PRIDE WITH PURPOSE The Saskatchewan Party Policy Book

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2 PRIDE WITH PURPOSE The Saskatchewan Party Policy Book TABLE OF CONTENTS 1. Message from Saskatchewan Party Leader Brad Wall Saskatchewan Party Guiding Principles Saskatchewan Party Policy Resolutions.. 4 a. Health and Security.. 5 b. Growth and Opportunity.. 13 c. Fairness and Equity. 22 d. Pride with Purpose.. 27 e. Accountability The Promise of Saskatchewan: A New Vision for Saskatchewan s Economy Getting Saskatchewan Back on Track: The Saskatchewan Party Plan to Address Saskatchewan s Labour Shortage Building on Saskatchewan s Natural Advantage: The Saskatchewan Party s Biofuels Strategy Saskatchewan Party Caucus Presentation to the Commission on Improving Work Opportunities for Saskatchewan Residents Saskatchewan Party Proposal for Equalization Reform Saskatchewan Party Caucus Summary of Proposed Recommendations to the Saskatchewan Business Tax Review Commission Ideas to Get Saskatchewan Ready for the Next 100 Years 110 1

3 Message from Brad Wall, Leader of the Saskatchewan Party The Saskatchewan Party believes in the promise of Saskatchewan. We believe that through hard work, dedicated leadership and new ideas, we can build a province that capitalizes on the strength of our past and realizes the tremendous potential of our future. Building on our eight foundational principles, the Saskatchewan Party has, since its creation, put forward new and innovative ideas to enhance the economic and social well-being of Saskatchewan people. Beginning in 2004, the Saskatchewan Party has undergone significant policy renewal. After becoming leader of the Saskatchewan Party in 2004, I released my economic vision paper, The Promise of Saskatchewan: A New Vision for Saskatchewan s Economy, which outlined my growth agenda for the province and a 16 point Enterprise Saskatchewan plan to produce economic growth throughout key sectors of our economy. The following year, the Saskatchewan Party undertook the most comprehensive review of party policy in our history. After a year of consultations with party members and community stakeholders throughout the province, Saskatchewan Party members approved a new policy document that contained 142 policy recommendations in 18 key areas, including new policies to strengthen the social and economic future of the province and a new partnership with First Nations people based on the Treaties. Since 2005, Saskatchewan Party members and MLAs have continued to develop innovative solutions to the challenges facing Saskatchewan, while putting forward new ideas to strengthen our economy, protect our environment, build opportunity for vulnerable workers and obtain a fair equalization deal for Saskatchewan. Saskatchewan is a province rich in potential; a province with a proud past and a bright future. This document brings together the work that the Saskatchewan Party has done over the past three years to ensure that a Saskatchewan Party government will build opportunities for youth, families and seniors, while ensuring that our economy remains strong and Saskatchewan people get the high quality health care and public services they deserve. Saskatchewan is a 100-year-old promise a promise founded on pioneering spirit, cooperation and innovation in public policy. It is a promise founded on compassion, volunteerism and undying optimism. It s time to keep it. Brad Wall, Leader of the Saskatchewan Party February

4 SASKATCHEWAN PARTY GUIDING PRINCIPLES 1. Economic growth and job creation through the private sector, not government, as the engine of the economy; 2. Smaller, less intrusive, more efficient government; 3. Steady, gradual reduction in government spending and taxation while maintaining a firm commitment to balanced budgets; 4. A high-quality health care system for all Saskatchewan people, regardless of where they live within the province; 5. A strong social safety net which protects those who truly need support while encouraging individuals to become self sufficient; 6. Democratic reform to make government more responsive to the people it serves; 7. Individual freedom and the equality of opportunity for all citizens; and 8. The constant improvement of Saskatchewan s economic and social conditions within a strong and united Canada. 3

5 SASKATCHEWAN PARTY POLICY RESOLUTIONS 4

6 A) HEALTH AND SECURITY Health (HE) HE05-1. Ensuring Access to High Quality Health Services Be it resolved that a Saskatchewan Party government will ensure that Saskatchewan residents have access to high quality health services in a timely manner across the province by: a) Providing a publicly funded, publicly administered health care system in accordance with The Canada Health Act; b) Completing a Value-For-Money audit of the health care system; c) Creating a single health care agency for the entire province that would fully utilize the province s health facilities and human resources; d) Enabling communities to provide input into provincial health care decisions; e) Creating a centrally dispatched EMS system to coordinate the delivery of EMS services (air and ground) province-wide; f) Reorganizing provincial EMS to include emergency fixed and rotary wing service in partnership with the STARS program in Alberta; g) Setting a goal to reduce surgical waiting-lists to the national average within four years; h) Creating a health care bill of rights and responsibilities, and appointing a health care commissioner to measure, monitor and report to the people of the province on the quality of health care; i) Coordinating a province-wide system of community-based organizations to address addictions issues and the shortage of detox and inpatient treatment facilities in the province, including dedicated facilities and programs for youth addictions services; j) Creating a comprehensive and seamless patient referral service in the province, including partnerships with other jurisdictions and the creation of centres of excellence; k) Creating a Diabetes Health Centre of Excellence in partnership with First Nations organizations, post-secondary institutions and international research bodies to improve the diagnosis and treatment of diabetes; HE05-2. Negotiating With Federal Government to Maintain Adequate Health Care Funding Be it resolved a Saskatchewan Party government will negotiate with the federal government for adequate funding to maintain equitable health services in Saskatchewan. 5

7 HE05-3. Supporting the Development of an Integrated Health Information Network Be it resolved a Saskatchewan Party government will support the continued development of an integrated health information network. HE05-4. Enhancing Health Facilities Be it resolved that a Saskatchewan Party government will enhance the province s health care facilities by: a) Supporting a children s hospital in Saskatoon utilizing existing acute care facilities; b) Building a new integrated health sciences facility at the University of Saskatchewan; and c) Moving toward 100 per cent provincial funding of capital assets rather than the current 65 per cent / 35 per cent split with communities that currently exists to make full use of facilities province-wide and reduce pressure on local property taxes. HE05-5. Supporting the Expansion of Home Care Be it resolved a Saskatchewan Party government will support the expansion of homecare services as a means to allow seniors to stay in their own homes. HE05-6. Retaining, Recruiting and Training Health Professionals Be it resolved that a Saskatchewan Party government will reduce the shortage of medical professionals through a province-wide retention, recruitment and training strategy by: a) Implementing quality workplace initiatives to ensure health care personnel are full participants in developing solutions to health care challenges; b) Retaining Saskatchewan health sciences graduates by forgiving a portion of their student loan debt for every year they remain in Saskatchewan; c) Focusing on recruiting former Saskatchewan residents who have left the province and attracting new professionals in areas where there is an identified shortage through tax incentives and streamlined credential recognition; and d) Developing a long-term plan to increase training seats for medical professionals in the province. HE05-7. Addressing Fetal Alcohol Syndrome Disorder Be it resolved that a Saskatchewan Party government will create a provincial Fetal Alcohol Syndrome (FASD) advisory board to address FASD issues in the province including the need for diagnostic centres. 6

8 Environment (EV) EN05-3. Creating a Single Water Management Agency In Saskatchewan Be it resolved that a Saskatchewan Party government will establish a single water management agency for Saskatchewan with a mandate to develop, manage and conserve Saskatchewan s water resources including monitoring drinking water supplies within a framework that meets the challenge of long-term economic growth and environmental sustainability. EV05-4. Improving Water Testing Facilities Be it resolved that a Saskatchewan Party government will support the development of improved water testing facilities in Saskatchewan. EV05-5. Supporting a Federal/Provincial Infrastructure Program for Water Treatment Facilities Be it resolved that a Saskatchewan Party government will support the development of a federal/provincial infrastructure program for the renewal of critical water treatment facilities throughout Saskatchewan and the rest of Canada. EV05-8. Reviewing Provincial Forest Fire Fighting Practices Be it resolved that a Saskatchewan Party government will review best forest fire fighting practices in other Canadian provinces including Manitoba s Single Engine Tanker Program (SEAT) with a view to strengthening Saskatchewan s capacity to fire forest fires and protect communities. EV05-9. Ensuring Proper Training and Equipment for Conservation Officers Be it resolved that the Saskatchewan Party recognizes the vital contributions Conservation Officers make to our province and will work with them to ensure they are properly screened, trained and equipped to the greatest possible extent to ensure their safety while carrying out their duties. EV06-1. Supporting Responsible Reduction of Greenhouse Gas Emissions Be it resolved that a Saskatchewan Party government will adopt policies to mitigate greenhouse gas emissions through programs and initiatives that will utilize innovation, science and technology to minimize costs and maximize opportunities for Saskatchewan people. EV06-2. Establishing an Incentive-Based System to Encourage Responsible Environmental Stewardship Be it resolved that a Saskatchewan Party government will encourage responsible environmental stewardship and energy efficiency through a comprehensive system of incentives. EV06-3. Negotiating Sound Environmental Practices with Agricultural Land Owners Be it resolved that a Saskatchewan Party government, in conjunction with other levels of government and interested private sector organizations, develop a framework to negotiate the provision of ongoing incentives to agricultural land owners for sound, long term environmental stewardship practices. 7

9 EV06-4. Reducing Saskatchewan s Environmental Footprint Be it resolved that a Saskatchewan Party government will support policies and programs to reduce Saskatchewan s environmental footprint including but not limited to: a. establishing environmentally sustainable building standards; b. expansion of agri-forestry on marginal farm land; c. support a community-based pilot project to test and demonstrate the potential of geothermal energy; d. research and development in clean coal technology for power production; e. development of the bio-fuel industry; and f. incentives for private sector investment in wind power. EV06-5. Supporting Local Recycling Programs Be it resolved that a Saskatchewan Party government will support the continued development of sustainable local recycling programs and sustainable industry stewardship programs for recyclable materials including plastic, glass, paper and tin. Justice (JS) JS05-1. Restoring Trust and Confidence in the Justice System Be it resolved that a Saskatchewan Party government will restore trust and confidence in Saskatchewan s justice system by undertaking a comprehensive justice review that will: a) Examine how best to increase and allocate resources across the province for front-line policing services; b) Determine best-practices for rehabilitating offenders; c) Incorporate mediation and community measures in dispute resolution; and d) Rebuild the relationship between law enforcement agencies and the public. JS05-2. Supporting an Open and Transparent Selection Process for Judges Be it resolved that a Saskatchewan Party government will support an open and transparent selection process for provincial judges. JS05-3. Strengthening The Police Act to Ensure Timely Disciplinary Investigations Be it resolved that a Saskatchewan Party government will implement changes to The Police Act to ensure that disciplinary investigations are completed in a timely manner consistent with the principles of natural justice. JS05-4. Strengthening Maintenance Enforcement Be it resolved that a Saskatchewan Party government will introduce new initiatives for the Maintenance Enforcement Office to bring about better compliance of maintenance orders. 8

10 JS05-5. Reviewing the Coroners Act Be it resolved a Saskatchewan Party government will update the Coroner s Act to ensure that coroners are appropriately trained. JS05-6. Establishing a Provincial Youth Justice Board Be it resolved that a Saskatchewan Party government will establish a provincial youth justice board to: a) Advise the provincial government on youth justice issues; b) Identify best-practices and commission research on issues pertaining to youth justice; c) Coordinate with provincial addictions agencies and government departments to develop an integrated addictions strategy for young offenders who are incarcerated; and d) Make recommendations on restitution measures for young offenders. JS05-7. Supporting Victims of Crime Be it resolved the Saskatchewan Party holds as one of its major beliefs that the rights of victims of crime must take precedence over those found guilty of committing crimes. JS05-8. Dedicating the Recovered Proceeds of Crime to Victims Services Be it resolved that a Saskatchewan Party government will dedicate the recovered proceeds of crime to victim and addictions services. JS05-9. Directing Revenue from the Victim Impact Surcharge to the Victims of Crime Be it resolved that a Saskatchewan Party government will ensure that revenue generated from the Victim Impact Surcharge is directed to the victims of crime. JS Protecting the Health of Police, Health Care Providers and Victims of Crime Be it resolved that a Saskatchewan Party government will pass legislation compelling offenders to provide blood samples in a timely manner where interactions with police, medical personnel and/or victims of crime could reasonably have resulted in the transmission of disease or illness. JS Refocusing Correctional Services Be it resolved that a Saskatchewan Party government will create specialized rehabilitation and addiction treatment centres within existing correctional facilities across the province to address the need for an integrated province-wide network of prisoner rehabilitation services. 9

11 JS Supporting Community Watch Programs Be it resolved that a Saskatchewan Party government will place a high priority on the fight against crime in Saskatchewan and will devote needed resources to aiding community groups wishing to set up community watch programs in their neighbourhoods. JS Notifying Residents of Presence of Dangerous Offenders Be it resolved that a Saskatchewan Party government will strengthen the authority of police and provide them with more discretion in making decisions to notify the public without threat of a lawsuit when a potentially violent or sexual offender has been released from prison and is planning to live in the community. JS Opposing Gun Registration Requirements of Bill C-68 Be it resolved that a Saskatchewan Party government will oppose the gun registration requirements of Bill C-68 and will order provincial government employees not to enforce those gun registration requirements in Saskatchewan. JS Enshrining Right to Property in the Charter of Rights and Freedoms Be it resolved that a Saskatchewan Party government will support an amendment to the Charter of Rights and Freedoms that would enshrine the individual's right to own property in the Constitution of Canada. Social Policy (SC) SC05-8. Implementing a Strategy to Reduce the Use of Crystal Meth and Other Addictive Substances Be it resolved the Saskatchewan Party government will implement a strategy to reduce the use of crystal meth and other addictive substances, including: a) Assisting families, communities and schools to get the information they need to combat the dangers of crystal meth by facilitating public awareness, providing a list of expert speakers in the field of law enforcement and drug awareness and ensuring parents have access to the material they need to work together; b) Implementing a specific crystal meth strategy, including an awareness program, mandated for use in schools; c) Improving treatment for those suffering because of addiction to crystal meth, or other drugs made cheaper by its arrival on our streets. This will include: i) An addictions treatment program specifically for children; ii) Centres capable of treating individuals for extended periods; iii) A treatment system prepared to meet current and future demands; iv) Safe houses for at risk individuals waiting to get into treatment centres; and 10

12 v) Family counseling. d) Re-establishing an independent addictions foundation, staffed by experts specializing in upto-date treatment options; and e) Lobbying the federal government to give police the enforcement tools needed to stop the proliferation of crystal meth and other addictive substances. Labour (LB) LB05-2. Establishing a University Research Chair in Occupational Health and Safety Be it resolved that a Saskatchewan Party government will investigate the establishment of a Research Chair in Occupational Health and Safety at one of Saskatchewan s universities in partnership with representatives from the Saskatchewan Federation of Labour and Saskatchewan s business community to improve the health and safety of all workers in Saskatchewan. First Nations and Métis People (FN) FN05-8. Promoting the Health and Well-Being of First Nations and Métis People Be it resolved that a Saskatchewan Party government will work in partnership with First Nations, Métis people and the federal government to improve the health and well-being of First Nations and Métis people in Saskatchewan. Gaming (GM) GM05-1. Studying the Social Impact of Gaming to Inform Future Gaming Strategy Be it resolved that a Saskatchewan Party government will honour all existing casino development agreements but will complete a comprehensive study of the social impact that gaming expansion is having on Saskatchewan before considering the approval of any further casino developments or expansion in the number of VLTs operating in Saskatchewan and release the study to the public. GM05-2. Dedicated Funding for Addictions Treatment Programs and Facilities Be it resolved that a Saskatchewan Party government will dedicate a percentage of liquor and gaming revenues to addictions programs and facilities. Crown Corporations (CC) CC05-1. Keeping the Major Crowns Public Be it resolved that a Saskatchewan Party government supports The Crown Corporations Public Ownership Act and will retain public ownership of our major Crown corporations as important tools in the provision of utility services to Saskatchewan families and businesses and important partners in the economic development of Saskatchewan. 11

13 CC05-2. Focusing the Major Crowns on Serving Saskatchewan Be it resolved that a Saskatchewan Party government will mandate the major Crown corporations to provide high quality utility and insurance services and customer satisfaction to Saskatchewan people and businesses at the lowest possible cost. CC05-3. Investing Crown Dividends in Provincial Infrastructure Be it resolved that a Saskatchewan Party government will establish a Crown corporation dividend policy that: a) Publicly establishes net return levels adequate to meet re-investment requirements for each Crown corporation; and b) Direct profits in excess of Crown re-investment requirements to a dedicated provincial infrastructure renewal fund. CC05-4. Monitoring Crown Utility Rates Be it resolved that a Saskatchewan Party government will establish a fully independent Crown utility rate review board to ensure utility rates are set to cover operating costs and corporate reinvestment requirements for each Crown. 12

14 B) GROWTH AND OPPORTUNITY Economy (EC) EC05-1. Building Enterprise Saskatchewan Be it resolved that the Saskatchewan Party endorses The Promise of Saskatchewan: A New Vision for Saskatchewan s Economy as presented by Saskatchewan Party Leader Brad Wall as the foundation for the economic development plan of a Saskatchewan Party government. EC05-2. Rethinking Direct Government Investment and Intervention in the Economy Be it resolved that a Saskatchewan Party government will replace direct government investment and intervention in the economy with: a) Creation of a new partnership with business, labour, First Nations, local governments and educators called Enterprise Saskatchewan to create an entrepreneurial and enterprising economy; b) Investment in new and old economy infrastructure; c) New resources for post-secondary education; and d) The removal of barriers to private sector investment in Saskatchewan s key economic sectors. EC05-3. Establishing the Right Economic Development Priorities Be it resolved that the economic development priorities of a Saskatchewan Party government will be to: a) Establish a stable business climate that removes barriers to long term private sector capital investment, economic growth and job creation in urban and rural Saskatchewan; b) Implement a personal and corporate taxation structure that promotes and supports wealth creation and social sustainability for Saskatchewan families and businesses; c) Stop the mass exodus of young people and families from Saskatchewan and retain more of our young people after graduation; d) Maintain public ownership of Saskatchewan s major crown utilities focused on the provision of power, telecommunications services, natural gas transmission and distribution and insurance services to Saskatchewan families and businesses at the lowest possible cost; e) Encourage economic development in key sectors where Saskatchewan has or could have a competitive advantage including but not limited to energy; value-added agriculture and agribusiness; tourism; forestry; mining; advanced education, research and development; life sciences, synchrotron science, information technology and biotechnology; construction; transportation; financial services; and arts and culture; 13

15 f) Work in full partnership with First Nations respecting the Treaties as the foundation for development of economic policies that achieve the shared goal of creating prosperity for all people in Saskatchewan; g) Maximize the potential of innovation as a primary economic driver in the new, globalized knowledge economy; and h) Establish a one-stop service for businesses and investors interested in starting or expanding a business in Saskatchewan. EC05-4. Making Saskatchewan the Energy Heart of North America Be it resolved that a Saskatchewan Party government will set the goal of making Saskatchewan the energy heart of North America within ten years by assessing the potential for further development of power generation from wind, clean coal, natural gas, nuclear, biomass, coal bed methane, ethanol, solar, oil sands, co-generation, hydrogen fuel cell technology and any other power source that may be viable in Saskatchewan for provincial consumption and/or export. EC05-5. Building on the Strength of Saskatchewan s Uranium Industry Be it resolved that the Saskatchewan Party supports the responsible expansion of the uranium industry in Saskatchewan as a potential creator of thousands of primary and ancillary jobs in the province and will encourage the development of industries related to Saskatchewan's rich deposits of uranium. EC05-6. Promoting Entrepreneurial Training in Schools Be it resolved that a Saskatchewan Party government, through Enterprise Saskatchewan, will foster and promote entrepreneurial training and development across the province and support the Department of Learning in expanding the availability of entrepreneurial training to every high school in Saskatchewan. EC05-7. Increasing International Immigration Be it resolved that a Saskatchewan Party government will attract new residents to the province through an immigration strategy that: a) Establishes specific targets for increasing immigration to Saskatchewan; b) Makes immigrant retention a priority; c) Reduces barriers for investors wishing to immigrate to and invest in Saskatchewan; and Establishes an enhanced business nominee program for immigrants with the skills and investment capital to contribute to the development of the province s key economic sectors as identified by Enterprise Saskatchewan. 14

16 EC05-9. Reviewing Regulations to Remove Barriers to Sustainable Growth Be it resolved that a Saskatchewan Party government will mandate Enterprise Saskatchewan to review all government regulations every five years to eliminate barriers to environmentally sustainable economic growth. EC06-2. Supporting Construction of Uranium Refining in Saskatchewan Be it resolved that a Saskatchewan Party government will support the private sector construction and operation of a uranium refining facility in Saskatchewan. EC06-3. Studying the Feasibility of Building Nuclear Power Generation Facilities in Saskatchewan Be it resolved that a Saskatchewan Party government will immediately carry out and publicly release a study on the feasibility of building one or more nuclear power generation facilities in Saskatchewan to provide a reliable supply of low cost power in an environmentally responsible way. Taxation (TX) TX05-1. Ensuring a Competitive Tax System for Saskatchewan Families and Businesses Be it resolved that a Saskatchewan Party government will ensure Saskatchewan s income, corporate, property and capital taxes and resource royalty rates are competitive with other provinces and do not create a barrier to increased private sector investment, job creation and economic growth. TX05-2. Providing Tax Relief for Low Income Earners Including Seniors Be it resolved that a Saskatchewan Party government will reduce provincial income taxes for lowincome earners including seniors by increasing the Basic Personal Exemption by up to $6,000 for individuals earning less than $35,000 which will result in full time employees earning the minimum wage paying no provincial income tax. TX05-3. Providing Short and Long Term Education Property Tax Relief Be it resolved that a Saskatchewan Party government will provide urban and rural ratepayers with immediate short term education property tax relief while providing permanent long term education property tax relief by significantly increasing K-12 education funding. TX05-4. Eliminating the Small Business Tax Be it resolved a Saskatchewan Party government will make Saskatchewan a small business taxfree zone. TX05-5. Reducing Capital Gains Tax on Re-Invested Proceeds from the Sale of a Business or Real Property Be it resolved that a Saskatchewan Party government will reduce the provincial portion of Capital Gains Tax collected on the sale of a business or real property in Saskatchewan if the full proceeds of the sale are re-invested in Saskatchewan. 15

17 TX05-6. Strengthening Provincial Research and Development Tax Credits Be it resolved that a Saskatchewan Party government will strengthen Saskatchewan s program of tax credits for research, development and commercialization performed in Saskatchewan to promote innovation and job creation. TX Maintaining the Property Tax Exemption for Churches and Private Schools Be it resolved that a Saskatchewan Party government will maintain the property tax exempt status of churches and private schools. TX06-1. Eliminating Provincial Tax on Investment Be it resolved that a Saskatchewan Party government will establish the most competitive climate in Canada for new private sector investment and job creation by eliminating the Corporate Capital Tax and reducing the corporate income tax rate to 11.5% over four years. TX06-2. Strengthening Incentives for Investment in Value-Added Manufacturing and Processing Be it resolved that a Saskatchewan party government will encourage new investment in value added manufacturing and processing and innovation by: a) making the Manufacturing and Processing Input Tax Credit refundable and claimable on a quarterly basis to reduce business investment costs and improve cash flow; b) expanding the Manufacturing & Processing Profits Tax Reduction to include resource companies following the successful negotiation of a new Energy Accord with the federal government that removes resource revenues from the calculation of equalization entitlements; and c) increasing the provincial Research and Development Tax Credit from 15% to 20% and make it refundable every quarter to support continual investment in innovation. Agriculture (AG) AG05-1. Recognizing the Importance of Agriculture in Saskatchewan Be it resolved that a Saskatchewan Party government will recognize agriculture as one of Saskatchewan s most important industries and will always act in the best interests of Saskatchewan producers to strengthen the industry for the benefit of all people in Saskatchewan. AG05-2. Doubling the Value of Agriculture Output Be it resolved that a Saskatchewan Party government will set the goal of doubling the value of agriculture and agribusiness production in Saskatchewan within 10 years. AG05-3. Expanding Irrigation Capacity in Saskatchewan Be it resolved that a Saskatchewan Party government will facilitate the aggressive expansion of provincial irrigation capacity in partnership with private sector investors to maximize the economic 16

