Government confident about insurance cap appeal

The Alberta government says it has a "good basis" to appeal a rulingthat struck down the province's payoutcapsfor some automobile injuries.

Premier Ed Stelmach announced the appeal during a campaign stop in Calgary Tuesday, leading opposition parties to accusehim of launching the appeal to keep the controversial cap from becoming an issue in the March 3 election.

"The government firmly believes it's in the best interests of Albertans to appeal the judge's decision and apply for a stay," Stelmach said of the ruling that struck down the province's $4,000limit onclaims for things like whiplash or strains.

Associate Chief Justice Neil Wittman of the Court of Queen's Bench ruled Friday that the government's cap was unconstitutional because it discriminates against specific victims of vehicle accidents.

The decision has led insurance industry officials to predict auto insurance rates would jump by about $200 dollars per vehicle.

Justice Minister Ron Stevens said the government's case is a solid one. "We think this is a good piece of business. We think we had the right intention," Stevenssaid.

Neither Stevens nor the premier would guarantee Albertans will notend up paying more for car insurance.

Opposition critical of decision

Alberta Liberal Leader Kevin Taft said in Calgary Tuesday the Conservatives have "fumbled" the file and need to start from scratch.

"Instead of appealing this and dragging the process out for years and years, which leaves any number of people in limbo,I think it's time to revisit the entire issue and reconsider how we deliver auto insurance in this province," Taft said.

NDP Leader Brian Mason predicted the government's appeal will fail.

"The Conservatives will protect the insurance industry and blame the courts for a $200 increase in insurance prices," he said in Calgary Tuesday.

Mason called on the government to bring in public auto insurance, which he said would save the average family at least $400.