Moe announces $7.5B stimulus package for Saskatchewan economy

The Government of Saskatchewan is dipping into its coffers to try to pull the province’s economy out of its COVID-19 slump.

Premier Scott Moe on Wednesday announced the details of a two-year capital plan that will pump an extra $2 billion into the province for capital plans. That’s on top of the $5.5 billion the province was already planning to put toward capital projects in the spending estimates tabled in March.

“Over the next two years, our government will invest $7.5 billion in schools, hospitals, highways, in Crown utility projects, in municipal infrastructure, and a number of other capital projects designed to build a strong province of Saskatchewan,” Moe said during a conference call.

He called it “a $2-billion economic booster shot.”

Moe said the projects will balance the need for smaller, short-term projects so people can get back to work quickly, with longer, larger-scale projects that will boost multiple sectors over years.

The government said in a media release that Statistics Canada data suggested the projects funded by the plan would support about 10,000 jobs depending on the type, size and duration of each project.

Moe said the money will be provided as part of the capital loan program in the province.

Capital projects mainly involve the construction sectors, but there are many other parts of the economy that are hurting. When asked why they also weren’t getting support, the premier said his government has been working closely with the federal government on programs for other Saskatchewan businesses.

Moe also pointed out that he “led the nation” in announcing the reopening of the province’s economy, allowing people and businesses to get back to work.

“What we are doing here today with these $2 billion is providing an opportunity to enhance and amplify that economy here in our province to add to the investment that we know will come from our private sector and from the exports that we provide to the world,” said Moe.

The package includes $2.7 billion in Crown and executive government capital spending that was laid out in the province’s 2020-21 estimates, and $2.8 billion in Crown and executive government capital spending that was projected for 2021-22.

The additional $2 billion includes around $1.37 billion for large infrastructure projects, including $103 million for health and $110.5 million for education. Other projects are to be announced at a later date.

More than $300 million is earmarked for highways projects, approximately $181 million is for renewal projects to reduce deferred maintenance on provincial and third-party assets and reduce operating costs through energy efficiency, and $150 million is to go to a per-capita payment through a new Municipal Economic Enhancement Program to support infrastructure projects in communities across the province.

Moe said that municipalities are facing challenges right now just like businesses and all other levels of government.

“That $150 million right there provides the opportunity to get people back to work in communities right across this province, and get them back to work on infrastructure projects that are a priority to the community that they live in,” said Moe.

The premier explained his government is also looking at the possibility of front-loading municipal revenue-sharing so municipalities will have that money in their accounts to use right away instead of having it being parsed out through the year.

The $2.7 billion in funding announced March 18 includes $130.4 million in education capital funding (for seven new schools and three school renovation projects), $142 million in health-care capital spending (for projects such as Prince Albert’s Victoria Hospital and a long-term seniors care facility in Meadow Lake), $377.5 million for transportation infrastructure (for such things as improving more than 1,000 kilometres of highway), and $165.7 million for municipal infrastructure.

Over the plan’s lifetime, more than $320 million will be provided for municipal infrastructure projects.

“Municipalities are the engines of economic growth in Saskatchewan,” Saskatchewan Urban Municipalities Association president Gordon Barnhart said in the release.

“We’ve been advocating for years for the development of a provincial infrastructure program, and we’re extremely pleased to see our provincial government implement one to help our economy recover in these challenging times.”

NDP leader Ryan Meili weighs in

Provincial NDP leader Ryan Meili is welcoming news from Premier Scott Moe, about an additional $2 billion economic stimulus package to be spent on capital projects over the next two years. It’s on top of the $5.5 billion dollars already earmarked for this year.

The provincial government is trying to boost the sluggish economy because of the COVID-19 outbreak and fallout.

However, Meili has some questions.

During a brief news conference after the announcement, the NDP leader said in the past, many large-scale projects went to companies outside of the province.

He’s hoping that doesn’t happen with the new money announced.

“One of the things we’ve noticed over the last year, whether it’s the Regina bypass being built by a company out of France, or the power plant in Swift Current or the upcoming one in Moose Jaw being built by American companies – there’s a tendency for major projects to go companies from out of Saskatchewan, hiring workers from out of Saskatchewan.”

That doesn’t sit well with him, because he says the money should stay in the province, so it can be spent here.

“When we build our roads, our hospitals, our power plants, our schools with our tax dollars, we should absolutely be doing that with our companies and our workers.”

Meili adds that he wants additional clarity about how the projects that are going ahead were chosen and whether they are the right projects to invest in.

“Which leads me back to a question that continues to concern me, which is the lack of interest from the Premier thus far in any discussion of getting back to some form of legislative accountability.”

He adds that he wants to know that the decisions being made today, are in the best interests of Saskatchewan now, and in the years ahead.

The new money announced includes $300 million for highways projects, $200 million for health infrastructure, and $135 million for education infrastructure, along with $150 million to municipal infrastructure projects.

Moe says the money is expected to support about 10,000 jobs over the next couple of years.