18 potential of Saskatchewan s water resources within a framework of conservation as a central component of Saskatchewan s long-term agri-business and economic development strategy. AG05-4. Investing in Water and Transportation Infrastructure Be it resolved that a Saskatchewan Party government will make it a leading priority to invest in the construction and renewal of transportation and water infrastructure necessary to support a growing agriculture and agri-business industry in Saskatchewan. AG05-5. Promoting Private Sector Investment in Value-Added Agri-Business Be it resolved that a Saskatchewan Party government will create an economic environment that encourages private sector investment in value-added agri-business in Saskatchewan and environmentally sustainable intensive agricultural development. AG05-6. Supporting Agricultural Innovation and Technology Be it resolved that a Saskatchewan Party government will support agricultural innovation and technology through investment in our post secondary institutions and strengthening of innovation research and development tax credits as a key part of growing the agriculture and agri-food industry in Saskatchewan. AG05-7. Negotiating a Predictable and Stable Risk Management Program Be it resolved that a Saskatchewan Party government will work with other provinces and the federal government to design a long-term agriculture support and risk management program that provides stability to the industry and financial predictability for producers and financial institutions. AG05-8. Honouring Provincial Funding Responsibility for Federal/Provincial Programs Be it resolved that a Saskatchewan Party government will fully fund its share of any federal/provincial agriculture program to which the province is a signatory. AG05-9. Expanding Crop Insurance Coverage and Reducing Risk Be it resolved that a Saskatchewan Party government will review the Saskatchewan crop insurance program with a view to expanding coverage and reducing risk. AG Supporting Marketing Choice Be it resolved that the Saskatchewan Party supports giving Saskatchewan farmers market choice by giving the right to choose selling grain independent of the Canadian Wheat Board or to continue selling through the Wheat Board voluntarily. AG Assigning Demurrage Charges Due to Shipping Delays Be it resolved that the Saskatchewan Party believes demurrage charges for delays in grain shipments should be assessed against those found responsible for any such delays and should not come out of the pockets of farmers. 17

19 Highways and Transportation (HT) HT05-1. Establishing a Western Canadian Transportation Hub and North / South Transportation Corridor in Saskatchewan Be it resolved that a Saskatchewan Party government will encourage the development of a Western Canadian transportation hub and a North / South transportation and trade corridor in Saskatchewan in partnership with local and provincial stakeholders and other jurisdictions. HT05-2. Creating a Province-Wide Transportation Policy Be it resolved that a Saskatchewan Party government will create a province-wide transportation policy that includes: a) A strategy that recognizes the interdependence of national, provincial and municipal responsibilities in maintaining Saskatchewan's transportation infrastructure. b) A comprehensive review of highways in Saskatchewan to determine their economic value and potential; c) A rolling four-year plan for the province s road construction and maintenance program that emphasizes quality construction; d) The implementation of new highway construction technology designed to meet the demands of Saskatchewan s climate and large scale truck traffic; e) Support for the development of an inter-modal transportation system; f) Support for the development of a short-line rail industry including streamlining the regulatory process for approving short-line railways; and g) Amending highway regulations to allow more business-friendly highway signs. HT05-3. Negotiating a National Highway Program Be it resolved that the Saskatchewan Party recognizes that the federal government has a major role to play in the development and funding of a national highways program and will continue to lobby the federal government for implementation of such a program. HT05-4. Streamlining Inter-Provincial Transportations Regulations Be it resolved that a Saskatchewan Party government will work with other provincial governments to streamline inter-provincial trucking and transportation regulations. HT05-5. Investing All Provincial Fuel Taxes in Transportation Infrastructure Be it resolved that a Saskatchewan Party government will commit, as a minimum, all provincial fuel taxes collected to fund provincial and municipal transportation infrastructure construction and renewal in Saskatchewan. 18

20 K-12 Education (ED) ED05-1. Providing Short and Long Term Education Property Tax Relief Note: This resolution also appears as Taxation Resolution TX05-3. Be it resolved that a Saskatchewan Party government will provide urban and rural ratepayers with immediate short term education property tax relief while providing permanent long term education property tax relief by significantly increasing K-12 education funding. Post-Secondary Education (PS) PS05-1. Providing Stable Long-Term Funding for Post-Secondary Institutions Be it resolved that a Saskatchewan Party government will provide stable and predictable long-term support for Saskatchewan s post-secondary institutions through multi-year funding commitments to support teaching and research in the humanities, arts and social sciences as well as supporting scientific, medical, engineering and technological advancement. PS05-2. Undertaking Strategic Partnerships Be it resolved that a Saskatchewan Party government will facilitate strategic partnerships between the province s post-secondary institutions, First Nations and Métis people and regional economic stakeholders to develop academic and trades programs that meet local labour force needs. PS05-6. Promoting Science and Technology Be it resolved that a Saskatchewan Party government will play a leading role in promoting science and technology through partnerships with the province s post-secondary institutions. PS05-7. Investing in Public/Private Partnerships to Commercialize Innovation Be it resolved that a Saskatchewan Party government will consider public/private partnerships to assist in commercialization of Saskatchewan-based research, development and innovation including: a) investments in the life sciences, health sciences and renewable energy; b) Investments in synchrotron science; and c) support for innovation focused on the development and commercialization of new intellectual property. PS05-8. Investing in Innovation at our Post-Secondary Institutions Be it resolved that a Saskatchewan Party government will invest in new technology and emerging sectors of heath care, environmental innovation and energy at our province s post-secondary institutions including: a) Making the University of Saskatchewan a centre for health excellence in North America; b) Creating a centre of environmental excellence in consultation with SIAST and the University of Regina; and c) Building on the strength of the Petroleum Technology Research Centre and the Greenhouse Gas Technology Research Centre at the University of Regina. 19

21 PS05-9. Encouraging Private Sector Commercialization of Science and Technology Be it resolved that a Saskatchewan Party government will create a competitive tax and regulatory environment to encourage research, development and commercialization of science and technology by private sector companies in Saskatchewan. PS06-1. Using Tax and Business Incentives to Encourage Hiring of Recent Saskatchewan Graduates Be it resolved that a Saskatchewan Party government will use tax and business incentives to encourage Saskatchewan businesses to hire new and recent graduates of Saskatchewan s post secondary institutions. Labour (LB) LB05-1. Recognizing the Contribution of Labour and Collective Bargaining in Saskatchewan Be it resolved that a Saskatchewan Party government will recognize and respect the valuable role that labour and the collective bargaining process have played and will continue to play in the growth and development of Saskatchewan. LB05-3. Ensuring Democratic Workplaces Be it resolved that a Saskatchewan Party government will consult with employers, employees, union representatives and business representatives to establish democratic workplaces in which votes for the certification or de-certification of a union requires the support of 50 per cent plus one of the employees in each workplace as expressed by secret ballot after union and management representatives have had the opportunity to communicate with employees in an open and public forum. LB05-4. Building a New Partnership Between Business, Labour, Education and Government Be it resolved that a Saskatchewan Party government will create an economic partnership between labour, business, First Nations, post-secondary institutions and other economic stakeholders in the province through Enterprise Saskatchewan with the shared goal of building a strong and diversified economy, creating new jobs and expanding the tax base from which government funds all public services. LB05-5. Creating Fairness and Balance in Labour Legislation Be it resolved that a Saskatchewan Party government will review provincial labour legislation to ensure a legislative environment and a Labour Relations Board that: a) Respects the principles of transparency and accountability; b) Provides high quality, safe and healthy workplaces; and c) Balances the interests of employees and employers while promoting the continued growth of Saskatchewan communities and the economy. 20

22 LB05-6. Repealing Government Directed Hours Legislation Be it resolved that a Saskatchewan Party government will immediately repeal any provincial law that directs businesses in the allocation of part-time hours to workers based on seniority or any other criterion. LB05-7. Improving Efficiency at the Workers Compensation Board Be it resolved that a Saskatchewan Party government will review the Workers Compensation Board with a view to creating greater efficiency and fairness in the Board s operation. LB06-1. Ending Policy of Mandatory Retirement Be it resolved that a Saskatchewan Party government will end the discriminatory policy of mandatory retirement. LB06-2 Removing Legislated Limits on the Length of Collective Bargaining Agreements Be it resolved that a Saskatchewan Party government will amend The Trade Union Act to remove legislated limits on the length of collectively bargained agreements. First Nations and Métis People (FN) FN05-9. Removing Barriers to Employment for First Nations and Métis People Be it resolved that a Saskatchewan Party government will work in partnership with First Nations, Métis people and the federal government to identify and remove barriers that impede the participation of First Nations and Métis people in the economy. 21

23 C) FAIRNESS AND EQUITY Taxation (TX) TX05-8. Encouraging Home-Based Care of Seniors and Family Members with Disabilities Be it resolved that a Saskatchewan Party government will establish a tax credit for families that choose to renovate their homes or undertake construction on a new home to accommodate the care of elderly family members or other family members with mental or physical disabilities. TX05-9. Providing Tax Relief for Home-Based Caregivers Be it resolved that a Saskatchewan Party government will establish a caregiver tax credit to assist in the care of elderly family members or family members with physical or mental disabilities. TX Assisting Parents with the Cost of Child Care Be it resolved that a Saskatchewan Party government will establish a child care tax credit to assist parents with the cost of child care. K-12 Education (ED) ED05-2. Ensuring Excellence in K-12 Education Be it resolved that a Saskatchewan Party government will ensure excellence in the K-12 education system by: a) Creating a province-wide partnership for education excellence between parents, teachers, education stakeholders, First Nations and the provincial government; b) Supporting the creation of innovation schools to deliver enriched educational programming; c) Facilitating partnerships between innovation schools and the province s post-secondary institutions; d) Implementing the School Plus concept in all school divisions; and e) Improving online provincial distance education programs to enhance local education opportunities. ED05-3. Improving Educational Outcomes for First Nations Students Be it resolved that a Saskatchewan Party government will work in partnership with First Nations to increase participation rates and improve educational outcomes for First Nations students. ED05-4. Ensuring Accountability and Quality in Education Be it resolved the Saskatchewan Party supports the need for greater accountability regarding the quality of education in Saskatchewan schools and will work in partnership with the Saskatchewan 22

24 Teachers Federation and the Saskatchewan School Boards Association to develop these accountability procedures. ED05-5. Increasing Cooperation Between School Systems Be it resolved that a Saskatchewan Party government will encourage increased cooperation between all publicly funded school systems in an effort to streamline both systems and eliminate unnecessary and costly duplication. ED05-6. Supporting Career Education in Schools Be it resolved that a Saskatchewan Party government will support career education, including life skills instruction, in all schools. Post-Secondary Education (PS) PS05-3. Providing Student Loan Debt Relief for Graduates Who Stay in Saskatchewan Be it resolved that a Saskatchewan Party government will forgive a portion of student loan debt held by Saskatchewan post-secondary graduates who remain and work in Saskatchewan. PS05-4. Reviewing and Renewing the Student Loan Program The Saskatchewan Party will review the provincial student loan program on a regular basis to ensure it meets the needs of current and future post-secondary education students. PS05-5. Improving Outcomes for First Nations and Métis Students Be it resolved that a Saskatchewan Party government will partner with First Nations and Métis People, the federal government and post-secondary institutions, including the First Nations University of Canada and the Saskatchewan Indian Institute of Technology (SIIT), to improve postsecondary outcomes for First Nations and Métis students. PS06-2. Reforming the Student Loan Program Be it resolved that a Saskatchewan Party government will reform the student loan program by: a. Increasing the maximum loan limit; b. Removing the parental contribution expectation; c. Establishing income contingent loan repayment; and d. Collecting student loan payments through the income tax system. PS06-3. Strengthening Career Awareness Programs Be it resolved that a Saskatchewan Party government will implement a comprehensive career awareness program for young people in cooperation with Saskatchewan businesses, government departments agencies and crown corporations and professional associations. 23

25 Intergovernmental and Northern Affairs (IG) IG05-2. Lobbying Federal Government to Compensate Municipalities for Tax Losses from the Designation of New First Nations Lands Be it resolved that a Saskatchewan Party government will lobby the federal government to fully compensate municipalities for tax losses resulting from the designation of new First Nations reserve lands. IG05-5. Providing a Long Term, Predictable and Sustainable Revenue Sharing Program Be it resolved that a Saskatchewan Party government will negotiate a new Municipal Revenue Sharing Agreement between municipalities and the provincial government based on provincial own- source revenues and the municipalities ability to raise local property tax revenue. IG05-6. Ensuring Adequate Provincial Funding of Municipal Programs Be it resolved that the Saskatchewan Party recognizes downloading provincial costs onto local governments is a backdoor form of taxation and will work with the Saskatchewan Urban Municipalities Association and the Saskatchewan Association of Rural Municipalities to ensure proper and adequate provincial funding of municipal programs. IG05-7. Supporting Voluntary Municipal Amalgamation Be it resolved that a Saskatchewan Party government will support and facilitate voluntary municipal amalgamation. Social Policy (SC) SC05-1. Upholding Dignity, Independence and Accountability in the Provision of Social Services Be it resolved that a Saskatchewan Party government will provide social services to individuals, children and families in need through programs and services that uphold individual dignity, promote independence and are accountable to the public. SC05-2. Improving Services to Children and Families in Need Be it resolved that a Saskatchewan Party government will provide families in need of support with access to an effective one stop facilitating agency that will: a) Involve community-based organizations in the delivery of services to families in need; b) Strengthen and focus the delivery of services by government departments and agencies to families; c) Emphasize the attainment of economic stability and social viability of families including training, job skills and skills for living; d) Promote home ownership as an important element in the achievement of family independence; 24

26 e) Empower front-line personnel with decision making authority, discretion and encouragement in the application of creative solutions to difficult problems; and f) Develop performance criteria, benchmarks and results-oriented outcomes. SC05-3. Strengthening Early Childhood Development Be it resolved that a Saskatchewan Party government will make early childhood development a priority across the province, with community based organizations being the preferred vehicle for the delivery of services. SC05-4. Enhancing Child Care Options Be it resolved that a Saskatchewan Party government will support enhanced child care options for Saskatchewan parents. SC05-5. Supporting the Transition from Social Assistance to Employment Be it resolved that a Saskatchewan Party government will promote economic self-sufficiency and support the transition of people from social assistance to full employment by: a) Ensuring training programs are delivered with the input of employers and are geared towards local labour market needs; b) Increasing the amount a recipient can earn from employment while on assistance; and c) Removing barriers to make it easier to move from welfare to work. SC05-6. Increasing Support for Persons with Permanent Disabilities Be it resolved that a Saskatchewan Party government will increase assistance and establish a distinct funding mechanism to support individuals with permanent disabilities. SC05-7. Building Partnerships to Deliver Employment Programs for Persons with Disabilities Be it resolved that a Saskatchewan Party government will work in partnership with local community organizations and businesses to determine how best to deliver employment programs to persons with physical and intellectual disabilities. SC05-9. Addressing Food and Hunger Issues Be it resolved that a Saskatchewan Party government will address food and hunger issues in the province by: a) Increasing the food allowance for social assistance recipients; and b) Ensuring a portion of social assistance received by families is dedicated to food funding. 25

27 SC Creating a Seniors Advocate Be it resolved that a Saskatchewan Party government will create a seniors advocate that will function as a single window service for seniors dealing with the provincial government. Culture and Recreation (CR) CR05-2. Enhancing Youth Access to Arts, Culture and Sport Be it resolved that a Saskatchewan Party government will recognize the benefit of youth participation in the arts, culture and sport and will encourage increased participation in and access to these activities. CR05-5. Reducing Energy Costs in Community Owned Recreational Facilities Be it resolved that a Saskatchewan Party government will support healthy communities by providing an annual grant to reduce energy costs in community-owned recreational facilities in communities where there are no privately operated recreation facilities. 26

28 D) PRIDE WITH PURPOSE Taxation (TX) TX05-7. Creating a Tax-Free Return on Community Infrastructure Investment Be it resolved that a Saskatchewan Party government will establish a Community Infrastructure Investment Program through which Saskatchewan residents can invest in construction and renewal of community infrastructure through the purchase of Saskatchewan Community Infrastructure Bonds on which the interest earned is free from provincial income tax. Environment (EV) EV05-1. Establishing a Clear Mandate for the Environment Department Be it resolved that a Saskatchewan Party government supports a clear mandate for the Department of Environment to monitor and enforce environmental laws, standards and regulations designed to ensure the long term sustainability of our water, land and air. EV05-2. Supporting Dedicated Conservation Areas Be it resolved that the environmental strategy of a Saskatchewan Party government will maintain designated provincial conservation areas, protected wild spaces within provincial parks and clear guidelines and environmental standards for resource development. EV05-6. Creating an Environmental Centre of Excellence in Saskatchewan Be it resolved that a Saskatchewan Party government would support the creation of a universitybased environmental centre of excellence in Saskatchewan with the mandate to lead the world in the development of environmentally friendly technology for the energy, mining, forestry, transportation, agriculture and utilities industries. EV05-7. Growing Saskatchewan s Forestry Industry Be it resolved that a Saskatchewan Party government will establish a stand-alone Department of Forestry to ensure the environmentally sustainable, long-term growth of the forestry industry as a key part of the Enterprise Saskatchewan Plan. Intergovernmental and Northern Affairs (IG) IG05-1. Reforming the Equalization Program Be it resolved that a Saskatchewan Party government will negotiate with the federal government to: a) Move to a ten-province standard for the purpose of calculating equalization; and Have Saskatchewan s oil and gas resource revenue treated in a manner similar to the Maritime provinces in the calculation of equalization payments. 27

29 IG05-3. Partnering with Western Provinces Be it resolved that a Saskatchewan Party government will partner with provincial governments in Western Canada to share in the costs and delivery of programs and services in cases where it is beneficial. IG05-4. Eliminating Barriers to Growth Be it resolved that a Saskatchewan Party government will work with other provinces to standardize provincial regulations and eliminate barriers to growth. IG05-8. Building Partnerships to Tap the Economic Potential of Northern Saskatchewan Be it resolved that a Saskatchewan Party government will work in partnership with First Nations and Métis people, northern communities and local stakeholders to develop an economic development strategy for Northern Saskatchewan that includes: a) Conducting a comprehensive transportation and infrastructure review to identify priority areas for infrastructure investment; and b) Developing a plan for sustainable economic growth that balances economic development and preservation of the environment. First Nations and Métis People (FN) FN05-1. Recognizing the Positive Contribution of First Nations and Métis People Be it resolved that the Saskatchewan Party recognizes and respects the positive contribution the languages, cultures, traditions and values of First Nations and Métis make to the province of Saskatchewan. FN05-2. Recognizing and Respecting the Treaties Be it resolved that a Saskatchewan Party government recognizes the Treaties as the foundation for a partnership between First Nations and non-first Nations people in our province. FN05-3. Promoting Knowledge of the Treaties Be it resolved that a Saskatchewan Party government will make instruction in the history and content of the Treaties signed between First Nations and the Government of Canada a part of the core curriculum. FN05-5. Building a Framework for Relations between the Province, First Nations and Métis People Be it resolved that the framework for relations between a Saskatchewan Party government and First Nations and Métis people will be based on respect and inclusion. 28

30 Culture and Recreation (CR) CR05-1. Acknowledging the Importance of First Nations and Métis Culture Be it resolved that a Saskatchewan Party government acknowledges that the languages, cultures, traditions and values of First Nations and Métis people make a positive contribution to the culture of Saskatchewan. CR05-3. Increasing Funding to Cultural Agencies Be it resolved that a Saskatchewan Party government will increase funding to cultural agencies by reducing the fee charged by the provincial government to administer the lottery licensing agreement. CR05-4. Encouraging Community Investment in Cultural and Recreation Facilities Be it resolved that a Saskatchewan Party government will encourage community investment in sport, arts and heritage facilities through the creation of Saskatchewan Community Infrastructure Bonds. 29

31 E) ACCOUNTABILITY Economy (EC) EC05-8. Performing a Service-Based Review of Government Operations Be it resolved that a Saskatchewan Party government will perform a service-based review of government operations to ensure all parts of government are: a) Serving a compelling public interest; b) Affordable within the fiscal environment of the province; c) Providing services in the most efficient way possible; d) Accountable to the taxpayer; and e) Removing barriers to the development of an entrepreneurial and enterprising economy. EC06-1. Establishing a Formula for Allocation of Budget Surpluses Be it resolved that a Saskatchewan Party government will allocate one third of any provincial budget surpluses to debt reduction and two thirds to support the Saskatchewan Party s Growth Agenda including investment in infrastructure, competitive taxes and investment in post secondary education and skills training; and Be it further resolved that debt reduction payments will be increased as the objectives of the growth agenda are achieved. Taxation (TX) TX Common Sense Fee Structures Be it resolved that a Saskatchewan Party government will cancel any government fee that costs more to collect than it raises in revenue. Crown Corporations (CC) CC05-5. Renewing Crown Corporation Mandates Every Five Years Be it resolved that a review of the mandate and dividend policy of the major Crown corporations be completed every five years with participation from business, labour, stakeholders and citizen representatives. CC05-6. Stopping Provincial Government Competition With Private Sector Businesses Be it resolved that a Saskatchewan Party government will immediately review provincial government competition with the private sector through government departments, agencies and Crown corporations in the delivery of services to the people of Saskatchewan. 30

32 CC05-7. Reviewing All Existing Out-of-Province Crown Business Ventures Be it resolved that Saskatchewan Party government will review all existing out-of-province Crown business ventures and place a moratorium on further out-of-province investment by Crown corporations until the review is complete. CC05-8. Ensuring Access to Qualified Crown Corporation Workforce Be it resolved that a Saskatchewan Party government will facilitate coordination between Crown utilities, post secondary institutions, the Saskatchewan Indian Institute of Technologies (SIIT) and the First Nations University of Canada to ensure students graduate with the skills and education required to meet the human resource needs of Saskatchewan s Crown corporations. Public Service Commission (PSC) PSC05-1. Supporting a Non-Partisan and Professional Public Service Be it resolved that Saskatchewan Party government will support a non-partisan, professional civil service where public policy goals are clearly communicated by Cabinet and achieved by well trained, efficient and highly competent public servants. PSC05-2. Retaining and Recruiting Qualified Public Sector Employees Be it resolved that a Saskatchewan Party government will address the impending shortage of qualified public sector employees by directing the Public Service Commission to develop an aggressive strategy for recruiting and retaining public servants as productive contributors to the Government of Saskatchewan. PSC05-3. Supporting Professional Development in the Public Sector Be it resolved that a Saskatchewan Party government will strongly support the professional development of all provincial public sector employees. PSC05-4. Negotiating Competitive Compensation Package for Public Sector Employees Be it resolved that a Saskatchewan Party government will restore fairness to provincial public sector contract settlements by negotiating in good faith with both unionized and non-unionized employees to deliver compensation packages that are competitive with other provincial jurisdictions in Canada. PSC05-5. Establishing Annual Public Sector Performance Targets Be it resolved that a Saskatchewan Party government will establish annual performance targets for all government departments and agencies. 31

