Stelmach sells out taxpayers

[ivbinconned]

November 15, 2007

Stelmach sells out taxpayers

• Paying-off the teachers’ portion of the unfunded liability to cost $600 per Albertan

EDMONTON: The Canadian Taxpayers Federation (CTF) called today’s shocking announcement by the Alberta government that taxpayers would be assuming the teachers’ portion of the unfunded pension liability, a “betrayal,” and “a politically-motivated move to avoid a teachers’ strike during the upcoming provincial election.”

“Premier Stelmach has offered teachers $2.1-billion of taxpayers’ money in exchange for them not going on strike during the upcoming provincial election,” charged CTF-Alberta director Scott Hennig. “Clearly, the Stelmach government must feel a province-wide teachers’ strike during the next election would hurt his changes of re-election.”

“Five-years of labour peace from teachers is not worth anywhere near $2.1-billion,” continued Hennig. “Teachers are getting their debt paid-off 52 years early and all taxpayers get is a lousy five years of no-strikes.”

The $2.1-billion in new debt will cost the equivalent of $600 per Albertan, or $2,400 for an Alberta family of four.

“Historically, major teacher strikes are few and far between in Alberta, averaging one every ten-years or so. Clearly the biggest beneficiaries of labour peace are politicians,” continued Hennig. “Plus, if the government is concerned about teacher strikes interfering with the education of Alberta students, they can do what 37 of the 50 US states have done and ban them.”

The CTF further notes the Alberta government continues to sit on the final report from the government appointed Task Force on the Teachers’ Unfunded Pension Liability, which was submitted to Hon. Ron Liepert on October 31st.

In the CTF’s submission to the Task Force on the Teachers’ Unfunded Pension Liability, they recommended the Alberta government investigate the benefits of pension reform for new teachers by moving from a “defined-benefit” pension plan to a “defined-contribution” pension plan.

The CTF also recommended the Alberta government require a full public vote prior to signing any new agreement.

“This agreement is going to cost Albertans $600 a piece, and if the ATA is going to ask each of their members to vote on it, so should the Alberta government,” concluded Hennig.

[wilagro]

Ralph and his gang KNEW all about the Teachers’ Unfunded Pension Liability. They preferred to stick their collective heads in the sand and pretended that it didn't exist. AFTERALL...Alberta was supposed to be "debt-free" and that little burr under the saddle had to be hidden so as not to upset the applecart.

"Honest Ed", is trying to SOLVE the teacher pension PROBLEM. For gawd's sake, give him credit for a new approach in cleaning up OLD nagging "bad business" from Ralph's governance.

[ivbinconned]

For a socialist you sure are enamored with this new, unelected, “conservative premier!!

[FarmRanger]

For the first time in known history, wilagro and I agree. The unfunded liability should never have been.

[ivbinconned]

EDMONTON: The Canadian Taxpayers Federation (CTF) called today’s shocking announcement by the Alberta government that taxpayers would be assuming the teachers’ portion of the unfunded pension liability, a “betrayal,” and “a politically-motivated move to avoid a teachers’ strike during the upcoming provincial election.”

Forgive if I am wrong but doesn't that read "the teachers portion"!!
You guys have already paid your share and now you will be paying the whole shot!!??

[ivbinconned]

Alberta Alliance Opposition
Media Release

Friday, November 16, 2007

Another broken deal costs taxpayers

Liability deal costs 43 million up front, 2.1 billion more debt with nothing but a promise of sign now and pay later.

In what is becoming a habit, the PC government has torn up the 1992 agreement that had them paying two thirds of the Alberta Teacher’s Pension unfunded liability. Premier Stelmach announced yesterday that the government would saddle taxpayers with an additional 2.1 billion dollar debt by assuming the whole liability.

“We had a deal in place and we should have been honouring it for years,” says Alberta Alliance Leader Paul Hinman. “I am very disappointed that 1992 agreement was not honoured and the $4.1 billion put into the pension fund.”

“Poor fiscal planning and failure to do the right thing left this government in a desperate bargaining position. Now they are using taxpayer’s money to buy votes by offering the teachers the $2.1 billion,” Hinman explains. “This isn’t even penny-wise, it’s just pound foolish.”

The Alliance leader continues, “The former deal was in place since 1992, 15 years, and yet the PC government did nothing about it. If we paid off the liability with the surpluses instead of increasing spending and feeding political slush funds, then taxpayers would already be saving on the interest. It was just another element of Ed’s spending plan.”

“The government waited and waited and finally they were faced with a spectre of a teacher’s strike during a spring election. For political reasons, they had to deal. It is another case of political expediency trumping the good of the people.”

Another huge concern with the deal is that there is no commitment from government to pay off the liability it now owns completely. “The government put the Alberta taxpayers on the hook without giving any plan for payout other than the marketing strategy of sign now, pay later,” points out Hinman. “It is sound economics to pay off our debts but amazing irresponsibility to jump in without any forethought as to how it will be done.”

The province could save taxpayers 45 billion dollars in interest but this would only happen if the liability was paid off this second. The Premier failed to mention this and was very evasive about when it would be paid. Even the official press release was very vague, saying the “agreement will allow government to consider the options available to save taxpayer dollars.” “So I ask,” says Hinman, “what is the plan? Will this actually get paid off quickly and save every Albertan money or will the funds get siphoned off to buy votes somewhere else. I want to see a hard plan before we can count on any savings.”

Another immediate hit to taxpayers is the $1500 lump sum payment from the government to every teacher under contract in April of 2008. The payment will cost Albertans roughly 43 million dollars. “There is no rationale as to why Alberta taxpayers should pay this,” points out Hinman. “It is just the carrot to get ratification from the teachers themselves.”

The Alliance leader concludes by saying, “This is classic politics. What the Tories gave in past, they take away in future. This deal will cost $600 plus for every Albertan. That is a 150% return to government on the Ralph bucks. It’s also a continuation of the failure of the government to honour its contracts. The cost of their mistakes and foolish spending, past and present, will be carried by the taxpayers of Alberta.”

[Burbert]

Honest Ed is trying to do the right thing! Ralph spent all his time, playing the bully on the block. His hard drinking two fisted approach, crush the poor, law and order, give away to the oil sector, kept him in power for a long time. But he was a goof at the best of times, even a monkey could have paid off the debt during his years in power!

[Bez]

Interestingly enough, I had someone in the educational system I had no right to talk - "Look at all the cash you farmer types get!!"

Nothing will ever change.

Bez