Released on March 28, 1996
Economic Development Minister Dwain Lingenfelter today said themeasures in the 1996-97 provincial budget will continue to build on the
foundation for sustainable business and economic growth.
"The Saskatchewan economy is in a growth mode with 10,000 new jobs
since 1992, as well as increases in our population, retail sales and
manufacturing," Lingenfelter said. "In the Partnership for Growth
economic strategy, the government renewed its commitment to working
with the business community to ensure we can sustain economic growth
and job creation as we enter the new century."
Lingenfelter noted that the budget includes tax and regulatory measures
that will encourage the business community to expand. These measures
include:
continuation of reductions to the corporate income tax rate on
manufacturing and processing profits from 17 per cent to as low as 10
per cent dependent on the business activity and new jobs located in
Saskatchewan;
continuation of the reduction in the aviation fuel tax, which has
resulted in an 80 per cent increase in business for Saskatchewan-based
fuel dealers this year as well as the creation of new jobs;
beginning January 1, 1997, improved tax treatment for
Saskatchewan-based inter-jurisdictional truckers by ensuring all inter-
jurisdictional truckers follow the same tax rules. This will stimulate
repairs and equipment sales within the province;
a commitment to reduce the administrative burden on business, and
establish one-stop centres where the paperwork required to start a
business can be completed quickly and simply; and
a commitment to review Saskatchewan's tax system to assess its
fairness and competitiveness with the findings to be reported in the
1997 budget.
The Budget also includes funding for initiatives to build upon our
economic strengths, including the creation of the Saskatchewan Trade
and Export Partnership (STEP).
"In the near future, I will be announcing details of STEP, a new
industry-government partnership that will provide services to help
exporters expand their markets or break into new ones," Lingenfelter
said.
The existing staff and budget of the Economic Development Department's
Trade and Development branch will be transferred to STEP for a total
budget of $2.06 million.
Other initiatives being funded include the support for locally based
economic development through Regional Economic Development Authorities
(REDAs) and in Northern Saskatchewan, through Community-based Regional
Economic Development Organizations (CREDOs).
Lingenfelter said that the continued financial management being
displayed by the provincial government also plays a vital role in
economic development.
"In my many meetings with business people, I have also received the
very clear message that sound government financial management is
critical to sustainable economic growth. With four balanced budgets
projected in our four year financial plan, I believe Saskatchewan is
well-positioned to encourage new and expanding business development."
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For more information, contact:
Debbie Wilkie
Economic Development
Regina
Phone: (306) 787-7982
Ron Podbielski
Finance
Regina
Phone: (306) 787-6578