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Vol. 9, No. 45 Week of November 07, 2004
Providing coverage of Alaska and northern Canada's oil and gas industry

Klein seeks re-election on how to spend bulging surplus

Gary Park

The voters of Alberta are heading for what seems to be a foregone conclusion on Nov. 22, when political observers believe the only unanswered question is how wide a margin Premier Ralph Klein’s Conservative party will accumulate in retaining power.

In what Klein, 62, has said will be his final campaign, the rumpled, to-the-point, mostly good-natured premier is seeking a fourth term.

But his short-temper and the fact that he keeps reminding voters this is his last election could rebound in the final count.

Klein has a campaign war chest of C$4 million and use of a plane to fan out across Alberta, while his three rivals are left to chase after Klein in mini-buses and operate on a shoestring.

The Liberals, currently the largest opposition party in the legislature, are still struggling to pay off 90 percent of a C$1 million debt from the last election.

Awash in oil and gas revenues, the Klein government has taken some heat for ramping up government spending by 40 percent (after taking into account inflation and population growth) over eight years.

Alberta on track to C$10 billion surplus

But Klein is deflecting those concerns by preparing Albertans to become a debt-free province in 2005, wiping out the last C$3 billion of a C$22.7 billion overrun that he inherited in 1994.

Alberta is currently on track to notch a C$10 billion surplus in 2003-04.

The toughest decision facing the government is how to handle its windfall in a province of 3.5 million.

It has recently tried asking the voters by e-mail and mail-out questionnaire what they want to do with future surpluses — raise spending in health care and education, cut taxes or put the money into a “rainy-day” fund.

The evidence suggests only a minority of Albertans took part in the exercise.

In 2005 Alberta celebrates 100 years in the Canadian confederation. The smart money has Klein stepping down after the centennial, pocketing a C$500,000 severance as a retiring premier and taking up new career in fishing or golf.

Under Klein, the Conservatives over the last three elections have captured, in succession, 51, 63 and 74 of the 83 seats in the legislature.



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