00:00:55.560First, what would it have meant for Albertans if the government had done what her critics are demanding and made the cuts it would have taken to balance the budget?
00:01:06.660Well, look, deficits are obviously not good.
00:02:38.320And we can't rely on $90 oil, obviously.
00:02:41.560um you know uh but we've the the plan that the premier's put in place is is uh a short long and
00:02:50.320medium term long term it's grow the heritage fund to 250 billion dollars we've already doubled it
00:02:54.940in the last four years um and of course when we do that we'll be able to replace oil and gas revenue
00:03:01.320with the interest from the fund but the key is now not to to raid that heritage fund to leave it in
00:03:06.420place to continue to grow it as Norway and other jurisdictions have for the next 20 years or more
00:03:13.300until it's there. Medium term, it's doubling our oil and gas capacity or egress pipelines because
00:03:19.020of course, even at lower prices, if you're selling more oil, exporting more oil, it means
00:03:23.780more revenues. That's the medium term 10-year plan, five, 10-year plan. And then the short-term
00:03:28.480plan is to make sure that we hold spending well below inflation plus population growth. Obviously,
00:03:34.560So we had some catch up to do with this 600,000 new individuals coming to Alberta in the last few years.
00:03:42.340We need to get a hold and get under control immigration.
00:03:45.600That means taking it over from the federal government and making sure that we don't have these absurd open border policies affecting Alberta and our budget any longer.
00:03:55.060And it means looking at some of these programs going forward and saying, look, some of these things need to be income tested.
00:04:00.680We have the most generous social programs, uh, you know, in the country and, um, we just
00:04:06.780got to make sure that, uh, they are appropriate and that they are right size.
00:04:11.520Um, and, and for those who really need them, uh, and we're not, uh, giving away taxpayer
00:04:17.320money to those that, uh, are wealthy enough that they can, that they can do fine.
00:04:21.700So who actually is out there who's getting money who maybe doesn't really need it?
00:04:26.080Well, I mean, I think the piece there is that there's a lot of social supports that are intended for people that are financially not able to take care of themselves.
00:04:43.820And that's always been, you know, conservatives agree that that social safety net is important and we need to make sure it's strong and that the money is getting to those people that do not have the financial wherewithal.
00:04:56.080or even in some cases, the mental capabilities to take care of themselves.
00:05:02.300That's what we should be targeting those programs for.
00:05:05.700Those programs are not meant for individuals that are between two-income homes
00:05:14.480that are making $300,000 or $250,000 or so forth or have net worths in the millions
00:06:10.640We've passed the hot potato so long and allowed for these things to happen.
00:06:14.260But obviously we need to look in and at these things and right-size them
00:06:18.680because it's, it's not, it's not good for taxpayers and there's others.
00:06:22.540there's other examples of that so let's just talk about the situation in the middle east and how
00:06:29.100that affects things i looked this morning oil is that this is an hour ago it may have changed
00:06:33.480oil was up to 78 dollars west texas u.s dollars obviously that's better than 60 even if it isn't
00:06:42.02090 how how much does this help well i mean obviously uh it's going to help um for those
00:06:51.740who don't know, budgets are April 1st to March 31st. That's our fiscal year. And so for the
00:07:01.940budgets that just is coming to an end, budget 2025-26, it certainly will have an impact.
00:07:09.720If you recall, I don't have the exact budget number in front of me right now, but the deficit
00:07:14.700was going to be about $5 billion. Well, there's a chance it will have been cut in half by the end
00:07:21.640of the uh by the end of the year if this if these prices continue you could see it in kind of the
00:07:26.380mid twos something like that so just which is great um now for the budget going forward starts
00:07:32.760april 1st the one that's obviously was just announced um it will have probably some impact
00:07:39.300because um you know we're seeing forecasts being revised for the year up um you know anywhere from
00:07:45.700five to ten dollars uh so obviously that's going to have an effect uh obviously we could we i don't
00:07:51.800think we can count on uh 80 oil for the entire year i mean if that happened yeah well poof we'd
00:07:58.180have a balanced budget and large surplus but um you know i don't think we can count on that and
00:08:03.140and we shouldn't count on that i mean the key is is that when we get these when we get when oil
00:08:07.740becomes 80 85 90 95 a barrel for the year what we need to do is make sure that we don't
00:08:15.600spend those large surpluses on operational that we did what we did in in 2022-23 when premier
00:08:22.000smith was first elected uh the large 11 billion dollar or so surplus was put into debt repayment
00:08:29.120which is a one-time cost of course the heritage fund one-time investment of course and then
00:08:34.480obviously we were going through a massive um affordability challenge at that at that point
00:08:38.880so some of the money was actually provided directly back to albertans but the key is
00:08:42.400Those are all one-time investments or costs.
00:08:46.640And when we have these big surpluses, we still need to keep operational spending below inflation plus population so that when the price of oil drops again, that we're not, you know, we're not, we're not blowing the budget.
00:08:58.700Because obviously when it goes down to say $60, I mean, we see the, we see the results, large deficits.
00:09:04.840One last point on the immigration, it actually leads to one of the other questions on the referenda.
00:09:09.620but obviously we had a massive increase in population last year and the year
00:18:01.900it does start to give people ideas about personal ownership in a way they'd never thought of
00:18:08.120otherwise. Let me move on. I want to talk about energy security a bit. You've just talked about
00:18:14.060how many people have moved into Alberta. So now we need more power. I seem to recall that during
00:18:22.220Ms. Smith's first winter as premier, that would be January 2023, we had a near-miss brownouts
00:18:29.180when we all had a lesson that interruptible power sources like sun and wind couldn't be depended on.
00:18:36.180But we still had the Trudeau government, as it then was, demanding net zero on the grid,
00:18:42.180and we had to discuss indemnifying power generation CEOs.
00:18:46.640If they went ahead and produced the power it took to keep people alive in Alberta's bitter winters.
00:18:52.600Since then, we've had another half a million people move in, you know, 16% population growth in three and a half hours. How are we doing in balancing demand for electricity with supply?
00:19:07.380A lot better than we were. And you can tell that obviously by the power prices, which have dropped substantially since when Pringersmith took office. And, you know, obviously we had a huge issue with far too many renewables being brought on the grid.
00:19:28.540and um and it was you know obviously when you needed the renewables most in the winters and
00:19:34.000on uh dark nights um they weren't available and uh but yet we were um you know getting to a
00:19:40.860situation where no one was building uh you know any uh new baseload electricity from natural gas
00:19:48.080uh it was all renewables and of course you know renewables have their place and they can be very
00:19:52.880unofficial if done properly and, and in the right ratio with, uh, with baseload electricity.
00:19:59.320Um, but, uh, it had, the ratio was completely out of whack.
00:20:03.060And so obviously we took, took many steps that were controversial to get that ratio
00:20:41.600We came within a hair's breadth of grid failures several times in the first couple of winters following Premier Smith's election as Premier.
00:20:58.000And, you know, obviously the one we'd just gone through, the winter, we're just, we're not done it yet.