Opinion: Why is there no money for healthcare in Alberta?

By A. Sumaru, C.F. Crozier and L. Richards

“In the analysis of social and political issues it is sufficient to face the facts and to be willing to follow a rational line of argument. Only [sic] common sense, which is quite evenly distributed, is needed… if by that you understand the willingness to look at the facts with an open mind, to put simple assumptions to the test, and to pursue an argument to its conclusion.”
- Noam Chomsky (1978) Language and Responsibility

We are going to preface our comments with Chomsky’s remarks because everything being written about is based on information that is easily accessible to any citizen who pays attention and/or has access to the Internet.

With the government of Alberta delisting services to cut costs, in order to eliminate the deficit in the health care budget, our analysis of this problem will focus on a simple line of reasoning that asks; “Why is there no money for health care in Alberta?”

Alberta’s oil reserves are estimated at 1.7 – 2.5 trillion barrels. These are the second largest proven oil reserves in the world (second only to Saudi Arabia). According to the government of Alberta website (updated in March 2009), only 2% of the oil sands’ reserves have been produced to date.

Over the last four fiscal years, from 2003/2004 to 2006/2007, oil sands development returned $4.276 billion to Albertans in the form of royalties paid to government. So, we have billions of dollars in revenue coming to us through a ridiculously low royalty scheme and this is only from less than 2% of the oil wealth that we could possibly produce.

The Alberta Heritage Savings Trust Fund is currently valued at $14.3 billion (as of June 30, 2009) and it has generated approximately $30 billion in investment income over its 32-year history. In comparison, Norway has a very transparent and ethical Petroleum Fund that was started in 1990 (19 years ago) and is currently valued at $395 billion (US). They have pumped out more of their oil, so their profits will eventually diminish. We have more oil, so if Alberta saves and invests its oil wealth in a reasonable manner, there is no reason why our social systems should suffer. We live in one of the wealthiest places in the world and yet the government constantly employs scare tactics that say we cannot go into a deficit.

So what would happen if we went into a deficit?

If Alberta saves, diversifies and utilizes its resources properly (in good times), then we can afford to go into a short-term deficit because there is more than enough money coming to us to cover any short-term red ink. Yet the government has delisted services, forcing Albertans to pay for private insurance to cover additional costs or pay into a private health care system (here in private clinics, or abroad).

Alberta is short of nurses and the government says that there is no money to hire more. Alberta Health Services says that it will make do with Licensed Practical Nurses instead of Registered Nurses because they cost less. And yet, if you ask Albertans (and the government has asked us many times) they will tell you that health care is our top priority.

Can’t we take $1 billion out of the Alberta Heritage Savings Trust Fund to cover our current deficit instead of making cuts to the system? Our oil wealth in the future will more than cover this withdrawal of funds (remember, we still have 98% of our oil to pump out of the ground).

Something strange is going on in Alberta, and Albertans need to wake up and demand accountability from their government. Otherwise, billions of dollars will be lost to all of the foreign companies working in the oil sands, and conventional oil, in this province and we will have no publicly funded social systems.

Some of you may argue that our oil wealth will make us privately wealthy but until they start handing out huge oil rebate cheques every year like they do in Alaska, we’re going to demand that the government pays for health care and other public services.

Please start by looking at the Alberta Health Services Board. Everyone’s background is in business, insurance, engineering, oil companies, law, education, etc… there is only one doctor and he works in Toronto.

One year ago, Health Minister Ron Liepert decided not to renew the contracts of our top public health doctors. He insinuated that it was over salaries but our public health doctors made less than their counterparts in Manitoba and Ontario and they were paid on par with the rest of the top public health officials across the country.

In an Edmonton Journal article, “Public Health Doctors Worked Cheap” (July 29, 2008), Dr. Stan Houston, a University of Alberta medical professor in the infectious diseases and public health division, not only says that “It’s a joke that this is about money,” but also that “…public health is actually the most important foundation of our health-care system and the most cost-effective way of improving health and preventing illness.”

The composition of the Alberta Health Services Board reflects the nature of life in Alberta. We cater to those in business and those in the oil and gas industry. We let them keep the profits and to call the shots for the rest of us.

The ‘Alberta Advantage’ exists only for this elite, otherwise, like Norway, we’d have billions saved, and at this time of economic recession, we’d invest our savings in retraining people and helping our citizens through a time of economic stagnation.

Lastly, the government of Alberta continues to insinuate that health care costs are out of control. Yet our health care spending as a percentage of GDP has held steady for over 20 years. In 1985, the total GDP of Alberta was $66.8 billion, our population was 2.4 million and we spent 3.6% on health. In 2007, the total GDP was $258.9 billion, our population was 3.35 million and we spent 4% on health.

So where’s the crisis in health care? Why is there no money? Our logical conclusion is that there is a mismanagement of funds and that our health care system is failing because it is being set up to fail. If you come to the same conclusion, please contact your MLA.

Edmonton's Royal Alexandra Hospital