ECONOMY BUDGET FOCUSES ON GROWTH, TRAINING AND EMPLOYMENT

Changes to Uranium Royalty Structure Will Attract New Investment and Jobs in the North

Investments in training programs and labour force development and improvements to Saskatchewan’s uranium royalty structure highlight the 2013-14 Ministry of the Economy budget.

“One of the real success stories in terms of aboriginal employment has been Saskatchewan’s uranium industry,” Minister responsible for Energy and Resources Tim McMillan said.  “Our government wants to build on that strength by encouraging new mines and mine expansions, which could create thousands of more jobs in northern Saskatchewan.  However, in recent years, the province’s uranium royalty system has been a barrier to new investment, due to its outdated structure and more competitive taxation policies in other uranium producing countries.  Today, we are removing that barrier to growth.”

The new structure recognizes actual costs incurred by industry and replaces an outdated allowance-based system where allowances were as much as 50 per cent below industry’s actual expenditures.  With production increases and potential new investments, uranium royalties to the province are expected to exceed $5.0 billion in total over the next 14 years.

To accommodate the growth of the oil and gas industry in the province, an additional $500,000 will be directed toward regulatory oversight.

The 2013-14 Budget also invests in training opportunities to address labour market shortages.

“The Saskatchewan Plan for Growth sets a goal of 60,000 more people working in Saskatchewan by 2020,” Economy Minister Bill Boyd said.  “I’m confident we will achieve that goal, but in order to do so, we will need to ensure we have a well-trained, highly-skilled workforce to meet the workforce needs of our growing economy.”

With this in mind, the ministry will be providing enhancements to its labour market programming, including:

• $1.544 million increase for the Saskatchewan Apprenticeship and Trade Certification Commission (SATCC) to purchase an additional 300 training seats in 2013-14; 
• $500,000 increase to the skills training funding that is allocated to our training institutions for industry-driven training programs;
• $1.5 million increase for immigrant settlement support programming; 
• $900,000 increase for the Provincial Training Allowance; and
• $119,000 increase for the Apprenticeship Training Allowance.

The ministry budget also provides increases to support the government’s commitment to build on programs that assist First Nations and Métis people with accessing education and employment opportunities:

• $1.5 million increase for industry driven quick skills training projects that link industry with training providers and job seekers, and prepare First Nations and Métis people for jobs.  Examples include Northern Career Quest ($700,000) and In-Roads to Agriculture ($200,000);
• $1.5 million increase to begin work toward eliminating the wait list for Adult Basic Education (ABE) by 2015; and
• $150,000 to Aircraft Maintenance Engineer Training Program at the Saskatchewan Institute of Indian Technologies, part of the $500,000 increase to training institutions for industry driven skills training.

Contributing to the government’s fiscal balance, the ministry budget also includes the following reductions and revenue initiatives:

• $8.883 million decrease for the Western Economic Partnership Agreement due to agreement’s expiry;
• $8.0 million decrease for the Ethanol Fuel Tax Rebate to begin the wind down of the program, reducing the grant from 15 to 10 cents a litre, in alignment with other provinces;
• $800,000 decrease for the Renewable Diesel Program due to under-utilization;
• Amend the Labour-Sponsored Venture Capital (LSVC) Program by capping the annual program investment limit at $80 million per year and re-focus the program to ensure a minimum level of innovation investment in the province; and
• 0.25 percentage point decrease to the Saskatchewan Resource Credit effective April 1, 2013.

“Saskatchewan’s economy is stronger than ever,” Boyd said.  “There were 24,400 more people working in the province last month, compared to a year ago.  The unemployment rate of 3.8 per cent is by far the lowest in Canada.  The strongest population growth since the 1920s.  We are working hard to keep Saskatchewan growing and moving forward, within a balanced budget.”

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For more information, contact:

Joanne Johnson
Economy
Regina
Phone: 306-787-7967
Email: joanne.johnson@gov.sk.ca