WATCH: The Fraser Institute says that this is s crucial time for Alberta, and believes it can learn from former NDP governments on what to do and what not to do. Gord Gillies has more.
CALGARY – As Premier Rachel Notley works to draft a budget for Alberta, a new study says her government can learn where to put its money from past NDP leaders. It suggests Notley emulate Saskatchewan’s Roy Romanow, and avoid following in the footsteps of Ontario’s Bob Rae.
The Fraser Institute looked at the fiscal policies of former NDP governments across Canada and found great differences in the approaches and outcomes. The organization—typically thought of as a right-wing think tank—said Canadians mistakenly assume a government’s approach to fiscal policy can be predicted simply by looking at its political label.
Senior policy analyst and study co-author Ben Eisen says that’s not the case.
“No party has a monopoly on successful public policy.”
“Every major party that’s had governments across this country at the provincial level has delivered governments that have been capable of delivering very prudent fiscal policy, and others that have been much less successful,” Eisen told Global News.
The study suggests Alberta is at a “crucial moment” in its economic history due to the large deficit and shaky economy.
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Eisen says Romanow’s NDP government in early 1990s Saskatchewan is an example of what kind of approach Notley should be taking today in Alberta.
On the other hand, Eisen points to Bob Rae’s New Democrat policy as a less successful example of dealing with a deficit.
“What it tried to do was pay for that deficit through higher taxes, and also dramatically increase spending by approximately 12 per cent in the first year,” he said. “That combination of much higher spending and higher taxes resulted in very high budget deficits that grew and grew over their time in office.”
The study comes days after Premier Notley announced she’s recruited former Bank of Canada Governor David Dodge to help with the government’s capital plan. Dodge will present recommendations at the end of the summer; Alberta’s budget comes out in the fall.
READ MORE: Notley hires former Bank of Canada governor to help with capital plan
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