Legislative Report (12 June 2008)

Provincial Economy Continues to Show Strength

Saskatchewan’s economy continued to demonstrate strength this week, as the province recorded the third largest single sale of Crown oil and natural gas rights in Saskatchewan’s history. The June sale raised $142.5 million in revenue for the province, bringing the year-to-date revenue figure for 2008 to $605.4 million. This shatters the previous single-year record of $250.3 million set in 2007. Record setting land sales demonstrate the energy industry’s confidence in Saskatchewan’s positive business climate and resource potential.

The energy sector isn’t the only part of Saskatchewan economy that is red hot. Saskatchewan’s economy is projected to lead the country this year in growth and our population is growing. Across the province, families are seeing the benefits of the economic momentum as the number of people working grows and average wages increase.

Ensuring all Saskatchewan people benefit in our province’s prosperity is a key priority for your Saskatchewan Party government. While we are continuing to take action to sustain the province’s economic momentum, we are also planning for growth and addressing the challenges that can accompany rapid growth. One of the results of Saskatchewan’s economic momentum has been an increase in the cost of housing, which has created new challenges for low income individuals and families.

In March, Social Services Minister Donna Harpauer struck a Task Force on Housing Affordability to learn more about the housing challenge and talk to people in communities throughout the province. The report delivered by the Task Force last week provided 36 recommendations to address the housing affordability challenge. This week, Premier Brad Wall and Cabinet met in Saskatoon to discuss the government’s priorities in the coming months. At the top of the priority list is the affordable housing shortage.

Premier Wall said the government is considering quick action on a number of the Task Force’s recommendations, including:

• Increasing the shelter allowance for social assistance recipients and indexing the allowance to the cost of living;
• Increasing the Rental Housing Supplement and index it to the cost of living;
• Increasing the income threshold for seniors, to make it easier for them to qualify for social housing; and
• Removing of the PST charged on building materials used to build affordable housing.

While in Saskatoon this week, the Premier also said that the growing economy and record resource revenues are providing an opportunity to look at additional ways to share the province's new prosperity, through measures like debt reduction and tax relief. “What can be done with potentially near to mid-term revenues that will have a lasting benefit for the province?" Wall said. "This is a very important question for all of us to consider. Reducing debt is one of the best ways to secure our province's future, and tax relief is one of the best ways to help Saskatchewan taxpayers and families deal with the growing cost of living."

The Premier has asked all government MLAs to spend the summer listening to the priorities of their constituents and seeking their ideas on how the province's new prosperity should be shared with all Saskatchewan citizens.

This is your opportunity to contribute to the future direction of our province. My office door is always open, and I look forward to hearing from you.

If you have a question about this Legislative Report or any other matter, just Contact Don.

Past Legislative Reports

Past Legislative Reports