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Comments Effecting Canadian Events – Ken McGregor

Alberta’s Magic PC Budget

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pcJust say the magic words hocus pocusĀ and the money the Alberta PC government is borrowing is notĀ considered debt,Ā but becomes and asset. Yes, that’s right,Ā the $5.1 billion in debt to finance capital projects thisĀ year is not considered debt. All borrowed money for capital projects has suddenly turned into an asset at the stroke of a pen. The PC’s are now treating their borrowing like investing in a term deposit and getting paid interest. Doug Horner said the government borrowing is like investingĀ in an asset, such as a mortgage, which should not be included in day-to-day expenses. Well Doug, investing in roads that devalue and require daily maintenance is notĀ at all like investing in real estate.Ā Even weĀ little commonĀ folk knowĀ the differenceĀ and simply don’t buy your song and dance.

InsinuatingĀ to Albertans that the daily operating budget and capital projects budget are somehow being paid back by different sources is just plain trickery. The future taxpayers (the kids of today) are going to be stuck with the bill just like they are in Ontario. Ontario LiberalsĀ used the same ruse and are now over 250 billion in debt. An impossible amount for the taxpayers to every pay off. Just servicing their debt takes overĀ $10 billion a year, and heading higher. I doubt Albertans voted in the past election to leaveĀ a staggering debtĀ legacy and burdenĀ for their kids to pay off. Imagine, Ontarian’s Ā are now in hock to the lenders for billions each year, for ever, since there is no way in hell they can every pay $250 billion off. So no Doug,Ā capital projects are notĀ like a mortgage when the debt is eventually paid off and you own your home.

Ralph Klein defined Albertaā€™s debt as ā€˜the money Alberta taxpayers owe the banks.ā€™

I understand the PC’s needing cash to fund the capital projects that Alberta needs to grow. I also understand Horner’s reasoning for borrowingĀ $5 billionĀ at todays lower rate rather than dip into the Heritage Fund thatĀ is paying 11.6%. Ā It all makes good business sense. But looking back at history from 1985 to 1992 the Progressives of the PC Party NEVER BALANCED THE BUDGET. In fact they ran up huge deficit of over 22 billionĀ by 1993-1994 and would have continued if it were not for Ralph Kline, a fiscal Conservative,Ā taking over the leadership of the party. Todays actions of the progressive’s in the PC party is eerily reminiscent of theĀ past. The PC (Progressive)Ā pastĀ plusĀ their 2014 budget magic act on how they explain debt is very disturbing and should be taken seriously by Albertans before they vote for another PC government.

Ralph Kleinā€™s no debt, moderate taxes and friendly business atmosphereĀ benefitedĀ all Albertans.Ā That is why so manyĀ  people moved to AlbertaĀ and prospered. Todays PC party is setting Albertans up to fail, just like the Liberals have done in Ontario and Quebec.

Alberta needs change , but it’s not just a change in the PC leadership. We need a new governing party.

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Written by Ken McGregor

March 30, 2014 at 9:31 am

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