• About
  • Offices
  • Careers
  • News
  • Students
  • Alumni
  • Payments
  • FR
Background Image
Bennett Jones Logo 100 Years
  • People
  • Expertise
  • Knowledge
  • Search
  • FR Menu
  • Search Mobile
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
View all
Practices
Corporate Litigation Regulatory Tax View all
Industries
Capital Projects Energy Funds & Finance Mining View all
Advisory
Crisis & Risk Management ESG Strategy and Solutions Governmental Affairs & Public Policy
View Client Work
International Experience
Insights News Events
New Energy Economy Series Business Law Talks Podcast Economic Outlook
ESG & the CIO Subscribe
Bennett Jones Centennial Menu
People
Practices
Industries
Advisory Services
Client Work
About
Offices
News
Careers
Insights
Law Students
Events
Search
Alumni
Payments
Subscribe

Stay informed on the latest business and legal insights and events.

LinkedIn LinkedIn Twitter Twitter Vimeo Vimeo
 

Report to the Government of Alberta on the Development, Renewal and Financing of the Government's plan for Spending on Capital Projects to 2019

October 19, 2015

Written By David A. Dodge

The purpose of this report is to set out the principles that should guide the Government of Alberta "on matters broadly relating to the development, reconsideration and renewal of the Government's plan for prioritization of and spending on capital projects, including without limitation of the financing of the capital projects". The capital plan has three basic objectives:

  1. to enhance long run growth, thus raising the real incomes of Albertans by improving the allocation of real resources, including raising private sector productivity;
  2. to support the delivery of major social programs (education, healthcare, etc. ...) and,
  3. to enhance stability, jobs and growth by making greater investment during periods of weak private investment and vice versa.

Specifically, the report will focus on the following areas:

  • The overall size of the capital plan, with consideration to spending already underway or planned, as well as the availability of labour and the potential impact on prices and costs;
  • The appropriate mix of capital investment to support both the delivery of education and healthcare services to Albertans and long-term growth of output and productivity, through better infrastructure and;
  • Approaches to financing the capital plan in the current economic climate.

The paper is set out in five parts. In light of the basic principles for the overall expenditure plan to achieve growth and stability, the principles to guide the establishment of the capital component of the plan are discussed in the first section of Part I.

But because private investment and government revenues in Alberta are highly dependent on very uncertain future north American oil and gas prices over which the Alberta government has no control, the Alberta government faces particular challenges in the application of these principles to its overall economic plan and in particular to its capital plan. This is discussed in a second section of Part I.

Part II looks at the capital plan in aggregate. A first section makes interprovincial comparisons to get some idea of the adequacy of infrastructure capital in Alberta and briefly assess the current fiscal room to accommodate capital spending. A second section provides an assessment of the implications of different possible oil price scenarios over the next decade for the appropriate size of the capital plan over 2015-2019. This assessment is based on analysis of the way in which "needs", affordability, and cost pressure are expected to evolve under the different oil price scenarios, and guides the recommendations related to the overall size of the capital plan.

Part III provides guidance on the quantum, financing and allocation of the capital budget for investment in infrastructure required as inputs for the provision of education, health, and general services by the government (schools, hospitals, public buildings and structures).

Guidance for allocation of investment in public use infrastructure (roads, water, sewers, etc) is set out in Part IV along with guidance for financing this investment. This section covers the appropriate mix of capital investment and the approaches to financing the capital plan.

Summary recommendations are presented in Part V.

Notes

  1. Ministerial Order No1,2015
  2. These principles are applicable in general to any provincial jurisdiction.

Key Contact

  • David A. Dodge O.C. David A. Dodge O.C., Senior Advisor

How Sustainable is the Government of Canada's Current Fiscal Plan?

Related Links

  • Insights
  • Media
  • Subscribe

Related Expertise

  • Governmental Affairs & Public Policy

Recent Posts

In The News

Canadian Government Cannot Rely on More Borrowing to Fund Pledges

January 27, 2023
       

Speaking Engagements

The Evolution of Economic Crime, Asset Recovery, Money Laundering and Enforcement

January 26, 2023
       

In The News

Why Ottawa's Plans to Restore Fiscal Balance Are On Shaky Ground

January 26, 2023
       

In The News

Canada Needs to Get Its Act Together on Growth

January 25, 2023
       

In The News

Canada's Spending Plans Will be Threatened by Higher Interest Rates and Looming Recession

January 25, 2023
       

In The News

David Dodge on Power Play: Canada's Fiscal Plan is Not the Full Story

January 25, 2023
       

In The News

Federal Government is Underestimating Risks of Recession and Higher Interest Rates

January 25, 2023
       

In The News

Government of Canada Plays "Hide the Deficit" in Fiscal Planning

January 25, 2023
       

Speaking Engagements

AME Roundup's The Gathering Place

January 25, 2023
       
Bennett Jones Centennial Footer 100 Years
Bennett Jones Centennial Footer 100 Years
About
  • Leadership
  • Diversity
  • Community
  • Innovation
  • Security
  • History
Offices
  • Calgary
  • Edmonton
  • Montréal
  • Ottawa
  • Toronto
  • Vancouver
  • New York
Connect
  • Insights
  • News
  • Events
  • Careers
  • Students
  • Alumni
Subscribe

Stay informed on the latest business and legal insights and events.

LinkedIn LinkedIn Twitter Twitter Vimeo Vimeo
© Bennett Jones LLP 2023. All rights reserved.
  • Privacy Policy
  • Disclaimer
  • Terms of Use
Logo Bennett Jones