By Chris Brown

Alberta's economy

$10B infrastructure investment at the core of Alberta’s economic rebuild plan

Jun 29, 2020 | 11:37 AM

Premier Jason Kenney says the government’s plan to rebuild Alberta’s economy is centred on the largest infrastructure build in Alberta’s history that will create more than 50,000 jobs.

Kenney says the government will make a $10 billion investment in infrastructure to build hospitals, schools, and roads, bridges and overpasses.

Kenney said this plan represents a bold statement of confidence in the history of Alberta, saying it’s an “ambitious long-term plan to build, diversify and create jobs.”

He said the same spirit Albertans have shown throughout the COVID-19 pandemic must be continued as the province faces the greatest economic challenge of our time.

The strategy builds on Alberta’s strengths, including a young workforce and an irrepressible entrepreneurial culture.

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Bolstering the energy sector and diversifying the economy are also pillars of the plan announced on Monday.

Alberta is also dropping the corporate tax rate ahead of schedule. The rate will drop from the current 10 per cent to 8 per cent, as of this week. The tax was not to drop to 8 per cent until 2022.

The premier said this is a startling message to business leaders.

“This is not talk, we are walking the walk right now,” said Kenney.

Alberta’s economy was struggling with low energy prices even before the COVID-19 pandemic hit. The provincial deficit has gone from a projected $7 billion to $20 billion for this year.

In addition, Kenney said during his address that the unemployment rate across Alberta could reach 25 per cent if action is not taken.

Alberta’s Recovery Plan also includes the introduction of an Innovation Employment Grant targeted to smaller companies and encouraging technology and investment in Alberta. Government says it will provide a refundable tax credit to companies that invest in research and development, leaving them more money to employ Albertans in areas of innovation. With the Innovation Employment Grant, Alberta-based companies will have a competitive advantage at every stage in their development.

The province will also ask the federal government to remove most occupational categories under the Temporary Foreign Worker Program for Alberta in order to put Albertans first, create a Cultural Event Relaunch Program to support music, performing arts and landmark events and has allocated $18 million over the next three years to the new Invest Alberta corporation. Invest Alberta will increase investment in energy, agriculture and tourism and encourage investment in our high-potential sectors, such as technology, aviation and aerospace, and financial services.

Finance Minister Travis Toews will provide an update on the fiscal state of the province later this summer.