Head-to-head rookie challenge
It's an exciting time in Alberta with a new premier, new cabinet and new set of priorities. As with all new governments, the first Speech from the Throne sets the tone. But was it a hope-filled tone for taxpayers
While it is certainly too early to pass judgement, perhaps we should compare Premier Ralph Klein's first Throne Speech to Premier Ed Stelmach's, as well as the situations both premiers were in when they took office.
While the times have changed, many of the challenges remain the same.
Ralph Klein took over from the waning, bloated, spend-crazy and transparency-deficient government of Don Getty. Ed Stelmach is taking over from the waning, directionless, spend-crazy, and transparency-deficient government of Ralph Klein.
When Klein took over, the previous government was using debt to cover over-spending. Stelmach is taking over from a previous government who was using one-time, unreliable resource revenues to fund over-spending.
Just as debt financing put Alberta's financial future at risk, spending unreliable resource revenues is putting Alberta's financial future at risk.
How did these two rookie premiers deal with their problems
Klein's Bill 1 introduced legislation to fix a problem with transparency and accountability, the Access to Information and Protection of Privacy Act. Ed Stelmach's Bill 1 introduced legislation to fix a problem with transparency and accountability, the Lobbyist Act.
Klein laid out four priorities in his first Throne Speech: a balanced budget, a climate for meaningful job creation in the private sector, a reorganized, deregulated, and streamlined government and open consultation with Albertans. Stelmach laid out his five priorities: govern with integrity and transparency, manage growth pressures, improve Albertans' quality of life, provide safe and secure communities and build a stronger Alberta.
Unfortunately, the similarities end there.
Klein was more specific on what his goals were. In his 1993 Throne Speech, he declared not only a desire for a balanced budget, but a balanced budget within four years. He declared not only a hope for meaningful job creation, but specifically 110,000 new private sector jobs within the next four years.
Moreover, Klein's first Throne Speech bluntly acknowledged the fiscal sustainability issue his government was facing: "This government is initiating fundamental change in the way it manages the public purse because there is no other choice. It is that simple. Putting our financial house in order is critical to maintaining the strong economy that Albertans need, want, and expect."
Stelmach's far more vague Throne Speech barely acknowledges the spending addiction the previous regime had, only saying: "It will also place great emphasis on controlled spending, to ensure Albertans get the best possible value for their tax dollars." And it's unclear as to whether this may have been in reference to infrastructure spending alone.
Klein's Throne Speech directly targeted wasteful spending: "The government will eliminate programs that do not meet priority needs." Stelmach's Throne Speech only referenced "controlled spending," and instead promised new spending for aboriginal skills training, post-secondary education, municipalities, and new research institutes.
Even in the face of massive public debt Klein's first Throne Speech unequivocally reassured taxpayers they wouldn't be squeezed for more: "there will be no tax increases, no new taxes, and no sales tax." Klein even alluded to lowering Albertan's taxes, asking: "what can we do to improve Alberta's competitive tax advantage "
Even in the face of massive surpluses, record revenues and yet, unsustainable funding that could collapse at any moment, Stelmach's first Throne Speech remained virtually silent on taxes neither committing to raise, lower or maintain them, other than to say: "ensure Albertans get the best possible value for their tax dollars," and to introduce increased tax credits for private charitable donations.
It is too early to pass judgement, so perhaps it's best to quote the most apt line from Stelmach's Throne Speech: "this government knows more must be done." Taxpayers await the how and the what.