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Laurie in Question Period

Investment and Savings Strategy

Ms Blakeman: Thank you very much, Mr. Speaker. In the second-quarter update the nonrenewable resource revenue is projected at $14.6 billion, a record number we are told, yet the government has completely cut the $3.1 billion allocated to savings. My questions are to the minister of finance. Even with the record-breaking revenues from oil and gas the government is choosing to cancel its savings program. Why?

Ms Evans: Mr. Speaker, what I said today in the second quarter forecast of the projected – projected – $8.5 billion, was we had projected $3.1 billion that could be added to savings. I said that that particular amount of money obviously will not be available for savings, and I said further that the Mintz report, the FIPAC report, would be coming forward tomorrow, that would be public tomorrow. I’m not saying precisely when but, ultimately, an investment and savings strategy will follow. What I did identify was there was obviously no money from the surplus to go in savings.

Ms Blakeman: Well, to the same minister: how do you have a savings plan when you are not going to set aside any money to save?

Ms Evans: Well, Mr. Speaker, again talking about the projected surplus, I’ve said that what we have got left in a surplus – and the good-news story is: look. Let’s talk about the good news. You know, doom and gloom exist on that side of the House. We budgeted at $78 a barrel of oil, and we have got more than we expected to have in a surplus. We’re going to have $2 billion of expected surplus now with the amended forecast added to the extra dollars – a billion dollars – from cash left over and reconciled from last year’s 2007-08 budget, and because there’s only a paper writedown on the heritage fund, we’ll have almost $4 billion to spend on carbon capture and storage and Green Trip. Is that a bad story?

Ms Blakeman: Well, let’s talk about stories. The minister talked about the heritage fund reaching the same state as the $200 billion Norway fund. That would be a story. How does the minister see this happening when this year the government is not even going to inflation-proof the heritage fund?

Ms Evans: Mr. Speaker, the heritage fund over the last 10 years has earned in five- and 10-year intervals 7.3 per cent and 5.3 per cent successfully. That is, in fact, a good-news story. The heritage fund, contrasted with the fund in Norway. I don’t think there’s an Albertan that wants to spend the 50 per cent taxation rate that we have in Norway. We can look at other funds and other management, but they’ve got all kinds of taxes that Albertans simply won’t tolerate. Surely that can’t be what the hon. member is suggesting.