Health-care premiums hinted at in Jim Prentice's television address

Surrounded by chairs in an empty room at Government House, PremierJim Prentice took to the airwaves Tuesday night to speak directly toAlbertanson what he considers an essential messagethe financial crisis facingthe province.

Inmeasured sentences, he revealed a few hints at whatAlbertanscan expect to see on budget day the promise of a balanced budget by 2017 and, not surprisingly, no sales tax.

Prentice also hinted at a return tohealth-carepremiums. Seven years agopremiums were scrapped by then-premier EdStelmach, who made getting rid of the fees a major part of his campaign.

We will be askingAlbertansto begin to contribute directly to the costs of the health system, he said.

Calling this a turning point in the province's history,he warned that his government will be announcing some critical changes in the upcoming budget.

Exactly what those changes are, he didnt say. Alberta Finance Minister Robin Campbell will deliver the budget on Thursday.

What hedid say during his 16-minute address is that this upcoming budget will impact every Albertan, that spending must be brought under control and getting off the energy revenuerollercoasteris a must.

Prentice also laid out an incremental plan that will see fewer energy revenues spent on government programs. It begins in 2018-2019, when 75 per cent of energy revenues will be used on government spending.The following year, thatdrops to 50 per cent. A quarter of the oil and gas revenue will go to the provinces emergency fund and paying down debt.

The premier also promised more money for Alberta's savingsfund. By 2019-2020, roughly25 per cent of energy revenues will be put into the Heritage Fund, which started by former premier PeterLougheedin 1976.

Previous budgets not 'realistic'

For months, Prentice has raised the alarm over plunging oil prices and the disastrous effect it has had and will continue to have on Albertas bottom line. The province is forecasting a $7-billion shortfall, and a further $20 billion over the next three years if oil remains low and the government does nothing to change how it spends and collects revenue.

Prentice reiterated his message to public sector employees reminding them Alberta spends about $1,300 more percapitaon programs and services than the national average. About half of those costs are spent on salaries, with $2.6 billion in salary increases planned over the next three years.

During the speech, Prentice laid theblame on former leaders, calling past budgets speculative for relying too heavily on optimistic oil prices

Fundamentally, weve not always had realistic expectations and our leaders must bear a considerable part of the responsibility for that, he said.

BothLougheedand Ralph Klein are given favourable nods Lougheedfor diversifying the economy and Klein for his fiscal rigour. However, Prentice goes on to say that successive leaders did not sustain their intentions.

We became complacent, he declared, punctuating in closing that he will do everything he can to make things right, to make things better.

Better health care, services needed: Swann

In a response that aired on CTV directly after Prentices address, Alberta Liberal Leader David Swann urged voters to look to an alternative to the premier.

Swann said at a time that Prentice was suggesting cuts to services and difficult choices, the province should not be forced into an unnecessary election just to assert his power.

There is nothing to justify more cuts to frontline services andplacing heavier burdens on the backs of hard working Albertans, he said.

Instead, Swann said the government needed to improve Albertas health care system. He also argued for more funding for infrastructure and municipalities.

Putting up a sign in a field and cutting a ribbon is only the first step, he said.

In an anecdote, Swann compared to Albertans to his three-year-old grandson, grasping in the dark, wanting to know that someone will be there for them as well."