AUPE President: Spending in health, education and social services is the best way to counter recession
EDMONTON – Alberta Union of Provincial Employees President Doug Knight said today that the Government of Alberta would be unwise to reduce program spending on health, education and social services.
“There is consensus globally and across the political spectrum that reducing spending on government programs during a recession can only make matters worse,” Knight said.
“From Prime Minister Stephen Harper to U.S. President Barack Obama, world leaders recognize that pulling money out of the public sector will hurt the economy and make the recession worse.”
Responding to Treasury Board President Lloyd Snelgrove’s release of the 2008-09 annual report and recent statements indicating the province could face an additional $2 billion revenue shortfall in 2009-10, Knight encouraged the government to protect public sector jobs.
“The positive effect public sector investment has on the economy should not be under-stated. The government’s own economic figures show that investment in health and social services delivers seven times as many jobs as investment in oil and gas extraction, and investment in education delivers five times as many jobs,” Knight said.
“Cuts to health care spending will not only hurt the economy but reduce the services that polls show are most important to Albertans,” he added.
Knight encouraged the government to heed the advice given by the Conference Board of Canada in a report titled “Fending Off a Canadian Recession” which warned “it would be wrong-headed economically to cut programs or reduce total planned government spending during an economic slowdown… That strategy would only reduce demand growth and make a difficult situation worse.”
“In a province with the economic capacity and vast savings that Alberta has, we should not worry about short-term fiscal deficits, but instead focus on continuing to deliver the services that Albertans need,” Knight said.
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For more information:
Doug Knight, President, AUPE, 780-930-3301, 780-265-6655 (cellular phone)
David Climenhaga, Communications Director, AUPE, 780-930-3311, 780-717-2943 (cellular phone)