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Albertans to get $400 each from surplus: Klein
CTV.ca News Staff
Premier Ralph Klein announced Tuesday that each Albertan will receive a $400 cheque from the oil-rich province's unbudgeted surplus, generated by soaring energy prices.
"All I can say to the rest of Canada is remember that we aren't investing this in ongoing programs and program development," he said. "We're doing a one-time investment because we have one-time riches."
Klein said the tax-exempt prosperity dividend will be in one cheque and distributed before the year's end.
Another $2.6 billion in surplus cash would be distributed between two other priority areas -- infrastructure projects and various endowments, he said.
The decision on how the money would be spent came at a cabinet meeting in Lethbridge on Tuesday.
Observers are speculating that while the province will come up with some residency requirements for recipients, they aren't expecting people on social assistance to see their payments reduced because of the cheques.
Finance Minister Shirley McClellan has been assigned to work out the program's details.
While the premier has said he is getting calls from Albertans asking: "Where's my cheque?", the decision has been met with some criticism.
The head of the Calgary Chamber of Commerce issued a release earlier, calling the cheques "an opportunity squandered," saying the money would be better spent on corporate tax cuts.
"If the province is serious about future prosperity, consideration of provincial surpluses must be premised on a fiscal strategy that provides enduring revenue supported by the lowest, most competitive tax structure in Canada," the statement says.
"Bonus cheques simply reinforce an expectation for government handouts, and miss the opportunity to connect lower taxes and the ultimate prosperity bonus of sustained wealth generation and economic development."
Klein dismissed the criticism, insisting that government support was unanimous in support of the dividends.
However, veteran cabinet minister Ty Lund has said he doesn't support dividends and wasn't happy that the issue was not put to a vote.
When Klein was asked about Lund's comments, he conceded there may have been some government members against the proposal, but "the majority ruled."
Earlier, Klein dismissed a poll that suggested Canadians outside his province want a share of Alberta's wealth.
The situation is no different now than it was in the boom of 1980, he said.
"The rest of Canada was saying the same thing then: 'Give me, give me, give me,' " the premier said last week.
"Then the price of oil went down and the rest of Canada was wringing their hands in glee saying, 'You deserved it.'"
A recent report released by the Alberta Energy and Utilities board predicts crude oil prices will remain at or above $50 US a barrel through 2009.
It also said Alberta's oil supply is expected to grow from 1.72 million barrels daily in 2004 to 2.8 million by 2014.
CTV.ca News Staff
Premier Ralph Klein announced Tuesday that each Albertan will receive a $400 cheque from the oil-rich province's unbudgeted surplus, generated by soaring energy prices.
"All I can say to the rest of Canada is remember that we aren't investing this in ongoing programs and program development," he said. "We're doing a one-time investment because we have one-time riches."
Klein said the tax-exempt prosperity dividend will be in one cheque and distributed before the year's end.
Another $2.6 billion in surplus cash would be distributed between two other priority areas -- infrastructure projects and various endowments, he said.
The decision on how the money would be spent came at a cabinet meeting in Lethbridge on Tuesday.
Observers are speculating that while the province will come up with some residency requirements for recipients, they aren't expecting people on social assistance to see their payments reduced because of the cheques.
Finance Minister Shirley McClellan has been assigned to work out the program's details.
While the premier has said he is getting calls from Albertans asking: "Where's my cheque?", the decision has been met with some criticism.
The head of the Calgary Chamber of Commerce issued a release earlier, calling the cheques "an opportunity squandered," saying the money would be better spent on corporate tax cuts.
"If the province is serious about future prosperity, consideration of provincial surpluses must be premised on a fiscal strategy that provides enduring revenue supported by the lowest, most competitive tax structure in Canada," the statement says.
"Bonus cheques simply reinforce an expectation for government handouts, and miss the opportunity to connect lower taxes and the ultimate prosperity bonus of sustained wealth generation and economic development."
Klein dismissed the criticism, insisting that government support was unanimous in support of the dividends.
However, veteran cabinet minister Ty Lund has said he doesn't support dividends and wasn't happy that the issue was not put to a vote.
When Klein was asked about Lund's comments, he conceded there may have been some government members against the proposal, but "the majority ruled."
Earlier, Klein dismissed a poll that suggested Canadians outside his province want a share of Alberta's wealth.
The situation is no different now than it was in the boom of 1980, he said.
"The rest of Canada was saying the same thing then: 'Give me, give me, give me,' " the premier said last week.
"Then the price of oil went down and the rest of Canada was wringing their hands in glee saying, 'You deserved it.'"
A recent report released by the Alberta Energy and Utilities board predicts crude oil prices will remain at or above $50 US a barrel through 2009.
It also said Alberta's oil supply is expected to grow from 1.72 million barrels daily in 2004 to 2.8 million by 2014.
) financial decisions, but that's stupid.
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