EDMONTON: The Canadian Taxpayers Federation (CTF) today called on the Alberta government to review the legal costs associated with the Day defamation settlement.

"Our first preference remains to have the question of Mr. Day's eligibility for coverage under the Risk Management Fund determined by a judge," says acting CTF Alberta Director Troy Lanigan. "However, given the government's unfortunate refusal to do that, the next step should be to ensure taxpayers are on the hook for no more than they need to be."

The CTF urges the government to "tax" the nearly $700,000 in legal fees related to the settlement. A "taxation officer" is an officer of the court empowered to review legal bills. The Alberta government is entitled to have the legal bills of both Mr. Day and Mr. Goddart reviewed line by line. A taxation officer can only reduce the bill.

"Several calls and e-mails into our office this past week suggest that the total cost for legal bills in this case should not have exceeded $150,000 for both parties," added Lanigan. "Indeed, taxpayers are asking how over $700,000 can be spent to chase down $60,000 in damages."

"There is no reason to assume the fees were not legitimate. Lawyers act on the instruction of their client," said Lanigan. "However, given the amount, and the government's apparent concern over costs it would be inappropriate for them not to have this bill reviewed."

The Risk Management Fund provides up to $35-million in liability coverage to MLAs and government workers sued during the course of their duties. Taxpayers pay the premiums and a $1-million deductible.