P.A. budget talk covers ‘oil problem,’ borrowing, and business

Finance minister Ken Krawetz’ annual brief for Prince Albert’s business community on the provincial budget for the last time this week.

The Prince Albert and District Chamber of Commerce’s annual luncheon brought Krawetz to the city on Tuesday. It’s his last turn as finance minister, after previously announcing he won’t be running again in the upcoming election.

Krawetz jokingly admitted he couldn’t get into depth on the budget because it would take more than his allotted half hour, but managed to cover a lot of ground in that time.

Krawetz started off on a negative note, comparing the price per barrel of oil in September to the current price – it’s been cut in half.

“Yeah we’ve got a bit of an oil problem,” he told the audience of city council members and business people.

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Krawetz spoke openly about taking on debt to come to the 2015-2016 budget.

He explained original budget deliberations looked at a $700 million revenue shortfall for this fiscal year, which happens to start on Tuesday.

“You can’t find $700 million. It’s not under the cushions,” Krawetz said.

He later explained the government might borrow “up to $700 million.” Krawetz stated the government is taking on this debt in a way that, by the time it matures, there will be enough money tucked away to repay it.

Back to his speech, he quickly turned to the positive trade numbers, population increases, and other areas of growth in the province.

Despite saying jokingly “I can say anything because I’m not seeking reelection,” Krawetz spent the majority of his time talking about cuts or tax changes that could have been – but weren’t – made in the budget.

This includes choosing not to increase taxes, not to boost mill rates, not to lower municipal revenue sharing, and not to increase gas taxes.

He concedes tough decisions were made – for example with day care – but that priorities were investing in people and infrastructure.  

Based on the crowd’s questions and comments – and The Chamber of Commerce’s chief executive officer Merle Lacert – the big talking points for the business community are funding for the bridge and what’s going to happen with the Victoria Hospital.

Referring to last year’s speech, Krawetz acknowledged the importance of the Victoria Hospital, but couldn’t provide any answers on whether the current redesign planning will end in a renovation, restoration or new hospital.

“You don’t get to a capital project in one year or two years. It takes a while to ensure that you do the evaluation, do it properly, try to figure out what’s best,” he said.

As for the bridge, Krawetz’ speech came the same day that the Urban Highway Connector Program, through the province, committed to give over $1 million for the upkeep of Prince Albert’s Diefenbaker bridge.

claskowski@jpbg.ca

On Twitter: @chelsealaskowsk