06 Sep Interest rate hike exposes risks of NDP borrowing
September 6, 2017 (Calgary) – The Bank of Canada’s decision to raise interest rates has increased the risk facing Alberta says Alberta Party Caucus leader Greg Clark.
“The NDP has put Alberta in a precarious financial position and have refused to tackle the serious risks that their excessive borrowing has created” said Clark. “As interest rates rise, Alberta’s cost of borrowing increases in step and the dollar appreciates, reducing resource royalties. This leaves fewer resources to fund the vital services Albertans expect and rely on.”
Clark said if the NDP had followed the Alberta Party shadow budget it would have resulted in billions of dollars less borrowing.
“Their unwillingness to make difficult but necessary budget decisions must come to an end,” said Clark. “If they had simply followed our shadow budget, which called for reasonable and responsible efficiencies year over year, Alberta wouldn’t be in this situation.”
“The Alberta Party Caucus calls on the Government to constrain operational spending and end its reliance on debt to fund the operations of the province.”
The latest Alberta Party Caucus Shadow Budget can be viewed here.
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