33 First Nations and Métis People (FN) FN05-4. Clarifying the Role and Responsibility of the Federal Government Be it resolved that a Saskatchewan Party government will work proactively with Saskatchewan s First Nations people to encourage the federal government to fulfill its responsibilities to First Nations people living both on and off reserve. FN05-6. Implementing Existing Agreements and Developing New Agreements Be it resolved that a Saskatchewan Party government will work in partnership with First Nations and Métis people to implement existing agreements and develop new agreements to build our province. FN05-7. Consulting on Legislation that Affects First Nations and Métis People Be it resolved that a Saskatchewan Party government will consult with First Nations and Métis people in the development, and prior to the implementation, of provincial legislation that impacts on the jurisdiction of Saskatchewan s First Nations. Democratic Reform (DR) DM05-1. Examining Saskatchewan s Electoral System Be it resolved that a Saskatchewan Party government will study Saskatchewan s electoral system and make recommendations for changes that will enhance representation and encourage voter participation. DM05-2. Establishing Set Election Dates Be it resolved a Saskatchewan Party government will establish set election dates every four years. DM05-3. Balancing the Budget Be it resolved that a Saskatchewan Party government will pass strong Balanced Budget legislation that requires a balanced budget over each four year election cycle. DM05-4. Implementing Free Votes in the Legislature A Saskatchewan Party government will implement free votes except on the Budget and Speech from the Throne in the legislature so that MLAs can represent the views of their constituents. DM05-5. Providing the Provincial Auditor with Full Access to Crown and Government Operations Be it resolved that a Saskatchewan Party government will grant the Provincial Auditor full access to all government funded companies, all Crown Corporations and subsidiaries of Crown Corporations. 32

34 33

35 The Promise of Saskatchewan A New Vision for Saskatchewan s Economy Brad Wall Leader of the Official Opposition Saskatchewan Party September

36 Why Change? Saskatchewan has epitomized great promise and potential since it s creation through an Act of Parliament 100 years ago. It is the country s second largest producer of oil and the third largest producer of natural gas. Saskatchewan is home to a third of the world s supply of potash, a third of the world s supply of uranium and the most arable acres in the Dominion. We are well positioned for success in the new knowledge-based economy thanks to Canada s only synchrotron and leading-edge research parks at the province s two universities. Saskatchewan s wealth in human and natural resources is truly staggering. Given our potential, Saskatchewan should have finished the 20 th century as one of Canada s economic leaders ready to compete in the emerging global economy. Instead, our province entered this century after having spent most of the last century as a have-not province. The statistics are startling. Between 1981 and 2000, total employment in Saskatchewan grew by only 12.5% compared to 34% in Alberta and 32% across Canada. Only Newfoundland posted a worse job creation record than Saskatchewan during these two decades. Over the same period, Saskatchewan s economy grew by 60%. While that was more than Manitoba, it was less than the national average and half the GDP growth experienced by Alberta. The lack of meaningful growth in personal disposable income and per capita income is another indication of how far Saskatchewan has fallen behind. Between 1981 and 2000, real disposable income in Saskatchewan increased by only 7.6% -- well behind the rest of Canada (36.8%), Alberta (34.6%) and Manitoba (18.8%). 1 In 1974, Saskatchewan per capita personal income was 102% of the Canadian average. By 2002, Saskatchewan s per capita personal income had declined to just 83% of the Canadian average -- a 19% reduction in less than three decades. 2 But, perhaps the most disturbing trend of all is the continuing exodus of young people. In 1991, 30.2% of the Saskatchewan population was in the year age group. By 2001, only 25.9% of the Saskatchewan population fell into that age group. 3 If this trend continues, only one in five Saskatchewan residents will be in the age group by the year How can both of these descriptions, the one of promise and the current unflattering reality, possibly describe the same province? Simply, because the promise of Saskatchewan has not yet been realized. If we do nothing and the status quo becomes our comfort zone, there is every reason to believe Saskatchewan will continue to suffer an exodus of young people, skilled workers and capital. If our economic reality remains unchanged, our future will entail fewer taxpayers accepting more responsibility for the provision of health care, education and other services; a future which could only mean higher taxes or fewer services. It s time to change. 1 Fraser Institute, Saskatchewan Prosperity: Taking the Next Step (Vancouver: Fraser Institute, 2002), pp Government of Saskatchewan, Saskatchewan Bureau of Statistics Economic Review 2003 (Dec. 2003) pp Ibid, pp

37 A New Vision for Saskatchewan s Economy If you only have a hammer, you tend to see every problem as a nail. - Abraham Maslow Why has Saskatchewan failed to capitalize on its tremendous promise? The answer lies in understanding past economic policies and the extent to which government has played such a major role in our economy. Saskatchewan has enjoyed the benefits of public investment in those areas where the private sector was unable or uninterested in providing effective and affordable services, such as utilities like power, energy, telephones and car insurance. There has, however, been significant government intervention in the economy well beyond infrastructure and utilities. Saskatchewan s challenges over the past sixty years must have all looked like nails to policy makers, because our toolbox of economic development has rarely contained anything but the hammer of government. Perhaps we have become comfortable with the notion that geographically large and sparsely populated jurisdictions must rely on the public sector and government involvement at every turn for their economic development strategies. This would appear to be the case in Saskatchewan, where governments of three different political stripes have allowed public sector solutions to eclipse the potential of private investment, innovation and entrepreneurship as sustainable economic development options for growth. No doubt the temptation, the tradition and the immediate political gratification of public sector intervention and politically motivated public investment has been strong. Fiscal policy, program spending, mega-project debt financing, mega-project equity, loans of last resort, targeted investment, joint ventures, Crown corporations, infrastructure investment, strategic investment, not-so-strategic investment and grants to business have been employed by governments for sixty years with unacceptable results. Even though there has been considerable political debate on the merits of these strategies the 1957 Mossbank debate between Liberal Leader Ross Thatcher and then Premier Tommy Douglas stands as a notable example nobody has fundamentally deviated from this approach. Political history aside, it is time to look at the question more objectively and to take stock of the consequences of the strategic choices that successive Saskatchewan governments have made over the past sixty years. Our population statistics compared to Alberta, Manitoba, or even the national average make the case quite adequately that economic development approaches which rely on government intervention have not helped to realize the great potential of a province so naturally endowed. 4 A brief overview of the economic development strategies pursued by 4 Saskatchewan s total population in 1931was 921,785. By 2004, that number had increased by only 73,000 people, an astoundingly low figure in comparison to Alberta which had 190,000 fewer people than Saskatchewan in 1931, 36

38 successive Saskatchewan governments is instructive if we are to find new ways of solving old problems. Saskatchewan s Economic Development Strategy: 1975 to 2000 In recent years, there have been some significant academic examinations of public policy approaches to economic development. Professor Peter Phillips at the University of Saskatchewan reviewed the economic policies utilized by provincial governments in our province from 1975 to 2000, and has highlighted four types of economic public policies: 5 1) Macroeconomic stabilization (fiscal and monetary policies designed to expand or stabilize the size of the economy). 2) Export Promotion (targeted trade policies designed to encourage a certain mixture of production or exports). 3) Investment policy (tax, subsidy, and policy measures designed to encourage or support specific projects with targeted firms or sectors). 4) Innovation policy (policies intended to establish a climate in which entrepreneurial activity can flourish). Macroeconomic Stabilization Macroeconomic stabilization policies such as home improvement programs, direct government investment, or tax cuts are tools utilized by governments to control the economy. The problem with such tools, according to the Economic Council of Canada as quoted by Phillips, is that wide fluctuations in the macroeconomy impede capital accumulation and lead to a suboptimal use of existing capital which together reduce the rate of growth of productivity and income. 6 Aside from the question of whether any government can effectively thwart the fiscal realities over the long-term, this type of public policy is also very expensive. For those governments that try it in earnest, Professor Phillips highlights the necessity of pushing hard in the other direction when the fiscal reality of the policies set in and the bills are received. With a low multiplier effect in Saskatchewan, the potential for these policies or other direct public interventions is low, compounding the expensive fiscal implications of this approach. 7 Export Enhancement Policies Controlling the trade of goods and services with other provinces or nations is a second way in which governments have intervened in the economy. Export policies such as local preference procurement (Buy Saskatchewan), and Crown corporation-levered industrial development such as but whose population has grown by almost 2.5 million since then. Statistics Canada, Historical Statistics of Canada, Ottawa: Canada Communications Group, Cat. No XIE. Also see Statistics Canada, Demographic Statistics, January 1, 2004 preliminary estimates, The Daily, March 22, 2004, June 3, Peter Phillips, Whither Saskatchewan: A Look at Economic Policies , Canadian Business Economics (November 1998), pp Economic Council of Canada, Pulling Together: Productivity, Innovation and Trade, Quoted in Phillips. 7 Phillips, pp

39 Phillips Cable and the Northern Telecom plant in Saskatoon illustrate this approach. However, Phillips notes, this policy has not been shown to produce any sustainable benefits in employment or per capita incomes. 8 These policies allow certain sectors to flourish where they lack a competitive advantage while crowding out other private sector investments and leaving behind uncompetitive enterprises. Investment Policies According to Phillips, most of the province s recent efforts have been focused on attracting investment or making direct government investments in the economy. Examples of these policies include direct investment in forestry projects, heavy oil upgraders, and government grants tied to job creation. The infamous Gigatext venture in the 1980s and the government s $28 million loss on SPUDCO in the 1990s are just two examples of such failed ventures. Phillips argues, based on the goals of employment per capita income growth, this policy was not a major success. Despite the significant amounts of capital invested, few direct jobs were created. 9 His colleague, and my former statistics professor, Eric C. Howe, also waded in on debate of the effectiveness of direct investments, and more specifically, mega-projects. In a 1993 Saskatoon Star Phoenix article, Professor Howe bluntly stated, [m]y career which included economic impact analysis for the Blakeney, Devine, and Romanow governments, has led to an inescapable conclusion. Government funded mega-projects are making you poorer. 10 Howe concluded the actual impact of mega-projects on provincial GDP has been demonstrably less than the public cost of the project. 11 It should be noted the example given by Professor Howe was the upgraders. Infrastructure mega-projects that produce public goods such as electricity may require unique analysis. It is important in such cases, however, to distinguish between government investment in infrastructure and government pump-priming. Whether it consists of providing roads or electricity, the former is a necessary pre-condition for economic development. Investment in infrastructure provides a legitimate public good which is widely shared or accessible by the public. In contrast, pump-priming confers benefits narrowly upon fellow investors while exposing taxpayers to financial risk. Innovation Policies The final set of policies discussed by Phillips concern innovation. Here, Phillips highlights how governments have tried to facilitate growth of the knowledge-based or learning by-doing productivity growth industry. The establishment of the Canadian Light Source, the ongoing activity at the research parks found in Saskatchewan s post-secondary institutions, the establishment of research centres of excellence in oil/gas (Regina), forestry (Prince Albert) and the life sciences at Innovation Place (Saskatoon) offer a foundation upon which to build. While there is a clear and important role to be played by government in this seminally important economic development area, Phillips observes that in 8 Philips, p Phillips, p Eric Howe, Government-funded mega-projects make public poorer, Saskatoon Star Phoenix, September 16, 1993, p.a5 11 ibid. 38

40 areas other than the tourism sector, governments have been unwilling to let industry lead and the industries have not yet been organized enough to lead themselves. 12 Economic development clusters are also part of the innovation framework. This strategy was utilized in successful economic development zones long before there was a word for it. Both governments and political leaders have called for a greater focus on cluster-based development. They are right to do so. However, private industry must lead the process. The lack of cluster-based development in Saskatchewan is partially due to the government s unwillingness to put the necessary economic development processes in place. All four policy types referred to by Phillips have a role to play in a dynamic new vision for our economy. For example, all four components should be focused on the reduction of barriers to growth. Whatever its components, however, that new vision must be led by the private and nongovernmental sectors. Government-Led Economic Development: An Ineffective Approach Of the four types of economic policies outlined by Phillips, Saskatchewan has relied almost exclusively on macroeconomic manipulation and direct public investment. Other policy tools have been utilized sparingly. In discussing the megaproject investments of the 1980s and government ventures like SPUDCO in the 1990s, former Saskatchewan Finance Minister Janice MacKinnon noted the inherent problem with having government directly invest in the economy: At the heart of the problem was the source of the decision making. Direct investment decisions are made at the cabinet table, and as soon as a decision reaches the cabinet table, politics is involved. When politics is involved, immediate benefits are more likely to overshadow concerns about long-term costs Governments, I firmly believe, should not be risking taxpayers dollars by picking economic winners and losers, especially since the record shows that governments of all stripes pick their share of losers. 13 University of Saskatchewan Professor Brett Fairbairn offers another compelling reason to avoid direct investments: governments simply do not have the power to influence the economy the way they once did. Drawing upon the research of Howe and Phillips, Fairbairn observes the capacity of the provincial government to determine economic growth through direct means such as spending or tax cuts is limited. His observation that the Saskatchewan economy can have a billion government dollars injected (1980s) or taken out (1990s) with so little apparent overall effect should give us pause for thought about the nature and integrity of our economy. 14 While the limited nature of government influence in a global economy is a point well taken, Fairbairn s reference to the efficacy of tax cuts should be viewed in the context of two provisos. First, the targeted nature of tax cuts means their overall effect on the economy is dependent upon the barriers which are removed. For example, removing or lowering the corporate capital tax a tax that penalizes private sector investment may be a more effective way to stimulate the economy 12 Phillips, p Janice MacKinnon, Minding the Public Purse (Montreal: McGill-Queen s University Press, 2003), pp Brett Fairburn, Economic Development and the New Role of Government, in Politics in Saskatchewan (Regina: Canadian Plains Research Centre, 2001), p

41 than removing the tax on gasoline. The second proviso concerns the sustainability of the tax cuts. If tax cuts have the effect of contributing to large deficits, then clearly they defeat their own economic development purpose in the medium and longer terms. Still, Fairbairn s observations are stark and must not be ignored. If Not the Hammer of Government, Then What? It is clear that Saskatchewan s economic strategy over the past 60 years has failed to improve the integrity of our economy, grow our population, attract investment or adequately capture and commercialize intellectual capital and innovation. It s time to try something new. As Fairbairn accurately notes, given what are truly spectacular failures of traditional kinds of policy, Saskatchewan governments in the twenty-first century will have to continue to reconceptualize their role with respect to economic development. 15 We need to acknowledge this challenge and have the courage to embrace new economic strategies and innovative thinking if we are to achieve long-term economic growth. We must also realize that there are many reasons for hope. Our rich natural resource base, the quality of our people and our world-class post-secondary assets provide the foundation for an economic future that could be much more successful than the past would indicate. Other jurisdictions around the world have undertaken the same introspective analysis of what they have done in the past to achieve growth and what they must do in the future. The Netherlands, Ireland and Sweden present such cases, and there are common denominators in each. The Dutch Miracle and the Celtic Tiger illustrate how effective analysis and a cooperative approach can achieve change. In these examples, organized labour, business, and government came together to create fundamental, lasting, and positive change in their economies. The Irish example is particularly compelling in the context of this discussion. Ireland s economy was plagued by outmigration of the country s best and brightest. Ireland experienced significant barriers to growth, including its tax regime and infrastructure challenges. A lack of public policy focus on the importance of post-secondary education, research, and innovation also hampered Ireland s economic growth. Yet the nation managed to overcome these challenges. We can, and must, learn from the successful experience of other jurisdictions once plagued by lagging economies. Facilitating Entrepreneurial Growth If we are going to grow the Saskatchewan economy and avoid the public policy mistakes of the past, we must focus on stimulating entrepreneurial activity in our province. Here again, it is instructive to look at how other jurisdictions have tackled this problem. Professor Gregg Lichtenstein of the Collaborative Strategies Group has spent 20 years working with over a thousand entrepreneurs in the United States. After conducting research and working with partners in dozens of different regional and community settings throughout the world, Lichtenstein concluded that a successful entrepreneurial community must: Take a systematic approach to enterprise and community development efforts by creating a community-wide entrepreneurial development system. Customize the enterprise development system to the specific needs of a community. 15 Fairburn, p

42 Focus on developing a supply or pipeline of highly skilled entrepreneurs capable of building successful companies, and also institutionalize these efforts so that the community can sustain a constant flow of entrepreneurial activity. Develop new roles, skills and tools for managing and implementing an enterprise development system. Operate this system as a transformation business one that seeks to transform entrepreneurs, their companies, and ultimately, the community s economy. 16 Taken together and applied to Saskatchewan, these strategies suggest a new approach to economic development in our province. Instead of pursuing economic development through macroeconomic strategies and direct government investment as we have done in the past, a new approach should focus on building an enterprise development system. As Fairbairn notes, this sounds simple, but in fact entails a difficult shift in thinking away from planning and toward process facilitation. 17 Such a system would focus on the development of an enterprise facilitation system built upon partnerships throughout the province and would be evaluated, in the words of Lichtenstein, on the basis of efficiency, effectiveness, equitability, and sustainability of its performance, as well as the scale of impact on the community s economy. 18 Surely a province with the rich human and natural resources of Saskatchewan has much to achieve and much reason for hope. But, we need sound public economic development policy fortified by the courage of the government to recognize that what we have been doing for the past 60 years has not worked. The same measure of courage is required for a government to implement a plan designed to survive the often volatile political cycle of Saskatchewan and actually outlive the government that created it. That must be our starting point the point at which this vision for a bright economic future begins. 16 Gregg Lichtenstein, Building Entrepreneurial Communities. Draft Paper, 2004, p June 4, Fairburn, p Lichtenstein, p.17 41

43 Enterprise Saskatchewan A New Role for Government Those who offer business counseling as a function of economic development have a mantra for their clients: Develop a business plan driven by specific goals and principles. Continually revisit the goals. Re-evaluate the principles. Measure progress. Repeat. I believe our vision for an enterprising and expanding economy must be built on similar fundamental goals and principles. At its core, our economic vision for the province must recognize that the private, cooperative and non-government sectors must be the engines for economic growth if it is to be sustainable, meaningful and avoid past failures. To ensure this vision harnesses the tremendous human, natural, and capital resources available to our province, we will target our efforts in at least eleven key economic sectors: Energy Production Agriculture Tourism Forestry Advanced Education, Research and Development Life Sciences, Synchrotron Science, and Information Technology Environment Construction Trucking and Transportation Financial Services Arts & Culture. 42

44 While these target sectors may change, they will not change at the whim of government in the Enterprise Saskatchewan model. They will not change because the government has been made aware of some opportunity to attract an industry with incentives or money in advance of an election. Instead, they will change when the industry and the community based-economic development agency of Enterprise Saskatchewan has identified a new opportunity (see Appendix I for a more detailed discussion of these key economic sectors). Creative partnerships, investment in new and old economy infrastructure, a focus on postsecondary education and the removal of barriers to investment in each of our key economic sectors will replace direct government investment and intervention in the economy. A Saskatchewan Party government would implement this new vision for economic development through the creation of a new partnership called Enterprise Saskatchewan. Spearheading a new role for government in facilitating entrepreneurial growth, Enterprise Saskatchewan will operate as an economic development partnership between government (provincial, local, and First Nations) and the private, cooperative and non-government sectors to implement a broader Enterprise Saskatchewan Plan consisting of, but not limited to, the following sixteen elements: 1. Enterprise Saskatchewan A new economic development agency called Enterprise Saskatchewan will be established to replace the line department economic development function of government. This will ensure that industry groups, local governments, First Nations, post-secondary institutions, labour and economic development bodies such as Agrivision and the Saskatchewan Chamber of Commerce are part of the strategic planning, implementation, governance and monitoring of the Enterprise Saskatchewan Plan. 2. Identify and Remove Barriers to Growth Enterprise Saskatchewan will develop a systematic and ongoing process to identify and remove barriers to growth in each of our key economic sectors. 3. Ensure Technological Efficiencies A Saskatchewan Party government will ensure the efficacy and engagement of technological efficiencies in all sectors of the economy. This is a key underpinning for sustainable growth in both the old industrial economy and the new knowledge-based economy. 4. Build a Knowledge Future Our Enterprise Plan will harness the enormous potential of our post-secondary institutions and programs to drive economic growth and support labour force development. We must make the commercialization of innovation and intellectual capital a public policy priority. 5. Develop an Economic Partnership with First Nations and Aboriginal Peoples Saskatchewan s First Nations and Aboriginal peoples must be full partners in all aspects of Enterprise Saskatchewan, including its governance. 6. Develop Our Human Resources Increased immigration and youth retention are essential to expanding our tax base. A stagnant population has been identified as a key barrier to the growth of the province in the 43

45 short-term, and both immigration and youth retention are necessary to meet our economy s need for skilled labour. 7. Develop the Entrepreneurs of Tomorrow Enterprise Saskatchewan will advance entrepreneurial training and development across the province. It will also be mandated to work with the Department of Learning to ensure that courses in entrepreneurial, economic and financial literacy are available as an option for all high school students. 8. Ensure Fiscal Responsibility Balanced budgets and a long-term plan for debt reduction are essential if we are going to create a competitive economy that will attract new private sector investment. 9. Attract New Investment Capital Enterprise Saskatchewan must focus on ways to ensure the availability of investment capacity from institutional investment, mezzanine financing, local venture capital, angel investor capital networks and junior capital pools. Health care research venture capital must be a particular priority given the significant potential of the Canadian Light Source. 10. Create New Growth Tax Incentives New growth tax incentives will be the preferred vehicle to stimulate economic activity in a fiscally tight environment. While the government of Saskatchewan may not be in a position to offer meaningful immediate reductions in taxes such as the corporate capital tax which inhibits investment, it can be much more aggressive in terms of incremental taxes on new activity. Enterprise zones will also be explored as a delivery vehicle for such incentives. 11. Retain Saskatchewan Businesses Enterprise Saskatchewan will implement a province-wide business retention program. As the government turns away from competing with business and towards facilitating private sector business growth, the competitive environment in Saskatchewan will improve. Enterprise Saskatchewan will identify and facilitate the establishment of a competitive business environment to ensure that no business leaves or bypasses Saskatchewan because of barriers erected by government. 12. Implement a Performance Based Focus for Government Investments Enterprise Saskatchewan will manage the assets of Investment Saskatchewan Inc. In partnership with the private sector, Enterprise Saskatchewan will target venture capital resources toward research, development, and the commercialization of innovation in areas such as the life sciences. Government will not pursue direct equity investments in mature industries. 13. Promote Saskatchewan The promotion of our province is a key element of the Enterprise Saskatchewan Plan. However, Saskatchewan will be promoted across Canada and around the world only after the product to be marketed a competitive, investment friendly, enterprising and entrepreneurial province is refined and fully developed. 14. Establish and Measure Goals for Growth The government of Saskatchewan must set clear and measurable goals for growth. Growth in population, investment, GDP, and even the general goal of becoming a have province 44

46 must be defined. The Enterprise Saskatchewan plan must clearly identify deliverables and measure results. 15. Single-Window Service to Business Enterprise Saskatchewan will facilitate single-window permitting, licensing, and most other government-to-business services and processes. 16. Utility Crown Corporations and Enterprise Saskatchewan A Saskatchewan Party government will maintain Saskatchewan s four major utilities (SaskPower, SaskTel, SaskEnergy and SGI) as government-owned Crown corporations and they will play a key role in the implementation of the Enterprise Saskatchewan Plan. 45

