Alberta may shift policy, borrow to build infrastructure
Last Updated: Wednesday, March 11, 2009 | 1:02 PM MT
CBC News
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The Alberta government is considering borrowing money to build the roads, schools, hospitals and seniors homes needed by the province, Premier Ed Stelmach said Tuesday.
"This is debt for infrastructure, infrastructure that the next generation and the generation after that will enjoy," he said, adding the government will not borrow to pay for the cost of delivering services like education and health care.
Stelmach wouldn't say if borrowing will be part of the government's strategy in the April 7 provincial budget, but said it is under very serious consideration, given the low interest rates and the province's $6 billion in savings.
"If you have a triple-A credit rating, it's a financial tool that I know we can use to Albertans' advantage," he said.
"Prudent investment in infrastructure: It's roads, it's hospitals, it's health-care centres, it's seniors homes, schools. That's where I believe it's prudent to borrow against the six billion."
Infrastructure projects can also create jobs for people at a time when they are needed most and help the province's larger cities deal with their needs, Stelmach said.
Under Premier Ralph Klein, the Tories avoided borrowing money and stayed deficit-free for years.
Liberal Leader David Swann expressed skepticism about the government's ability to spend the money well.
"It seems to me we've been in such a spending spree, and now we're talking about going into a loan spree," he said.
"We do not have confidence that we're going to manage these resources, whether they're within our budget now or not, in a responsible way."
In particular, Swann said, he wants to know how the government ended up with a $1.3 billion deficit in health-care spending.
When it comes to creating jobs, Swann said, the provincial government should do more to ensure bitumen from the oilsands is upgraded in Western Canada, instead of allowing it to be processed in the United States.
With files from the Canadian PressShare Tools
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