Alberta sells 3 of 4 government planes: Prentice

CALGARY –Jim Prentice said Alberta has sold three of four government planes for $6 million in his address to the Canadian Club of Calgary on Thursday afternoon.

Two 2006 Beechcraft King Air B200 and one 1997 Beechcraft King Air 350 have been sold, said Prentice. A 1985 DeHavilland Dash 8-103 is “still available.”

Fargo Jet Centre Inc. of Fargo, North Dakota was the successful bidder by offering nearly $6.1 million for the three King Air aircraft, said a government release.

“Considering there is a limited market for some of these planes and the economy is tight, especially in western Canada, we are pleased to have sold three of the aircraft at a fair price,” said Minister of Service Alberta Stephen Khan in the statement.

READ MORE: Alberta’s contentious aircraft now up for sale

The fleet became a lightning rod of controversy for former premier Alison Redford and the PC party.

Redford’s staff booked seats for “false passengers” on government aircraft in order to limit flight access to the former premier, a report from Alberta’s auditor general suggested. The RCMP said no charges would be laid against Redford in a report last week.

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In September, one day after being sworn in as premier, Prentice announced the government planes would be sold. Prentice said he and his cabinet decided that, although accessing Alberta’s rural remote communities is important, owning planes is not necessary. He said his cabinet voted unanimously to sell the four planes.

The premier’s speech comes just days after Albertans learned the province’s budget has yo-yoed from a projected surplus to a deficit and back to a surplus, showing close to a $1-billion turnaround from a little over six weeks ago.

Finance Minister Robin Campbell released third-quarter numbers Tuesday that forecast a $465-million surplus for the 2014-15 fiscal year. But Prentice said Thursday that it’s not a rosy outlook moving forward.

“The small surplus we recorded … does not change one iota the reality that we are facing going forward, which all of the experts and analysts tell us is going to be a three to four-year duration,” said Prentice.

He emphasized there would be a $7-billion gap in government revenues expected in the coming fiscal year.

“In education, $7 billion is more than the entire annual budget to educate 660,000 K to 12 students we have in this province; that includes paying more than 41,000 teachers,” said Prentice. “Or in terms of healthcare, $7-billion would pay for all of the healthcare services Albertans will use for this year through until the upcoming July,” he said.

“When I say to you a $7-billion hole, it’s not a simple problem. It cannot be eliminated by cutting staff, by eliminating severance or by buying fewer paper clips. This is a big problem.”

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With files from Emily Mertz, Melissa Ramsay and The Canadian Press