EDMONTON, CANADA - The provincial government delivered a budget that addresses some key issues for businesses, but lingering concerns remain for ending deficits. A clear path forward is needed on how the growing debt will be repaid, and more information is needed on new tax credits.

The Edmonton Chamber was looking for fiscal restraint, operational efficiencies, strategic infrastructure investments and targeted program funding in the budget. Those are key elements to limiting the effects of the economic downturn.

“The business community would prefer to see a clear plan to end deficits and more details on how the government will bring Alberta back in the black,” said President & CEO Janet Riopel. “We are pleased to see some measures taken to find efficiencies and we will continue to work with the government to find even more.”

The Edmonton Chamber would have preferred that the government be more aggressive on program spending. The Chamber also called on government to stick to no operational increases in order to limit debt and deficit as much as possible.

The provincial budget fell short of addressing key areas of the Chamber’s budget policy position:

• Fiscal Restraint: The government kept spending low, but it could go even further. The Chamber and its members agree with the government on avoiding cuts to government jobs and front line services, but would prefer salary increases be frozen until the economy rebounds. The Chamber urged the government to strive for zero per cent in operational spending increases.
• Operational Efficiencies: The budget includes a review of health spending and some gains were made with its review of agencies, boards, and commissions. However, there are no details on how this will be carried out and it may not go far enough to manage the deficit. There were some positive elements in the budget including infrastructure spending, avoiding jobs cuts and a reduction to the small business tax rate.
• Strategic Infrastructure Investments: The Chamber was pleased with the commitment to counter-cyclical capital spending, necessary to stimulate economic growth and enhance trade and access to global markets.
• Targeted Program Funding and Delivery: Increased spending on training and education was positive with increased funding for apprenticeships.

“The small business tax cut is a positive sign, but the total cost impact on business from the carbon levy is still unknown,” said Riopel. “The Chamber is calling on government to provide targeted rebates on the carbon levy, which is the kind of support business needs to weather the current economic downturn.”

The Chamber supports the intent of the Alberta investor tax credit and the capital investment tax credit, and looks forward to learning greater details on how those initiatives will work. Maintaining capital spending is positive, but this needs to be balanced with a solid plan for the government to move away from large deficits.

Media contact:

Sheila Keenan
Cell: 780-446-6264

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