Submission

EDMONTON: The Canadian Taxpayers Federation (CTF) today presented Environment Minister Lorne Taylor with a response to the Alberta Government's "Water for Life" discussion draft. "Water for Life" sets out proposals for a comprehensive provincial water strategy, taking into account social, economic and environmental factors. Released in March of 2003, this 60-page discussion draft calls for input and feedback by May 31. The Alberta government plans to announce new policies on water management in the Fall of 2003.

"Water for Life" proposes "a system of water pricing and polluter charges, as well as other economic tools and incentives to stimulate changes in behaviours and patterns of water use" in order to promote conservation. Water for Life also recommends water metering for users on municipal systems, for commercial and industrial users, and for large agricultural operations.

The CTF's submission to Minister Taylor, "Water Conservation Without Tax Increases" points out that existing provincial tax revenues of $21.9 billion per year - plus billions more in municipal taxes - are sufficient to pay for Alberta's water infrastructure of dams, irrigation canals, water treatment plants and water distribution systems.

The CTF's submission agrees that imposing a system of user fees on water consumers - including individuals, farms, businesses and industries - would be good for promoting water conservation. User fees could also serve as a valuable tool for making people more aware of the fact that it costs money to transport, monitor, store and distribute water.

The CTF's submission accepts that user fees are a legitimate means of promoting conservation, but only if matched - dollar for dollar - by a reduction in other provincial or municipal taxes. "For example, it would be acceptable for provincial and municipal governments to charge $1 billion in new user fees to pay for the cost of water management if provincial and municipal taxes were reduced by $1 billion. Charging Albertans new fees in addition to the $21.9 billion now collected in tax revenues would constitute a tax increase."

"The Alberta government is not short on money. Forcing taxpayers to pay even more money for water management infrastructure is grossly unfair," stated CTF-Alberta director John Carpay.