PREMIER TAKES MESSAGE OF IMPROVED BUSINESS CLIMATE TO CALGARY

Premier Lorne Calvert and Industry and Resources Minister Eric Cline will promote Saskatchewan's largest ever business tax reductions to oil and gas executives in Calgary Wednesday.

The government-sponsored reception is part of a larger strategy to ensure Canadian business leaders outside of Saskatchewan know about the business tax changes announced inside the province.

"This is the most significant business tax reduction in Saskatchewan's history, amounting to $620 million over the next four years," Calvert said. "We have a large community of valued investors in Alberta and we are going to make sure this news and its implications for growth reach them."

The reforms build on targeted tax incentives that have spurred substantial spending in Saskatchewan industries such as potash, manufacturing, mining, and oil and gas.

"From past experience, we know that changes to royalties and tax incentives produce growth," Cline said. "Since 2002, incentives for enhanced oil recovery technology, regulatory changes and tax cuts for the oil and gas industry in Saskatchewan have contributed to record-breaking drilling numbers."

Oil and gas is the largest contributor to Saskatchewan's GDP at seven per cent, providing $1.4 billion in royalty, tax and land sale revenues to the province last year.

Saskatchewan's initiatives to improve its business climate begin July 1st, 2006 and include:

- Eliminating the general Corporate Capital Tax (CCT) on existing capital investments, to be completed by July 1st, 2008;

- Exempting new eligible capital investments from the CCT;

- Reducing the CCT Resource Surcharge rates; and

- Reducing the Corporate Income Tax rate from 17 per cent to 12 per cent.

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For More Information, Contact:

Bob Ellis Industry and Resources Regina Phone: (306) 787-1691 Email: rellis@ir.gov.sk.ca