'No surprises' from Alberta Fund before election, Toews pledges to Edmonton business leaders

The finance minister addressed the provincial capital's chamber of commerce Tuesday, explaining the new Alberta Fund and indicating that if a revenue review occurred, it would be post-election.

Toews explained the Alberta Fund to the Edmonton Chamber of Commerce and highlighted the provincial budget's investments for the capital region.

"It's effectively a holding account," Toews told the chamber.

As described in the budget, the new fund would hold surplus money for further debt repayments, more deposits into the Heritage Fund, or one-time discretionary initiatives.

"People get a little nervous on that last point," Toews said. "I want to calm your fears because in the event governments are going to use funds from the Alberta Fund for priorities, one-time non-reoccurring priorities could be strategic infrastructure, for example.

"All of that is subject to the budget process," he said.

The fund was introduced as part of new fiscal rules that Toews hopes will bring more stability and discipline to provincial surplus spending.

When asked by reporters after his speech, Toews said, "there will be no surprises" when it comes to spending from the Alberta Fund before the election — with the province having around $1.4 billion in it, should the budget and proposed legislation pass.

For Alexandra Hryciw, the chamber's strategy and external affairs director, the organization representing Edmonton businesses is "cautiously optimistic" about the fund.

"We definitely want to understand how it's going to work," Hryciw said. "We aren't sure there was a necessity for an additional fund."

"Fiscal responsibility is something our members have always weighed in on and had a very prudent lens," she said. "Stopping the rollercoaster of the oil and gas booms will be very important."

The chamber had hoped for more healthcare and shelter support to help improve safety downtown, Hryciw added.

In addition, the last budget provided both Calgary and Edmonton's downtown business improvement associations with $5 million boosts from the province.

"We were looking and hopeful for those types of investments into our downtowns," Hryciw said, adding other investments like the sheriffs' downtown deployment and new business school at MacEwan will help bring people to the area.

REVENUE REVIEW WOULD BE POST-ELECTION: TOEWS

After being elected in 2019, the United Conservative Party-led government commissioned the MacKinnon Report, which examined provincial spending compared to other jurisdictions.

For the past two years, Minister Travis Toews has been asked if the province would appoint a panel to review the different income streams and if there are opportunities for change to improve Alberta's coffers.

In 2021, the minister indicated that would have to wait until the COVID-19 pandemic was over and the province had fully recovered from its economic impacts.

When asked Tuesday, Toews said there hadn't been any "footdragging" on a revenue panel; instead, an "important sequencing" had to occur first: examining spending and getting the fiscal house back in order.

A revenue review would have to happen after the upcoming general election, Toews said.

"I continue to believe that periodically, any jurisdiction should do a deep dive into their revenues," he told reporters. "I believe that should take place in Alberta in the future, but realistically that's going to be a post-June event."

While a full accounting has yet to occur, Toews pointed to the UCP lowering the corporate tax rate as a success in strengthening the province's competitiveness and revenue.

According to him, Alberta is collecting more through corporate taxes — with the rate being eight per cent — than it did when it was four per cent higher.

"I would love a revenue panel to take a look at our personal tax structure in the same way and understand if there are, again, structural changes that would improve the efficiency and appropriateness of our revenue structure," Toews added.

"We have a $20 billion tax advantage here in the province, it's significant and we want to maintain it."

'VOTE BUYING' PHASE: NDP

Joe Ceci, municipal affairs critic, is doubtful the UCP will not draw from the Alberta Fund before the election.

"They are in the vote-buying opportunity right now," Ceci said. "I think they are making promises that they won't deliver. Not unlike for four years they have been cutting back and cutting back on important things like healthcare, education and post-secondary education.

"Only now we are seeing some minor investment in each of those areas," he added. "That does not keep pace with the four years of cuts and has not kept pace with population growth and inflation."

He believes if the UCP wins the election, the party will revert "back to the way it was" with austerity and spending cuts.

"After the election, they are going to pull all that stuff back again, like their affordability measures — which sunsets right after the election on June 30 when we go to the polls May 29," Ceci said.