Last week the Court of Queen's Bench ruled that Alberta's "Risk Management Fund" can legally pay for the Goddard-Day defamation suit. But taxpayers don't have to be on the hook for the full $792,064 settlement. The lawyers' fees total $732,064, which is outrageous and unacceptable for settling Mr. Goddard's $60,000 claim.

Alberta Justice Minister David Hancock can challenge some portions of the $792,064 before a Taxation Officer at the Court of Queen's Bench. The Taxation Officer will either rule that the bill is reasonable and must be paid "as is," or that the bill is too high. If the bill is too high, the Taxation Officer will determine what lesser amount must be paid. By challenging the bill, the government has nothing to lose, and Alberta taxpayers have everything to gain.

But challenging this obscene account is only the first step to solving a larger problem. This $792,064 fiasco is the predictable result of a Risk Management Fund run by government and funded by taxpayers. When M.L.A.s get sued, what incentive do they and their lawyers have to take a reasonable position, and to settle quickly and cheaply

When taxpayers are footing the bill, lawyers run the file as though their client has unlimited resources. A private insurance company would never spend $400,000 to defend against a $50,000 claim. But that's in the real world of business and economics, where laws of supply and demand impose accountability.

In the unreal world of government, there is little or no incentive to keep costs down. Taxpayers' pockets look like a never-ending source of easy money. That's why insurance for M.L.A.s should be provided and managed by private companies, not the Risk Management Fund.

You pay premiums to insure your home, car, business, life, health, and other things of value. Insurance companies face market pressure to keep costs down. Competition does not guarantee wise choices, but it does encourage them. Private insurance is far from perfect, but the alternative of a government-run scheme like the Risk Management Fund will keep on costing taxpayers more than what they should pay. Alberta taxpayers would be better off paying the premiums for private insurance for our M.L.A.s.

The Risk Management Fund also has a built-in conflict of interest, because civil servants have to decide whether or not M.L.A.s and cabinet minister are eligible for coverage. When Mr. Goddard sued Alberta Treasurer Stockwell Day in June of 1999, Alberta Treasury employee Richard Whitehouse decided that his boss was eligible for coverage. The letter which Mr. Goddard found offensive was written on Legislative Assembly letterhead and signed "Stockwell Day, MLA, Red Deer North." Mr. Whitehouse may well have made the right decision, but even if he did, there is something wrong with an employee deciding whether or not his boss is eligible for coverage. This conflict of interest would not exist if the M.L.A.s' insurance was managed by private companies.

As an Alberta taxpayer, you can call Justice Minister Hancock in Edmonton at 427-2339, and tell him to "tax" the excessive lawyers' bill. Outside of Edmonton, call 310-0000 toll free, then 427-2339.

Hopefully, the Justice Minister will make a "taxpayer-friendly" decision to challenge the lawyers' account. If he does, it is only the first step to solving the larger problem of the taxpayer-funded and government-run Risk Management Fund.