| Wall looks forward to new legislative session |
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| SW Sk Content - Politics |
| Wednesday, 21 October 2009 21:02 |
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By Ryan Dahlman Saskatchewan While the political phrase ‘budget cuts’ usually instigates panic, if not disdain from the public, the Saskatchewan provincial government’s announcement last week of cuts didn’t seem to generate any kind of public backlash at all. In August, the provincial government announced in their first quarter Financial Report, their budgetary numbers fell short with a sharp decline in revenues due to unexpected drops in the price of potash and the low prices within the petroleum industry. The government hoped to find $49.2 million in cost saving measures to go along with $132 million in capital deferrals. Finance minister Rod Gantefor found double that with $102 million in savings (see related story for more specifics) which pleased Premier Brad Wall. Wall said this was the best option as the province wants to have stable footing and would rather do this than dig themselves into a financial hole while waiting for petroleum sector and potash prices to increase. He knows both sectors will recover, but in the meantime, he doesn’t want to see red ink. “We do not want to borrow money,” said Wall from Regina on Monday in describing taking money from any rainy day funds. “We know we’re not going to increase the debt. Listen, a mistake was made in potash (projections). We’ve got to deal with it (and we did).” Wall said they will be keeping a close eye on the dollar which had been hovering around the 97 cent mark last week, has now fallen to 95 cents (Wednesday) and is expected to drop. This is good news for Canadian exporters who sell to buyers in the United States. The more the dollar drops, the easier it is to sell oil and other commodities and goods to the U.S. This seems like good news for the Sask. Party as it entered a new session with the Speech from the Throne being read by Lieutenant Governor Dr. Gordon Barnhart Wednesday (Oct. 21). Wall was expecting a busy fall session. There have been media reports of potential mudslinging between Wall and new NDP leader Dwain Lingenfelter. The two leaders are both from southwest Saskatchewan, although Lingenfelter, who owns farm land near Shaunavon, won a by-election last month in the riding of Regina Douglas Park. Wall didn’t want to exchange political barbs, but he did say if the NDPleader starts harping, “It’ll be one man yelling,” referring to his counterpart. “People in Saskatchewan have moved on from that old style of politics. We’ll engage in debate and we’re proud of our vision. And when I say we, I mean the people of Saskatchewan, we have worked hard. We’re not taking credit as a government, the people did the work. If he wants to be talking about 1980, (Lingenfelter) is not going to have a willing partner. Legislative assembly works best with two willing parties. “What surprised me was Mr. Lingenfelter’s stance on the oil industry. He wants to go back to what happened in the past. He wants to go back to (19) seventies’ style of a government-owned gas company. That’s dangerous for the oil industry ... I couldn’t believe it when I heard it–a former executive of an oil company in Alberta.” Wall added he hosted the American Ambassador for Canada David Jacobson and his wife last Friday. Wall was impressed with Jacobson’s knowledge of Canada and his overall enthusiasm. Wall said Jacobson will be a great ambassador considering how close the business lawyer from Chicago is to U.S. president Barack Obama. Wall indicated the two held informal discussions about carbon capture and energy security to name a few. Jacobson is on a whirlwind tour as he tries to visit all of Canada’s provincial and territorial governments in a little over two weeks. “He will be good for Canada,” added Wall. Notable budget cuts: Reductions in Program Utilization = $48.4 million -A $48.4 million savings forecast from programs where utilization was less than originally anticipated: - $20.4 million in forecast savings from Agriculture, including $10.1 million in savings from the AgriInvest program and crop insurance premiums, and $10.3 million in reductions to a series of Agriculture programs and AgriStability transition costs; - $9 million in forecast savings for lower than anticipated fire fighting costs this season (Environment); - $8.7 million in forecast savings for a variety of training and employment programs (Advanced Education, Employment and Labour); - $1.9 million in savings from Tourism, Parks, Culture & Sport mainly for the Active Families Benefit; - $1.8 million from Enterprise Saskatchewan primarily due to reduced project and administrative funding. - Other administrative program savings were identified by Government Services ($1.6 million), Education ($858,000), Municipal Affairs ($1.4 million), First Nations and MÈtis Relations ($643,000), Public Service Commission ($510,000), Health ($500,000), Information Technology Office ($420,000), and other efficiencies found in various ministries ($678,000). Capital Deferrals = $35.1 million -$32.1 million returned from the University of Saskatchewan for the Academic Health Sciences Building. Cash flow forecasts for construction indicate these funds are not required before the 2011-12 fiscal year (Advanced Education, Employment & Labour). -$3 million in deferrals from Health for the ambulatory surgical care centre in Regina, due to slower than expected construction progress. Vacancy Management and Travel = $10 million -$8.4 million in vacancy management savings equal to about 142 full-time equivalents. -$1.6 million in civil service travel restraint, for both in-province and out-of province travel reduction. Program Reductions = $8.1 million -$8.1 million in program reductions (portions of funding have been reduced or deferred until otherwise available) -$5 million from Health through savings identified in non-clinical programs administered by the Regional Health Authorities. -$1.5 million from Energy and Resources, mainly for deferrals of the Community Development Trust funding. -$875,000 from Highways and Infrastructure in deferred work under the Urban Connector program. - $700,000 from Tourism, Parks Culture and Sport for various initiatives including a reduction in the subsidy to the Commercial Revolving Fund. |
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