Eliminating a self-imposed limit on borrowing will make the government less accountable to the legislative assembly, Wildrose MLA Nathan Cooper warned Tuesday.

The government has introduced legislation that will eliminate the 15 per cent debt-to-GDP limit it legislated last fall.

During debate Tuesday, Cooper said the move would allow the government to keep borrowing, putting the province's economic health at risk.

Wildrose MLA Nathan Cooper says getting rid of the debt ceiling would be a bad move for the province. "What we see here is a removal of accountability and an opportunity for the government to spend past 15 per cent of GDP into debt, past 20, past 30, all the way to the sky being the limit," Cooper told the legislature.

Alberta's NDP government plans to borrow billions of dollars to build infrastructure and stimulate the economy. The dramatic drop in resource revenues means that money will also be used to pay for the day-to-day operations of the royalty-dependent Alberta government.

$2 billion to pay for debt

The debt is forecast to hit $57.6 billion by 2019. Cooper warned the costs of servicing debt could hit $2 billion a year by the end of this government's mandate.

"Madam Speaker, $2 billion is a lot of hospitals, schools, teachers, nurses," he said. "As we continue down this reckless path, we run the risk of putting those institutions and individuals in jeopardy in the future because of the negligence of today's government."

Finance Minister Joe Ceci defended the end of the debt ceiling, saying it gives the government flexibility to manage the "dire" economic situation. He said Alberta's borrowing costs are the lowest among all Canadian provinces.

"In B.C., they will spend 5.5 per cent of their budget revenue on debt servicing. In B.C., they will spend more than twice what we're spending," he said.

"In Ontario they're expecting to spend nine per cent of their budget revenue on debt servicing, almost four times higher than Alberta."

The debate on the bill will resume Thursday morning.



