Showing posts with label Financial Crisis. Show all posts
Showing posts with label Financial Crisis. Show all posts

Thursday, August 27, 2009

Governance By Ideology

In Alberta, the Conservative government has been in power so long that they have lost sight of the practical realities of government, and in particular the need to be flexible in coming up with policies to deal with difficult situations.

First up, we have Ed "I won't raise taxes" Stelmach whining about how it's going to be "long and painful" getting out of the fiscal hole that the PC's are busy digging for taxpayers.

Stelmach has vowed there will be no tax increases or new levies introduced as the government scrambles to balance the books, and reiterated government spending will be reined in.

"We will tighten our belt further," he said.


Right...so "Steady Eddie" is going lean entirely on standard neo-Conservative dogma about taxation and take a primary tool of government off the table - taxation.

During the 90's and early 2000's, Ralph Klein took advantage of burgeoning royalties from the energy sector, and proceeded to chop taxes. That's all well and good, except that it leaves the government fiscally starved the moment that energy prices fall. (which they have)

Instead of investing the surplus revenues in the Alberta Heritage Savings Trust Fund, Klein mostly burned the money, and put a dribble here and there into his own "Sustainability Fund" - all the while draining any gains from the AHSTF. Had the Trust Fund been allowed to grow as it should have during the recent boom years, it would be worth a lot more than it is today, and much more than the $12bn "sustainability fund". But Klein, and now Stelmach, are far to short-sighted to understand this concept.

Then we get the government talking about "belt tightening". That always sounds good to the public - mostly because the public memory in this province is disastrously short term, and few people remember the consequences for Albertans from Ralph's early years, or the disastrous cuts that Getty imposed on areas like education.

Add to this the announcement yesterday from the Alberta Health Superboard that they are going to "cut jobs to improve service".

Currently, the health system faces a $1.3-billion deficit and has long surgical and emergency waiting times. It aims to have a balanced budget and reduced waiting times in three to four years. Part of those cost savings must focus on the workforce, since 70 per cent of the budget is spent on human resources, Duckett said.


Wait a second here. Health care delivery is primarily done with people - lots of them. Whether we are talking about nurses, doctors, clinical technicians, laboratory technicians, there's a lot of people that need to be present to analyze, diagnose and treat patients. You aren't likely to improve service by axing people.

... one might consider the massive pay hike that the "superboard" voted itself as the first place they should start cutting.

At least the UK government has looked at its NHS and published an extensive program of reform and funding change where the public can read and understand it.

Instead, in Alberta we have a government that is so used to being unaccountable to its citizens that it keeps its plans secret, only to drop it on us at the last possible minute - just as they did with the 2009/10 budget, where they conveniently chose to announce that a large number of health care services were being arbitrarily delisted.

No rationale, no chance for public input, no explanations whatsoever - the axe just fell.

This is not government, it is dictatorship. Sadly, it is dictatorship by the mendacious, and I have little faith that there is anything resembling actual thought going into the picture.

Wednesday, July 08, 2009

More Dog Whistles Out of Edmonton

So, Premier Stelmach finally said something about his direction yesterday.

A defiant Alberta premier broke ranks with some of his own senior cabinet ministers Tuesday, declaring that, under his watch, taxes will never increase to help the government escape from its multibillion-dollar deficit and a deepening fiscal hole.

One day after some of his most trusted ministers said both tax hikes and program cuts are needed to redress the province's revenue crunch, Premier Ed Stelmach said his government won't hike personal or corporate taxes, and vowed never to adopt a provincial sales tax.


This is another dog whistle moment - to the extreme right wing base that now seems to have control over the Alberta PC's. It's a signal that under Stelmach, the government is going to get axed down to as small as he can make it.

It shows a disappointing lack of vision and wisdom on his part though. He has just shackled himself to only surviving on existing revenues - by far the majority of which are coming in from a natural resources sector that has been pummeled in recent months.

Stelmach has just taken so many tools off the table, that his government's ability to respond to the economic situation we see today is reduced to two things: borrowing money and cutting services. That's it.

It's a sacred cow in Alberta that we will never have a provincial sales tax. When times have been good, that's been feasible for the government to get away with, and it plays well at the ballot box. What Stelmach, and others, fail to recognize is that a Sales Tax would go a long ways to stabilizing the revenues that the Alberta Government sees.

Unfortunately, Stelmach is playing to his base - he has been more blatantly since the April budget, and it's going to get a whole lot worse in the coming months. Especially when the leadership of the governing party isn't even willing to consider all of the tools that are available to him in addressing the current situation.

Stelmach's approach is going to make the recession in Alberta lot worse, and a lot deeper for longer in short order - purely so he can shore up his support within the party.

Talk about a government being past its "best before" date!

Wednesday, December 03, 2008

Mr. Harper - Why Should We Trust You?

Harper Addresses Canada

How magnanimous of Mr. Harper. He actually chose to address Canada - and unfortunately he simply proved once again that he is far more interested in playing partisan politics games rather than actually governing the country.

Does he talk about his party's plan for Canada? No.

"The opposition is attempting to impose this deal without your say, without your consent, and without your vote," Harper said.

"This is no time for backroom deals with the separatists. It is a time for Canada's government to focus on the economy and specifically measures for the upcoming budget."


Instead, he spends most of his time blathering on about his imagined evils of coalition, and quietly avoids actually talking about how his party is going to govern Canada through the current economic turmoil.

In fact, worse, Harper has further isolated himself and his party in a minority parliament. He might have been able to turn to the BQ for support - if he could convince Duceppe that what he was proposing was in fact in Quebec's best interests. After this week's demonizing, I very much doubt that Harper will get the time of day from Duceppe - or even agreement that it's raining during a downpour.

At a time like this, a coalition with the separatists cannot help Canada. And the Opposition does not have the democratic right to impose a coalition with the separatists they promised voters would never happen.


Right. Sure, Steve. What you forget, Mr. Harper, is that you don't exactly have an overwhelming mandate to govern yourself. In fact, you have a minority of the seats in the house - which means that if the opposition can form a coalition in Parliament that in fact they can govern - quite legally, and quite democratically. You see, Canadians told all of the parties that none of them were acceptable - including the Con$.

The irony is that it wasn't that long ago that Harper's own party was trying to secure a coalition of its own.

I must give Dion's speech some credit - it's possibly the best one he's ever given.

In times like this our compassion as a country is tested. We believe it is imperative that the government offers Canadians who have already lost their job, whether in the factories of South Western Ontario or the forests of Eastern Quebec and British Columbia, the support they need to live in dignity and develop new skills.

That is precisely what we intend to provide.


... and then there is this:

Earlier today I wrote Her Excellency the Governor General. I respectfully asked her to refuse any request by the Prime Minister to suspend Parliament until he has demonstrated to her that he still commands the confidence of the House.

If Mr. Harper wants to suspend Parliament he must first face a vote of confidence.

In our Canada, the government is accountable for its decisions and actions in Parliament.

In our Canada, the government derives its legitimacy from an elected Parliament.


Harper has shown Canadians that he is no longer to be trusted to run Canada - he is far too interested in his own political vendettas, and far too disinterested in the job of actually governing to be an effective Prime Minister.

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