GROWING THE ECONOMY

Released on March 27, 2002

The 2002/03 budget is encouraging jobs and business growth through

strategic business tax reductions, increased investment in infrastructure

and a continued focus on research.



"We are improving the climate to allow private sector initiatives to

flourish and grow," Industry and Resources Minister Eldon Lautermilch said.



Saskatchewan is increasing the exemptions for the Corporate Capital Tax

from its current level of $10 million to $15 million. This will benefit

small and medium size businesses and make it easier for them to compete.



The government is investing almost $5.3 million, up from $3.7 million last

year, in information technology initiatives. These initiatives will ensure

Saskatchewan residents and businesses have secure and affordable electronic

access to government services and on-line commerce.



Funding for the Economic Partnership Agreement will increase by $1.6 to

$5.3 million this year. This federal/provincial initiative is designed to

invest in infrastructure for the purpose of stimulating growth.



"The government remains committed to the energy sector, which contributes

significantly to building our economy by attracting investment, creating

jobs and generating revenue for the province," Lautermilch said. "This can

be seen in the up to $1 million newly designated for the Petroleum

Technology Research Centre and its partners. This will allow research to

enhance oil and natural gas recovery and addresses technical barriers, will

reduce industry's cost, attract more investment and create jobs."



In research, a further $500,000 will be provided to the University of

Saskatchewan for a new Saskatchewan Synchrotron Institute. The $173.5

million Canadian Light Source synchrotron is a powerful lure in attracting

high technology companies. The synchrotron is creating direct jobs for

researchers and has the potential to create hundreds of spin-off jobs in

research. The new synchrotron institute will co-ordinate the interests and

activities of synchrotron stakeholder agencies.



Regional economic development plays an important role in encouraging job

creation," Lautermilch said. "We will continue to provide $2.8 million

for Saskatchewan's 28 Regional Economic Development Authorities (REDAs).

REDAs bring together business, co-operatives and local governments to pool

their resources and efforts to attract investment in their region.



"We also recognize the job opportunities tourism contributes throughout the

province, therefore we are maintaining the $6.9 million in funding for

Tourism Saskatchewan," Lautermilch said.



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For more information, contact:



Debbie Wilkie

Industry and Resources

Regina

Phone: (306) 787-7982