-CTF releases 2007 Alberta budget recommendations

Steadying the House of Cards

EDMONTON: In its 2007 pre-budget submission to the Alberta government, The Canadian Taxpayers Federation (CTF) is calling for spending control legislation, elimination of health care premiums, a legislated savings plan and stable capital spending to control infrastructure inflation.

CTF- Alberta director Scott Hennig presented the report this morning to Finance Minister Lyle Oberg and President of Treasury Board Lloyd Snelgrove. The report, entitled "Steadying the House of Cards," calls on the new government to immediately address the lack of sustainability and overspending in Premier Stelmach's first budget to ensure long-term prosperity for taxpayers.

"With the degree of reliance the former government placed on oil and gas royalty revenues to fund their over-spending, Alberta's budget could collapse with one strong blow," said Hennig. "It's not surprising six in ten Albertans want to see the government introduce a legislated cap on spending."

"Eliminating the regressive health care premium tax would not only remove an unnecessary and unfair form of taxation, it would also put $1,056 back into the pockets of working families each year," continued Hennig.

Other recommendations include:

• Pass legislation to make any in-year unbudgeted spending with the exception of declared emergency (Sustainability Fund) spending, illegal;
  
• Roll-back the initial spending amount of non-renewable resource revenues allowed by the Fiscal Responsibility Act from $5.3 billion to $3.5 billion by 2009-10;
  
• Pass legislation so all surpluses and any unexpected royalty revenues have to be deposited into the Alberta Heritage Savings Trust Fund;
  
• Implement a guideline for capital plan spending of a minimum of 0.9 per cent and a maximum of 1.5 per cent of the two-year's previous average of provincial Gross Domestic Product (GDP);
  
• Immediately eliminate the hidden sales tax on insurance;
  
• Amend the Alberta Taxpayer Protection Act to require a provincial referendum be held prior to increasing or adding any new provincial tax;
  
• And more-

In total, the CTF makes 15 recommendations for the 2007-08 provincial budget. Copies of "Steadying the House of Cards" can be found on-line here or by contacting the Alberta office at 1-800-661-0187.