47 The Enterprise Saskatchewan Plan 1. Enterprise Saskatchewan Enterprise Saskatchewan will be created as the central economic development agency of government replacing the economic development function currently resident in the Department of Industry and Natural Resources. The Enterprise Saskatchewan approach is bold and innovative because, for the first time in Saskatchewan, government will cede significant control over the formation and implementation of economic development strategies to a broad partnership of economic stakeholders with the full support of the Premier and Executive Council. The Enterprise Saskatchewan model builds upon the traditional structures of economic development and broadens them through a partnership involving provincial and local government, industry, First Nations, labour, post secondary institutions and other economic stakeholders dedicated to the goal of sustained economic growth. The Enterprise Saskatchewan approach also builds on the Romanow government s successful modernization of the line department functions of trade and tourism into two new partnerships known as Saskatchewan Trade and Export Partnership (STEP) and Tourism Saskatchewan. Enterprise Saskatchewan s breadth and scope (which will include responsibility for both STEP and Tourism Saskatchewan) and the fact that it will be structured as a central agency of government in full partnership with other public and private sector stakeholders, will make it unique in Canada. The success of Enterprise Saskatchewan will depend on the commitment of its partners to the common goals of the organization. Its board will represent both government and the aforementioned partners, with the chairperson coming from the non-government members of the board. In addition to an innovative governance structure and mandate, Enterprise Saskatchewan also breaks new ground in its unique relationship with the provincial government. Rather than taking direction from government, Enterprise Saskatchewan will establish provincial economic development goals and strategies for endorsement by Cabinet and the Legislature. Government departments, agencies and, in some cases, Crown corporations, will then be tasked with implementing these strategies. Enterprise Saskatchewan will also monitor progress and measure results. Is the Delivery Vehicle That Important? In a word, YES. How we go about developing the economy in this case through Enterprise Saskatchewan is as important as identifying our goals. When Saskatchewan Party MLAs speak to industry groups in Saskatchewan and those outside the province, we often hear concerns regarding the stability of our politicaleconomic environment. While industry groups may welcome many of the policy initiatives we are proposing, they worry about a subsequent change in government and a pronounced shift to some other policy preference. That reality, they tell us, is almost as untenable as high taxes. Enterprise Saskatchewan offers our province the chance to move beyond economic policy instability. We are committed to keeping both Tourism Saskatchewan and STEP as they 46

48 exist. These two entities have proven to be effective methods by which to deliver marketing and economic development services in our province. The much larger scale of Enterprise Saskatchewan and its goal oriented, entrepreneurial, and business-planned approach offers that same opportunity for stability through the development of an economic blueprint for Saskatchewan. We must build an economic plan that is capable of surviving the volatile swings of our electoral cycle. If the Saskatchewan Party is successful in a future election and even benefits from multiple terms in office, we will not have been successful unless we, as a province, have achieved an effective and lasting change in our approach to growing the economy. As Premier, I would not hesitate to take the politics out of economic development if it meant securing long-term economic growth. Nor, I suspect, would any subsequent Premier. Any economic blueprint for the future of our province should be designed to survive the swings of our election cycle. New York Times Foreign Affairs columnist and author Thomas L. Friedman s book, The Lexus and the Olive Tree, aptly refers to much of today s capital markets as the electronic herd. His supposition is that the herd values stability, predictability and transparency the very qualities that we will build into Enterprise Saskatchewan to ensure its success. 19 Moreover, these qualities are consistent with the direct feedback that our caucus has received from those who are interested in investing in Saskatchewan should the economic climate improve. Perhaps more importantly, our chance at reviving our own lagging economy is better if it is developed, executed, and driven by a partnership comprised of industry, communities, First Nations, labour, educational institutions and government. We have achieved a great deal in this province when a partnership model has been used in earnest as the method of delivery. Moreover, the challenge facing us is too great and too important for any political party to suggest that it alone can make the difference. Enterprise Saskatchewan also offers a more holistic approach to economic development than simply reducing taxes or expanding the role of Crown corporations. 2. Identify and Remove Barriers to Growth The interaction between Enterprise Saskatchewan and government will be important in achieving the second goal of our economic plan identifying and reducing barriers to growth. Enterprise Saskatchewan will continually act to identify barriers to growth in the key sectors of Saskatchewan s economy and communicate them to policy makers. No doubt some of these barriers, such as the corporate capital tax, will be too costly to be eliminated or significantly reduced immediately. Enterprise Saskatchewan will report annually to the public on the progress government is making in reducing barriers, as well as the delineation of long-term plans and timelines to achieve those barriers that may come with larger fiscal price-tags. Non-Tax Barriers Saskatchewan Party MLAs have spent a great deal of time meeting with various industry groups and economic development organizations to identify barriers to growth in key economic sectors. We understand the many and varied barriers that exist. However, we 19 Thomas Friedman, The Lexus and the Olive Tree (New York: Anchor Books, 2000), p

49 rarely discuss the many barriers facing businesses beyond the obvious impediment of high taxes. While taxes that penalize investment such as the corporate capital tax are among the most insidious restraints on new investment and economic expansion, there are many other barriers to growth in our province: Old Economy Infrastructure Barriers If a short-line implement manufacturer is directly employing hundreds of men and women in a rural area of Saskatchewan, it is most assuredly the provincial government s job to ensure there is a high quality road to the plant. Water, sewer, utilities, and transportation need to be organized in a fashion that facilitates the attraction of investment and the recruitment and retention of businesses. New Economy Infrastructure A study on entrepreneurship from the Western Centre for Economic Research at the University of Alberta makes it clear that the absence of new economy infrastructure is a barrier to growth. 20 As the study notes, the absence of high-speed internet: [D]eprives businesses in the rural areas of Western Canada of a major instrument in overcoming the disadvantages of distance and access. Further, this handicap works against firms in more rural areas in that it robs them of the means for the prompt response that is demanded for realizing new market opportunities. 21 Allowing entrepreneurs to meet provincial regulatory requirements quickly is another recommendation in the study. At the moment, only British Columbia has a one-stop on-line registration point to register a business. In Saskatchewan, SaskTel and private sector IT firms have done an excellent job of ensuring that Saskatchewan is well-connected. In regions of the province where this is not yet the case, it is clearly a barrier to further growth. Other Non-Tax Barriers Other non-tax barriers that will require the attention and diligence of Enterprise Saskatchewan include direct competition to business from various government agencies and Crowns attempting to diversify from core functions, as well as policies of the Crowns themselves. For example, the refusal on the part of SaskPower to allow industrial customers to wheel or generate excess power from one site to compensate for the power needs of other holdings needs to be revisited. 3. Ensure Technological Efficiencies We must ensure the efficacy and engagement of technological efficiencies in all sectors of the economy. This is a key underpinning for sustainable growth in the both the old economy and the new information-based economy. When Thomas Friedman interviewed top managers at leading Silicon Valley companies and professors at Stanford University for The Lexus and the Olive Tree, he was told that Silicon Valley measured the power and potential of jurisdictions not only by the number of PCs per household, but by degrees of connectivity. As a result of his own interviews, Friedman suggests that mega-bits per capita (installed bandwidth divided by the number of users) is 20 Edward J. Chambers, and Stuart E. Shaw, A Primer on Western Canadian Entrepreneurship, (Edmonton: University of Alberta - Western Centre for Economic Research, Information Bulletin, No.76, April 2004). p ibid. 48

50 the measure of a jurisdiction s connectivity and an indication of its preparedness to compete in today s economic environment. 22 Here in Saskatchewan this may be a less effective way to measure our own connectivity in light of our rural/urban, north/south reality. However, it underscores the importance of such measurements. While Saskatchewan scores well with regard to access to high-speed internet services, many IT business owners have expressed serious concern about inadequate access to bandwidth. In fact, many technology businesses have either left Saskatchewan or bypassed us altogether because of inadequate bandwidth. As mentioned previously, the lack of high-speed internet access in parts of the province is another technological barrier to economic growth. Enterprise Saskatchewan must develop and continually monitor the state of our technical infrastructure to ensure Saskatchewan maintains a leading edge position in technological innovation. 4. Knowledge as a Building Block An essential component of the Enterprise Plan will consist of building upon the huge potential offered by our post-secondary education institutions and programs particularly with regards to labour force development. Greater emphasis upon facilitating the commercialization of innovation and intellectual capital must be a public policy priority. In the 1980s, academics were already debating the significant question of where knowledge-based industries were choosing to incubate and locate. Manuel Castell s The Informational City postulated that the basic raw material on which the new industries work is innovative technological information. 23 He highlighted the four different types of organizational environments where such information could be found: Leading universities and higher education institutions; Government-sponsored R&D centers; Corporate R&D centers linked to large technologically advanced corporations; A network of R&D centers in an established industrial complex. 24 Saskatchewan is clearly well positioned with respect to the first two sources, and the current federal and provincial governments deserve credit in this regard. The latter two seem to be a product of economies of scale and critical mass both of which are dependent on long-term growth. Our post-secondary institutions have begun to embrace their role as catalysts for economic development. Both Saskatchewan universities have established industry liaison offices, and the University of Saskatchewan will bring a series of entrepreneurship options to be delivered by the College of Commerce in conjunction with faculties across campus during the current planning cycle. 25 Research and development tax credits are building blocks to 22 Friedman, p Manuel Castells, The Informational City (Oxford: Basil Blackwell Lt,1989), p ibid. 25 University of Saskatchewan. Integrated Plan for the First Planning Cycle 2003/04 to 2006/07 (Saskatoon: University of Saskatchewan, April 21, 2004), p

51 further success in this area. We must do more to realize our full potential when it comes to commercializing innovation and research. The Education Research Innovation Nexus John T. Chambers, President and CEO of Cisco Systems, Inc., who served on the U.S. Administration s Education and the Workforce panel, offered this quite forceful assessment on the nexus involving education, innovation, and the economy: University centers are the hub for innovation, which in turn, creates jobs. That circle is repeatable, but it must be nurtured at the earliest possible stages. 26 Chambers reiterates the importance of education in discussing the challenges posed to the US economy by outsourcing and offshoring when he states, we ve got to have help from government in terms of our education system, our infrastructure, and incentives to allow companies to compete effectively. This is an important point for a province like Saskatchewan which has been outsourcing much of its economic opportunity for the better part of the last sixty years. Finally, our post-secondary institutions must be properly financed. As indicated earlier, our two universities, SIAST and the regional colleges understand the vital role they play in the future development of both our society and our economy. To the extent that our post secondary institutions are diverted from these goals by constant and temporal government funding concerns, the entire economy loses. Enterprise Saskatchewan can be another powerful proponent of long-term funding for these institutions and the post-secondary education needs of our population. During the last election, the Saskatchewan Party was the only party to offer significant and specific funding increases to our universities, SIAST and the regional colleges. That commitment must be maintained. 5. Develop an Economic Partnership with First Nations and Aboriginal Peoples The direct involvement of First Nations and Aboriginal peoples is critical to the success of Enterprise Saskatchewan. The economic policies of the government of Saskatchewan will respect the Treaties as the foundation of our partnership with First Nations in the shared goal of creating prosperity for all people in Saskatchewan through sustained economic growth. I have made it a top priority to meet with many First Nations and Aboriginal leaders and individuals since assuming the leadership of the Saskatchewan Party. I have appreciated the opportunity to learn more about issues and policies. The entrepreneurial tradition and current entrepreneurial spirit amongst First Nations holds great potential for the growth of our province. Saskatchewan s First Nations leaders and individuals have demonstrated a keen interest in economic opportunities not only on-reserve, but also in places like my home community of Swift Current whose closest reserve is the Nekaneet First Nation near Maple Creek. 26 John Chambers, Jobs will go to the best educated workforce, Cisco Systems Executive Thought Leadership, October, June 4,

52 Saskatchewan s young Aboriginal population has the potential to give this province a significant economic advantage as we move forward. In fact, engaging aboriginal youth in the economic development of Saskatchewan will be a key to our success as a province. As the Saskatchewan Chamber of Commerce notes, since Saskatchewan has the highest number of Aboriginal people in real and percentage terms in Canada, we hold a distinct competitive advantage in an era when the entire western world is watching the graying of its baby boom generation Developing our Human Resources Strategies to increase our population must continue to figure prominently in any economic plan for the province. Increasing both youth retention and immigration will be necessary if we are to achieve our goals. Immigration Immigration was the first and most powerful tool ever used to spur growth in the Saskatchewan economy. While the current government is on the right track in designating a minister for this file, it is difficult to see what action, if any, the government is taking to set and achieve specific goals for increased population through immigration. Over the last number of years, Saskatchewan has fallen far behind its neighbours in attracting immigrants to the province. From 2000 to 2002, a total of 5,264 people immigrated to Saskatchewan. This is far behind the 13,853 who immigrated to Manitoba during the same period and the 45,438 new Canadians who now call Alberta home. To put these numbers into context, more people immigrated to Alberta during those three years than currently live in the cities of North Battleford, Yorkton and Swift Current combined. 28 While new targets have been established by the current government for the provincial nominee program, it cannot disguise the fact that we have had difficulty meeting the previous targets. Nor have we kept pace with most other provinces. Since Manitoba undertook a provincial nominee program to attract qualified, skilled, and experienced individuals or business people in 1998, over 7,858 principal applicants and family members have settled in that province. The potential of immigration as a source of tax base expansion must receive more from government than after-thought ministerial capacity and few resources. The opportunities for synergy with existing federal government programs should result in the immigration opportunity being discussed and developed with the national government in every available instance. 27 Saskatchewan Chamber of Commerce, Version 1.0 Action Saskatchewan: A Blueprint for Saskatchewan, p.26, May 13, See: Saskatchewan Bureau of Statistics, Quick Facts. June 4, Also: Citizenship and Immigration Canada, Facts and Figures 2002, June 4,

53 Youth Retention Young people across Canada explore opportunities in other provinces and around the world. Saskatchewan s young people are no different. However, too many of those young people leave Saskatchewan never to return. In fact, Saskatchewan loses more young people to net out-migration than any province in Canada except Newfoundland. Between 1991 and 2003, Saskatchewan lost a total of 76,760 people to net out-migration. 29 This dismal statistic is even more alarming given that 47,274 or 68% of those who left Saskatchewan were young people between the ages of 15 and 29 years of age. This dramatic outflow of young people from Saskatchewan is not sustainable in the medium or long term. 30 Sask. Net Out-Migration Clearly, youth recruitment and retention will be a major priority for Enterprise Saskatchewan and an important measure of Enterprise Saskatchewan s success. A thriving and growing economy will be the surest way to stem out-migration not only by young people, but in all demographic and economic groups in our province. 7. Develop the Entrepreneurs of Tomorrow Enterprise Saskatchewan will foster and promote entrepreneurial training and development across the province and support the Department of Learning in expanding the availability of entrepreneurial training to every high school in Saskatchewan. I come from a family of entrepreneurs. My dad started his first business when he was 17, and was self-employed for the vast majority of his working life. I am intensely proud of both my parents. They created jobs for themselves and others, and contributed more in taxes to the public sector than they received. Yet I did not give business much consideration as a career option. Nor was I unique in this regard. Indeed, if our teachers had asked our graduating class how many planned to create their own jobs and jobs for others in the future, few hands (if any) would have been raised. Our society encourages youth to be job takers, not job makers. Entrepreneurship and selfemployment are simply not on the radar screen of our education system, or our society as a whole. This should be very alarming to all of us, especially policy makers. Every single public 29 Statistics Canada Population Estimates as cited in Action Saskatchewan Report Card, June 2004, p ibid 52

54 dollar that is used to provide health care, public safety, education, or social assistance depends on entrepreneurial activity. Even Crown corporation dividends depend on consumers, who in turn depend on the economy. Our future depends on those organizations and individuals that will create jobs. The creation of just one job is, in my view, the economic equivalent of the birth of a child. After it happens, nothing is the same. Entrepreneurship Education What are we doing in Saskatchewan to recognize and deliver on the importance of entrepreneurship in education? What are we doing to introduce entrepreneurship to young people as a career option? What are we doing to ensure that our educational institutions who produce our engineers, doctors, accountants, dentists, mechanics and IT specialists are giving students the basic skills in small business planning, management and entrepreneurship? Or perhaps it is better to ask: what should we be doing? The University of Saskatchewan is set to introduce a number of entrepreneurship programs and options in conjunction with existing programs in the faculties of Engineering, Agriculture and Commerce. They will also offer a business minor for many programs in the Arts and Sciences, as well as a package of business courses designed for non-commerce students. 31 These are important first steps, and will help to fill a vacuum that exists at the post-secondary level. But we must also address the issue at the secondary level, a perspective shared by Ernest Heapy, the former director of the Southwest Centre for Economic Development: The questions is; what would be the most effective and efficient way for assisting the development of entrepreneurs within the entire province? The utilization of the established school system is key in addressing the three central components of the question: efficiency, effectiveness, and availability. 32 As Heapy argues, the public education system provides the best vehicle to foster and promote entrepreneurial training and development across the province. Instead of simply offering a course or two in entrepreneurship or being content with the uneven development of entrepreneurial education that exists across the province, we must re-evaluate how we develop entrepreneurial awareness and skills in students. Enterprise Saskatchewan will be mandated to work with the Department of Learning to ensure that courses in entrepreneurial, economic, and financial literacy are available as an option for all high school students. Economic literacy is the basic building block of entrepreneurial development. It is both a practical tool and a necessary precondition for students if they are to develop the skills to manage the world around them. How can we expect students to develop an entrepreneurial outlook if they lack management skills in personal finance? Surely the inevitable outcomes of poor financial management, such as a bad credit rating or even bankruptcy, will negate 31 University of Saskatchewan. p Ernest Heapy, Making Entrepreneurship Compulsory for High School Graduation, (Unpublished paper, Commerce 345, University of Saskatchewan, Saskatoon, December 2003), p.6 53

55 all the work experience in the world unless we take steps to ensure that students have the ability to avoid such pitfalls. Just as important, we must teach students that entrepreneurship is a viable option for transforming their personal passions into life-long careers. With this understanding, students can begin to benefit from their practical work experience in their community and the relationships they develop with local businesses. It is important that we convey to students the personal and social rewards that are gained through entrepreneurship the freedom (and risk) that comes from pursuing one s dream, the need to be open to new opportunities, and the sense of self-worth that comes through entrepreneurial accomplishment. If we are successful, we will be well on our way to creating our province s next entrepreneurial generation. Entrepreneurship has the ability to transform, but it also has the ability to empower individuals within society. In 2003, women constituted 34% of those who were selfemployed in Canada. 33 According to RBC Royal Bank, women account for 40% of new business start-ups and the number of women entrepreneurs is growing at twice the rate of men. 34 Entrepreneurship and Labour Force Development Entrepreneurial development cannot end once individuals leave school. One of the most enjoyable times in my career as an economic development professional was my involvement in the development of what came to be the South West Centre for Entrepreneurial Development. As a member of the initial steering committee and the Centre s first board, I was encouraged by the way in which existing businesses and the community worked together to ensure that entrepreneurship remained a key value in the community. In the earliest days of the Centre, we partnered with the federal government to offer entrepreneurial education and training for unemployed individuals who wished to explore the option. Our curriculum was not a textbook / term paper / final exam program. Instead, it was a hands-on eight-week program that required students to prepare a business plan, present the business plan to volunteers from financial institutions, and execute the plan if at all possible. Whether students continued in entrepreneurial endeavors as a result of the training or decided that self-employment was not for them, they were well-served. Anecdotally, the Centre heard from employers that hired graduates and highlighted the fact that the graduates were significantly better employees because they had at least looked at the employment situation from the other side of the fence. Entrepreneurship as a Tool to Fight Outmigration There is already preliminary evidence that the self-employment option may be a powerful weapon in the fight against youth outmigration. In its Regional Needs Assessment Final Report, the Southwest Regional Planning Partnership noted that the long term action plan on labour shortage and youth outmigration 33 Statistics Canada, Women in Canada: Work Chapter Updates, (Ottawa, Ministry of Industry, 2004), p RBC Royal Bank, Women Entrepreneurs Statistics, March 26, 2004, June 7,

56 must include an, [e]mphasis on entrepreneurship and job creation to assist in retaining and attracting youth. 35 The report goes on to say that, [e]ntrepreneurship skills provided to all students of the area give every individual the opportunity to develop the high level position they desire. A community equipped with individuals skilled in developing a business will have a greater opportunity to succeed. 36 What was interesting about a study on school-leavers quoted in the report was not the dismal rate of self-employment amongst graduates surveyed (less than 1%), but rather that youth retention rates were higher in rural regions such as Frontier where entrepreneurial activity had achieved an economic critical mass. If current trends towards self-employment, home-based businesses, and contractual relationships replacing employer/employee situations continue, Saskatchewan can take advantage of the population retention and attraction opportunities. To do this, we will need policy makers to support entrepreneurship with training programs and the assurance of a positive business environment. 8. Ensure Fiscal Responsibility Enterprise Saskatchewan will be a force within Saskatchewan and government for fiscal stewardship. Balanced budgets are essential for stainable growth in any jurisdiction. A specific commitment to long-term debt retirement is equally important to the business climate and our potential to attract investment. This commitment would enhance the stability of the investment climate in the long-term by reducing the possibility of major tax increases by future governments. 9. Attract New Investment Capital Venture capital and attendant levels of available investment are essential to growth in Saskatchewan. Enterprise Saskatchewan must focus on ways to ensure the availability of investment capacity from institutional investment, mezzanine financing, local venture capital, angel investor capital networks and junior capital pools. There may be no greater source of frustration for local economic development, especially in rural Saskatchewan, than the lack of venture capital. All too often in our province, government investments have forced taxpayers to become involuntary venture capitalists. Like other market instruments, venture capital has been reticent to compete with government in Saskatchewan. Entrepreneurs have become resigned to this fact, and will often begin by asking economic development professionals and policy makers about government sourced venture-capital. Capital fuels the engine of economic growth. In Saskatchewan, government directed economic development has resulted in weak capital formation. For example, per capita new capital expenditures were almost 96% higher in Alberta than in Saskatchewan in During that same year, industrial average weekly earnings were almost 14.5% higher in Alberta than in Saskatchewan. 37 It is difficult to imagine a more direct linkage between 35 Southwest Regional Planning Partnership, Regional Needs Assessment Final Report (2001), p Southwest Regional Planning Partnership, p Government of Saskatchewan pp

57 access to capital, investment in the economy and the resultant improvement in the standard of living for industrial workers. Without the availability of significant capital from a broad range of private sources, Saskatchewan s economy will continue to suffer. Government should not provide the capital required for business expansion, and must not drive other sources of capital from the field. Instead, government should foster the formation of capital so that entrepreneurs can fund growth. To encourage in the formation and attraction of private capital, Enterprise Saskatchewan will: Explore opportunities to shelter RRSP eligible investments from provincial tax on the returns earned from eligible local investments, provided it is patient capital that remains with the new company for a pre-determined period of time. Foster and advance the creation of angel investor networks across Saskatchewan. This particular model is used extensively in Alberta and other high growth jurisdictions to assist entrepreneurs in financing innovation. Develop a Saskatchewan model for employee share ownership. The British Columbia Employee Investment Act (1996) offers plans and tax credits for employee share ownership and employee venture capital plans. This model provides employees with greater access to ownership and the employer with stakeholder venture capital. 38 Recommend a review of the Saskatchewan Financial Service Commission to ensure it continues to afford investor protection and enforces proper disclosure while not acting as a barrier to investment. Promote new generation co-operatives within Saskatchewan. Participate in partnerships to ensure the availability of venture capital for innovation, the life sciences, and technology research and commercialization. Establish a venture capital and commercialization team to focus on the opportunity presented by the Canadian Light Source Synchrotron. Maintain provincial jurisdiction over regulation of securities (investment professionals have expressed serious concern about the negative consequences of current proposals calling for a national approach to securities regulation). 10. Create New Growth Tax Incentives New growth tax incentives will be the preferred vehicle to stimulate economic activity in a fiscally challenged environment. New growth tax incentives are targeted tax cuts on incremental costs and new investment. While the government of Saskatchewan may not be in a position to offer meaningful reductions in taxes such as the corporate capital tax, it can be much more aggressive in terms of incremental taxes on new activity. Enterprise zones will also be explored as a delivery vehicle for such incentives. 38 British Columbia, Employee Investment Act, RSBC 1996, Chapter June 7,

