Alberta's Heritage savings fund could increase in value by more than $6B to $28B by 2026
The future of Alberta's Heritage Savings Trust Fund was up for a discussion at an annual meeting Thursday for the billions in rainy-day deposits.
Several Albertans attended the meeting, where they got the chance to weigh in on it and ask or submit questions.
"Why is there not more money being contributed from non-renewable resources?" one person in attendance asked.
That was the initial purpose of the fund. It was set up in 1976 under Peter Lougheed's Progressive Conservative government, with 30 per cent of Alberta resource revenues going into savings. In the late 1980s, oil crashed, and that money was used to balance budgets.
"People criticized it at the time, but they also didn’t want to pay higher taxes, so this was the compromise that was struck," Lori Williams, a political scientist at Calgary's Mount Royal University, told CTV News Edmonton on Friday.
Critics argue governments used the cash as a slush fund and say revenues should be much higher.
Comparisons are often made to similar savings plans, such as Norway's sovereign wealth fund or the Alaska Permanent Fund, which boast $1.2 trillion and $72 billion, respectively. Alberta's fund sits at $21.4 billion.
"If we had stayed at that 30 per cent today, we would have over $60 billion in that fund," Williams said.
Changes were made to the fund last March, requiring the finance minister to decide if money should be withdrawn.
The new rule means $1.5 billion of net income will stay in the fund this year. The province forecasts savings could grow to $28 billion by 2026.
Williams says without a legislative commitment, the change falls short.
"Whatever commitments or promises government made in sunnier times, they tend to go by the wayside when the economy and polls go down," she said.
CTVNews.ca Top Stories
Iran President Ebrahim Raisi found dead at helicopter crash site, state media says
Iranian President Ebrahim Raisi, the country’s foreign minister and others have been found dead at the site of a helicopter crash Monday, state media reported. Raisi was 63.
Court eases internet restrictions for Sask. man who matched with a 15-year-old girl on Tinder
A Saskatchewan man who had a sexual encounter with a 15-year-old girl he met on Tinder successfully appealed to shorten release conditions barring him from online dating.
Stittsville residents seeking answers as bylaw cracks down on street basketball nets
Stittsville residents on Kearnsley Way are seeking answers after an unusual bylaw crackdown on Friday. Every home with a basketball net received a ticket instructing homeowners to remove their nets from the road.
'A horrible way to start the summer': 3 killed in serious boat crash on lake north of Kingston, Ont.
Three people were killed and five others were injured Saturday night following a boat crash on the Buck Bay area of Bobs Lake, north of Kingston, Ont., the Ontario Provincial Police (OPP) said.
What do we know so far about the mysterious crash of the helicopter carrying Iran's president?
The apparent crash of a helicopter carrying Iran's president and foreign minister on Sunday sent shock waves around the region.
Ex-partner charged with first-degree murder after 55-year-old woman killed in Montreal
Less than 24 hours after Montreal's 12th homicide investigation began, Montreal police confirmed that a 55-year-old woman's death in St. Michel is the island's 13th homicide. The woman's ex-spouse has been charged with first-degree murder.
Walmart, Costco refusing to sign grocery code of conduct 'untenable': industry minister
Industry Minister Francois-Philippe Champagne says it's 'untenable' for 'smaller players' like Walmart and Costco to delay signing on to the government- and industry-led grocery code of conduct, now that industry giant Loblaw has agreed to do so.
VIDEO Born without front legs, this dog has been inspiring the world for 3 years: Dresden farm owner
A sanctuary dedicated to animals with disabilities is celebrating the third birthday of one of its most popular residents.
Toxic drugs circulating in northeastern Ont., police say
Canada’s largest First Nations police service, the Nishnawbe Aski Police Service issued a community safety alert as extremely toxic drugs are likely circulating in many of the communities it serves.