EDMONTON: The Canadian Taxpayers Federation (CTF) reacted favourably to Finance Minister Pat Nelson's announcement in Red Deer of spending cuts, but reiterated the need for spending control legislation to index growth in government spending to inflation and population increases.

"These spending cuts are necessary to maintain a balanced budget and to enable the business tax cuts scheduled for 2002 and 2003," stated CTF-Alberta director John Carpay.

In the year 2000 survey called 'It's your money', Albertans clearly stated they prefer tax cuts over spending increases. "These spending cuts are responsive to what Albertans want," noted Carpay.

"Alberta needs spending control legislation to put an end to this 'roller-coaster' budgeting. Government spending should increase with inflation and population growth, but no more. That would ensure steady, reliable funding for infrastructure and other important programs."

"The ten percent MLA pay increase and the increased severance pay to three months' salary for every year in office should not go into effect until after the next provincial election," stressed Carpay. "Alberta taxpayers were not consulted about these increases in the election only seven months ago, and deserve to have a say."

In a letter sent to Finance Minister Pat Nelson earlier this month, the CTF also urged the government to implement business tax cuts scheduled for 2002 and 2003, and to restructure health care to put it on a financially sustainable footing.