58 Municipalities utilize such tax incentives to attract business. They are revenue neutral to the granting body because they forgive future taxes on land that is not currently utilized. Abatement programs are offered over some pre-determined time-frame, usually with a declining incentive until the property is paying property tax at the full rate. During my time as the Director of Business Development for the City of Swift Current, such incentives were usually reserved for attracting manufacturing operations. Inner city residential renewal programs in cities such as Swift Current and Regina have used similar incentives to encourage new home construction and movement into core neighborhoods. We also enjoyed success when we converted an empty light industrial park into an oil and gas incentive zone. Under that initiative, oil and gas service companies that located or expanded in Swift Current were offered incentive priced land and a three-year declining abatement program. Applicants had to demonstrate and fulfill on commitments of new job creation to be eligible. In less than two years, seven of the ten previously empty lots were sold. Throughout Saskatchewan and the country as a whole, there are similar new growth tax incentives in operation: Moose Jaw offers a tax exemption for up to five years to new and targeted existing businesses who are interested in long-term development in the city. It also offers a program to businesses that put Moose Jaw in a competitive position to attract additional new businesses that it would not otherwise. In Ontario, the City of Thunder Bay and the Province of Ontario negotiated an agreement for new businesses which sees qualifying firms eligible for not only property tax relief, but also exemption from Ontario s capital tax and employer health tax. The government of Newfoundland has introduced the Economic Diversification and Growth Enterprises Program (EDGE) for new companies who create at least 10 new jobs in the province and are prepared to make a minimal capital investment. Like the Moose Jaw program, the Newfoundland program is geared towards businesses who would not otherwise locate in the province. The tax incentives offered are generous: a 100% rebate on provincial corporate income tax and the provincial payroll tax for 10 years (15 years if the company locates in a rural area); a 50% rebate on federal corporate income tax for the same period; a 100% rebate on municipal property and / or municipal business taxes for the period, followed by a five year phase-out of such rebates; and access to unserviced Crown land for $1.00 where such land is required to implement the company s business plan. 39 Decreasing incremental tax rates can be done at no cost to the treasury. To the extent that they may cause some increased activity, decreasing incremental tax rates would generate new tax income to the province, albeit at a lesser rate. Resource surcharges, the capital tax and the corporate income tax may be further models for such incentives. 39 Government of Newfoundland, Innovation, Trade, and Rural Development The Economic and Growth Enterprises Program, May 21,

59 Enterprise Zones Enterprise zones offer another approach to generating new economic activity, and have been particularly effective at stimulating economic investment in under-developed rural and inner city areas across North America. Through the use of tax incentives and the relaxation of regulatory requirements over a designated period, enterprise zones have been an effective tool for growth. One bold example of this exists in Ontario, where the former provincial government designated all of northern Ontario as a tax incentive zone for a ten-year period beginning in January In partnership with municipalities, the plan aims to attract new business growth in key sectors while not undermining existing businesses. Qualifying businesses would be exempted from the province s business education tax and capital or employer health tax. In addition, municipalities will provide full property tax relief for all eligible businesses as well as case-by-case assistance on municipal charges and fees. 40 Establishing enterprise zones around our post-secondary institutions and targeting new growth tax incentives towards new start-ups specializing in research and commercialization may represent another method of stimulating new economic activity in the province. It is essential that we encourage new business development in Saskatchewan. New growth incentives applied on a sector or geographic basis in partnership with communities across the province can assist us in achieving this goal. 11. Retain Saskatchewan Businesses Too often, economic development organizations and initiatives become so consumed by the pursuit of new investment and new projects that they forget to encourage existing businesses to stay where they are and expand their operations. Sustained job and population loss in Saskatchewan confirms that we are not doing a good enough job of retaining existing businesses. This must be another area of focus for Enterprise Saskatchewan. Business retention is seen as one of the cornerstones of a community economic development strategy. As one U.S. regional economic development report explains: Business retention and expansion, although less glamorous and press-worthy than business attraction, is widely recognized as a more cost-effective strategy. At least two-thirds of new jobs are created by existing companies. It is sometimes called the caring approach, making it clear that the community values the presence of its own companies. 41 In my home community of Swift Current, Action Swift Current was established three years ago to develop an action plan for the future of the community. Achieving buy-in from the business sector was integral in developing and executing the plan. The Action Swift Current team turned to the challenge of branding the community by highlighting specific economic 40 City of Thunder Bay, Superior Business Tax Incentive Information, May 21, Gaston County Chamber of Commerce, Cleveland-Gaston Comprehensive Economic Development Strategy, 2003, June 1,

60 development opportunities, developing a plan for youth retention and recruitment, and involving itself with efforts to secure a new regional hospital. Specific economic development policies have complimented Action Swift Current. Some of these policies target business retention, such as tax incentives targeted towards existing businesses who expand and improve their operations in the city. By doing this, the city of Swift Current and Action Swift Current have sent a strong message to the existing businesses that they are valued and absolutely essential to the future success of the community. As mentioned earlier, Moose Jaw has adopted a similar approach to retaining new businesses and encouraging expansion. Through their tax phase-in policy, Moose Jaw encourages existing businesses to expand their operations and create long-term jobs. Business retention must be a priority. Venture capital initiatives, taxation policy, and regulatory changes advanced by Enterprise Saskatchewan will help us to achieve our goals. 12. Implement a Performance Based Focus for Government Investments Investment Saskatchewan Inc. (formerly CIC III) is currently a designated subsidiary Crown corporation managing a $609-million portfolio of direct government investments. Enterprise Saskatchewan will manage the assets of Investment Saskatchewan and look for opportunities for the commercialization of innovation, research and development. Only divestiture opportunities which offer job retention or expansion and a net economic benefit to the province will be considered. We need to send a signal to venture capitalists around the world and to our own business community that they will not be forced to compete with their own government in entrepreneurial endeavors. However, government has invested significantly in businesses over the last sixty years and it is crucial that this portfolio be managed in a professional manner to provide the best return for our province. While Enterprise Saskatchewan will not invest in mature industries, this does not preclude investment partnerships with the private sector in non-mature industries involving the commercialization of innovation, research and development. However, investment must drive the agenda of growth, non-government capital formation and help to create an enterprising and entrepreneurial economy. 13. Promote Saskatchewan Promotion of Saskatchewan across Canada and around the world is a key element of the Enterprise Saskatchewan Plan. The main problem with the current government s Our Future Is Wide Open campaign is not the actual marketing campaign, which was quite effective in my opinion, but that the government forgot to ensure that the product itself namely, Saskatchewan s business environment was ready for scrutiny and consideration prior to embarking on an advertising campaign. We simply must improve our business environment and our ability to compete before we market our product around the world. Enterprise Saskatchewan will undertake extensive marketing and promotion of our province across Canada and around the world once 59

61 progress has been made on the general business environment, barriers to growth have been reduced and a cadre of new growth tax incentives are available for promotion. 14. Establish and Measure Goals for Growth The Enterprise Saskatchewan plan must involve the establishment of growth goals. GDP levels, population, investment and even the general goal of becoming a have province within fiscal federalism must be defined. The plan must have deliverables and be constantly measured. Any successful business or organization sets clear and measurable goals for itself. Enterprise Saskatchewan will be no different. One gets the impression that the current government simply does not believe that our population must grow, that investment activity must expand and that the tax base must be much larger if we are to afford the quality of life we prize in Saskatchewan. Specific targets will be set by and monitored as part of the Enterprise Saskatchewan plan, including the reduction of barriers to growth in key sectors, GDP, employment, venture capital investment and population. The overarching goal of the plan must be for Saskatchewan to become a have province, whatever the formula, whatever the nature of fiscal federalism. A province as naturally endowed as Saskatchewan should simply be giving more to Canada then it ever needs to receive. Some current government MLAs have suggested that significant population growth is not possible, while others have said that outmigration means there is more left for the rest of us. This is patently absurd. Enterprise Saskatchewan will be measured by its success at increasing the wealth of our province and the prosperity of our citizens. 15. Single Window Service to Business Existing and potential new entrepreneurs often express frustration with the run-around they sometimes experience when dealing with various government agencies, regulators, and licensors. Single-window access to government for business and entrepreneurs will enhance Saskatchewan s competitive position. 16. Utility Crown Corporations and Enterprise Saskatchewan A Saskatchewan Party government will maintain Saskatchewan s four major utilities (SaskPower, SaskTel, SaskEnergy and SGI) as government-owned Crown corporations and they will play a key role in the implementation of the Enterprise Saskatchewan Plan. As the central agency for designing, implementing, and monitoring provincial economic development, Enterprise Saskatchewan will have coordinating role with regard to the major Crowns. Much has been made in this paper of the importance of infrastructure to a competitive Saskatchewan economy. Crown corporations will play a lead role in achieving that infrastructure. 60

62 The Saskatchewan Promise It s Time To Keep It The April 29, 2004 edition of the Winnipeg Free Press covered a recent innovation conference. The headline of the story read Get Message Out To Students: It s Cool To Be An Entrepreneur. The article reported on presentations to the conference from Sven-Thore Holm, founder of the Ideon Science Park in Sweden. Holm said that an entrepreneurial attitude shift in his country was the reason it has transformed itself into one of the most entrepreneurial societies in the world. He went on to say that students should finish their education with the idea of putting their knowledge to the test in a company they started on their own rather than going to work for major corporations. We are, on a mass scale, encouraging students to start their own companies, he said. Smart Parks at Sweden s universities are helping achieve the goal. 42 The article also reported on a presentation by President Emeritus Dr. Edward Walsh of the University of Limerick in Ireland, who agreed with Holm s assessment of the importance of post-secondary institutions in helping make the jump to the knowledge-based economy. But, he added, governments must have a pro-enterprise attitude and provide a competitive tax environment. As he noted, having low taxes has been absolutely critical. Without them, all the investment related to skills and information would not have borne fruit. Saskatchewan can, and must, adapt its economic development policies to these core principles. Enterprise Saskatchewan is the vehicle that can do it. The Promise of Saskatchewan: It s Time to Keep It Sunsets, living skies, friendly people and golf courses are great. In some cases, especially tourism, they are important arrows in our economic development quiver. But our natural advantages should not deter us from our quest to become a much more competitive economy. In 1996, a KPMG study on location cost analysis highlighted the need for Saskatchewan to become competitive on taxes and stability. Investors were worried about the stability of the business environment and the potential for radical changes in operating conditions. Indeed, the study recommended more partnerships between stakeholders through a provincial economic development authority. The study also pointed out that investment decisions are driven by financial factors, not quality-of-life considerations. It recommends Saskatchewan emphasize its attraction in business terms, not social ones, when marketing itself to outside investors. 43 Let us not lose sight of the basics. Saskatchewan must be competitive in terms of taxes, regulation, the availability of venture capital, and innovation. 42 Geoff Kirbyson, Get message out to students: it s cool to be an entrepreneur, Winnipeg Free Press, April 29, 2004, p.c8 43 Phillips, p

63 An enterprising, entrepreneurial Saskatchewan economy will be impatient, relentless, aggressive, self-promoting and even brash. Profit within that economy will be lauded instead of envied. Maybe it was the nature of agrarian settlement, but our first Premier Walter Scott seemed to see the promise. He wrote: Just as sure as the sun shines there will be within the Province alone some day a population running into the tens of millions. 44 Premier Scott s population dream may not have been realized, but there is much cause to remain optimistic about the future of the province he pioneered. Saskatchewan is a 100-year-old promise a promise founded on pioneering spirit, cooperation and innovation in public policy. It is a promise founded on compassion, volunteerism and undying optimism. Never mind next year country. Saskatchewan is a promise that has waited one hundred years. It s time to keep it. Brad Wall Leader of the Official Opposition Saskatchewan Party 44 Premier Walter Scott cited in Gordon Barnhart, From Progress to Prosperity (Regina: Canadian Plains Research Centre, 2000), p

64 Appendix I Target Sectors for Growth Oil, Gas, and Energy Production Saskatchewan accounts for almost 20% of oil production in Canada, putting us second behind only Alberta. Industry sources have made it clear that there are significant opportunities for Saskatchewan s oil and natural gas industry. In addition to strong demand (and prices) for oil and gas, Saskatchewan is close to external markets, possesses good infrastructure, and has the human resources to further develop the industry in our province. While the government has made progress in terms of royalty rate restructuring to stimulate activity in the oil and gas sector, other irritants such as red tape, permitting processes, the PST, the corporate tax, income tax and the capital tax are deterrents to further investment. While Saskatchewan s regulatory and tax environments must remain competitive to encourage further development of the oil and gas industry, we must also ensure that Saskatchewan takes its place on the continent as a source for every imaginable source of energy, and as a center for excellence in energy research and innovation. As a continental leader in energy production and research, our provincial plan must encompass all potential sources: hydrogen technology, bio-mass, ethanol, wind, clean-coal technology, natural gas, hydro and nuclear power. Agriculture Any long-term vision for our province has to recognize the importance of primary agriculture. Former Premier Grant Devine aptly described both seeding and harvest as two huge megaprojects that happen every single year. Our new provincial government must make continued improvements to long-term safety net programming a top priority. While commodity prices and international trade issues are not the purview of provincial governments, issues like the education portion of property tax and the provinces share of programming must be the priority of any government with a new long-term vision for economic growth for our province. Thanks to the work done by the Saskatchewan Agrivison Corporation and numerous local economic development bodies, Enterprise Saskatchewan can have a huge head start in coordinating the goals and activities of the agriculture sector. Agrivision anticipates the role we have envisioned for government in economic development and the mandate of Enterprise Saskatchewan: Government s role is changing to one where it provides a policy and legislative framework for business growth, leaving it in the hands of the industry to take the lead. 45 The intensification of agriculture is another initiative which requires attention. Once again, Enterprise Saskatchewan will work in partnership with producers and organizations such as Agrivision to identify and remove barriers to growth in this initiative. 45 Saskatchewan Agrivison Corporation Inc. It s Time to Move Forward. June 2,

65 Enterprise Saskatchewan must also be positive force within government to ensure current program offerings such as Crop Insurance and the Canadian Agriculture Income System (CAIS) are bankable. There will likely never be an agriculture safety net program in our country that is equitable in any meaningful way to those of Europe and the United States. Bankability of what is available is essential and necessary for this vital sector of our economy. Tourism Tourism is a major economic growth area for Saskatchewan. Our natural advantages include wide open spaces, a rich Aboriginal and non-aboriginal history and a vibrant arts and cultural community. Together they create a strong foundation for further growth in niche areas such as Aboriginal tourism, eco-tourism and cultural tourism. As mentioned previously, Tourism Saskatchewan s mandate as an industry-driven partnership with responsibility for marketing, training and industry development is beneficial to the sector s long-term development. The Saskatchewan government also has a role to play in supporting capital investment in tourism including investment in interpretive and historical centres. Further growth in our tourism sector is dependent upon removing barriers and promoting ourselves in Canada and around the world. Some of the key issues facing the tourism industry across the country, such as infrastructure, are particularly important in Saskatchewan. The Tourism Industry Association of Canada (TIAC) has called upon the federal government and the provinces to participate in a national transportation investment strategy which would see a higher proportion road user taxes, such as gas and excise taxes, be returned to maintain our highway system. 46 While financial considerations will dictate the government s ability to participate in such a strategy, its goal is correct. Poor infrastructure is a barrier to growth in many industries in our province, and must be targeted for improvement. Forestry Border disputes notwithstanding, forestry will play a key role in a bright future for Saskatchewan. The forest industry in Saskatchewan employs 6,000 people whose annual income is about $215 million. Another 7,600 people in our province derive their incomes from forestry activities. 47 The willingness of industry members to work in partnership with First Nations and government is a source of strength, and a foundation for further growth. To ensure that we capitalize on our strengths and develop our potential, we need to address specific barriers such as red tape, government permitting, the capital tax and the PST. Mining Mining is the third largest industry in the province, following oil and natural gas, and agriculture. In addition to being the largest producer of uranium and potash in the world, Saskatchewan s mining industry employs over 20,000 people with total mineral sales of 46 At the moment, the federal government collects more than $6 billion in such taxes, but returns less than 6 per cent to the system through contributions to construction and maintenance. Tourism Industry Association of Canada, Issues Infrastructure, 4, Council of Saskatchewan Forest Industries, About COSFI, May 31,

66 $2.4 billion in Coal, copper, zinc, potassium sulphate and even diamonds are also part of our future. 48 As in other industries, we need to address barriers to further economic growth. These barriers include the resource surcharge, corporate income taxes and the capital tax. We need to make clear that the role of government is not only to regulate, but to assist companies in navigating the maze of government. Advanced Education, Research and Development For too long, we have looked on post-secondary education as a service and a cost rather than as an investment. Fifteen years ago, the Government of Sweden expanded the mandate of its universities to include economic development in addition to education and research. Sweden has also encouraged students to use their knowledge to start their own companies through the creation of smartparks at the nation s universities. While Canadian universities frequently try to grow their research parks by luring large businesses, Sweden instead focuses upon creating new start-ups by students and faculty. The net result is impressive. In Sweden the vast majority of the approximately 500 companies in the country s smart parks were created at universities, by both students and faculty. 49 It is worth noting that Innovation Place has also been successful by placing priority on homegrown enterprise. A government prepared to make a commitment to our existing post-secondary institutions can benefit from the increased economic growth which results from attracting investment, ideas, and individuals to our province. Unfortunately, it appears that our Universities may understand this better than the current government. As the recent integrated plan from the University of Saskatchewan states, we must make a renewed commitment to Saskatchewan to compete in the 21 st century. 50 Environment Our obligation to manage Saskatchewan s natural resources is both a responsibility and an opportunity. Projects such as the Communities of Tomorrow project at the University of Regina provide an excellent example of how Saskatchewan can be a national centre of excellence in environmental sustainability and technology commercialization. Life Sciences, Synchrotron, Information Technology Information technology and the life sciences sectors are key engines in the new economy of our province. The synchrotron is Canada s largest science project, with the potential to attract $35-million annually in commercial research and development. The Canadian Light Source, the International Vaccine Centre, and the Veterinary and Infectious Disease Organization (VIDO) are not only helping develop new science in Saskatchewan, they are, to quote the Executive Director of the Saskatoon Chamber of Commerce, evidence Saskatoon isn t competing with other Canadian cities when it comes to health science infrastructure it is competing with a handful of centres worldwide Saskatchewan Mining Association, Fact Sheet General Information, May 2004, May 31, Kirbyson, p.c8. 50 University of Saskatchewan, p Gerry Klein, Synchrotron and VIDO get $100 million, Saskatoon StarPhoenix, March 9, 2004, p. A3 65

67 Saskatchewan is also a world leader in agricultural biotechnology. With a thriving agbiotech cluster, it is critical that we find innovative ways to continuing developing our life sciences sector by attracting new venture capital to the province. Through research and development activities at the Petroleum Research Centre at the University of Regina and Innovation Place at the University of Saskatchewan, we are building a solid foundation for further scientific breakthrough and the commercialization of new technologies. Further development in these key sectors will depend on an innovative mix of new growth tax incentives, a streamlined regulatory environment, venture capital, and smart parks to encourage new entrepreneurs. Construction A 2002 paper issued by the Saskatchewan Construction Association noted both the importance of the construction industry to the economy of the province and the challenges facing the industry. Specifically, the paper identified labour force development as a major challenge. Like many other skilled trades across the province, the construction industry is facing both an aging workforce and a shortage of skilled workers. Strategies to address this barrier include better career counseling and work based education programs in high school. 52 The industry has also targeted First Nations and Aboriginal youth with training and apprenticeship programs. Finding ways to broaden this initiative and make it work in conjunction with government and the industry as a whole should be a priority. Further issues facing home builders, commercial contractors, and one-person operations in the construction industry include taxation, the tendering processes, and workplace compliance. Trucking and Transportation A supplement on transportation in the latest Action Saskatchewan Sectors Report states the challenges facing the industry: the major issue that needs to be dealt with in terms of the transportation sector is the improvement of the province s highways. 53 One of the unfortunate after-effects of recent grain transportation changes is the increased use of our highways by truck transport. The report notes that significant investment will be required for a number of years to improve the condition of our roads. Increased usage, however, has contributed to an even more significant trucking industry in our province. While the Saskatchewan Auto Fund provides the trucking industry with a competitive advantage in our province, barriers facing this key sector such as taxation and a shortage of skilled labour are preventing further growth. The Action Saskatchewan report urges governments at all levels to re-evaluate the taxes on fuel and the impact this has on the industry and ability. 54 High fuel taxes and the cost of property taxes on rail lines are also putting the rail sector at a competitive disadvantage with neighbouring jurisdictions. If we are going to encourage meaningful investment in short-line rail lines and development in 52 Saskatchewan Construction Association, Construction: Meeting Saskatchewan s Challenge, 2002, May 31, 2004). 53 Saskatchewan Chamber of Commerce. Action Saskatchewan: A Blueprint for What We Heard, 2001, p.11, June 5, Saskatchewan Chamber of Commerce, What We Heard Sector Reports, p

68 the rail industry by independent and community based proponents, these issues will have to be addressed. Rail and air transportation offer significant potential for economic development in Saskatchewan. However, high fuel taxes are a major barrier to growth for both of these industries. Financial Services The strength of our Credit Union system alone would dictate that this sector must be a key part of any new economic vision for Saskatchewan. The presence of the chartered banks and non-chartered banks, Co-operators Life Insurance Company, Canada Life, and of course SGI enhance the already significant economic potential of our financial services sector. The retail financial services sector also provides an important source of employment for rural Saskatchewan. Given the importance of the financial services sector as an employer and supplier of capital in our province, it is crucial that we create a competitive environment to encourage growth. One notable barrier for this sector is a discriminatory tax rate that sees financial institutions taxed at a higher rate than manufacturing firms. The issue of parity in business taxation is one deserving of further review. Arts and Culture Artists and cultural workers play an invaluable role in our province. They help us to sustain a high-quality of life, define ourselves as a people and a province, contribute to the ongoing creativity and innovation of our citizens and create new jobs in emerging cultural industries. Enterprise Saskatchewan will examine new ways of supporting the arts and fostering entrepreneurial initiative. New growth tax incentives for cultural enterprises could provide new mechanisms to stimulate growth in the sector. 67

69 Appendix II Risk Assessment As with any paradigm shift for an organization, a shift in the economic development model of our province involves both risks and opportunities. The opportunities have been outlined in the previous pages. What are some of the risks? 1. Risk of Ceding Control Government risks losing some control over economic development tools and processes as it cedes this ground to Enterprise Saskatchewan. In terms of assessment, there seems little downside to this risk given what previous governments have achieved by maintaining control. 2. Risk of the Global Economy World events, new markets, and the shrinking of the globe have all served to bring about rapid changes in our economy. If Harvard Business Professor Joseph Schumpeter is right, the essence of capitalism is creative destruction. Thomas Friedman paraphrased his theory as the perpetual cycle of destroying the old and less efficient product and service and replacing it with a more efficient and useful one. 55 Whether you are in the camp that holds to a quick end to the economic phenomena known as globalization or an adherent to the notion that the democratization of technology, finance and information has set in motion a lasting economic epoch, the fact remains that today s economy is for jurisdictions which are fleet of foot. 3. Risk of Uncertainty and Job Flux The 1999 State of the New Economy Index produced for the Progressive Policy Institute highlighted the fact that, [w]ith entrepreneurial growth, however, comes risk. Almost a third of all jobs are in flux every year (meaning they have either recently been added, or will soon be eliminated from the economy). 56 Certainly the nature of the global economy means that jurisdictions must act quickly to ensure that they remain competitive. This requires continual investment in both human capital and new technologies. It is essential that we position ourselves to keep up with the pace of change, so that the disappearance of one business is replaced with the creation of two new ones. There is a risk that the partnership structure of Enterprise Saskatchewan may not lend itself to speed as much as a singularly driven agency. However, this risk can be mitigated by recognizing the need for agility in economic development related policy. 55 Friedman, p Robert Atkinson, Randolph Court, and Joseph Ward, The New State Economy Index (Washington: Progressive Policy Institute, Technology, 1999), p. 3 68

