August 26, 2005

High oil revenues to help fund the billions needed for Alberta highway upgrades

EDMONTON

Alberta’s transportation minister says the province needs billions of dollars to upgrade its highways.

Lyle Oberg told a legislature committee Alberta needs to speed up the pace of road construction because it is falling further and further behind. Oberg said $2.4 billion is needed to upgrade provincial roads.

That figure doesn’t include the $1.2 billion needed to triple the lanes of the Queen Elizabeth II Highway between Calgary and Edmonton.

Alberta Liberals say the Tories neglected roads, hospitals and schools because they were in too big a rush to pay off the debt.

But Oberg maintains that despite years of deterioration, Alberta’s roads are still the best in Canada.

He said about 65 of the province’s paved highway network is rated as being in good condition. About 11 of the province’s roads are listed as being in poor shape.

According to a draft copy of his department’s 2004-05 annual report, about 7,000 kilometres of Alberta’s paved highways need repair over the next few years.

The report said the province would have to pave 1,800 kilometres of highway annually to get the job done, but it is currently only paving about 560 kilometres.

“This government maintains they paid off the debt,” said Liberal critic Harry Chase. “They’ve simply traded debt for infrastructure deficit.”

Oberg has identified a $7.2 billion infrastructure deficit in Alberta, which includes the money needed for the highways.

He said he hoped with oil prices edging up to $70 a barrel and provincial coffers overflowing with resource revenues, his government could use some of that windfall rather than borrowing money.

“Unless we do something about this it will be an inhibitor of growth,” Oberg told the committee. “The time is now to do it. We can’t allow this infrastructure deficit to continue on.”

The issue is likely to come before caucus at its annual retreat next month.

Canadian Press

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