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BUDGET INITIATIVES CREATE JOBS

Released on March 24, 1997

Deputy Premier and Economic and Co-operative Development Minister Dwain
Lingenfelter and Finance Minister Janice MacKinnon today announced a
series of budget measures designed to create jobs in Saskatchewan.

"Now is the time to build on our strong fiscal and economic
foundations. Now is the time to spur our economy on to greater success
and greater heights," MacKinnon said.

"The measures in this budget are directed toward those sectors that
have been identified in the Partnership for Growth economic development
strategy as key to Saskatchewan"s future. They are long term
investments in economic growth and job creation," Lingenfelter said.

The job creation initiatives in the budget include:

a cut in the Education and Health Tax from 9% to 7%. This $180
million tax reduction will encourage consumer spending, economic
growth, and job creation;

increased resources to work with co-operatives in creating growth
and jobs. As an indication of the governmentþs commitment to co-
operatives, the Department of Economic Development has been
renamed the Department of Economic and Co-operative Development;



the introduction of a sales tax rebate on building materials
for livestock production as part of Saskatchewan's plan to
help triple hog production. In addition, a new branch of the
Department of Agriculture and Food will coordinate the
government's involvement in expanding hog production;

providing a Manufacturing and Processing tax credit on used
equipment to further encourage investment and economic
growth;

$640 million in capital spending by government departments
and Crown corporations to create jobs by investing in
schools, telecommunications, energy production and
distribution, park facilities and other essential
infrastructure;

creating jobs in highways construction and maintenance by
increasing the highways budget by 18% - part of a 10 year,
$2.5 billion commitment to improving our transportation
system;

establishment of a $6 million Stategic Initiatives Fund to
provide economic infrastructure for key growth areas of the
economy;

increasing funding to Regional Economic Development
Authorities by $447,000;

providing another $531,000 to the Saskatchewan Trade and
Export Partnership Inc. to create jobs by increasing
exports; and

extending the Canada Saskatchewan Infrastructure Works
Program and directing the entire federal and provincial
share to municipal projects. With the municipal share, this
will result in $35 million in spending to create jobs and
build stronger communities.

"In addition to creating jobs, we must ensure that our young people
receive the training they need to take advantage of job opportunities,"
MacKinnon said. "This budget contains additional funding for schools
and universities and a $117 million investment in a made-in-
Saskatchewan training program."

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For further information, contact:

Debbie Wilke
Economic and Co-operative Development
Regina
Phone: (306) 787-1691

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