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The Alberta NDP Budget from a Finance and HR Perspective Part 2

Part 2 of 3

The Public Sector Compensation Exposure Promise

(2.5) We will extend the sunshine list to include our province’s agencies, boards and commissions.

The Reality:

When the current sunshine list was published there was a flurry of interest but did the publication result in any compensation changes?  Unlikely.  Will extending the list to include other public sector employers result in any compensation changes?  Unlikely.  In terms of greater transparency, this will be but one of a series of initiatives that the NDP will set in place to make our public sector and government more accountable over the long run.  If they manage to get re-elected, this will be the legacy of the NDP.

Alternative Take:

The NDP has a tough row to hoe with respect to sorting out the elephant in the room: healthcare.  The sunshine list pointed out that the province’s compensation leaders in the public sector are largely healthcare related. With a focus on delivering care at the bedside, the NDP will doubtless drive a review of our administration heavy healthcare system.  This process will review numbers of staff in admin and managerial positions, as well as overall compensation levels for all.  Am I optimistic a new regime will enact any lasting change in Alberta’s largest employer?  No.  Others have tried and failed.  There are too many moving parts, too many vested interest groups, and too little accountability. Just as their predecessors did, NDP will be forced to make superficial changes that are designed to look like change but in reality merely serve to reinforce the status quo.

The Tax/Levy Promise

(3.3) We will eliminate the PCs’ proposed health care levy, replacing it with a more progressive income tax for the top 10% of tax filers in Alberta, and fairer corporate taxes.

The Reality:

This will be an extremely popular measure and it will have a modest positive impact on the take home pay of Alberta families.  The increased taxes paid by the top 10% of tax filers will more than offset the disappearance of this levy.  This ties in nicely with the overall review of taxation and royalties promised by the NDP.

The Anti-Privatization Promise

(3.7) We will end the PCs’ costly experiments in privatization, and redirect the funds to publicly delivered services.

The Reality:

Time will tell if this will have any meaningful impact in the province. Governments world-wide of all political persuasions have found some value in privatized, or tri-partite, infrastructure and service delivery models. Removing this approach as an option may unfairly limit NDP ability to source all financially sound service and infrastructure delivery options.

Alternative Take:

If the NDP is to survive beyond a single term, it needs to reconcile the idea that for profit service is, by definition, evil.  Their large small business and entrepreneurial base would argue this for sure.  Many of the services we take for granted as “public” started their lives as “private”.  Think fire, think police, think healthcare, think utilities.  The fact that former regimes toyed with going back to “private” service is not necessarily bad, but rather different.

The STEP Reinstatement Promise

(4.9) We’ll restore the successful Summer Temporary Employment Program (STEP) job creation program for Alberta youth.

The Reality:

The NDP is on the right track here. Job training programs are one of the best ways to raise economic activity within the province.  It is expected that a number of job training programs will be instituted to foster economic activity.
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