70 4. A Diminished Role for Enterprise Saskatchewan Over a period of time, government may be tempted to ignore or diminish (through funding) Enterprise Saskatchewan if it desires more control in this key public policy field. On a smaller scale, STEP and Tourism Saskatchewan have survived such temptations on the part of the sponsoring government. The breadth of the partnership and the stake of its mission should protect Enterprise Saskatchewan from future governments seeking greater public control of economic development. 5. Failing to Prioritize Innovation, Entrepreneurship, and Education There is a risk that future governments may lose sight of the importance of the innovation, entrepreneurship, and post-secondary education components of the Enterprise Saskatchewan model. It goes without saying that these components are critical to its ongoing success, as they are to all successful new economies. Ireland s transformation into the Celtic Tiger was brought about because it, advanced its technological, technical and trades training programmes and institutions, as well as establishing new apprenticeship programmes. 57 As McMahon points out, [t]he availability of educated workers for the jobs being created, particularly in the high-tech sector, sustained and furthered Ireland s recovery. 58 Further evidence from the State of the New Economy Index which ranked American states in terms of their ability to compete for new economy benefits, postulates that: In the New Economy, states economic success will increasingly be determined by how effectively they can spur technological innovation, entrepreneurship, education, specialized skills, and the transition of organizations private and public from bureaucratic hierarchies to learning networks. 59 The study ranks the states by various indicators and offers the following steps to guard against the risk that these economic success factors will be diminished : 1. Co-investing in skills of the workforce; 2. Co-investing in an infrastructure for innovation; 3. Promote innovation and customer-oriented-government; 4. Foster the transformation to the digital economy; 5. Foster civic collaboration. 60 Written in 1999, this study is somewhat dated and we have seen significant shock waves through the North American technological industry in the intervening time period. Yet the fundamental characteristics of the new economy speed and creative destruction remain its hallmarks five years later. The technological economy continues, and its risks and opportunities must have the undivided attention of Enterprise Saskatchewan. 57 McMahon, p ibid 59 Atkinson, p ibid. 69

71 Bibliography Atkinson, Robert, Randolph Court, and Joseph Ward. The New State Economy Index. Washington: Progressive Policy Institute, Barnhart, Gordon. From Progress to Prosperity. Regina: Canadian Plains Research Centre, British Columbia. British Columbia, Employee Investment Act. RSBC Chapter (May 25, 2004). Canada. Citizenship and Immigration Canada, Facts and Figures (June 4, 2004). Canada. Statistics Canada, Demographic Statistics - January 1, 2004 preliminary estimates. The Daily. March 22, 2004, (June 3, 2004). Canada. Statistics Canada. Historical Statistics of Canada, Ottawa: Canada Communications Group. Canada. Statistics Canada, Women in Canada: Work Chapter Updates. Ottawa, Ministry of Industry, Castells, Manuel. The Informational City. Oxford: Basil Blackwell Lt, Chambers, Edward J. and Stuart E. Shaw, A Primer on Western Canadian Entrepreneurship. Edmonton: University, Western Centre for Economic Research, April Chambers, John. Jobs will go to the best educated workforce. Cisco Systems- Executive Thought Leadership, October, (June 4, 2004). City of Thunder Bay. Superior Business Tax Incentive Information. May 21, Council of Saskatchewan Forest Industries. About COSFI. May 31, Economic Council of Canada. Pulling Together: Productivity, Innovation and Trade. Ottawa: The Council Fairbairn, Brett. Economic Development and the New Role of Government. in Politics in Saskatchewan. Regina: Canadian Plains Research Centre,

72 Fraser Institute, Saskatchewan Prosperity: Taking the Next Step. Vancouver: Fraser Institute, Friedman, Thomas, The Lexus and the Olive Tree. New York: Anchor Books, Gaston County Chamber of Commerce. Cleveland-Gaston Comprehensive Economic Development Strategy June 1, Government of Newfoundland. Innovation, Trade, and Rural Development The Economic and Growth Enterprises Program. ( May 21, 2004). Government of Saskatchewan, Saskatchewan Bureau of Statistics. Economic Review 2003 (December 2003). Heapy, Ernest. Making Entrepreneurship Compulsory for High School Graduation. Unpublished paper, Commerce 345, University of Saskatchewan, Saskatoon, Howe, Eric. Government-funded mega-projects make public poorer. Saskatoon Star Phoenix, (September 16, 1993), p.a5 Kirbyson, Geoff. Get message out to students: it s cool to be an entrepreneur. Winnipeg Free Press, April 29, 2004, p.c8 Klein, Gerry. Synchrotron and VIDO get $100 million. Saskatoon Star Phoenix. March 9, 2004, p. A3 Lichtenstein, Gregg. Building Entrepreneurial Communities. Draft Paper, 2004, (June 4, 2004) MacKinnon, Janice. Minding the Public Purse. Montreal: McGill-Queen s University Press, McMahon, Fred. Road To Growth: How Lagging Economies Become Prosperous. Halifax: Atlantic Institute for Market Studies, Phillips, Peter, Whither Saskatchewan: A Look at Economic Policies Canadian Business Economics (November 1998), pp RBC Royal Bank, Women Entrepreneurs Statistics, 26 March 2004, (June 7, 2004). Saskatchewan Agrivison Corporation Inc. It s Time to Move Forward. (June 2, 2004). Saskatchewan. Saskatchewan Bureau of Statistics, Quick Facts. (June 4, 2004). Saskatchewan Chamber of Commerce. Version 1.0 Action Saskatchewan: A Blueprint for Saskatchewan,

73 (May 13, 2004) Saskatchewan Chamber of Commerce. Action Saskatchewan: A Blueprint for What We Heard ent.pdf June 1, Saskatchewan Chamber of Commerce. Action Saskatchewan Report Card, June Saskatchewan Construction Association. Construction: Meeting Saskatchewan s Challenge. 2002, esentation.pdf May 31, Saskatchewan Mining Association. Fact Sheet General Information, May May 31, Southwest Regional Planning Partnership, Regional Needs Assessment Final Report, 2001 Tourism Industry Association of Canada, Issues Infrastructure, (June 4, 2004). University of Saskatchewan. Integrated Plan for the First Planning Cycle 2003/04 to 2006/07, April 21,

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75 Getting Saskatchewan Back on Track Addressing Saskatchewan s Labour Shortage Brad Wall and the Saskatchewan Party Caucus November 1,

76 A Message from Brad Wall, Leader of the Official Opposition Saskatchewan Party Saskatchewan people and families have pride in our province. They believe in the tremendous potential that Saskatchewan offers, and deserve a government with a positive vision for the future that will realize this potential. In September 2004, I released my economic vision paper, The Promise of Saskatchewan: A New Vision for Saskatchewan s Economy, with a commitment to consult with stakeholders about our vision for Saskatchewan s future and to provide updates based on those consultations. Getting Saskatchewan Back on Track builds on the vision put forward in the Promise of Saskatchewan, and is the first update I will be releasing as we move closer to a provincial election. Saskatchewan s long-term economic security depends on expanding the number of people that are working in Saskatchewan. To address the growing labour and skills shortage in our province, a Saskatchewan Party government will create more opportunities for our youth, increase the number of First Nations people in the workforce and expand the number of skilled immigrants coming to Saskatchewan. A Saskatchewan Party government will also close the growing gap between the labour needs of employers and existing supply of workers by improving skills training in the province and creating Enterprise Saskatchewan a new partnership between industry, post-secondary institutions, government, First Nations, labour and other economic stakeholders in the province. Getting Saskatchewan Back on Track builds on our commitment to create long-term sustainable growth in Saskatchewan by reducing barriers to growth, rebuilding our infrastructure and investing in innovation and Saskatchewan s post-secondary institutions. As with all Saskatchewan Party commitments, our plan will be implemented within a balanced budget. Over the coming months, I will continue to put forward the Saskatchewan Party s vision for a growing and prosperous Saskatchewan with new ideas to improve the quality of life in our province, enhance our economic security and build pride with purpose. I welcome your ideas and your participation as we work to build a positive future for Saskatchewan. Brad Wall, Leader of the Official Opposition Saskatchewan Party 75

77 Getting Saskatchewan Back on Track Saskatchewan needs a new government with a long-term strategy to address the labour shortage crisis in Saskatchewan. Brad Wall and the Saskatchewan Party believe it s time to stop talking about the labour force shortage and start taking action. As part of a broader strategy to create a strong economy by reducing barriers to growth and investing in infrastructure, innovation and post-secondary institutions, a Saskatchewan Party government will address Saskatchewan s labour shortage by: Investing in People: Assisting Employers to Invest in Employee Skills Training and Education. Enhancing Access to Employment: Building Skills and Supporting the Transition to Work. Partnering for Shared Prosperity: Enhancing Educational and Employment Opportunities for First Nations and Métis People. Advancing Education, Innovation and Entrepreneurship: Sustaining Labour Force Growth Through Excellence in Education. Expanding Opportunities: Reducing Workforce Barriers for Women and Families. Appreciating Excellence and Experience: Providing Older Workers with Greater Employment Options by Eliminating Mandatory Retirement. Focusing on Our Future: Retaining our Youth and Increasing Immigration. 76

78 It s Time to Address Saskatchewan s Labour Shortage Crisis The Immediate Labour Shortage Crisis The labour shortage is both a short-term crisis and a long-term challenge for Saskatchewan s economy. Without available workers, businesses cannot grow or expand. Without a growing workforce, the province s tax base will shrink and the cost of government investment in infrastructure and capital construction will continue to rise. The immediate crisis is readily apparent in the number of jobs currently unfilled in the province and the concern employers are expressing about the shortage of available labour. Saskatchewan s Minister of Industry and Resources acknowledged in October there are anywhere from 10,000 to 15,000 jobs vacant in Saskatchewan. It is hardly surprising, therefore, that concern over the labour shortage is growing amongst business owners. In August, a Canadian Federation of Independent Business (CFIB) survey of its Saskatchewan members found that 84 per cent of Saskatchewan small business owners believe it will be harder to find employees in the next five years. This is consistent with an earlier CFIB survey indicating 64 per cent of Saskatchewan s small and medium-sized business owners are very concerned about the shortage of qualified labour. The current labour shortage crisis, particularly the shortage of skilled workers in the construction and building trades, is also resulting in construction delays and higher than expected construction costs throughout the province. Construction on the lab building at the University of Regina is now close to $30 million over budget, while the College of Law Building at the University of Saskatchewan will cost over $4 million more than originally estimated money that the university could otherwise have spent on students. According to Saskatchewan Transportation Company CEO Ray Clayton, the new STC terminal planned for Regina will cost 34 per cent or $6.5 million more than originally budgeted, while it is estimated the new Regina jail will cost taxpayers $10 million more than originally planned. The labour shortage is also a factor in construction delays at the new Swift Current hospital and escalating construction costs for the Humboldt Hospital, the latter of which is now estimated to cost $31 million before it is completed in The labour shortage has a real and direct effect on the bottom line of families, businesses, post-secondary institutions, hospitals and schools. It also has a negative effect on government resources. Vacant jobs mean fewer taxpayers, while rising capital costs force the provincial government and public institutions to divert money away from program spending to cover cost overruns. Instead of continuing to fall victim to this vicious cycle, a Saskatchewan Party government would take immediate action to expand Saskatchewan s labour force, thereby ensuring that valuable public resources are not diverted away from the priorities of Saskatchewan people. 77

79 The Long-Term Challenge of an Aging Workforce Using a medium-growth scenario, Statistics Canada projects that the number of seniors in Saskatchewan will increase from approximately 147,000 in 2006 to more than 243,000 by Saskatchewan statistician Doug Elliot has also noted that without increasing participation rates, the size of the provincial labour force will begin to decline after 2010 and fall below its current level by In this demographic environment, labour shortages in critical occupations are likely to become the norm rather than the exception. Addressing the labour shortage is therefore both an immediate concern and long term necessity for the province. Without action to increase the number of people working in the province, the provincial government will have no choice but to force a shrinking tax base to pay more taxes to fund the increasing costs of education and health care. The Problem and the Solution Saskatchewan s labour shortage crisis exists for two reasons. First, Saskatchewan does not have enough people in the workforce to sustain long-term economic growth. Second, there is a growing gap between the labour needs of employers and the existing supply of workers. Without action to address these two challenges, Saskatchewan s economy cannot grow. Getting Saskatchewan Back on Track: Expanding the Workforce For nine out of the last ten years Saskatchewan s population has shrunk. According to the latest national population statistics released by Statistics Canada, Saskatchewan suffered a net loss of 4,571 people between July 1, 2005 and July 1, At a time when every western province is experiencing a population increase (even Manitoba s population grew by 3,617 people over the same period) Saskatchewan continues to lose population under the NDP government. Reflecting and reinforcing this crisis is the fact that a significant number of our young people indicate they plan to leave Saskatchewan in the next five years. In a recent survey of those under the age of 35 conducted by the Canada West Foundation, more than 25 per cent indicated that they anticipated leaving Saskatchewan within the next five years. This is the highest percentage in Western Canada. As the authors of the report note in their comments on the effects of outmigration, Given that under 35s represent not only a significant proportion of a province s current and future work force and tax base, but also a province s current and future parents (and thus the suppliers of the next generation of workers, taxpayers and parents), a high number of under 35s anticipating a move out of province represents a worrisome trend. Retaining our youth, attracting more young people and young workers to Saskatchewan, increasing First Nations participation in the workforce and expanding the number of skilled immigrants to our province are all key elements in a Saskatchewan Party government s 78

80 plan to ensure that Saskatchewan has enough workers to sustain long-term economic growth. Getting Saskatchewan Back on Track: Addressing the Growing Gap Between the Needs of Employers and the Supply of Workers In addition to the NDP government s failure to position Saskatchewan as a competitive jurisdiction that can attract, retain and develop skilled workers, the current government has failed to address the significant gaps that have emerged between the needs of employers and the supply of workers in the province. At a time when employers are desperately looking for employees, the number of employable people receiving social assistance continues to remain higher than it should be. Meanwhile, students seeking entrance to programs at SIAST continue to sit on waiting lists. The Saskatchewan Party believes that addressing these barriers, while empowering experienced workers in the workforce, is vital to developing a sustainable labour force. We also recognize that enhancing social supports such as adequate child care and care for seniors will assist families to manage the challenges of balancing work with family responsibilities. Most importantly, a Saskatchewan Party government will close the gap between the needs of employers and the development of a skilled workforce by facilitating more direct partnerships between industry and the province s educational institutions. In the Promise of Saskatchewan: A New Vision for Saskatchewan s Economy, Saskatchewan Party Leader Brad Wall stated that the first task of a Saskatchewan Party government will be the creation of Enterprise Saskatchewan, a new economic development agency that will replace the line department economic development function of government. Enterprise Saskatchewan will function as a unique public-private partnership, with a board that includes stakeholders from government, industry, First Nations, labour, post-secondary institutions and other economic stakeholders. The fact that Enterprise Saskatchewan will be structured as a central agency of government, and that its board will be chaired by a non-government representative, demonstrates the commitment of a Saskatchewan Party government to return control of the economy back to the economic stakeholders of the province. Enterprise Saskatchewan will be uniquely suited to lead a Saskatchewan Party government s response to the labour shortage crisis. Through the direct input of all economic stakeholders in the province, Enterprise Saskatchewan will focus on closing the gap that currently exists between the needs of industry and the development of a skilled and professional workforce. By ensuring that training and education programs in the province are meeting the needs of the economy and that Saskatchewan becomes and remains a competitive jurisdiction to attract, develop and retain skilled workers, a Saskatchewan Party government will make Saskatchewan the best place in Canada to start and build a career. 79

81 Now is the Time to Address the Labour Force Shortage With the advantage of higher than average natural resource prices, the current government has a unique opportunity to reinvest its growing surplus back into the people of the province. Instead, the NDP continues to be on the wrong track. Wasting valuable public tax dollars on expensive advertising campaigns and money-losing investments won t address the labour shortage crisis in Saskatchewan a change of government will. It s time to get Saskatchewan back on the right track. A Saskatchewan Party government would invest the province s growing surplus back into the people of Saskatchewan, while making long-term changes to ensure that Saskatchewan becomes known as the place to be, not the place to be from. As with all measures undertaken by a Saskatchewan Party government, a strategy to address Saskatchewan s labour shortage will be accomplished within a balanced budget. Building a skilled workforce will allow Saskatchewan to weather the boom and bust cycle of natural resource prices. Along with our plan to create a vibrant economy by reducing barriers to growth and investing in infrastructure, innovation and post-secondary institutions, a Saskatchewan Party government s labour force development strategy will ensure that Saskatchewan becomes, and remains, a competitive jurisdiction for skilled labour for decades to come. 80

82 Getting Saskatchewan Back on Track The Saskatchewan Party s Plan to Address Saskatchewan s Labour Shortage The NDP government s failure to develop and act on a comprehensive strategy to address the province s labour shortage has created a significant barrier to growth for Saskatchewan s economy. Unlike the Government of Alberta which launched a 10-year strategy to address the labour shortage in that province, Saskatchewan s NDP government has failed to put forward a plan to attract, recruit, develop and retain skilled workers. It s time to get Saskatchewan back on track. Brad Wall and a Saskatchewan Party government will chart a new course for sustained and shared prosperity in the 21 st century. Under a Saskatchewan Party government, Enterprise Saskatchewan will be the lead agency in coordinating a seven point strategy to address Saskatchewan s labour shortage, build a skilled workforce and ensure that everyone in the province has the opportunity to participate in a thriving economy. Our seven point plan to address Saskatchewan s labour force shortage will: Invest in People by Assisting Employers to Invest in Employee Skills Training and Education. Enhance Access to Employment by Building Skills and Supporting the Transition to Work. Create Partnerships for Shared Prosperity by Enhancing Employment and Educational Opportunities for First Nations and Métis People. Advance Education, Innovation and Entrepreneurship by Sustaining Labour Force Growth Through Excellence in Education. Expand Opportunities by Reducing Workforce Barriers for Women and Families. Appreciate Excellence and Experience by Providing Older Workers with Greater Employment Options by Eliminating Mandatory Retirement. Focus on Our Future by Retaining our Youth and Increasing Immigration. 81

83 Investing in People: Assisting Employers to Invest in Employee Skills Training and Education A Saskatchewan Party government will ensure that both employees and employers benefit from a growth agenda and that investment in employee skills development is rewarded by: Providing new tax incentives for employer investments in formal education and onthe-job-training for employees; Providing new tax incentives to encourage the expansion of business and industry funding of training seats and targeted educational initiatives at our post-secondary institutions; Facilitating the expansion of co-operative education spaces in our post-secondary institutions; Creating more apprenticeship capacity in the province, including immediately reviewing the journeyman to apprentice ratio, and; A provincial commitment to match the federal government s new apprenticeship tax credit of up to $2,000 per year for employers who hire and train apprentices and $1,000 grants for apprentices under the new federal Apprenticeship Incentive Program which begins January 1, Enhance Access to Employment: Building Skills and Supporting the Transition to Work While the current government continues to boast of its success in moving people from the Social Assistance Program (SAP) to the Transitional Employment Allowance (TEA) program, it has admitted that it does not systematically track whether people leaving TEA are moving into full employment. In fact, the government s best guess, based on a survey done in 2002 and further analysis in 2005, is that only 40% of those involved in the TEA program were employed within a short period of time after leaving the system. The people of Saskatchewan deserve better results from their government. In a province where jobs are going unfilled, there is no reason that anyone in Saskatchewan over the age of 18 who is employable should not be working, going to school or actively engaged in upgrading their skills. A Saskatchewan Party government will improve accountability in the delivery of training programs while assisting under-skilled individuals and employable persons on assistance to become employed by: Investing $5 million into an employment readiness fund that can be accessed by community based organizations (CBOs) such as food banks, to develop and deliver life skills and employment readiness training to their clients; Assisting in the development of new employment and labour readiness partnerships between CBOs and the private sector; Ensuring training programs are delivered with the input of employers and are geared towards local labour market needs; Increasing the amount that social assistance clients can earn as they make the 82

84 transition from assistance to work, and; Ensuring that social assistance recipients who make the transition to work have access to the necessary financial resources to pay for initial work related expenses. A Saskatchewan Party government will also work to expand employment opportunities for persons with disabilities, in partnership with the Saskatchewan Association of Rehabilitation Centers and the Saskatchewan Abilities Council. Partnership for Shared Prosperity: Enhancing Educational and Employment Opportunities with First Nations and Métis People Despite the fact that Saskatchewan s population is aging, we have the benefit of a young First Nations and Métis population that will play a pivotal role in maintaining Saskatchewan s workforce in the future. As of December 2005, however, First Nations people had an employment rate of less than 44 per cent a full 20 per cent less than the non-aboriginal population in Saskatchewan. Capitalizing on the advantage of a young First Nations population will require a concerted effort between First Nations and the federal and provincial governments to make First Nations employment, education and skills development a priority. In the spirit of the Treaties, a Saskatchewan Party government will enhance its partnership with Saskatchewan s First Nations to increase First Nations participation in the labour force over the next decade. A Saskatchewan Party government will also work in partnership with Métis people to increase Métis representation in the workforce. Since the board of Enterprise Saskatchewan will contain representation from First Nations, government, industry, post-secondary institutions, municipalities and regional economic development authorities, it will be uniquely positioned to foster a partnership for shared prosperity. The key elements in a strategy to increase First Nations and Métis representation in the workforce will include: Increased emphasis on improving education outcomes for First Nations students, including higher graduation rates from high school; Increased funding to the Saskatchewan Indian Institute of Technologies and postsecondary institutions in the province to expand First Nations and Métis participation in academic preparation, employment development, training and professional programs; Active promotion of First Nations and Métis youth entrepreneurship; Increased financial support to assist the successful efforts of the construction industry in developing its First Nations workforce, including long-term funding for the Construction Career Projects program and expansion of this model to other key sectors of the economy; Partnerships with post-secondary institutions, the federal government and First Nations bands to deliver job and skills training on reserves, and; Development of a northern skills development strategy, in partnership with First Nations. 83

85 Advancing Education, Innovation and Entrepreneurship: Sustaining Labour Force Growth Through Excellence in Education Any successful growth agenda for Saskatchewan must include a commitment to long-term investments in post-secondary institutions and enhanced partnerships between employers, government and educational institutions. Through Enterprise Saskatchewan, a Saskatchewan Party government will ensure that industry, REDAs, post-secondary institutions and economic stakeholders across the province work together collaboratively to build and sustain a skilled workforce in our province. A Saskatchewan Party government s new approach to developing Saskatchewan s workforce will emphasize greater accountability, stronger coordination and collaboration between stakeholders, flexibility in program delivery and rapid responses to meet local and provincial labour force needs. Making Skills Training and Investment in Innovation a Priority A Saskatchewan Party government will: Commit to long-term funding increases for the province s post-secondary institutions; Support a greater role for Saskatchewan s regional colleges in developing and delivering programs to meet local labour force needs; Make better use of existing facilities within communities to deliver innovative training and skills development programs to local residents; Incorporate the current functions of the Apprenticeship and Trade Certification Commission and the Saskatchewan Labour Force Development Board into Enterprise Saskatchewan; Ensure that training programs and training seats at SIAST are more closely aligned with current labour force needs and future needs arising as a result of a Saskatchewan Party government s growth agenda; Increase funding to the province s two universities to establish centres of excellence and innovation in the applied sciences, and promote innovation in technology and education in growth areas of the economy, and; Provide expanded support for investments in research and the commercialization of research and innovation at Saskatchewan s two universities, while ensuring that the outcomes of these investments are consistent with international standards. This would include increasing the existing provincial R&D Tax Credit from 15 per cent to 20 per cent. Literacy and Adult Education For Saskatchewan to be successful and build a 21 st century labour force, it is essential that all individuals in the province have the necessary skills and experience to move up the knowledge ladder. To ensure that this goal is achieved for both youth and adults, a Saskatchewan Party government will: 84

