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FOR IMMEDIATE RELEASE: July 28, 1998

Albertans are tired of "sham consultations"

AFL refuses to participate in government tax forum

EDMONTON – Albertans have spent the past five years participating in government-sponsored forums, summits and roundtables aimed at "reading the public mood" on important policy issues. Now the government is asking Albertans to come forward once again and give their opinions on proposed changes to the provincial tax system. But at least one major provincial organization says it’s time for Albertans to say, "enough is enough!"

"When will this government learn that Albertans are tired of participating in sham consultations?" asks Les Steel, Secretary Treasurer of the Alberta Federation of Labour. "Albertans are tired of going to these forums only to have their opinions and suggestions ignored."

In a letter faxed this morning to the director and co-chairs of the government’s Tax Review Committee, Steel said the AFL wouldn’t be participating in the committee’s public forum – which will be held in Edmonton tomorrow.

In his letter, Steel says he is not satisfied that the review committee – which is composed of conservative politicians, lawyers, businessmen and accountants – adequately reflects the interests and concerns of all Albertans. He also says the review committee has already proven itself unwilling to consider suggestions that "fall outside the dominant ‘business-first’ approach to taxation."

"During the first stage of the review – which focused on the subject of corporate taxes in Alberta – the committee restricted its consultations to members of the business community," writes Steel. If the committee was "really interested in hearing all sides of the story," Steel says it would have approached other groups for input.

Steel also argues that the tax forum is a sham because both the committee and the provincial Treasurer have already made up their minds about what changes they would like to see made to the Alberta tax system.

"Given the current government’s track record on tax issues, we are sure that (they want to) reduce progressivity (in the tax system) by reducing the number of tax brackets. From our point of view, any such moves towards a "made-in-Alberta flat tax" would clearly not be in the best interest of most Albertans."

If the provincial government is really serious about making the tax system fairer and more equitable, Steel says the tax committee should look a much broader range of issues than are currently on the agenda.

"We think the committee should be talking about royalty rates on oil and gas," writes Steel. "The committee should also be asking whether tax credits for poor families and individuals are a suitable substitute for adequate public spending on things like social services and day care. Finally, the review committee should be talking about the effects that the government’s current "race-to-the-bottom" mentality on questions of taxation is having on individuals and communities."

Steel concludes his letter by saying that "the review process has been designed to give the appearance of public consultation without giving the public any real voice."

"Like the Health Roundtables, the Growth Summit and, more recently, the Summit on Gambling, it appears that the government is merely using the Tax Review Committee to win legitimacy for controversial policy decisions that have already been set in stone. We at the Alberta Federation of Labour will not help the government in this effort."

For more information call:
Audrey Cormack, President at 483-39021 or
Gil McGowan, Director of Communications at 483-3021


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