The Alberta Construction Association says that they are disappointed that capital spending is being heavily impacted in the provincial budget.
The Government of Alberta released their 2018-2019 budget Thursday, that is forecasting a cut in the Capital Budget of about $2.5 billion in the first year, with an additional $1 billion cut over the next two years, according to the Alberta Construction Association.
ACA Executive Director Ken Gibson says that the government has been signalling the cut on capital spending for a while now and in order to approach a balanced budget Alberta has cut spending needed on infrastructure.
The provincial budget will have an $8.8 billion deficit and a five year plan to balance the books that includes reducing spending on capital projects as the economy gets back on track.
An analysis done by the ACA reveals that a $1 billion investment in the construction industry means around 3,000 jobs created. Gibson says that construction employs one in nine working Albertans and that these cuts will be felt by Alberta families in every community.
“This is a period when our industry is struggling and we depend on our public partners to help keep Albertans employed and provide the schools and other facilities needed by Albertans. 80% of our members are small businesses, which lack the resources to ride out a sustained downturn.”
ACA represents 3200 construction firms across Alberta.