86 Provide long-term sustainable funding increases for adult basic education and literacy in Saskatchewan; including workforce literacy and life skills programs delivered through educational and community based organizations. Skills Training, Entrepreneurship and Innovation in Schools The Department of Learning will also engage industry and post-secondary institutions to: Aggressively promote the skilled trades as a viable and rewarding career choice in high schools; Implement a comprehensive career awareness program for young people in cooperation with industry, Crown corporations and Saskatchewan s trades and professional associations. Ensure that every high school student in Saskatchewan has the opportunity to develop business literacy skills and entrepreneurial experience. A Saskatchewan Party government will accomplish this by expanding the availability of business education and entrepreneurial training to every high school in Saskatchewan, including providing students with increased opportunities to gain business experience through innovative partnerships with industry, local businesses and community organizations; Develop a closer working relationship between schools in the K-12 system and the province s post-secondary institutions through the creation of innovation schools within the K-12 system. Expanding Opportunities: Reducing Workforce Barriers for Women and Families Improving opportunities for women to enter the workforce and build careers is an important component of a strategy to address Saskatchewan s labour shortage. One of the central barriers that women face to entry, re-entry and ongoing career development in the workforce is obtaining accessible child care. While parents need support and viable child care options in their community, the provincial government s own data indicates that a one-size fits all approach will not work in Saskatchewan. Parents need flexible child care options to meet their needs. A Saskatchewan Party government will respect the fact that the majority of parents utilize a combination of child care options, including having family members, community-based child care providers and neighbourhood child care providers care for their children. To assist working families: A Saskatchewan Party government will support enhanced options for early learning and flexible child care in Saskatchewan. Families also shoulder much of the responsibility for caring for aging parents. The pressures on the sandwich generation mean that governments and employers must begin to make a concerted effort to ensure that workplaces are family friendly and provide employees with the necessary flexibility to balance the demands of work and family life. To assist in creating flexibility for women and families in the workforce, a 85

87 Saskatchewan Party government will: Encourage employers to take steps to create a flexible work environment to assist in attracting and retaining employees whenever possible, and; Provide increased support for home care to allow seniors to remain in their own homes for as long as possible. Appreciating Excellence and Experience: Providing Older Workers with Greater Employment Options by Eliminating Mandatory Retirement Older workers deserve every opportunity to continue to play a vital role in the workforce if they so choose. Statistician Doug Elliot projects that in the next ten years there will be an increase in the number of employees in their fifties, and that the number of persons over 60 in the labour force in Saskatchewan will increase from approximately 40,000 today to 60,000 by The Saskatchewan Party recognizes that older workers bring value to the economy, and that it is discriminatory for the provincial government to force workers to retire at age 65 against their wishes. Following consultations with both business and labour to ensure that changes to mandatory retirement will serve and respect the interests of both employers and employees: A Saskatchewan Party government will put forward legislation enabling employees to continue working beyond the age of 65 if they choose. Focusing on Our Future: Retaining our Youth and Increasing Immigration Making Saskatchewan the place to be, not the place to be from, begins with providing youth with every opportunity to pursue their future here in Saskatchewan. Retaining our youth and increasing the immigration of skilled workers to Saskatchewan are essential elements of a growing economy. Youth Retention Innovation and creativity are the fundamental economic drivers in the new economy. If Saskatchewan is to be competitive in the short and long term, it is essential that we do everything possible to foster a province where the new ideas and creativity of youth becomes the foundation for innovation. As Todd Hirsch from the Canada West Foundation has commented: in the long run, it's not lower taxes that will keep tomorrow's economy healthy, it's new ideas..[e]ven the most level playing field in the world will lie empty if we don't equip our labour force with the creativity and innovation they need to play the game. Saskatchewan s post-secondary institutions play a significant role as a magnet for retaining our youth and attracting youth from Canada and the world to come to Saskatchewan. A Saskatchewan Party government will make affordability, accessibility, excellence and innovation in post-secondary education the cornerstone of our youth retention strategy through the initiatives outlined in point four of our plan Advancing Education, Innovation and Entrepreneurship. As a result of our plan to address the labour shortage, remove barriers to growth in the economy and invest in infrastructure, innovation and postsecondary education, Saskatchewan s growing economy will provide our youth with every opportunity to attend school, enhance their skills and build their careers here in 86

88 Saskatchewan. As part of a broader initiative to retain our youth and make Saskatchewan the place to be: Enterprise Saskatchewan will spearhead opportunity missions within Saskatchewan, across Canada and throughout the world to inform youth of the options and opportunities available to them in Saskatchewan. These missions will feature significant representation from youth leaders across the province telling the Saskatchewan story, in addition to industry leaders in growth sectors of the economy, educational leaders and senior government officials. A Saskatchewan Party government will work actively to support the efforts of nongovernment organizations to promote the benefits of Saskatchewan to youth, such as the Saskatchewan Rotary s Your Future is Here initiative. A Saskatchewan Party government will make the promotion of Saskatchewan opportunities a top priority on post-secondary campuses in the province. Immigration Attracting new people to Saskatchewan through increased immigration must continue to be a priority for the provincial government. While the current government has taken action to increase immigration targets under the Saskatchewan Immigrant Nominee Program (SINP), Saskatchewan continues to lag behind Manitoba in its immigration expectations. It is particularly important that sectors such as the trucking and transportation sector, which have been proactive in recruiting immigrants to Saskatchewan, are supported by a provincial government that places a priority on expanding the immigration of professionals, skilled workers and entrepreneurs while streamlining the process of locating to Saskatchewan. To facilitate the attraction of skilled immigrants to Saskatchewan, Enterprise Saskatchewan will: Lead international recruitment missions comprised of industry, post-secondary institutions and representatives of the provincial government to attract foreign students and skilled workers to Saskatchewan; Fast-track the entry of skilled foreign workers and professionals into Saskatchewan; Make the attraction of foreign entrepreneurs a priority; Reduce barriers for foreign and Canadian workers and professionals seeking to come to Saskatchewan by working with professional regulatory bodies to streamline recognition and acceptance of foreign credentials, and; Work actively with the federal government to reduce barriers to long-term employment for foreign students who graduate from Saskatchewan universities and wish to continue working in Saskatchewan after graduation. Enterprise Saskatchewan will constantly review whether targets for the Saskatchewan Immigrant Nominee Program and immigration in general are being achieved, and will increase targets once goals have been met. 87

89 BUILDING ON SASKATCHEWAN S NATURAL ADVANTAGE: THE SASKATCHEWAN PARTY S BIOFUELS STRATEGY April 27,

90 Building on Saskatchewan s Natural Advantage: The Saskatchewan Party s Biofuels Strategy With abundant natural resources, Saskatchewan is well positioned to become a global leader in the production of biofuels (ethanol and biodiesel) that are essential to our goal of creating a clean environment, and are part of the Saskatchewan Party s strategy to build a long term sustainable foundation for growth in rural Saskatchewan. A Saskatchewan Party government will work with the federal government to create a national biofuels strategy which capitalizes on Saskatchewan s natural advantages in feedstocks, grains and oilseeds, while providing Saskatchewan producers with economic incentives to grow the biofuels industry in our province and benefiting Saskatchewan s livestock industry. With our plan to stimulate growth by investing in research and skills training, removing barriers to growth and implementing new growth tax incentives, we will develop a long-term sustainable biofuels industry that will provide economic and environmental benefits to our province for decades to come. Brad Wall, Leader of the Official Opposition Saskatchewan Party Building a National Biofuels Strategy Encouraging the federal government to mandate a 10% ethanol blend on gasoline, and a 5% biodiesel blend, in Canada by Encouraging the federal government to establish quality control standards for ethanol and biodiesel production to ensure that they meet the highest export standards. Encouraging the development of a federal government biofuel strategy that supports investment in Saskatchewan biofuel facilities and maximizes Saskatchewan s natural advantages in feedstock, grains and oilseeds. This federal strategy would include: o o Federal government tax incentives for investment in biofuels. Federal government commitment to underwrite producer loans for investment in biofuel facilities. 89

91 New Growth Tax Incentives to Expand Biofuel Production in Saskatchewan Immediate elimination of the provincial corporate capital tax on all existing ethanol and biodiesel facilities in the province, as well as on new construction or the expansion of biofuel facilities. Providing a PST rebate for all new capital costs associated with the construction and expansion of biofuel facilities, including head office and equipment costs. Providing a five year PST rebate on all costs associated with the operation of new or expanded biofuel facilities. Reducing Barriers to Growth Allowing biofuel facilities to wheel co-generated power back into the provincial electricity grid. Conducting a province-wide infrastructure assessment to determine how best to meet existing and future infrastructure needs of the biofuel industry. Local Initiatives to Stimulate Growth of the Biofuel Industry Encouraging local governments to offer property tax incentives to new or expanding biofuel facilities. Providing interest-free bridge financing to municipalities that invest in infrastructure which directly facilitates the development or expansion of the biofuels industry. Investments in Labour Force Development, Skills Training and R&D Providing long-term funding commitments to the University of Saskatchewan and the University of Regina for research and development into biofuels and the life sciences, and creating a Saskatchewan Research Chair in biofuels development. Ensuring existing provincial R&D tax credits meet the needs of the biofuels industry. Investing in a Saskatchewan skills training program, in conjunction with industry, the province s post-secondary institutions and First Nations to train skilled workers for the biofuel industry. Attracting capital and skilled workers to Saskatchewan by making biofuels a key focus for Saskatchewan s Business Immigrant Nominee Program. Leading by Example Mandatory biofuel use in provincial government vehicles, and increased biofuel use by provincially owned modes of transportation. Encouraging the use of biofuels by school boards and municipalities. 90

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93 Saskatchewan Party Caucus Presentation to the Commission on Improving Work Opportunities for Saskatchewan Residents September 26,

94 Saskatchewan Party Caucus Presentation to the Commission on Improving Work Opportunities for Saskatchewan Residents Introduction For the purposes of its review, the Commission has defined vulnerable workers as those who are chronically low-paid; part-time, seasonally employed or self-employed; receive few if any work related benefits; possess a lower level of education with poor access to higher education and training; have diminishing job prospects and a lack of career advancement; experience limited job security and precarious employment; and have limited access to safe, affordable child care. In order to have a meaningful discussion, it is imperative that the definition of vulnerable workers is consistent. Therefore, we accept the Commission s definition as the basis for discussion. The Commission also states that, $10 per hour working full-time is the equivalent to the low income cut off for Canadians and, assuming a 40-hour week, this wage translates into $19,200 annually. Many workers who fall into this category are employed in retail sales, and accommodation and food services. Further, many of these workers are women, minorities including Aboriginals, or people with disabilities. Given the nature of these industries, many rely on part-time workers to cover peak periods. Moreover, many students, women with young children, and people with disabilities wish to only work part-time. Still, the Commission suggests that according to the 2004 Saskatchewan Labour Force Survey, approximately 25,900 part-time workers out of a total of 93,700 part-time workers province-wide, wished to work full-time. Clearly, one of the solutions to this problem rests in the creation of more full-time jobs. However, as the provincial government recently found out from its proposed governmentdirected-hours initiative, how these full-time jobs are created is a matter of intense debate. Saskatchewan business owners are strongly opposed to government regulations dictating who they hire to cover additional hours and how they are scheduled. As well, university students strongly opposed this initiative as they felt it would have a harmful affect on their ability to work while going to school. The Labour Standards Act regulates minimum standards for hours of work, minimum wages, equal pay, maternity leave, holiday pay and wages. To make provincial laws stricter than other jurisdictions would discourage new investment and job creation, and may deter existing businesses from remaining in the province. Further, it has been suggested by those who require part-time employment that most available hours legislation would decrease their employment opportunities by directing part-time hours to those with the most seniority. This type of solution limits the opportunities for those who are seeking first time employment. It may also prevent those with little work experience from obtaining additional experience and developing the skills and training they need for future employment security. 93

95 According to Statistics Canada, in August 2005, the lowest average hourly wage in Saskatchewan was $10.32 an hour. Statistics Canada also reports that 89,800 of employees aged years fell into this category. Sales and service occupations comprise 110,400 workers in the province with an average wage of $11.71 an hour. These statistics suggest that a substantial number of young people in Saskatchewan working in sales and service occupations are paid near the low income cut off for Canadians. Although these statistics are averages and do not reflect each individual s circumstances, certainly some of these employees would be relatively new to the work force given the age category. These statistics also suggest that workers in the service industries are paid less than workers in other industries. The problem therein, is that the consumer is only willing to pay a certain amount for a particular good or service. For example, increasing the cost of production for a cup of coffee will at some point force consumers to change their spending habits if the cost exceeds its value in the mind of the consumer. To artificially inflate production costs will at some point reach diminishing returns as the demand decreases, threatening the jobs of those who are involved in production. In addition, increasing utility costs, rising insurance premiums, as well as the additional costs associated with increasing minimum wages such as higher Workers Compensation premiums, Employment Insurance and Canada Pension Premiums, which are all based on payroll, increase the cost of producing a particular good and drive up the cost to the consumer. As the costs of goods increase, consumer buying power decreases, and those who are hurt the most are those with lower incomes. The solution to this problem is more complex than simply raising the minimum wage or forcing employers into creating full-time positions from part-time positions. Vulnerable workers are unique individuals with their own stories, backgrounds and needs. If the 2004 Labour Survey is correct, estimating that one-third of part-time workers would prefer fulltime work, we must be careful not to initiate policy that would be harmful to the two-thirds of part-time workers that require and are satisfied with part-time employment because of their personal circumstances. It is clear that access to training and education is critical to improving job security. However, equally important, ample jobs must be available for young people to build their careers in Saskatchewan. The Saskatchewan Party is of the view that the solutions will not be found solely by government or through government programs, but through a combined approach in which government, learning institutions, businesses, labour, community organizations, First Nations and Métis as well as municipal leaders share the responsibility. Too often, the government has put the onus on businesses. Forcing employers to take on the entire burden of improving the lives of vulnerable workers through legislative initiatives is a recipe for disaster in terms of the provincial economy. Tax Relief for Low Income Earners Workers earning minimum wage or just slightly more have a difficult time making ends meet and require more take-home pay. While the Saskatchewan Party supports the government s recent decision to increase the minimum wage, this increase in itself is not enough and does nothing to help those earning slightly more than minimum wage. The provincial government must also do its part to increase take-home pay for low income earners. Low income earners in Saskatchewan are currently subject to the highest 94

96 provincial income tax rates in Canada. The Saskatchewan Party would increase the Basic Personal Exemption by up to $6,000 for anyone earning less than $35,000 a year. This graduated tax reduction provides the lowest income earners with the greatest benefit. The value of the tax reduction decreases as personal income increases until at an income level of $35,000 a year, the value of the tax reduction is zero. Under the Saskatchewan Party s plan, minimum wage earners in Saskatchewan would not pay any provincial income tax, and people earning less than $35,000 a year would pay reduced provincial income tax. Fully implemented, about 215,700 Saskatchewan people would pay less tax and another 70,300 low income earners would be removed from the provincial tax rolls altogether with this plan. The problem with simply increasing the minimum wage is that employers end up not only paying higher hourly wages, but increased Workers Compensation Premiums, CPP, EI, and all employees in the organization expect a similar bump in pay reflective of the new minimum wage. The costs are far greater to the employer than the fifty-cent an hour increase to minimum wage. The additional costs associated with increasing the minimum wage may lead to lay-offs over the long term. If the goal is to improve the lives of low income earners and give them more economic freedom, putting more money into their hands for basic necessities can be achieved in other ways than simply increasing the minimum wage. Increasing the Basic Personal Exemption would not have the same financial impact on business costs overall. In addition, affordable transportation and child care must be available for working people. A combination of income tax incentives, child care tax credits and subsidized daycare spaces is essential. Subsidized childcare facilities are needed within close proximity to local communities and there must be a variety of childcare options available. For example, shift workers often have problems finding suitable childcare. Some industries provide on-site childcare to solve this problem, but a critical mass of employees is generally necessary for this service to become a viable option. Transportation to employment is a particular problem in rural Saskatchewan and on many First Nations reservations. The creation of local industries in these areas would benefit these communities by improving access to employment opportunities. Government Hiring Practices The government must also be cognizant of its own hiring processes. For example, although the Saskatchewan Registered Nurses Association and The Canadian Nurses Association point out the increased demand for nurses in Saskatchewan, many new nursing graduates in the province can only find part-time or casual work. They end up leaving the province for permanent full-time positions, creating a further shortage of qualified workers. A similar problem has been reported in the construction trades where workers and trades people relocate to other provinces where there is employment stability due to economic growth. Thus while there may be an abundance of low skilled workers in the province, there remains a shortage of skilled workers. Although Saskatchewan may have a low unemployment rate, it also has a high out-migration rate of young, skilled professionals. 95

97 In the area of social services alone, the Government of Saskatchewan holds more than 600 service contracts with approximately 500 community based organizations (CBOs). These CBOs employ between 2,500 to 3,000 people. A 2002 study of salary levels in Reginabased human service agencies revealed that the average salary for support staff (98% of whom are women) is $25,000. Low wages pose a particular problem for the recruitment and retention of staff for CBOs that provide care to children and persons in need. In 2000, the average full-time income for childcare workers (95% of whom are women) was $18,848 per year--well below the provincial full-time average of $35,461 for all occupations the same year. Even the highest full-time incomes in this field are low. The Saskatchewan Association of Rehabilitation Centres (SARC) provides community based services to persons with disabilities throughout the province. This organization is also experiencing significant difficulties recruiting and retaining personnel because of the fact that 76% of their members earn less than $25,000 per year. It should also be noted that 85% of SARC s workers are women. All of these organizations rely heavily on the Government of Saskatchewan for their core funding. Thus many of the workers who are in positions to assist people in overcoming barriers to employment, such as affordable childcare or people with disabilities, are low income earners themselves. Training & Education Training and education must lead to jobs and career opportunities in our province and this can only be achieved with economic growth. Saskatchewan has the highest tuition rates in Canada, a problem for many young people who seek to better themselves through education. Even if they should qualify for a student loan, the individual wants to be reasonably assured that he or she can find a job that pays well enough to repay the loan. We must also factor in the aging baby boomers who will soon be leaving the work force and develop a plan to replace them. Young First Nations people offer a competitive advantage to replacing the baby boomers, but in order to succeed, education and training opportunities must be available for their participation. The following issues need to be addressed: Access to education and training to enhance knowledge and skills in order to compete in a knowledge-based economy Incentives for lifelong learning Support career education and life skills instruction in all schools Provide long-term, predictable and stable funding to post-secondary and technical institutions Review and renew student loan programs to ensure that they meet the needs of current and future students Creating a growing and thriving economy to increase the demand for labour and create employment stability Removing barriers to employment such as affordable transportation and child care 96

98 Incorporating an employment strategy for access to employment in the north Bridging cultures, noting that Aboriginal unemployment is 2.5 times higher than in the non-aboriginal population, and as the Commission states in its consultation paper, the transition into the labour market was particularly difficult for Aboriginal youth aged 15 to 24 (4). Encouraging knowledge of the Treaties and a better understanding of history would help to overcome discrimination and racism which often serve as barriers to employment. The employment rate for Aboriginal SIAST graduates in 2002 was 86 %---a figure which underscores the connection between post-secondary education, employment and career development. Work in partnership with First Nations to increase participation rates and improve the outcomes for First Nations students Improve online distance education to enhance educational opportunities in remote areas Create partnerships between First Nations and Métis and regional economic stakeholders to create academic and trades programs that meet local labour force needs The Saskatchewan Party has proposed numerous policies that would help improve the lives of low income earners and create economic growth. The complete documents are attached in the appendix. Creating the Right Environment for Access to Education and Employment Saskatchewan has experienced slower economic growth than other provinces when times are good. If this is the best we can do as a province what will happen when times take a turn for the worse? Economic growth is directly linked to improving the situation of vulnerable workers. Every person in Saskatchewan must have an equal opportunity to build a career of their choice in our province. Key Premises: Workers are more vulnerable to exploitation in a stagnant economy with few employment opportunities A shrinking number of taxpayers foregoes tax dollars that could be reinvested in education and training programs making education affordable and accessible to more people A growing economy where there is an increasing demand for labour benefits workers with increased competition for employers to provide improved wages and benefits packages as well as training 97

99 A growing economy provides more choices and career opportunities giving our young people hope for a future in Saskatchewan Employment standards must be consistent in Saskatchewan with other jurisdictions. If there is more red tape in Saskatchewan, business investment is deterred and valuable jobs will go elsewhere Taxation policies must encourage new investment and growth and be competitive with other jurisdictions both nationally and internationally The creation of an entrepreneurial environment in which home-based businesses thrive can help solve childcare and transportation problems in remote areas. Telecommuting is becoming the way of the future. Appropriate infrastructure must be in place especially in the north to facilitate this type of employment. For example, a growing number of First Nations artists and clothing manufacturers are now able to market their wares internationally via the internet Workplaces must be safe and healthy, balancing the interests of both employees and employers Education must be accessible and affordable Few young people today expect to have one job from the time they enter the workforce until the time they retire. Training and retraining is almost a given, building on existing skills and knowledge. Therefore, lifelong learning must be encouraged and accessible The Promise of Saskatchewan The Saskatchewan Party believes that there is a huge degree of untapped potential in our province in terms of human resources development and natural resources development. In order to tap into this potential the following key steps must be taken: Establish a stable business climate that removes barriers to private sector capital investment Focus on economic growth and job creation in both rural and urban Saskatchewan Encourage economic development in key sectors where Saskatchewan has or could have a competitive advantage including but not limited to energy, valueadded agriculture, agri-business, tourism, forestry, mining, advanced education and research, life sciences, synchrotron science, information technology, biotechnology, construction, transportation, financial services and arts and culture Create an economic partnership between labour, business, First Nations, postsecondary institutions and other economic stakeholders to create a strong and diversified economy with new jobs and an expanded tax base to fund all public services including education and training 98

100 Foster and promote entrepreneurial training and development throughout the province by expanding the availability of this type of training to every high school in Saskatchewan Ensure a competitive tax system for Saskatchewan families and business Stop the provincial government from competing directly with private sector businesses. Too often businesses are afraid to locate in the province to compete with a Crown entity that is the regulator and the provider of services, giving the Crown an unfair advantage. Conclusion One single stand alone piece of legislation will not solve the problems of vulnerable workers. A number of initiatives, as outlined, must be done in concert to complement each other and improve the employment and educational opportunities, especially for young people aged years. A diverse and growing economy can provide the stability for social programs that enhance the lives of low income workers while providing affordable education and training opportunities for the future. To provide healthy, safe communities for our citizens means we must have the tax dollars to devote to providing affordable housing, treatment programs for addictions, and adequate funding for education and health care. A safe home environment where children are healthy and not hungry provides them with the opportunity to concentrate on their studies and finish high school. This equation becomes increasingly difficult to deliver if the number of taxpayers continues to decrease yet the demands for creating healthy communities steadily increases. Our public policies must encourage new growth and investment in our province, expanding the number of taxpayers to support programs and services and creating new employment opportunities for our citizens. 99

101 Saskatchewan Party Proposal for Equalization Reform February 18,

102 Saskatchewan Party Proposal for Equalization Reform 1. Exempt oil and gas revenue from the calculation of equalization entitlement for the period from 2005 to Move to a ten province standard for calculation of average fiscal capacity beginning in Beginning in , abandon the use of federal proxies to calculate the fiscal capacity of the mining sector and return to the use of four separate bases (used prior to 1999). 4. Call for an immediate meeting of the Council of the Federation to discuss Equalization Reform and propose endorsement of items 1, 2 & Arrange meetings between the Premier of Saskatchewan and Leader of the Official Opposition and the premiers and finance ministers of every province to secure support for items 1, 2 & 3 prior to the meeting of the Council of the Federation. 6. Arrange a meeting prior to the beginning of the 2005 Legislative Session between the Premier of Saskatchewan, the Leader of Saskatchewan s Official Opposition, the Chair of federal Conservative Party s Saskatchewan Caucus, Prime Minister Martin and Federal Finance Minister Goodale to secure support for changes to the equalization program recommended above. 7. Provide the people of Saskatchewan with a forum to lobby Finance Minister Ralph Goodale and Prime Minister Martin through s and on line petitions to take action on items 1, 2 & 3 immediately and also to lobby all provincial MPs and the Leaders of the Opposition Parties in the House of Commons to support the same. 8. Call on all major federal political parties to include support for items 1, 2 & 3 and make that support immediately public. 9. Request that Saskatchewan s representative on Council of the Federation Panel recently established to review federal-provincial financing arrangements is also one of the five members of federal-provincial panel studying changes to the Equalization Program to ensure Saskatchewan s position is consistently presented. 10. If the lobby effort is not successful, consider a constitutional challenge of the current equalization calculation on the grounds that it violates Section 36(2) of The Constitution Act, 1982 inasmuch as the formula does not ensure Saskatchewan has sufficient revenues to provide reasonably comparable levels of public services at reasonably comparable levels of taxation. 101

