Mr. MacDonald: Thank you, Mr. Speaker. Yesterday, when the Official Opposition asked the Premier about our public debt, he stated, “We are not adding to our debt.”

Page 24 of the fiscal plan, the government’s budget, states explicitly that this government plans to directly borrow $3.3 billion over the next three years. My first question is to the President of the Treasury Board. If direct borrowing is not considered a debt, what exactly did the Premier mean yesterday in the House?

Mr. Snelgrove: Mr. Speaker, borrowing $3.3 billion is a debt, and when it’s spent on capital projects for the government, it becomes an asset. In our consolidated financial statement we will offset borrowed money with a capital project, which at the end of the day balances even, gets us good value to continue to build while prices are right.

Mr. MacDonald: Again to the same minister: why are debt servicing costs doubling over the next four years to over $400 million?

Mr. Snelgrove: Mr. Speaker, we also have tools that have been used very effectively by this government, some P3 partnership groups that are building ring roads around these cities, that need to be paid for. All of the capital debt that we’re assuming is accounted for I think on page 70, where it spells out that this interest will be paid to support our capital investment in our infrastructure.

The Speaker: The hon. member.

Mr. MacDonald: Thank you. I would remind the President of the Treasury Board that the 3P debt, all 5 billion plus dollars of it, is in another section of the fiscal plan. We’re not talking about 3P debt here.

Now, again, if you borrow money, you have to pay it back. That’s a debt. What is this government’s plan to pay back the $3.3 billion in debt that it is taking on as a direct result of your years of fiscal mismanagement?

Mr. Snelgrove: Mr. Speaker, you know what? We do believe in Alberta, and we believe in Albertans. We believe that if we invest in the infrastructure that enables business to thrive and come to Alberta and grow its economy, we will take our fair share as the Alberta government, we’ll reinvest it in the programs that they all want us to, in health and education, and we’ll build a bigger pie rather than shrink the pie and all suffer and be happy together like them.

Alberta Hansard, February 17, 2010

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