Released on March 19, 2014
Increasing investment in training programs and labour force development, regulatory modernization and establishing the Saskatchewan Manufacturing Centre of Excellence are the priorities of the 2014-15 Ministry of the Economy budget.The ministry will allocate $500,000 in 2014-15 for the establishment of the Manufacturing Centre of Excellence, which will focus on productivity improvement, innovation and workforce development for the provincial manufacturing sector.
“Manufacturing has become a more important part of Saskatchewan’s economy,” Economy Minister Bill Boyd said. “Manufacturing provides high-skilled and high-paying jobs for Saskatchewan people. We need to ensure Saskatchewan maintains a lead role in this sector and the Centre of Excellence will help do that.”
The total value of Saskatchewan’s manufacturing shipments for 2013 was approximately $15.2 billion, a new record for the province and up from $14.2 billion in 2012.
- The 2014-15 Budget also continues to invest more in training opportunities to address Saskatchewan’s labour market shortages, including:$1 million increase for the Saskatchewan Apprenticeship and Trade Certification Commission (SATCC) for 300 additional training seats in 2014-15 (total of $22.2 million and 6,700 seats);
- $500,000 increase for the Apprenticeship Training Allowance;
- $924,000 increase for the Provincial Training Allowance; and
- $2.1 million increase for 700 new Adult Basic Education seats (total of 8,580 seats).
Saskatchewan’s fuel distributors will still be required to purchase 30 per cent of their ethanol requirement from small ethanol producers in the province. Regulations will be developed over the next few months and the industry will be consulted regarding details of the requirement.
The Ministry of the Economy has also collapsed ten different licensing fees into a single new oil and gas well levy. Coming into effect April 1, the new levy will streamline licensing and regulation which account for more than 20,000 annual transactions.
The new levy will require that industry pay 90 per cent of the cost of the government’s regulatory oversight. The government will collect an additional $13.3 million from industry in 2014-15.
“The oil and gas sector powers significant growth in our province,” Energy and Resources Minister Tim McMillan said. “This levy will align us with Alberta and British Columbia where similar levy models exist.”
Industry’s financial contributions will enable government to expand its efforts to regulate and monitor oil and gas development to keep pace with the rapid growth in the oil patch. Oil and gas companies will now pay one annual fee based on the number of operating wells and production, instead of several fees throughout the year.
“We support a robust regulatory system which will aid in providing assurance to the public that safety, environmental, and social outcomes are achieved,” Canadian Association of Petroleum Producers (CAPP) Manager of Operations Brad Herald said. “With record oil production in the province and projected continued growth over the next 20 years, CAPP supports the oil and gas levy as it will ensure a balanced, competitive, and efficient regulatory framework.”
“EPAC members invest hundreds of millions of dollars each year in Saskatchewan, developing new oil and gas projects that support thousands of jobs, build a strong economy and contribute to the province through royalties and taxes,” Explorers and Producers Association of Canada (EPAC) President Gary Leach said. “We support the new oil and gas well levy as it is anticipated to bring significant improvements in timely project licensing and regulatory oversight, while enabling Saskatchewan to remain a leading North American destination for oil and gas investment.”
The new levy will help fund service improvements to eliminate unnecessary paperwork in the regulatory process. In the coming year, government plans to move to a single-window, online system for license applications that will significantly reduce the current administrative burden faced by industry.
“As industry pays more, they will hold us to account to improve our services,” McMillan said. “We will be making a series of improvements to our services and increasing our monitoring and enforcement of our standards. Overall, a safe and effective industry is our common goal.”
Saskatchewan continues to have one of the strongest economies in Canada.
“Growth brings new challenges and new opportunities,” Boyd said. “This budget will keep Saskatchewan’s economy on the path of steady growth.”
-30-
For more information, contact:
Deb Young
Economy
Regina
Phone: 306-787-4765
Email: deb.young@gov.sk.ca