The premiers of New Brunswick and Alberta say they will continue to work together to build the Energy East pipeline.
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The day after the provincial budget was delivered, Alberta ministers answered questions about an allotment of only $20 million in planning funds for two of Edmonton’s hospitals in need of repairs to top $5 billion.
“Under the Harper government, no pipelines for oil were built”.
Construction is expected to begin in 2017 and be completed by 2024.
Alberta is wrestling with continued low oil prices that have slashed billions of dollars from the government’s bottom line. “It is not the role of the government to drive into the ditch to try and find a different path forward”. The government plan invests in construction in the province, with $34 billion in new infrastructure spending over the next five years.
“Albertans told us they want a plan that supports good jobs and a strong economy”, said Minister of Finance Joe Ceci on Tuesday.
The government intends to keep hiring to a minimum, but doesn’t plan to drastically reduce staffing levels in key areas such as health and education.
And starting next year, the province plans to borrow money to pay not just for capital projects as it has in the past, but for day-to-day programs as well.
“We are a hopeful and optimistic people, we are enterprising, we are community minded, we care about our neighbours and what desires we wish for ourselves, we wish for all – that is the Alberta way”. A provincial economic report issued in August forecast a large deficit and economic contraction this year, a stark change from expectations of economic growth in 2015 given by the province’s previous government in March. The budget also projects a $6.1 billion deficit.
The Opposition Wildrose party has said the government is flirting with losing its coveted AAA credit rating. It would limit government debt to 15% of nominal gross domestic product, which is GDP not adjusted for inflation.
She made the comments Thursday as Athabasca Oil and Calfrac Well Services became the latest companies to reveal deep staff cuts – 25 per cent of Athabasca employees and 4o per cent of Calfrac’s staff in Canada – and Cenovus Energy confirmed it’s made deeper reductions in its workforce than previously announced. “I think that’s prudent because it’s not a great big number but no-one really knows and it is 50% higher than where oil prices stand today”.
The benchmark price for oil, West Texas Intermediate, is now at $US46 a barrel.
“This budget lays out a responsible plan that will serve as a shock absorber to our short-term economic challenges, stabilizing programs like heath care and education, while growing the economy over the long term”, Ceci said.
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“The values of Albertans came through loud and clear during our consultations”, Ceci said while addressing the legislature. “So we’ve reserved a significant part of the increase that we plan to put in this province…for the right time”.
