The Alberta government has responded to years of complaints by announcing it will end health-care premiums Jan. 1, thanks to a continued economic boom.
“We can afford to do it,” provincial finance minister Iris Evans said while presenting the province’s annual budget April 22.
Evans forecast a $1.6 billion surplus on revenues of $38.6 billion and record spending of $37 billion.
Spending jumped 12 percent from last year’s budget with money directed to roads, hospitals, police officers, child care and climate change measures.
Eliminating health-care premiums will cost the government about $1 billion a year. Premiums cost families $1,056 a year and singles $528.
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Health-care advocates, opposition parties and individuals have called for eliminating the premiums for years. Only British Columbia and Ontario have similar premiums.
“The time has come for Albertans to enjoy additional direct rewards of our province’s prosperity,” said premier Ed Stelmach.
Rod Scarlett, executive director of Wild Rose Agricultural Producers, said eliminating health-care premiums will be good for farmers because they are responsible for paying their own.
Other than that, Scarlett said there was little in the budget directly aimed at agriculture.
“There’s not much to comment on.”
Slightly more than $1 billion has been earmarked for existing joint federal-provincial agriculture programs over the next three years.
Funding for the Competitiveness Initiative, which was announced in 2007 and is designed to make recommendations to improve local, national and international agriculture industry competitiveness, will increase to $67 million by 2010-2011 from $61 million in 2008-09.
Loan limits for the Agriculture Financial Services Corp. will increase to $5 million from $2 million and the corporation’s borrowing limit will increase to $1.4 billion from $1.2 billion.
Scarlett said environmental issues in the budget such as improving energy efficiency and reducing greenhouse gases are aimed at all Albertans, including farmers.
Over three years, $300 million in capital and $63 million in operating support will be provided to continue implementing the Water for Life strategy.
Part of the money will be used to expand the ground water mapping program and fight the mountain pine beetle infestation.
About $7 million will be used this year to implement the Land-use Framework to address competing uses of land and provide a sustainable approach that balances environmental, social and economic concerns.
The Alberta Association of Municipal Districts and Counties said eliminating health-care premiums would get rid of a cost to municipalities responsible for premiums through employee benefit packages.
AAMDC president Don Johnson said he’s disappointed the budget didn’t mention provincial ambulance services. He hopes it will be addressed in June when proposed health-care changes are announced.
Johnson said the government has increased its commitment to municipal infrastructure, which rural governments appreciate.
“Overall, the AAMDC is optimistic that this budget represents a commitment to municipalities and to rural Alberta.”
Alberta Liberal leader Kevin Taft said he was disappointed more money wasn’t put in the Heritage Fund before the province’s oil money dries to a trickle.
“If we relied on the Tory approach for our pensions, we’d all be impoverished pensioners. They are spending without a plan, not putting money into the Heritage Fund, and we’ll pay a terrible price for that in the future,” he said.
Alberta NDP leader Brian Mason said more money should be invested in green energy.
“Imagine how much progress Alberta could make battling climate change if we invested over $2 billion in green energy projects,” he said.
“Instead, the Conservative budget puts $30 million toward that.”
