Alberta’s Throne speech hinted at some possible changes for the province, as the new session of the legislature opened last week.
The speech reiterates a dedication to deliver on the spending promises Premier Jim Prentice has made, but went on to state, “However, a budget tied to volatile energy prices imperils our fiscal resilience over the long term.” Like the child pointing out the obvious fact that the Emperor has no clothes, the speech noted the province has a problem in its heavy reliance on energy prices.
Tying the province’s fortunes to a yo-yoing and volatile revenue stream is a gambling act that can pay off big or see the province fall back in the red, left holding a stream of promises and no way to pay for all of them.
The ugly, unavoidable fact remains – either businesses in Alberta have to pay more, or Albertans have to pay more. When the Stelmach Tories tried to increase royalty rates, energy companies cried foul and the Wildrose surged in popularity. Even saying the words ‘sales tax’ seems to be taboo in the province. Charging tolls on highways, as the Tories recently discussed at their AGM, is basically a gussied-up tax that is charged to all motorists, regardless of their income.
Prentice has so far sidestepped questions on changing the 10 per cent flat tax rate, to a progressive tax rate that charges more to higher income earners. But that may well be one of the only cards Prentice has to play to cover up the Emperor’s nakedness.
We all want quality schools, good health care, hospitals and good highways. It’s time for the government to step up and bite the bullet, so that it can finally put together the pieces of the province’s revenue puzzle.
