While many residents and business owners in parts of southern Alberta hit by flooding earlier this summer are still working on cleaning up after the disaster, the provincial government is warning of the effects recovery will have on Alberta’s budget.
Premier Alison Redford referred to the recovery in a press conference Monday.
“It’s been 8 weeks since the flood and communities are still dealing with the impact,” Redford said. “As we move forward we’ll be able to provide more detail in respect to what those costs will be.”
On Monday, Redford estimated the total costs of recovering from the flooding will top $5 billion.
As for this year’s budget, Redford said there will be a tough time ahead, as the province works to fit the massive expense into the tight provincial budget.
“There’s no doubt that the impact from the floods will be on infrastructure so that gives us the ability to move forward around operating,” Redford said. “So to move forward we’re continuing to invest in infrastructure.”
The Canadian Taxpayers Federation says the disasters have dealt such a blow to the province’s pocket book that Albertans could see higher taxes.
“We’ve gone from no balanced budget and depleting the sustainability fund to the point where we’re going to run an even bigger deficit and go straight into debt,” Derek Fildebrandt with the Canadian Taxpayers Federation said.
“I think there’s support amongst even some elements of the government to use the flood as a catalyst to bring in PST.”
However, the premier has not suggested introducing a PST – saying the province has $2 billion to $3 billion in savings.
Redford said she’s brought the subject up with Prime Minister Stephen Harper – and said the PM committed the Federal Government to covering some of the bill.
With files from Brenna Rose
