinvest only where it's needed. That's exactly what they'll see today with Budget '98. 

Mr. Speaker, taking the responsible course also means paying down our debts, so let me turn now to our continuing plans for paying down Alberta's debt. Albertans have told us: keep paying down the debt, and pay as you go. Albertans don't feel right about spending money today and then passing the bills on to their children and their children's children, and we've listened. We've made great progress in eliminating debt. With the surplus expected by March 31, '98, Alberta's net debt will go down to $1.5 billion, and the good news is that Alberta's net debt could be eliminated entirely by the time we celebrate the beginning of a new millennium. That would be cause for celebration. That will be a major milestone and a giant step on the road to full fiscal health.

But, Mr. Speaker, let us not fool ourselves. After we bring the net debt to zero, which means our liabilities no longer exceed our assets, we will still owe money from past borrowing to cover the deficits of 1985 to '94. We will have paid back about a third of what we owe. Roughly $ 14 billion will be left on the books as debt that we owe to our creditors. We'll still need to pay about a billion dollars a year in interest payments, and that's money we cannot spend on anything else. Think about what we could do tomorrow if that billion dollars didn't have to go to our creditors and we could use it in areas that count most for Albertans.

When our net debt is gone, Albertans will have some important decisions to make, not about whether or not we keep paying down the remaining debt but about how quickly we do that. Do we put ourselves on a fast track to get rid of the $14 billion that we will still owe? How do we balance that against the pressures of today and the need to keep our tax advantage as strong as possible? What happens if revenues drop unexpectedly? These are questions we want to discuss with Albertans this year, and their advice will shape a new plan for dealing with the rest of Alberta's debt. By next year's budget day Albertans will see the next plan for paying back the debts from the past.

Mr. Speaker, those are the highlights of Budget '98. I hope that Albertans listening today or hearing the budget news this evening will look at their government's agenda for opportunity and say, "It's the right course." We've taken the opportunities we have today and we've put Albertans first. We've provided a personal tax cut and targeted the biggest tax reduction to those who need it the most. We've reinvested in children and the next generation of Albertans. We've responded to the pressures of growth in health and education and on Alberta's essential infrastructure. And we've paved the way for growing opportunities in a dynamic and thriving province. That's a balanced budget package that makes Alberta the envy of every province in Canada.

I close with a few comments about the vision that underlies the decisions we've made in Budget '98. There are those who believe we should have an all-powerful government providing for every need in every facet of life. Their vision means government must plan the lives of its citizens. But a careful look at governments around the world over the last 30 years clearly shows that the more government tries to unnecessarily interfere in the lives of its citizens, the more it will stifle initiative and growth as people become weary under the weight of excessive government and taxation.

I believe this government shows a crystal clear vision. It's a vision firmly grounded in what we know about Albertans, Albertans who are happy to chart their own course rather than wait for government to do it for them. Mr. Speaker, I know most Albertans aren't sitting on the edge of their seat this afternoon asking, "What can my government do for me?" They're waiting to hear that we're doing what needs to be done: taking care of the right priorities, providing responsible and limited government, and creating an atmosphere that allows the initiatives of citizens to flourish with as little government encumbrance as possible. By taking that approach, we allow our people to set their own personal sights and achieve their own dreams. Albertans believe in the principles of personal responsibility and freedom. That means that as legislators let us always pursue and promote policies which limit the weight of government and taxation, and let us resist the temptation to plan and plot the pathway from cradle to grave. 
Mr. Speaker, Budget '98 reflects a vision we share with the people of Alberta. It reflects a framework based on caring and responsibility. It allows an unlimited future of opportunity for our children. It encourages the development of our citizens as they choose their own pathways to happiness. I am confident that if we remember the lessons from the past and take our lead from the people of Alberta, we will continue to make the right decisions.

Mr. Speaker, lessons of the past remind me of that famous bumper sticker. It has something to do with praying for another economic boom and promising not to fritter it all away this time. It speaks about learning some hard lessons and managing better. Well, to that brave soul who thought up that bumper sticker, wherever you are, your prayers are assured. The economy is strong. We're managing carefully. The future is ours.

Good afternoon, Mr. Speaker.