Prentice reiterates sales tax position and public wages; NDP calls for better tax structure

Alberta’s premier says the province’s current economic situation doesn’t just affect Albertans, but the whole country.

Speaking in Toronto Wednesday, Jim Prentice met with bank analysts, as well as the U.S. Ambassador to Canada ahead of his upcoming trip to Texas to lobby for the Keystone XL pipeline.

But most of the post-meeting talk had little to do about the project.

Instead there was more chatter about his recent comments on Tuesday with regards to the implementation of a possible sales tax, saying he was prepared to be educated and hear from those who want it.

“I did not say that I support a sales tax or that I advocate a sales tax,” he said Wednesday. “If there are people who are supportive of a sales tax, now is the time for them to speak their mind and I know there are some who have said that. Personally, I don’t feel that Albertans want a sales tax and that is certainly what I’ve heard over the course of the last 24 hours, but I’ll continue to listen to what people have to say.”

Prentice also reiterated his position on public sector wages, saying with oil revenues falling, the current system of the best services, highest wages and lowest taxes is simply not sustainable.

“We need to work together with public sector employees to deal with the fiscal constraints that we are now seeing and we need to meet with them to discuss possible solution and to determine what the best way forward is and those discussions will be underway in the weeks ahead,” he said. “They’ll be conducted in a respectful way, but they need to be conducted with full recognition for the fiscal position that Alberta is in.”

Prentice was also asked about the possibility of deferring capital projects, such as the southwest Calgary ring road and whether it may be scrapped.

“No one has suggested that that project should be scrapped,” he said. “The timelines for the expenditures on that project obviously need to be considered, along with all the other projects that are discussion in our five-year capital plan and in indeed our 10-year capital plan.”

He added that he is concerned about losing investment in the province and the situation has significant effects across Canada.

That being said, Prentice would not say Alberta is in a crisis and is confident the storm will be weathered.

Shortly after his comments, the Alberta NDP said any talk about of a possible sales tax is diverting attention away from unfair and negligent tax policies.

The party’s finance and treasury board critic, Brian Mason, rejects the tax and places the blame on corporate ones, saying the PCs have cut taxes on corporate projects by over a third to 10 per cent, the lowest in the country.

“This government has squandered windfall resource revenues in the good years, rewarding banks, energy companies and Alberta’s wealthiest individuals at the expense of average Alberta families,” Mason said in a statement, adding a progressive tax system and reversing cuts to corporations would generate billions.

“The PCs have neglected to implement a stable revenue stream and instead have recklessly insisted that Alberta rely on boom and bust energy cycles to fund public services,” Mason said.