At an economic summit Saturday at the University of Alberta, Redford told delegates she wants to “be innovative” and move away from the savings-fund model adopted by the Klein government in the 1990s.
More public-private partnerships in new areas of infrastructure are high on the agenda, she said.
“I made it clear we want to be innovative,” Redford told reporters.
“Whenever we’ve been able to invest strategically in economic growth, the dividends have paid off.”
Redford said she had no specific plan in mind.
Some schools and roads are built with P3s, but Finance Minister Doug Horner said the government “will look at whole raft of options when we look at the next big infrastructure piece.”
The heritage fund is expected to grow to $25 billion from its current $14 billion under a new savings plan introduced last spring. The second annual summit, an invitation-only gathering that has drawn business people, academics and politicians, is examining how to use the money.
Opposition politicians said judging by Redford’s comments, the summit is designed to pave the way for more borrowing by the government.
“This is one more step to soften people up for more debt,” Wildrose Leader Danielle Smith said. “But there is no meaningful repayment plan.”
The “real decisions” were made before the summit and the result will be a “sea of red ink,’’ she said.
New Democrat Leader Brian Mason said expanding the use of P3s is not good financial management. They cost more because borrowing costs are higher for the private sector which also builds in a profit margin.
Mason said he’s particularly worried about the call for social investment bonds to raise cash for social services and which allow corporations to profit from social ills.
“That’s about having private companies invest in the misery of Albertans,” he said.
In the Lougheed era, the Heritage Fund was used for economic diversification projects such as the Heritage Fund Medical Research Foundation and capital projects like Kananaskis Park. Money was also put into savings.
In the Klein era, the fund was converted solely to investments in the stock market to raise revenue for government operating expenses.
Original Article
Source: edmontonjournal.com
Author: Sheila Pratt
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