EDMONTON: The Canadian Taxpayers Federation (CTF) today applauded the efforts of the Alberta Government in eliminating the province's net debt, but cautioned Albertans against the dangers of embarking on a new spending spree.

"I think a lot of Albertans, after hearing this announcement, will be under the impression that the debt's been eliminated and that the province can now open up the flood gates to increased spending," said CTF Alberta Director Mitchel Gray. "But we need to hold our horses and continue to chip away at the remaining $13.5 billion in debt still on the books."

The Federation pointed out that Albertans have only repaid 40% of the money borrowed since deficit financing began in 1985-86, and that taxpayers are still laying out over $1 billion each year in interest costs on the remaining debt.

"The fact of the matter is that Alberta is still over $13 billion in debt," said Gray. "Unless we plan on selling Crown assets like the Heritage Trust Fund we're going to have to continue to devote the majority of future surpluses to debt reduction."

"Thanks to pressure from taxpayers," said Gray, "the hysterical calls for spending increases will be checked by the province's Fiscal Responsibility Act." The Act, a successor to debt elimination legislation proposed by the CTF, forces the province to apply 75% of any surplus to debt reduction.

Gray stated that the remaining 25% of any surplus in coming years should focus on accelerating the provinces tax cut plan, and extending the scope of tax reductions. "Taxpayers should not have to wait any longer for tax relief," said Gray. "The province should, at the very least, begin phasing out the two deficit elimination taxes immediately."

Gray concluded by asking all Albertans to be vigilant in protecting the fiscal dividends they have worked so hard for over the last few years. "It's very easy to relax after a hard fought battle and let the spenders take over," said Gray. "The challenge now is to not let things go to pot."