Albertans to pay ‘directly’ for health care, Prentice says in pre-budget TV address
EDMONTON - Premier Jim Prentice said Tuesday Albertans must start paying “directly” for health care so the province can get “off the energy revenue roller-coaster.”
In a televised address two days before Finance Minister Robin Campbell tables the 2015-16 budget, Prentice repeated his pledge to cut government staffing costs but scaled back plans to cut departmental spending.
Alberta will be “holding the line on government expenditures” for the next three years, he said. That amounts to a four-per-cent cut in the coming fiscal year, down from nine-per-cent across-the-board cuts announced five weeks ago.
“Holding the line on spending in a growing province is truly a cut,” Prentice said. “We also need to get our program expenditures off the energy-revenue roller-coaster.
“We will be asking Albertans to begin to contribute directly to the costs of the health system. This revenue will start small, but it will grow over three years.”
The proposal comes as plunging oil prices force Alberta to confront a $7-billion revenue shortfall.
Prentice did not elaborate Tuesday but has previously said new health premiums would likely be progressive — the more you earn, the more you pay — and will be taken directly from Alberta families through the income tax system. Employers will not pay.
The old Alberta Health premiums, cancelled in 2009, were flat rate levies for families ($1,056 a year) or individuals ($528 a year). Employers paid some or all of that cost for many Albertans.
Prentice again said he will not introduce a sales tax, and made no mention of corporate tax hikes or royalty rate increases, both of which he has previously ruled out. Changes to Alberta’s 10-per-cent flat tax remain on the table.
The civil service will be cut.
“Compared to the Canadian average, Alberta spends approximately $1,300 more per capita on programs and services, and more than half of these costs are from salaries alone,” Prentice said. “We will honour contracts for our employees. But as contracts expire, we need to seriously examine how we structure those contracts.”
Prentice also introduced his 10-year plan. The upshot: By 2019, Alberta will save 50 per cent of its energy revenues.
In a televised response, interim Liberal Leader David Swann said there is no way to justify more service cuts or heavier burdens on hardworking Albertans.
“The premier wanted us to look in the mirror and reflect on how we got here,” Swann said. “Many of us have. And we saw that it is not our fault.”
Wildrose leader Heather Forsyth panned the proposed health premium and said, “no society has ever taxed its way to prosperity.
“Let’s be honest, it’s a tax,” Forsyth said. “Albertans do not want their pockets picked.”
NDP Leader Rachel Notley said the proposal is “nothing more than a waiting room tax.
“At a time when Albertans are worried about their jobs, Jim Prentice wants them to pay an extra tax, out of their own pocket, for health care,” Notley said. “The government’s own survey shows Albertans want to see corporations pay their fair share, but the PCs are refusing to cancel their corporate tax giveaways.
“Jim Prentice is ignoring them.”
Prentice and Campbell will embark on a series of four province-wide telephone town halls to discuss the 10-year-plan and the budget. Two will be held Wednesday and two more Monday.
source: Albertans to pay ‘directly’ for health care, Prentice says in pre-budget TV address
EDMONTON - Premier Jim Prentice said Tuesday Albertans must start paying “directly” for health care so the province can get “off the energy revenue roller-coaster.”
In a televised address two days before Finance Minister Robin Campbell tables the 2015-16 budget, Prentice repeated his pledge to cut government staffing costs but scaled back plans to cut departmental spending.
Alberta will be “holding the line on government expenditures” for the next three years, he said. That amounts to a four-per-cent cut in the coming fiscal year, down from nine-per-cent across-the-board cuts announced five weeks ago.
“Holding the line on spending in a growing province is truly a cut,” Prentice said. “We also need to get our program expenditures off the energy-revenue roller-coaster.
“We will be asking Albertans to begin to contribute directly to the costs of the health system. This revenue will start small, but it will grow over three years.”
The proposal comes as plunging oil prices force Alberta to confront a $7-billion revenue shortfall.
Prentice did not elaborate Tuesday but has previously said new health premiums would likely be progressive — the more you earn, the more you pay — and will be taken directly from Alberta families through the income tax system. Employers will not pay.
The old Alberta Health premiums, cancelled in 2009, were flat rate levies for families ($1,056 a year) or individuals ($528 a year). Employers paid some or all of that cost for many Albertans.
Prentice again said he will not introduce a sales tax, and made no mention of corporate tax hikes or royalty rate increases, both of which he has previously ruled out. Changes to Alberta’s 10-per-cent flat tax remain on the table.
The civil service will be cut.
“Compared to the Canadian average, Alberta spends approximately $1,300 more per capita on programs and services, and more than half of these costs are from salaries alone,” Prentice said. “We will honour contracts for our employees. But as contracts expire, we need to seriously examine how we structure those contracts.”
Prentice also introduced his 10-year plan. The upshot: By 2019, Alberta will save 50 per cent of its energy revenues.
In a televised response, interim Liberal Leader David Swann said there is no way to justify more service cuts or heavier burdens on hardworking Albertans.
“The premier wanted us to look in the mirror and reflect on how we got here,” Swann said. “Many of us have. And we saw that it is not our fault.”
Wildrose leader Heather Forsyth panned the proposed health premium and said, “no society has ever taxed its way to prosperity.
“Let’s be honest, it’s a tax,” Forsyth said. “Albertans do not want their pockets picked.”
NDP Leader Rachel Notley said the proposal is “nothing more than a waiting room tax.
“At a time when Albertans are worried about their jobs, Jim Prentice wants them to pay an extra tax, out of their own pocket, for health care,” Notley said. “The government’s own survey shows Albertans want to see corporations pay their fair share, but the PCs are refusing to cancel their corporate tax giveaways.
“Jim Prentice is ignoring them.”
Prentice and Campbell will embark on a series of four province-wide telephone town halls to discuss the 10-year-plan and the budget. Two will be held Wednesday and two more Monday.
source: Albertans to pay ‘directly’ for health care, Prentice says in pre-budget TV address