103 SASKATCHEWAN PARTY CAUCUS SUMMARY OF PROPOSED RECOMMENDATIONS TO THE SASKATCHEWAN BUSINESS TAX REVIEW COMMITTEE May 10,

104 Saskatchewan Party Caucus Summary of Proposed Recommendations to the Saskatchewan Business Tax Review Committee A. General Corporate Income Tax (CIT): Background: For 2005, the Saskatchewan CIT on general corporations is 17% -- the highest CIT in Canada. Saskatchewan has established a special CIT rate of 5% on the first $300,000 of net income earned by Canadian Controlled Private Companies (CCPC) incorporated in Saskatchewan -- often referred to as the Small Business Tax. The Calvert government has committed to increase the income threshold to $400,000 by Saskatchewan s CIT on profits from manufacturing and processing activities greater than $300,000 is 10%. Recommendations: 1. Reduce the Small Business Tax to 0% on the first $400,000 of net income over four years; 2. Reduce the General CIT rate from 17% down to 11.5% over four years; and 3. Expand the Manufacturing & Processing Profits Tax Reduction to include resource companies following the successful negotiation of a new Energy Accord with the federal government that removes resource revenues from the calculation of equalization entitlements. Impact: Eliminating the Small Business Tax (SBT) would make Saskatchewan the first Small Business Tax Free Zone in Canada. Other Provinces with Competitive SBT Rates: Province Rate Threshold Alberta 3.0% $400,000 B.C. 4.5% $400,000 N.B. 2.5% $425,000 Reducing the General CIT from 17% to 11.5% would take Saskatchewan from having the highest General CIT rate in Canada to having the lowest rate (tied with Alberta as of May 2005). Expanding the M&P Profits Tax Reduction to include resource industries would give Saskatchewan s mining, oil and gas and Manufacturing and processing industries the lowest CIT rate west of Quebec. 103

105 Cost: Reducing the general CIT rate from 17% to11.5%, increase the small business income threshold and reduce the Small Business Tax rate to zero over four years will cost approximately $189.9 million per year when fully implemented (see attached spreadsheet). Note: No information is available to estimate the cost of expanding the M&P Profit Tax Reduction to resource companies. However, the significant increase in annual provincial government revenue as a result of a new Energy Accord will allow the province to reduce taxes on the resource companies that provided approximately 1 in every 7 dollars of provincial government revenue in Balanced Budget Commitment: All three tax reduction recommendations would be phased in over four years within a balanced budget (expansion of M&P Profits Tax Reduction to Resources is contingent on New Energy Accord). If provincial revenues are insufficient to cover expenditures in any given year, the implementation timetable would be delayed. B. Corporate Capital Tax (CCT): Background: Saskatchewan s Corporate Capital Tax rates are the highest in Canada: General and Resource Corps.: 0.6% on taxable capital of $10 million/$20 million Small Financial Corps: 0.7% on institutions with < $400 million in taxable capital Large Financial Corps: 3.25% on institutions with > $400 million taxable capital Resource Surcharge: 2.0%/3.6% of sales minus basic CCT payable Recommendations: 4. Eliminate CCT on new investment for four years 5. Reverse Decision to Impose the Resource Surcharge on Income Trusts 6. Phase out the CCT on General Corporations and Resource Corporations over four years. Impact: Saskatchewan s corporate capital tax structure is the most aggressive in North America. Alberta and B.C. have no CCT and no resource surcharge. Manitoba s CCT is 0.3% on capital over $5 million. Corporations with more than $10 million pay a surcharge of 0.2% thereby increasing the rate to 0.5%. Most tax experts and virtually the entire investment community identifies CCT as the most significant deterrent to new capital investment in Saskatchewan. The federal government has already committed to phase out the federal Corporate Capital Tax gradually over the next number of years although no specific dates have been set. Implementing the CCT reductions proposed above will send a critical signal to the North American investment community that Saskatchewan is ready to grow. 104

106 The Saskatchewan Party Proposal will create an investment environment that competes well with Alberta, B.C. and most American states. Cost: The elimination of CCT on new investment for four years carries no cost as it is a new growth tax cut on investment that does not yet exist and is therefore not yet taxable to the province. The reversal of the Calvert government decision to impose the resource surcharge on income trusts as of April 1/05 will result in forgone government revenues by $20 million in and $40 million in according to Department of Finance estimates. The elimination of the CCT on General and Resource Corporations will cost approximately $154.7 million when fully implemented. Balanced Budget Commitment: The Corporate Capital Tax reductions proposed above would be phased in over four years within a balanced budget. If provincial revenues are insufficient to cover expenditures in any given year, the implementation timetable would be delayed. C. Manufacturing and Processing Investment Tax Credit (ITC): Background: Manufacturing and processing companies get a non-refundable tax credit equal to 7% on the acquisition of qualifying manufacturing and processing equipment and facilities. Since the M&P ITC is non-refundable, it is only available to companies with positive net income. As a result, the ITC is not bankable for many smaller businesses and most start-ups. It also increases the overall cost of capital and creates a barrier to new business start-ups or existing business expansions. Recommendation: 7. Make the Manufacturing and Processing ITC a refundable tax credit through interim application every quarter. Impact: By making the ITC a refundable credit, it does not have to be claimed against net income and is therefore bankable even when the corporation is not profitable. (Quarterly claims could be paid at a rate of 80% with the outstanding balance paid after year end to ensure compliance) The ability to apply for the M&P ITC on a quarterly basis strengthens business cash flows, reduces the cost of capital and removes a significant barrier to growth especially for smaller and/or start-up businesses. Since Alberta does not have a PST, companies in that province are not exposed to the additional capital costs. 105

107 Cost: In 2005, the M&P ITC is estimated to cost $17.5 million. While it is difficult to accurately project how much an expanded M&P ITC would cost if it was made refundable and payable quarterly, we estimate the cost would at least double in the first year and then grow at about the rate of economic growth in each year thereafter. This estimate would make the cost of the proposal $18.3 million when fully implemented Sask. Party Proposal $17.5 million $35.0 million $35.9 million $36.9 million Calvert Government $17.5 million $18.0 million $18.4 million $18.6 million Incremental Cost $0 $17.0 million $17.5 million $18.3 million Balanced Budget Commitment: Changes to the M&P ITC would be implemented over four years within a balanced budget. D. Research and Development Tax Credit: Background: Most provinces in Canada offer some kind of refundable R&D tax credit on qualifying purchases. In 2005, Quebec offers a refundable 35% R&D tax credit. Ontario offers a 20% refundable credit. Three provinces offer a refundable 15% credit. Manitoba and Saskatchewan offer a non-refundable 15% tax credit. Recommendation: 8. Increase the R&D Tax Credit to 20% and make it a refundable credit through interim application every quarter. Impact: One of the important themes in Saskatchewan Party leader Brad Wall s 2004 economic paper, The Promise of Saskatchewan: A New Vision for Saskatchewan s Economy, is a commitment to support innovation in Saskatchewan. Research and development is a fundamental component of innovation whether it occurs at the University or in the development facilities of private companies. Increasing the R&D tax credit and making it refundable on a quarterly basis supports private sector innovation while reducing the cost of capital and removing a barrier to growth. (Quarterly claims would be paid at a rate of 80% with the outstanding balance paid after year end to ensure compliance) Cost: As with the expansion of the M&P ITC, it is difficult to estimate how much a refundable 20% R&D tax credit would cost. In 2005, the provincial government estimates the current 15% non-refundable credit will cost $10 million. We estimate the cost of our proposed changes 106

108 would increase the annual cost of the R&D tax credit to approximately $16.6 million (33% increase due to the increase in the credit and another 25% as a result of the refundable nature of the credit) in the first year and then increase by a rate equal to economic growth in Saskatchewan thereafter: Sask. Party Proposal $10.0 million $16.6 million $17.0 million $17.5 million Calvert Government $10.0 million $10.3 million $10.5 million $10.8 million Incremental Cost $0 $6.30 million $6.50 million $6.70 million E. Incentives for Investment in the Livestock Processing Industry: Background: As the 2005 SARM Annual Convention, Saskatchewan Party Leader Brad Wall called for an incentive to promote investment in livestock processing capacity similar to the incentives related to Saskatchewan-based Labour Sponsored Venture Capital Fund (LSVCF). Recommendation: 9. Establish a 20% tax credit (similar to current LSVCF provisions) on investments in Saskatchewan-based livestock processing capacity. Impact: Saskatchewan s livestock industry has been devastated by the BSE crisis and the closure of the American border to most Canadian cattle. Development of new markets and adding local processing capacity are two key actions that must be taken to address the challenges facing the livestock industry. The provision of an incentive to drive investment in value-added processing in Saskatchewan will assist the livestock industry and contribute to the growth and sustainability of the provincial economy. Cost: This Proposal is a new growth tax cut because it proposes to forgo tax on investment that does not currently exist and therefore is not currently taxed by the province. Since no existing government revenue would be given up, the incremental cost of the Livestock incentive is zero relative to current year government revenues. F. Other Issues That Impact Business Competitiveness in Saskatchewan Two other important factors that directly influence new business investment and private sector economic growth are property taxes and labour laws. Also, resource royalties are an important consideration because of the prevalence of oil and gas industry in Saskatchewan. Unfortunately, neither of these factors was included in the mandate of the Business Tax Review Committee. 107

109 Property Taxes Property taxes are the largest tax on capital in Saskatchewan. The high rates at which business taxes are applied in Saskatchewan create a significant barrier to private sector investment growth, job creation and new capital investment. Any attempt by the province to evaluate and recommend changes to the mix of taxes and fees assessed against Saskatchewan businesses must include property taxes if it is to be effective. Labour Laws Saskatchewan s labour laws are recognized across the continent as lacking balance and therefore have contributed to Saskatchewan s reputation as an anti business jurisdiction. Saskatchewan must review provincial labour legislation to ensure a legislative environment and a Labour Relations Board that respects the principles of transparency and accountability; provides high quality, safe and healthy workplaces; and balances the interests of employees and employers while promoting the continued growth of Saskatchewan communities and the economy. G. Equalization Reform The unfair manner in which Saskatchewan is treated with regard to calculation of federal equalization entitlements has been well documented. The Saskatchewan Party has joined with the Calvert Government in calling for a number of changes to the equalization formula that will address the unfairness of the current program and also result in a large increase in provincial equalization entitlements in the short term. The Saskatchewan Party has also joined with the Calvert government in calling for the negotiation of a Saskatchewan Energy Accord similar to the Accord recently signed between the federal government and the provinces of Newfoundland and Nova Scotia. The Atlantic Accord effectively excludes off-shore oil and gas revenue from the calculation of provincial equalization payments and will therefore generate more than $3.5 billion in new revenue for Newfoundland and Nova Scotia by A Saskatchewan energy Accord structured in a similar manner to the Atlantic Accord would generate between $400 million and $1 billion per year for Saskatchewan because it would end the federal government s practice of clawing back up to 108% of Saskatchewan s annual oil and gas revenues. The new revenue could be used, in part, to create the most competitive climate in Canada for new investment, job creation and economic growth while investing in important government services including health care, education, social services, infrastructure, environmental protection and community safety. While the proposals presented above do not depend on a new equalization agreement with Ottawa, the increased revenues from changes to the equalization program and the establishment of a Saskatchewan Energy Accord will ensure the business tax reductions could be achieved on the proposed timetable. In the event the Calvert government fails to negotiate a new equalization deal, the proposed tax reduction plan may require a longer implementation period to ensure the provincial budget remains balanced. 108

110 H. Conclusion: Saskatchewan is at a crossroad. There is a choice to be made. We can choose to continue to grow the size of government and increase government presence in the economy. This is the choice of the current provincial government and it has been the choice of successive government of three different political stripes over the past 6 decades. It is an approach that has failed Saskatchewan. Fortunately, Saskatchewan has another choice. We can choose to break out of six decades of our children and grandchildren leaving to find opportunities somewhere else; six decades of big government and high taxes and declining quality of life. We can choose to compete and win creating an economic climate that welcomes private sector business growth, new investment and the entrepreneurial spirit. The Saskatchewan Party believes the proposals we make today will establish a solid foundation upon which to finally deliver on the 100 year old Promise of Saskatchewan. 109

111 100 IDEAS TO GET SASKATCHEWAN READY FOR THE NEXT 100 YEARS March 14, 2005 Reporter: Anything stand out legislatively? NDP House Leader Harry Van Mulligen: Nothing that really comes to mind. - Excerpt from Van Mulligen scrum announcing 2005 Spring Sitting, February 25, 2005 This is Saskatchewan s Centennial Year, a time to set a bold new direction for the next 100 years. And what new ideas is the Calvert NDP offering as we head into a new legislative session? Nothing that really comes to mind, according to the NDP s own House Leader, Harry Van Mulligen. The NDP may be out of new ideas, but the Official Opposition Saskatchewan Party is not. On the first day of our Centennial Legislative Session, I am proud to present, 100 Ideas to Get Saskatchewan Ready for the Next 100Years. Brad Wall Leader of the Official Opposition Saskatchewan Party 110

112 1. Reduce provincial income tax for low income residents. 2. Build a new integrated health sciences facility at the University of Saskatchewan. 3. Increase the food allowance for social assistance recipients. 4. Celebrate Saskatchewan s Centennial by eliminating entry fees at all provincial parks in Establish a single health care agency for the entire province to maximize the use of Saskatchewan s health facilities and human resources. 6. Negotiate with the federal government for an eight year exemption on Saskatchewan s oil and gas revenues and a return to the ten province standard for equalization payments. 7. Recognize the Treaties as the foundation for a partnership between First Nations and non-first Nations people in the economic and social development of Saskatchewan. 8. Support a sustainable livestock industry by instituting a provincial capital tax exemption and providing a PST rebate on all capital costs associated with new or expanded beef processing capacity in Saskatchewan. 9. Establish a Children s Hospital in Saskatoon utilizing an existing acute care facility. 10. Create Enterprise Saskatchewan as the central economic development agency of government in partnership with industry, local government, First Nations, Labour, and Post Secondary Institutions to deliver on the Promise of Saskatchewan. 11. Increase training seats for medical professionals at Saskatchewan s post secondary institutions. 12. Forgive a portion of student loan debt for doctors, nurses and other health sciences graduates who choose to stay and work in Saskatchewan. 13. Create a provincial Fetal Alcohol Syndrome Disorder (FASD) advisory board to address FASD issues in Saskatchewan and establish dedicated provincial FASD diagnostic centres. 14. Establish crystal meth addiction treatment centres capable of providing long-term treatment options and safe house facilities for high risk individuals waiting for treatment. 15. Coordinate a province-wide system of community-based organizations to address addictions issues and the shortage of detox and inpatient treatment facilities in the province. 16. Dedicate a percentage of liquor and gaming revenues to addictions programs and facilities including dedicated facilities and programs for youth addictions services. 111

113 17. Implement an aggressive public awareness campaign in all Saskatchewan schools about the dangers of crystal meth. 18. Partner with the Government of Canada to building three new all-weather roads in Northern Saskatchewan to facilitate sustainable northern communities and sustainable northern economic development. 19. Increase the amount a social assistance recipient can earn from employment while on assistance. 20. Consult with First Nations and Métis people in the development, and prior to the implementation, of provincial legislation that impacts on the jurisdiction of Saskatchewan s First Nations. 21. Establish New Growth Tax Incentives to encourage private sector investment in new or existing Saskatchewan businesses. 22. Create a Community Infrastructure Investment Fund that pays an income tax free return to Saskatchewan residents who invest in community infrastructure projects. 23. Establish a Provincial Youth Justice Board to address youth crime, rehabilitation and restitution measures. 24. Create a Diabetes Health Centre of Excellence to improve the diagnosis and treatment of diabetes. 25. Establish designated provincial conservation areas and protected wild spaces within Saskatchewan s provincial parks. 26. Make instruction in the history and content of the Treaties signed between First Nations and the Government of Canada a part of the provincial core curriculum. 27. Increase funding for K-12 education to provide short and long term property tax relief. 28. Create Innovation Schools within our publicly-funded K-12 education system to deliver enhanced educational programming. 29. Implement the Schools Plus program in all school divisions in Saskatchewan. 30. Implement a program to reduce surgical waiting lists to the national average within four years. 31. Make the University of Saskatchewan a Centre for Health Excellence in North America. 32. Support the expansion of entrepreneurial training to include every high school in Saskatchewan. 33. Commit all provincial fuel tax revenue as a minimum annual investment in provincial and municipal transportation construction and renewal. 112

114 34. Restore fairness to provincial public sector contract settlements by negotiating fair compensation packages that are competitive with other provincial jurisdictions in Canada. 35. Establish an effective one-stop agency to facilitate the delivery of services to children, families and individuals in need. 36. Establish annual performance and productivity targets for all government departments and agencies. 37. Implement a province-wide business retention program through Enterprise Saskatchewan. 38. Establish a Seniors' Advocate Office that will function as a single window access for seniors seeking assistance in dealing with the provincial government. 39. Increase funding to cultural agencies by reducing the fee charged by the provincial government to administer the lottery licensing agreement. 40. Support healthy communities by providing an annual grant to address energy costs in community-owned recreational facilities. 41. Encourage new private sector investment in Saskatchewan-based value-added enterprises through tax-free returns on long term investment growth and dividend payments. 42. Create an Environmental Centre of Excellence at the University of Regina mandated to develop environmentally friendly technology for the energy, mining, forestry, transportation, agriculture and utilities industries. 43. Support a non-partisan, professional civil service where government policy is clearly communicated by Cabinet and implemented by well trained public servants. 44. Expand development of Saskatchewan s Uranium Industry. 45. Establish a fully independent Crown Utility Rate Review Board. 46. Create a single water management agency in Saskatchewan to develop, manage and conserve Saskatchewan s water resources. 47. Fully fund Saskatchewan s share of any federal/provincial agricultural program to which the province is a signatory. 48. Create a centrally dispatched Emergency Medical Response (EMS) system to coordinate delivery of EMS air and ground services in Saskatchewan. 49. Reorganize provincial EMS to include emergency fixed and rotary wing service in partnership with the STARS program in Alberta. 50. Create a comprehensive and seamless patient referral service in the province. 113

115 51. Provide Saskatchewan s post secondary institutions with stable, long term, multiyear funding commitments. 52. Make Saskatchewan the First Small Business Tax-Free Zone in Canada. 53. Aggressively expand Saskatchewan s irrigation capacity as a central component of Saskatchewan s long term agri-business and economic development plan. 54. Restore trust and confidence in Saskatchewan s justice system by undertaking a comprehensive justice review. 55. Mandate Saskatchewan s major crown corporations to provide high quality utility and insurance services at the lowest possible cost. 56. Implement a crown dividend policy that establishes net return levels adequate to meet crown re-investment requirements and directs excess crown profits to a dedicated infrastructure renewal fund. 57. Review the mandate and dividend policy of Saskatchewan s major crown corporations every five years. 58. Review Provincial government competition with existing private sector businesses. 59. Expand home care services to encourage independent living for seniors. 60. Create a Health Care Bill of Rights and Responsibilities. 61. Establish a Health Care Commissioner to measure, monitor and report to the people of Saskatchewan on the quality of health care. 62. Establish a one-stop service for businesses and investors interested in starting or expanding a business in Saskatchewan. 63. Work with other provinces and the federal government to negotiate a long-term agriculture support and risk management program that creates greater financial stability for producers and financial institutions. 64. Review the Saskatchewan Crop Insurance program with a view to expanding coverage and reducing risk. 65. Support partnerships between the Government of Saskatchewan and provincial post secondary institutions to promote research, development and commercialization of science and technology. 66. Participate in public/private partnerships to assist in commercialization of Saskatchewan based research and innovation including investments in the life sciences, health sciences, synchrotron science and renewable energy. 67. Give every K-12 student in Saskatchewan a Saskatchewan Centennial Tree to plant. 114

116 68. Establish set provincial election dates every four years. 69. Establish an enhanced business nominee program for immigrants with skills and investment capital to increase immigration and attract new investment capital. 70. Negotiate a new Municipal Revenue Sharing Agreement based in part on provincial own sources revenues and the municipalities ability to raise local property tax revenue. 71. Establish fair and balanced labour legislation that respects the collective bargaining process and removes barriers to investment, job creation and economic growth. 72. Support voluntary municipal amalgamation. 73. Complete a value-for-money audit of the provincial health care system. 74. Build partnerships with other jurisdictions for patient referral. 75. Complete the development of an integrated health information network in Saskatchewan. 76. Implement a four year plan to move to 100% provincial funding of health care capital projects. 77. Establish a provincial family care tax credit for renovation of existing homes or construction of new homes to accommodate care of elderly or disabled family members. 78. Establish a provincial care-giver tax credit to assist in the care of elderly family members or family members with mental or physical disabilities. 79. Establish a provincial tax credit to assist parents in the cost of child care. 80. Investigate the establishment of a Research Chair in Occupational Health and Safety at one of Saskatchewan s universities to improve the health and safety of all workers in Saskatchewan. 81. Invest in improved online distance education programs to enhance local educational opportunities especially in rural and remote areas. 82. Establish a partnership with First Nations to increase participation rates and improve educational outcomes for First Nations students. 83. Increase provincial tax credits for research, development and commercialization performed in Saskatchewan. 84. Strengthen support for local recycling programs to preserve our environment and reduce stress on community landfills. 85. Establish a stand-alone Department of Forestry with the mandate to facilitate the environmentally sustainable, long-term growth of Saskatchewan s forestry industry. 115

117 86. Make Saskatchewan the energy heart of North America by assessing the potential for further development of power generation from wind, clean coal, natural gas, nuclear, biomass, coal bed methane, ethanol, solar, oil sands, co-generation and hydrogen fuel cell technology. 87. Reduce capital gains on proceeds reinvested in Saskatchewan from the sale of a Saskatchewan business or property. 88. Encourage the establishment of a Western Canadian transportation hub and a North/South transportation and trade corridor in Saskatchewan. 89. Create a province-wide transportation policy to encourage population and economic growth and sustainability. 90. Review Saskatchewan s student loan program to ensure access to post secondary education for all qualified Saskatchewan students regardless of economic circumstance. 91. Review all government regulations every five years with a view to eliminating barriers to environmentally sustainable economic growth. 92. Address the impending shortage of qualified public sector employees by directing the Public Service Commission to develop an aggressive strategy for recruiting and retaining qualified public servants. 93. Support an open and transparent selection process for provincial justices. 94. Strengthen the ability of the provincial Maintenance Enforcement Office to ensure compliance with maintenance orders. 95. Strengthen police authority and discretion in advising the public of the presence of potentially dangerous violent or sex offenders in communities and/or neighborhoods. 96. Partner with other provincial governments in western Canada to deliver services where costs can be reduced and services improved. 97. Work in partnership with First Nations and Métis people to implement existing agreements and develop new agreements to build our province. 98. Streamline Saskatchewan s inter-provincial trucking and transportation regulations. 99. Eliminate any government fee that costs more to collect than it raises in revenue Call an election so a new government with the vision can get to work implementing items 1 through 99! 116

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