February 13, 2012

Alberta throne speech hints at development plan

RICHARD GILBERT

staff writer

The Alberta throne speech indicates that the government plans to initiate a comprehensive strategy for the development of the energy sector and the northern region of the province.

Lieutenant Governor Donald S. Ethell delivered the speech on Feb. 7. It highlighted the government’s commitment to the development of northern Alberta.

“(The government will) initiate a comprehensive Northern Alberta Development Strategy to help the region continue to grow and develop in a sustainable manner, with an outstanding quality of life,” said Ethell.

“Your government will work creatively with municipalities and industry to address infrastructure challenges.”

In addition to this Northern development strategy, the government will also focus on a Canadian Energy Strategy, which is central to the diversification of the province’s energy customer base.

“Your government will actively design initiatives to access global markets and assist Canadians and our trading partners in understanding Alberta’s energy goals,” he said.

“The infrastructure necessary to get our resources to new markets must cross other jurisdictions, so any expansion will involve various partners at the provincial, national and international levels.”

This statement by Ethell is a clear reference to the controversial Keystone and Northern Gateway pipelines that will ship Alberta bitumen to the United States and Asia, respectively.

The throne speech also outlines the government’s plans to strengthen the province’s finances and examine the fiscal framework to ensure Albertans’ tax dollars are spent appropriately.

“If we have learned anything from the global financial crisis it is that balance sheets matter,” said Ben Brunnen, director of policy and government affairs and chief economist with the Calgary Chamber of Commerce.

“Jurisdictions that have their fiscal house in order are better positioned to attract investment and create new jobs.”

Reviews will be undertaken of the Alberta Heritage Savings Trust Fund, Sustainability Fund, capital and infrastructure projects, gaming revenue, operating budget and income taxes, and existing government programs.

After the speech was tabled, Premier Alison Redford introduced Bill 1 — the Results-Based Budgeting Act.

If passed, the legislation will manage the province’s finances using a results-based budgeting approach, along with predictable, three-year funding cycles for education, advanced education and municipalities.

The 2012-13 budget was released on Feb. 9, with an election expected to be called in mid to late March.

Keep reading the Journal of Commerce to find out what the budget means for Alberta’s construction industry.

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