- Costs went from $2.5-million to $5.3-million and rising

EDMONTON: The Canadian Taxpayers Federation (CTF) is applauding a decision by the Stelmach government to "indefinitely" halt plans to build a new $5.3-million residence for the Lieutenant Governor.

"With the project already costing double what it was supposed to three years ago, the government made a prudent move by cancelling this project," said CTF-Alberta director Scott Hennig.

When first approved, the project was slated to cost $2.5-million. That estimate was increased in January 2007 to $5.3-million.

"Last January the CTF warned this project would be a huge black-hole, continuing to suck up more and more tax dollars, so clearly we're pleased the government heard our concerns and mothballed this project," continued Hennig.

The Alberta government cited "increased construction costs and market conditions" as reasons for the halt.

"With infrastructure inflationary costs rising by 20 to 30 per cent each year, this government cannot continue to throw good money after bad," added Hennig "This is a sign the government recognizes they need to control their infrastructure spending if they don't want to see costs keep rising."

In the past six years the Alberta government has increase its capital budget from $997-million to $7.1-billion this year, a 612 per cent increase.

"Hopefully more non-emergent infrastructure projects are delayed until we see these infrastructure inflation numbers start to drop," concluded Hennig.

In their 2008-09 Budget submission to the Alberta government, the CTF recommended the government introduce both upper and lower infrastructure spending limits. Copies of "Trouble on the Horizon" can be found on-line by clicking HERE or by contacting the Alberta office at 1-800-661-0187.