Monday, May 20

Budget 1981-82: Communications objectives

The April 1981 was a pivotal budget for the Province of Alberta. Every budget has key communications objectives, as Lou Hyndman’s one-page memorandum to his Treasury Board and cabinet colleagues, reveals.

This budget was Alberta’s first after the National Energy Program was announced. As last week’s Abopecon.ca reported, the previous month, the Treasury department was wary about providing any economic forecasts and the prevailing mood in the provincial government and the whole economy was grim. The situation back in 1981 is analogous to the circumstances facing the current government.

For the Conservative government, re-elected for the third time in 1979 with 74 of 79 seats, it was clear that the government would use its considerable fiscal resources to maintain public services and build infrastructure while doing so in a “business-like” fashion. Part of the communication would emphasize positives to the slowdown, for example ameliorating shortages in skilled labour.

The second objective was to make clear that poor federal energy policies were causing Alberta to loss its economic mojo. At the same time, the government also wanted to reassure Albertans Alberta’s economic strengths would re-emerge. Most interesting, perhaps, is the declaration of a postponement of oilsands development.

Alberta Budget 1981-82- Communication Objectives

The 1981 Budget must be significantly different from those budgets of each of the last nine years.

While the budget will have its usual goal of showing that we are sound, business-like managers, in respect of expenditure and investing, of Alberta tax money and dollars received from natural resources, there are other objectives this year:

  1. A key goal will be to tell Albertans:

a) that a key industry has been hit by federal policies, with serious job loss economic implications for 1981 and later,

b) that the edge is off the boom, the Alberta economic momentum is slowed,

c) that the medium/ long-term investment opportunity climate in Alberta is still good,

d) that an ”economic pause”  has advantages,

i) fewer skilled labour shortages, 

ii) opportunity for catch-up in health, education and social services, 

iii) big petrochemical, forestry and other projects have a ”window” in which to proceed,

Walter C. Mackenzie Hospital, University of Alberta
Source: Albertadoctors.org

e) that government is doing all it can to minimize the expected employment impact,  to cut red tape re:  big project approvals, provide extra capital spending in selected areas,  use the corporate tax incentives approach and assist particularly those parts of the province directly hurt by the federal policies and those where expected extra development will not occur  ( Cold Lake/ Fort McMurray),

f) that even if the subjects of energy and the constitution are high profile,  we have not forgotten and will continue to significantly improve ”people” services in all areas.

2.  A second objective is to tell Ottawa:

Mildred Lake- Syncrude
Source: Glassdoor.com

a) that the National Energy Program and Budget  is a disaster for Alberta,

b) that we will hold firm on our announcement of indefinite postponement of oil sands plants and that we can keep the Alberta economy basically healthy even with that postponement,

c) that we will not change our royalty regime,

d) that  petroleum production cuts will come in on schedule.

Lou Hyndman

February 20, 1981

Source: Provincial Archives of Alberta, PR1986.0245, Box #45, File 640. (Hyndman papers)

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