Friday, October 20, 2006

Klein wants to put the brakes on public infrastructure

Premier Ralph Klein has called for a delay in constructing schools, roads and other public infrastructure in Alberta because of spiraling costs.

There are a couple of sound economic arguments for the premier's request. First, as the current boom tapers off, construction costs should decline, saving the taxpayers money. Second, postponing projects will avoid adding to an already overheated economy while providing a stimulus when the economy cools.

All good Keynesian practice, but why is the premier focusing on the public sector? If he wants to slow down cost escalation, why not curb tar sands expansion? That is, after all, the root of the problem, and there is a much stronger case to be made. The mad pace of tar sands development is creating a range of challenges that are not being adequately dealt with, from increasing stress on infrastructure in the north to environmental destruction. Even the sage of Alberta politics, Peter Lougheed, has called for a dramatic reduction in the rate of tar sands exploitation.

Premier Klein's priorities seem to place profit ahead of the public good. Who would have guessed?

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