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Alberta poised for long hard tumble

The province’s first deficit in 15 years is “merely a prelude”


 

Alberta is in recession after an eight-year up cycle and will likely lose 15,000 jobs this year, Finance Minister Iris Evans announced this week. What’s more troubling, writes Calgary Herald columnist Don Braid, is that the government’s financial straits stem most immediately from the $2.5 billion in market losses suffered by the Heritage Fund, a savings plan designed for when Alberta’s oil and gas revenues dry up. “This first deficit is merely a prelude,” Braid writes. “The looming deficit for 2009-10, whatever the total, will result from the far more serious problem of low oil prices and royalty revenues.” Braid says the best plan of action now is for Albertans to pray en masse for higher commodity prices.

Calgary Herald


 
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Alberta poised for long hard tumble

  1. I object to this statement, for obvious reasons. Civil discussion does not start with that as a lead comment.

  2. So if Alberta becomes a have-not and Ontario is a have-not… who pays for my healthcare?

  3. But wait! That can’t happen, why, they legislated against deficits, remember? So obviously someone is mistaken here.

    Again, it must be that damned NEP! No way this should be blamed on a short-sighted government that has relied on and pandered to a single resource-extraction sector industr almost to the exclusion of all other sectors. Nah, it’s gotta be Trudeau’s fault.

  4. As an Eastern Canadian and on behalf of all Eastern Canadians, I apologise for the current situation in Alberta. It was all our fault and we accept culpability entirely.

  5. Heh, serves Alberta right. Great, they got lucky that a long time ago a lot of things died and were made into oil. And oil prices went up, and everyone there got all “we don’t need Canada any more” and dismissive of the East. Oops, and then oil prices went down.

    Enjoy your firewall now.

    • Enjoy your lack of transfer payments!

  6. Do I detect a certain bitterness toward the West? How could that be?

    • Maybe if Alberta hadn’t bitched so much so often about horrible Eastern bastards or about putting their money towards, you know pan-Canadian things, and hadn’t been Alberan first and Canadian second, it might be a little different.

  7. No surprise, it was bound to happen once another Trudeau got into the house.

    • So Alberta’s economic troubles are caused by a first-time opposition MP from Quebec? Well then…

  8. From someone who lives “down east”…the real east…not fricken Ontario, and has a ton of friends and relatives living out west and making good livings, I say to Western Canada, hang tough, I’m pretty sure oil prices will be on the rise again before too long, no sin to run a deficit once in awhile to take up the slack. That’s what the Heritage Fund is for isn’t it? Ontario on the other hand I think is in aweful trouble. To quote an old Springsteen song “those jobs are going boy, and they ain’t comin’ back”. I don’t know how we can ship every last decent paying job to third world hell holes and maintain any tax base and a decent standard of living here in Canada. If anyone can explain that to me , I’d love to hear it.

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