Below you'll find MLA Tim McLeod's Report from the Legislature for May 2, 2024.
The views expressed below are solely the opinions of the author and do not necessarily reflect the official stance of Golden West.
Our government continues to invest in the things that matter most to Saskatchewan people – classrooms, care and communities. These investments are only possible due to the strength of our province’s growing economy. That’s why our government is committed to investing in the province’s key economic sectors – so that growth continues and we can reinvest the benefits of that growth into our great province.
The Ministry of Energy and Resources and its $53.8-million budget will support our growing economy with a focus on Saskatchewan’s world-class natural resources. Included in the ministry’s budget is $10 million in funding over 10 years for the Public Geoscience Initiative, which will increase exploration to drive the province’s Critical Minerals Strategy.
To help ensure the permitting process for the exploration of natural resources is efficient and effective, the budget provides the Ministry of Environment funding for enhancements.
In recognition of the important role of critical minerals, the budget introduces the Saskatchewan Critical Mineral Innovation Incentive for new pilot projects and the complementary Critical Mineral Processing Investment Incentive for new or expanded value-added processing projects.
To further encourage investment in the provincial economy, the budget includes enhancements to several industry programs. The Saskatchewan Petroleum Innovation Incentive application period has been extended an additional five years and the funding cap has been increased to a maximum of $100 million in royalty credits. The Oil and Gas Processing Investment Initiative program has also been extended an additional five years and increased the funding cap to a maximum of $500 million in Crown royalty credits.
The Saskatchewan Commercial Innovation Incentive has been extended by one year to allow for a program review, which will include engaging with industry. The annual program cap on the amount of non-refundable tax credits that may be issued has been doubled to $7 million annually under the Saskatchewan Technology Start-Up Incentive and eligibility has been expanded to start-ups in the cleantech and all agtech sectors, as well as expanded by one year.
Another new addition under the budget is the Multi-lateral Well Program, which will facilitate the development of previously inaccessible or uneconomic oil plays and will attract increased oil well drilling to Saskatchewan.
The budget provides a $140-million Clean Electricity Transition Grant (CETG) to SaskPower for use towards in-year clean electricity operating costs, which will help maintain affordable power rates for customers. The CETG is tied to electricity-sector revenues.
Saskatchewan established the Small Modular Reactor Investment Fund to support the future development of the province’s first small modular nuclear reactor, which will provide zero-emission baseload power. The fund will receive annual allocations tied to electricity sector revenues, with all investment income earned retained in the fund. By the close of this fiscal year, it is projected the fund will be a $568.4-million asset for the province.
The budget invests $570.6 million in agriculture, an increase of $22.4 million, or 4.1 per cent, from last year. This funding will allow the Ministry of Agriculture to fund agricultural research and enhancements to crop insurance while investing in programming for producers and agri-businesses.
In recognition of the challenging weather and soil conditions faced by some producers, the ministry’s budget provides $431.7 million to fund federal-provincial risk management programs, including Crop Insurance and Agri Stability. This is an increase of $23.7 million from last year.
With regards to forestry, the budget provides funding to accelerate work on the Forest Resource Inventory Project, helping to achieve the Growth Plan goal of doubling Saskatchewan’s forestry industry.
These investments are creating strong results across our economy. We recently received news that Saskatchewan’s GDP ranked second in the nation for growth in 2023 at 1.6 per cent. That’s ahead of the national rate of 1.2 per cent.
This total dollar value of the province’s 2023 GDP is $77.9 billion – a record high. Saskatchewan has one of the strongest and fastest-growing economies in the nation. This record growth doesn’t just happen – it’s a reflection of the policy environment that has fostered and incentivized record investment and record exports.
As our government continues to make strategic investments into key sectors of the Saskatchewan economy, we look forward to hearing your feedback. You can reach my office at mjnorthmla@sasktel.net or 306-692-8884.